av2018 INSIDE SAP'S RADICAL MAKEOVER: Sistema de descoberta para FCCN
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Titulo: INSIDE SAP'S RADICAL MAKEOVER. Por: Lov-Ram, Michal, Fortune, 0018826, 4/9202, Vl. 165, Numero 5
Base de dados: Health Business Eile
INSIDE SAP'S RADICAL MAKEOVER
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tech | TECH@WORK
‘The mission-critical (but unsexy) software glant lost its way with customers. CEOs Bill McDermott and Jim Hagemann Snabe think
they can make SAP appealing again
[AT THE STROKE of midnight on Feb. “5, @ new app called Recale Plus appeared in Apple's App Slore. It promised paren real-time alate
(on the latest baby formula 0” carseat cals, allowing them to share such information with fiends. There was nothing surprising about the app
‘except for three tiny eters a he bottom ofits description: SAP.
Indood, the apo is exactly the opposie of what many people expect from SAP, which specializes in complex back.offce corporate software
that companies pay millons of dollars to install and maintain, Why woule SAP co-CEOs Bill McDermott and Jim Hagemann Snabe greer-ight
a free downloadable product fr moms and deds?
‘The consumer-tiendly app, i tums out, is symbolic of bigger changes afoot atthe tech giant, based in Wallor, Germany. Since joinly taking
the reins at SAP in February 2010 (more on their unusual power-sharing arrangement in @ moment}, MeDermalt, 80, ané Snabe, 45, have
‘sped up development cytes, closed a couple of bold accuistions, and made nice with customers who had lst felth in SAP. Recalls Plus is just
‘one of several signs the company is moving beyond its legacy business and investing in the technologies its cuslomers crave: mabily, cloud,
and real-time analytes.
‘Though SAP enjoys enviable market postior-nearly 80% of the Fortune 500 use SAP sofware for processes ike inventory planning, and
6% of worlwide financial transactions are processed through SAP software at one point or anther.-corporaions are starting to racy
rethink the way they buy ard deploy sofware. Employees are behind the change: They increasingly want to bring thelr home smartahones and
{ables into the workplace, and they expact their ofce to provide them withthe same kinds of apps and online senvces they enjoy in ther
personal ives. But instead of embracing online delvery of sofware, or of computing via the cloud, SAP made a few tepid attempts to develop
‘online versions of ks existing products. Meanwhile smaller companies tke NetSuite, Workday, and Salestorce.com, which displaced SAP as
the worle’s eaconc-largest provider of customer relationship management software, rushed to fille vid. (Tha No. 1 CRM vendor is Oracle.)
‘To bolster their sotware-as-a-servce offerings, McDermott and Snabe late last year agraed to spend $3.4 lion to acquire SuccessFactors, a
maker of cloud-based human resources sofware, Ina series of interviews with Fortune, McDermott and Snabe ackrowledged thatthe shift 'o
tho cloud model has broad financial implications for SAP, The company last year reported $19.8 bili in revonuo, 49% of which came from
installation fees and long-term maintenance contracts. In a sofware-as-a-service model, customers usually pay a flat monthly rate for each
Worker using the app, "Will [SuccessFactors] cannialze some of our or-premise revenue?" McDermott asks. “Probably, bul isthe right thing
todo.
‘The company McDermott and Snabe Inherted in 2010 was a mess. Software license sales at SAP in 2008 fell 2%, and revenue declined 8%,
to $149 ion, “We had lost the trust in relationships with our customers, and employees did not beleve in management” says Hasso
Plattner, SAP co-ounder and chairan ofthe company's supervisory board. "SAP naeded to rastoe a cultura which would allow us to return
to innovation and growth.” Patiner concluded that the company needed new ladership, and on a Saturday morning in February 2010 ne
caled up McDermott and Snabe to ask f hey woul joint take the top job. The folowing day, a Sunday, the company issued a press release
‘saying CEO Léo Apathoker’s contract would rot be renewed. (In Septomiber 2010, Apotheker was named CEO of HP; his tenure lasted less
than a year)
‘One of McDermott and Snabe's frst moves was o acquire Dublin, Call-based Sybase for $5.8 billon, a deal that bolstered SAP's offerings
for mobil devices. Sybase, which operates as an independent company, is working with SAP to develop tools that allow corporations to buld
new mobile apps on top of existing SAP sofware and services, The CEOs also unvelled a new database technology called HANA, which
dramaticaly speeds up calculations by storing data in memory" rather than on tradional dsks. Early sales suggest HANA is ahi, binging in
‘$221 milion in rovonue in 2011, when it became avalabo inthe second hal ofthe year, and Snabe and MeDermoit are bong tho technology
‘can help SAP achieve their ambitaus goal of taking marketshare from archenemy Oracle, the work's leading provider of database software
hitpeds.oscohest con e/detalldetal id= d10b2'c1-2361-481-2247-85804/3a7c07%id0sessionma 400380 18hid-42038bdeta=Jmxhome9eHOt.
6 av2018 INSIDE SAP'S RADICAL MAKEOVER: Sistema de descoberta para FCCN
‘Amid the acquisitions and new-product announcements, MeDermott and Snabe hit the road fo meet disgruntled customers, They roversed
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