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S/4 HANA: SAP’s New ERP Platform Saw Increased Adoption in 4Q15


Jan. 20 2016, Updated 2:05 a.m. ET

SAP’s S/4 HANA customer count doubled in fiscal 4Q15

Previously in the series, we discussed SAP’s (SAP) fiscal 4Q15 and 2015 results. Its results beat analysts’ expectations due to the increased adoption of the company’s cloud offerings as well as the strong US dollar (UUP) compared to the euro (EWG). SAP’s new cloud bookings grew 75% and 103% in fiscal 4Q15 and full-year 2015, respectively.

SAP will provide detailed information on its recent fiscal 4Q15 and 2015 earnings on January 22, 2016.

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SAP also stated that the company’s new flagship ERP (Enterprise Resource Planning) platform—SAP Business Suite 4 SAP HANA or SAP S/4 HANA—saw increased adoption. This could be seen in the increased customer count. It more than doubled. It reached 2,700+ on a quarter-over-quarter basis in fiscal 4Q15. SAP’s CEO Bill McDermott stated that the S/4 HANA code base can be run on public, managed clouds, or on-premises.

SAP’s cloud strategy revolves around S/4 HANA

SAP’s S/4 HANA was released in early 2015. It runs on the SAP HANA platform. HANA is SAP’s in-memory analytics product. It allows organizations to do analyses of large volumes of data in real time. All of the data that’s stored in-memory or RAM (random-access memory) is referred to as “in-memory.” In the business intelligence and analytics market, apart from SAP’s S/4 HANA, there’s also Oracle’s (ORCL) Exadata Database Machine.

Earlier, SAP’s cloud strategy revolved around SAP HANA. Now, it transferred to S/4 HANA. This is why SAP’s S/4 HANA performance is carefully scrutinized to judge the company’s performance in the cloud space. Focusing on the importance of S/4 HANA in SAP’s success in the cloud space, the company’s founder Hasso Plattner stated that “If it doesn’t work, we’re dead. Flat out dead.”

In its latest release, SAP stated that “Our completeness of vision in the cloud and soaring adoption of S/4HANA gives us tremendous confidence in our business in 2016 and beyond.”

Next, we’ll discuss SAP’s recently announced partnership with Accenture (ACN). We’ll see how it pertains to S/4 HANA deployment.


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