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Must-know: SAP AG's 2Q14 earnings review

Part 2
Must-know: SAP AG's 2Q14 earnings review (Part 2 of 12)

Why SAP’s Cloud strategy will capture cloud space

SAP’s cloud strategy

“Cloud” is growing very fast. Cloud based systems are expected to be more agile and responsive to the changing business environment. Cloud and hybrid integration solutions are gaining momentum. Businesses are choosing to shift from on-premise software to cloud.

SAP (SAP) announced its cloud strategy in March, 2014. SAP’s cloud strategy revolves around the SAP HANA platform, marketplace, and pricing structure. Microsoft (MSFT), Amazon (AMZN), Google (GOOG), and Salesforce.com (CRM) are leading players in the cloud space.

cloud strategyEnlarge Graph

The previous presentation outlines SAP’s cloud strategy. The company aims to deliver all of its applications on one common platform—the cloud. The key idea about formulating the cloud strategy is to converge all of SAP’s applications to one platform in the cloud.

Four pillars of SAP’s cloud strategy revolve around SAP HANA

The cloud strategy, primarily revolves around four primary categories:

  • The first pillar refers to the SAP HANA Cloud Platform. SAP’s in-memory Platform-as-a-Service (or PaaS) offering allows customers and developers to build, extend, and run applications (or apps) on SAP HANA in the cloud. It gives the customers three options to build real time apps in the cloud—SAP HANA App Services, SAP HANA DB Services, and SAP HANA Infrastructure Services.
  • The HANA marketplace is the second pillar. It’s an online exchange for testing and developing apps that can be from SAP or third parties. Memory can be bought in allotments from 120 gigabytes (or GB) to one terabyte (or TB).
  • The third pillar is the new pricing structure. It’s based on consumption and starts with a base price. Services like predictive analytics and spatial processing and planning can be chosen by customers as add-on options. Customers will be billed accordingly.
  • The fourth pillar in the cloud strategy refers to the new features and usage of HANA in various cases. “Big data” has revolutionized the healthcare industry. In response, SAP is developing Genomic Analyzer and Medical Insights. Genomic Analyzer is designed specifically for extracting and tracking data in real time throughout various stages along the genomics research process. Since it’s based on HANA in-memory database technology, it has the ability to record sets of 2,500 genomes and generate multi-variant results in seconds. This creates the potential for disease biomarker identification, population genetics studies, and personalized medicine. SAP’s Medical Insight’s solution is a part of a co-innovation project with a cancer institute in Germany.

Continue reading the next part in the series to learn how SAP HANA SPS 08 features will benefit SAP.

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