SAP Targets Enterprise SOA
Enterprise service oriented architecture (SOA), or, according to SAP, enterprise services architecture (ESA) took center stage in Orlando Tuesday during the SAPPHIRE '06 afternoon keynotes, delivered to more than 15,000 attendees. "The industrialization of software is upon us," said Bill McDermott, president and CEO of SAP Americas, and corporate officer of SAP AG, at SAP's annual user conference. "We're moving into a world of mass customization," he added, noting that the industry is moving toward component-based assembly, while industry-specific solutions are now being decomposed into smaller enterprise service repositories that all applications can draw on.
McDermott also highlighted three of SAP's apps being featured at SAPPHIRE: SAP Analytics, which leverages SAP Business Intelligence to integrate data from sources including SAP, third-party and custom apps, and legacy systems; SAP's CRM on-demand functionality; and Duet, the Microsoft integration formerly known as Project Mendocino.
SAP unveiled its CRM on-demand offerings in February with the launch of the SAP Sales on-demand solution. The initial release was designed to help organizations manage customers, contacts, and sales pipelines with configurable tools, while enabling businesses to migrate to on-premise deployment at their own pace. SAP's second wave of on-demand functionality is scheduled to be unveiled at SAPPHIRE today, including extended pipeline performance management capabilities for the Sales on-demand offering, along with the first installment of SAP Marketing on-demand.
As to be expected, Greg Gianforte, CEO and founder of CRM on-demand competitor RightNow Technologies, isn't impressed. "SAP continues to push both their business process solutions and misguided assumptions about the on-demand market," he says. "The company continues to remain solely focused on back-office systems that optimize processes, where we, on the other hand, are focused on delivering frontline impact at the point of contact with each customer." He contends that the company is also misguided in its assumption that on-demand is an entrance ramp to on-premise. "Siebel fell into the same trap, and Oracle is following right along, as well."
However, Rod Masney, global information and technology architect for O-I, a manufacturer of consumer goods packaging, says his company is considering SAP's on-demand product. "It's an exciting offering that we perceive we can get value from."
Duet, highlighted by SAP customer and early Duet adopter Home Depot, ties SAP business apps to Microsoft Office applications to maximize efficiency. "Bringing those two worlds together inside our enterprise could have huge productivity implications," Robert DeRhodes, executive vice president and CIO of Home Depot said, citing potential changes in the way that company thinks about reporting and workflow. Home Depot also intends to extend capabilities to business areas like its field force. Gary Butler, CEO-elect of payroll, benefit administration, and HR specialist ADP, was also on hand to discuss its GlobalView HR offering powered by SAP HCM, CRM, and NetWeaver.
McDermott noted three points that companies need to know about enterprise SOA--it's evolutionary, not disruptive; user empowerment and business process innovation is at the heart of the architecture; and organizations can begin implementing now. "We're committed to building, buying, or partnering to bring end-to-end business solutions to you so every customer we work with can be a best-run business," he said.
Leo Apotheker, president of customer solutions and operations and member of the SAP AG Executive Board, took a more aggressive approach to encouraging more SOA-based deployments. For companies skeptical about enterprise SOA, "ESA is a reality," he said. "You [can't] afford to sit on the sidelines and observe."
SAPPHIRE '06 is colocated with the Americas' SAP Users' Group (ASUG) annual conference, allowing ASUG members and SAP's customer base to "come together and share an unparalleled experience of education, networking, and influence," Masney says. (He assumes the position of ASUG president today.). SAPPHIRE '06 runs through Thursday, while ASUG's conference runs through Wednesday.
Related articles:
Oracle Versus SAP: The Gathering SOA Storm
SOA Simple
CRM examines service-oriented architecture and its growing impact on the applications landscape.
SAP's On-Demand CRM Valentine
Related Articles
SAP Declares "ByDesign Is Here" (Sort Of)
19 May 2010
SapphireNow '10: SAP's co-CEOs deliver back-to-back keynote addresses celebrating not only their first 100 days at the helm, but also the general availability of on-demand offering Business ByDesign 2.5 — two months from now.
SAP Insists "Mobile Is the New Desktop"
19 May 2010
SapphireNow '10: SAP executives explain the recent Sybase acquisition and set a date for the general availability of on-demand software Business ByDesign 2.5.
CIO vs. CFO: The C-Suite Deathmatch
20 May 2009
SAPPHIRE '09: Experts attempt to dispel stereotypes about the battles that rage over technology-purchasing decisions.
Speed and Clarity Drive SAP's Success
14 May 2009
SAPPHIRE '09: Keynote addresses by several SAP executives reflect the company's desire to quickly deliver business value for companies during the downturn.
SAP Promises "Innovation You Can Trust"
12 May 2009
SAPPHIRE '09: SAP co-CEO Leo Apotheker lays out his company's roadmap to navigate the economic crisis. "The only antidote to uncertainty is clarity," he says.
The 2008 CRM Market Awards: Influential Leaders -- Bill McDermott
01 Sep 2008
The Rock: Bill McDermott -- president and chief executive officer, SAP Americas & Asia Pacific Japan.
SAP Takes a Dual Approach
19 May 2006
SAPPHIRE '06: The company highlights its hybrid on-demand/on-premise CRM offering, while persistently promoting its enterprise services architecture strategy.
On the Scene: SAPPHIRE '06: SAP Continues Its Enterprise SOA Push
01 Aug 2006
The enterprise software company underscores its on-demand CRM capabilities while continuing with its enterprise services architecture approach
SAP Sounds Off on SOA and Collaboration
24 Apr 2007
SAPPHIRE '07: The business software giant highlights its enterprise services strategy and champions the importance of business network transformation.
Buyer's Guide Companies Mentioned