Employees are going through retrenchment at SAP right now. They pitch it as a DBS "cloud transformation" and reskilling program, but it is cost cutting at the core. Despite high sales, profit margin is not looking that good at SAP as the costs are high as they desperately try to transform to "The" cloud company. Global consulting has been analysed by Mckinzie and they are rolling out layoffs. Most customers buy S/4 licenses but are staying on premise. Even less are adopting s/4 cloud and very few have gone live. Seperation packages tend to be generous unless you try and fight them and opt for retrenchment.
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"I have never worked for a company as nice as SAP" . Then you must not have been employed very long. OR you either work in a team with a very soft, cushy, target OR you work somewhere where slave labor is acceptable and opportunities super scarce. OR you are a PR bot. There is an underbelly in SAP where people are grounded up like meat and cast aside. Clearly you only care about your own experience. Go sit in a NSC where associates NEVER get promoted unless they get in with the boss. Or try and look past the fluffy PR B.S and come into the cross hairs where your dept. is seen as "redundant" overnight. Whatever you have done for SAP would not have mattered up to that point. They will get rid of you without blinking an eye. Nobody will even know you are gone the next month and the old one-eyed Pirate Bill will reap in the profits for the Directors and share-holders. SAP = insatiable corporate America now. They acquire new companies to make the growth look good, peddle the latest BS tech trend, (Cloud, Big Data, IoT, Machine learning, AI.... etc...) and fire extra employees to keep the costs down. Wake up and stop being naive. My problem with SAP specifically is they are hush-hush with their immoral, uncivil, dealings. SAP try and come across as the nice-guys with their cushy BS PR. They are everything but. At least with other corp-orates what you see is what you get.
There might be layoffs but that being said I have never worked for a company as nice as Sap when it comes to employees. Even if I say goodbye I am only mad about losing a good job. Nothing at Sap to be mad at.
"Transformation" / Retrenchment will probably last untill 2019/2020.
Transforming to cloud = scaling down on-premise resources. Maybe up to 50% even.
nowadays, SAP top talent means you are young, cheap, good at showmanship and are the boss's pet
From The HANA COE and more than 1/2 shown the door! Especially the GTM team that did all the heavy lifting for SAP Services sales and quite a bit of the License Sales efforts!
The sheer volume of top talent (highest paid) that has been terminated is enough so that SAP has degraded their ability to succeed. This will hurt their customers the most.
We have been told that those of us who have been let go (15-20 years of experience) are either not being replaced or if they are with junior talent (6-9 years of experience)!
Good luck with that! SAP just let a large percentage of their Top Talent go to appease Wallstreet!
SAP is kill off employees left and right and they are not replacing them despite what they
advertise. They are cutting back across the board all IT has been slowly cut.
There cloud is a joke it's down more than it's up. I was in the middle of a conversation
with a TQM on site when they told him he was let go.
Smoke and mirrors, there new line is to make the customers happy with a
program call chat and another program meet the expert if anyone checked,
it is only for three low volume products SAP is a joke. If you are going to the cloud
go with Amazon, Microsoft or Oracle. SAP will put you out of business.
Leonardo is just a branding exercise of existing solutions. SAP product development has stopped investing for a long while.
Original URL: http://www.theregister.co.uk/2016/03/02/postmodern_erp_disaster_gartner/
Nearly all cloud ERP projects will 'fail' by 2018, reckons Gartner
Cost overruns, complexity... stop me if this sounds familiar
By Gavin Clarke
Posted in The Channel, 2nd March 2016 17:29 GMT
Anybody who thinks cloud ERP is the answer to their monolithic, on-premises vendor pain is wrong – according to Gartner, anyway.
Gartner has projected a near 100 per cent fail rate for cloud ERP projects by 2018.
Ninety per cent of those rolling out what the mega-analyst has defined as “post-modern ERP” will succumb to the traditional ERP headaches of higher costs, greater complexity and failed integration by 2018.
Their Achilles Heel will be lack of an application integration strategy and related skills.
Gartner defined “post-modern ERP” as systems that are federated and loosely coupled and no longer from a single, monolithic provider – such as Oracle or SAP. This is what defined the big ERP rollout wave during the 1990s that, presumably, Gartner defines as the "modern" ERP age.
Eighty per cent of those will lack the capability to successfully deliver on their postmodern ERP strategy, Gartner said on Tuesday.
Carol Hardcastle, Gartner research vice president, said in a statement: "This new environment promises more business agility, but only if the increased complexity is recognised and addressed. Twenty five or more years after ERP solutions entered the applications market, many ERP projects are still compromised in time, cost and more insidiously in business outcomes."
There’s a dawning recognition that post-modern ERP is “no quick nirvana” with companies moving from on-prem to cloud lacking little or no skills to integrate applications. Mistakenly, they assume the vendors peddling cloud will take care of it. When – inevitably – they don't, customers are the ones left scrambling.
As in the pre-modern world of the 1990s, it’s the hard push from business leaders and vendors that’s setting up today’s looming problems for cloud ERP.
“Organisations need to resist the temptation to succumb to pressure from business leaders to get started before the organisation is really ready – and without a business-agreed ERP strategy. Business leaders must understand what it will take to ensure success,” Hardcastle said.
Nobody was singled out by Gartner, but it’s been the iPad toting, cloud-friendly sales and executive classes who have driven uptake of business software providers such as Salesforce, side-lining the more considered counsel of those in IT who could have taken a more measured approach.
However, according to Gartner, vendors are also guilty, putting self-interest ahead of their customers.
“The blame for this, however, does not lie solely with end-user organisations that lack the experience and expertise to avoid many of the pitfalls. System integrators and ERP vendors have to be accountable to their customers in this respect,” Hardcastle said. ®
If most people in SAP are professionals, why hire so many managers, they are just extra layers of bureaucracy and should be removed.
Whatever the "news" / blogs put out by SAP employees (they need to put out niceties to climb in / retain their jobs) - the layoffs have happened globally before end of Q2 so that Q2 numbers will look nice. If the revenue forecasts are still low, another round will happen in Q3. McKinsey study is just a management spin tool to boost bottom-line in the receding top-line... this is a typical
There are some offices where over half of TQMs are laid off. SAP now hires cheap resources from low cost countries regardless of quality.
Funny because allegedly out of the Mckinsey study came that the TQM brand was unique and valuable and that SAP needed to build upon it.
SAP Consulting has always been the heavy lifter, helping to close license deals behind the scenes. too bad it is not as relevant now due to the "Cloud" transformation.
Many large SAP customers do not want to move to Cloud though
SAP prefers customer move to Cloud.. only Cloud growth can justify SAP stock price now.. even maintenance which used to be the sacred cow is now axed...
the McKinzie study showed that SAP DBS (Consulting) is not aligned with SAP overall Cloud strategy
Too bad for the TQM who are so good that customers choose to stay on prem
We have DBS colleagues from our office who were at customer sites, asked to return to office, and given the letter. Managers were given a number and tasked to execute on the number of people.
SAP is going to be hit hard by collapsing retail...the supply chain industry is in for a tsunami
But, but, but... But this is opposite from what people say on FB and here... Oh, my, is that possible?