Thread regarding SAP layoffs

Ahh,,,, what could have been.....

The unwillingness of our existing customers to swap out their ERP platforms and shift to the cloud should have been painfully obvious to our leadership.  Before I was an employee of SAP I was a customer and went thru an extensive  and "extremely expensive" implementation phase lasting well over two years.  There are so many costs customers have to expend to get the SW performing to the point of satisfactory ROI.,  There are outside consultants, countlessa internal process owners who give up their regular jobs to help with the transition, training, travel, lost productivity, etc, etc...   Simply put,  I can tell you first hand that when a customer invested so heavily in our ERP  platform, they were "a customer for life"

So to think that after all of this expense over such a protractracted period that  our customers, many of whom are Fortune 100 to 500, will just drop their ERP platform and go over to the cloud is at best ridiculous and short sighted.   

Clear that our leadership wants to  shut down our ERP business which was once best in class and world's largest platform and have all our existing customers go into the cloud business where we compete with every minute  operation on the planet, but does it really make sense?    Would it have been wise for Henry Ford after he had made a successful launch in the auto business  to say, we no longer will make automobiles but we will shift to lawnmowers because Americans will  need these for the new homes they will buy that have lawns.  or would it have been smart for John D Rockfeller to say Standard Oil will get out of the oil business and venture into bottled water business because  people will need to carry water with them in the future?? 

Make no mistake SAP is where it is today because of the monumental business our ERP platforms afforded us.  These are not throw away platforms that get swapped out every couple of years -  companies buy these systems for decades to come.  The wiser move would have been to maintain our foothold in the ERP   biz that spun off hundreds of millions in just annual maintenance fees and then to enter in parallel the cloud biz, but alas our leaders see things differently.

And so somewhere there is a company waiting for the SAP giant to die off and exit the ERP business (and as well exit our legacy customers) and then such a company will swoop in and provide the support on our customer's EFP business that we simply just walked away from and then they  will make "Billions" that we threw away in lieu of a  low margin / high turnover cloud biz.      Ahh, what could have been. ??

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| 2001 views | | 9 replies (last August 14, 2024) | Reply
Post ID: @OP+1tUWTVHU

9 replies (most recent on top)

@6wnb+1tUWTVHU your post has really hit a nerve, it's the usual rotten broken promises with zero regard for anybody, treating employees with utter disdain.

I'm very sorry to hear about your mother. I hope things are going well for you now that you're out of it.

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Post ID: @6ojw+1tUWTVHU

You are absolutely right about regulated entities. They do not want any customer data processed outside of the EU.
SAP craved the consistent revenue of the cloud subscription model where customers were effectively stuck for 7 years (well 5 years and 2 renewals of one year). The maintenance base was eroding and Rimini Street and Spinnaker were eating SAP’s lunch, among others.
With the passing of The EU’s Data Act, cloud providers are compelled to support a customer’s migration to a new platform - so customers with poor service/performance and no meaningful SLA remedies will be able to move. This will unlock the stranglehold SAP has in its Cloud customer base.
An AI powered ERP that’s easy to deploy and less costly, but able to handle customisation and modification, will be on the scene in 3-5 years.
I can’t wait! But in the meantime, CK will extract every last bit of personal wealth he can, before the inevitable happens.
SAP robbed me of my last Christmas with my mother. I worked the holidays on the promise from my boss that I would not be in the layoff pool and not long into January - there was the call with HR in my calendar. So while I am sad for the employees, I will be happy to see a company that treats its workers so callously implode like a dying star.

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Post ID: @6wnb+1tUWTVHU

Anybody who thinks the Cloud biz will sustain our today's workforce is dreaming. Cloud revenue amounts to about 1/3 of total revenue and in last two years we have laid off about 15,000 people.

CK says he wants Cloud rev to be 70% by 2027. Just do the math, means we will lay off at least another 20K, if not more.

There is no question that there is a "magic" number CK and HP have targeted as to what our workforce will be in 5 years. I suspect we will be at half of what we were at our peak. They know now how rewarding the investment community has been towards HC reductions - and they will deliver what they want.

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Post ID: @6jws+1tUWTVHU

To use our SAP parlance, let's tell it like it is. The hard facts is that no major enterprise corporation (+ 20k employees) who has an SAP ERP platform is even going to think for a second about going to the cloud. This is not the SW package from which they will run their companies - period!

Cloud is for SMB and Mid Market companies who cannot afford the expense of buying and maintaining an internal platform so they go for a more cost effective, down sized version.

But to send a message to our '000's of companies worldwide who have been running an ERP system for years ( and paying annual maintenance fees) that we want them to shift over to the cloud and also send signals that we want to exit the ERP biz, well we might as well just tell them - game over.

Hard to overstate just how big of a mistake our leadership is taking us on.

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Post ID: @1weg+1tUWTVHU

Only one reason CK is pushing hard to shift our customers into Cloud biz and out of legacy ERP platforms and that is the company can shed a tremendous amount of HC in the world of Cloud platforms. And less people means the company will be much easier to manage and this is what he is after.

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Post ID: @1nee+1tUWTVHU

We have forgotten what made us great for 50 years and we let all of the hard work of those before who labored for SAP to make it the greatest SW company now languish to the side.

What a big mistake and bigger loss.

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Post ID: @1toq+1tUWTVHU

Explains why Julia and Scott were fired. SAP will need to blink as there is not enough consultants nor business value to migrate customers before 12/2025.

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Post ID: @1yqz+1tUWTVHU

Cloud-online or even cloud-first is shortsighted.

In a small European country an insurer wanted to move parts of their critical systems (not SAP) to Azure. The regulator came along and asked: „Is the MS datacentre located in ? No? Weeeelll… Nope, we cannot allow this.“

Lots of highly regulated industries, defense, aerospace, banking, insurance, food & dr-gs, … cannot join every hype even if they would want to.

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Post ID: @1kwe+1tUWTVHU

truth

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Post ID: @oja+1tUWTVHU

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