14. August 2013

Financial Impact of Cloud remains unclear

SAP allows switching from On-Premise to Cloud and Hybrid
User organizations should carefully rationalize ...

SAP wants to speed up the migration of users to the cloud and now presents new models that can be expanded or relocated over the locally installed solutions to cloud offerings from SAP. The promise is that licenses and maintenance agreements "migrate" to the hybrid operation.
" Based on their existing investments in SAP software, customers can decide 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 restricted according to SAP to users of SAP MaxAttention and SAP Active Embedded. However, SAP is pouring water into the wine: "The transaction assumes an expanded investment … given the substantial added value from this new hybrid scenario." Hence, migration is only realistic with additional software investments. SAP wants to accelerate innovation among users, expecting to also reduce the total cost of IT operations. A hybrid solution offers full investment protection.

What does this mean to you?

With the acquisition of Ariba and SuccessFactors and this migration statement, SAP will claim the investments based on the trend towards Internet-based applications, without however revealing a predictable financial impact. Users of License12 should identify the areas that are attractive to the hybrid operating costs and create a balance sheet that identifies the associated maintenance costs. The download of License12 license contracts it facilitates the creation of this record. Conversion tools available on the net will simplify decision support.

(Source: iStockphoto)


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