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As announced last week, SAP now offers customers and partners a simple, flexible model for extending current on-premise solutions to cloud applications, including offerings from SAP companies Ariba and SuccessFactors.

With this model SAP enables customers and partners, based on their existing investments in SAP software, to reallocate elements of their installed on-premise solutions to the respective cloud solutions from SAP, replacing the affected on-premise license and maintenance with a cloud subscription.

This is unique in the industry.

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(#SAPCloud portfolio for Cloud extension program)

Cloud extension is the next step in making SAP’s unified vision for its cloud portfolio a reality for customers and partners. Each customer situation is unique, implying that there cannot be a ‘one size fits all’ cloud strategy. Companies want more than simply ‘speed’. They want business velocity, i.e. moving with speed in the right direction. Forcing customers into a “rip and replace” or consolidation strategy does not service their unique business needs or take into consideration in which direction they are moving. SAP’s cloud extension allows companies to extend their existing environments with an industry leading cloud portfolio, using a well-defined integration strategy. This will deliver business velocity.

Customers and partners are turning away from point solutions – especially in the cloud – as they start to see the negative impact of a mushrooming environment of cloud solutions. These are often purchased by parts of the business – without looking above the cubicle, focusing only on their immediate needs. Now many customers and partners are looking to long term engagements, we even see engagements with 5 years subscription models! This allows them to transform in a structured way while planning ahead. Flexibility assured.

60% of IT investments are influenced by Line of business leaders like VP of Marketing, Sales, Chief procurement Officers, Chief HR Officers, and so forth…. but these decisions need to benefit the entire corporation. IT should help to define the right mix of cloud and on-premise solutions (hybrid) and safeguard  the quality and interoperability of these computing services as part of an integrated IT strategy. Regardless of whether the solutions are cloud or on-premise.

The resulting hybrid solution is an integrated offering with seamless delivery and support as well as full control over the application landscape, including on-premise and cloud applications. Hybrid computing will be the norm for the foreseeable future. We leverage the SAP Rapid Deployment solutions for the SAP Cloud portfolio to support the new cloud extension opportunity. Hybrid deployment scenarios can be quickly implemented based on packaged content and implementation services in the areas of human resources, procurement, and business collaboration, among others.

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(Example of hybrid with HCM scenarios)

Customers appreciate having only one hand to shake – therefor SAP added proven support offerings, including SAP MaxAttention and SAP ActiveEmbedded services, allowing customers and the respective IT departments to build and run SAP cloud solutions like a factory.

SAP has 30 million users in the public cloud space and counting –proof of the strong adoption SAP’s cloud portfolio..

Customers want to change their business at their own pace. In support, SAP offers a comprehensive portfolio of cloud solutions, allowing the right mix of premise, hosted and cloud solutions. Key to success is the right integration strategy – and our customers and partners have co-innovated with us to get it right. For You.

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(SAP Cloud difference and integration)

Your next steps to cloud extension:

  1. Identify the right cloud extension opportunities from our portfolio
  2. Assess your reallocation opportunities – which elements of on-premise solutions are now covered by SAP cloud solutions?
  3. Contact your– your respective account executive or the cloud sales team in regards to the eligibility criteria and prerequisites
  4. Drive adoption at your own pace – what is the best path to realize these opportunities via innovation and integration?

I have shared previously how our customers and partners help shape our roadmaps and drive innovation every quarter. Through these engagements we believe that customers have a different approach to cloud adoption based on their unique business requirements. However, what is very clear is that they want to reap the benefits of cloud computing NOW. The new cloud extension model is an optional and flexible model that supports many different entry points into a cloud strategy.


I am proud of what SAP and its customers and partners have achieved in this still (still) new world of Cloud Computing in such a short timeframe – the most users, the most comprehensive portfolio, a unique transition model and commitment to this seismic change to our industry. A change that we will shape together.

Looking forward to your feedback,

Regards @SDenecken

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4 Comments

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  1. Luke Marson

    Good job Sven and nice to see the roadmap evolve and your constant presentations to customers of the updated roadmap. It would be great to get more of this within each of the pillars of the overall Cloud roadmap.

    Best regards,

    Luke

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