PAC Webinar Series: Assessing the SAP Business Objects Services Market. Hosted by: April 23, Peter Russo Senior Consultant, Americas & APAC Lead

Transcription

1 PAC Webinar Series: Hosted by: Assessing the SAP Business Objects Services Market April 23, 2009 Peter Russo Senior Consultant, Americas & APAC Lead Jon Reed President of JonERP.com & PAC Fellow Slide 1

2 Overview of PAC s SAP Services Research Program A comprehensive set of information with global coverage and detailed analysis across 30 countries Slide 2

3 How Does Business Objects Change the C&SI Market? In late 2007, SAP acquired BI software supplier, Business Objects, for $6.8 billion, marking a change (if only temporarily) of its acquisition strategy Worldwide Growth Comparison between EAS, SAP and Business Objects-related Consulting & SI SAP went from a company of +50,000 customers to +80,000 customers today! Business Objects offers a $2.5 billion C&SI market (2009 forecast) to IT Services suppliers in the SAP segment From 2009 to 2013, PAC forecasts CAGR for Business Objects C&SI of 8.5% compared to 5.8% for SAP (excluding Business Objects) Slide 3

4 Regional Differences: A Quantitative View Germany Worldwide USA France UK Slide 4

5 Local Insight on a Global Basis USA/Americas: Peter Russo UK: Rajeena Brar France: Eric Menard Germany/EMEA: Klaus Holzhauser Russia: George Mironescu Global: Tobias Ortwein Program Leader JC Jung Global Sales & Consulting LATAM: Ruy Mendes APAC: Dane Anderson +25 experts at PAC are looking after the SAP Market Worldwide Slide 5

6 Business Objects Trends by Countries & Regions Germany - Insights from Klaus Holzhauser Customer Viewpoints & Demand While a long standing topic, BI is becoming increasingly important in this economy, especially around BO Enterprise Performance. Demand is strongest in the services industries, as these have been underserved in the past however, even hard hit sectors like banking are now investing into early warning systems Challenges/Approaches for Suppliers The former SAP BI dominated, but areas like BO EPM, Risk/Compliance, Analytics/Forecasting and MDM/integration are all gaining momentum UK - Insights from Rajeena Brar Customer Viewpoints & Demand Many large UK SAP customers have invested heavily in SAP BI 3.x (now BW 3.x) Due to budget constraints, many are delaying investment until the next release of Business Objects in 2010 Financial services, due to reporting requirements around risk and liquidity management, as well as the public sector are beginning to show more uptake however Challenges/Approaches for Suppliers Projects are broad, covering reporting, core analytics and risk/compliance France - Insights from Eric Menard Customer Viewpoints & Demand After some initial concerns, once the roadmap was made clear, France has had some of the largest SAP BusinesObjects projects (Total, Areva, Atos Origin, etc.) While demand is cross-industry; manufacturing is by far the largest market Challenges/Approaches for Suppliers Front-end reporting and enterprise performance management projects are becoming the some of the highest priority IT project considerations Eastern Europe - Insights from George Mironescu Customer Viewpoints & Demand BO has a very young image on the market, and BI in general is a rather new topic The crisis has broadened the awareness and use of BI tools beyond banks and telecoms to the larger market! BO has become a hot topic for SAP customers in the region, focused around back-office dashboard projects to bring visibility into core operations, especially in manufacturing. Challenges/Approaches for Suppliers Projects are short-term / fast ROI! Outside of banks/telecoms; the focus for BI projects is currently on operations, as opposed to customer insights. Slide 6

7 While a bright spot still a difficult market to crack! Given that the acquisition is now a year old and the two companies are integrated operationally, the Business Objects portfolio brings a number of shorter-term, faster ROI projects to the mix When speaking to SAP customers, there is a clearly two distinct camps between: customer curiosity and ready to buy. Top BI Buying Considerations Cited by SAP Users: 1. No BI projects greenlighted at this time due to the economy. 2. Interest in Business Objects product line, but not yet clear on pricing, and/or getting mixed messages on pricing from SAP sales representatives. 3. Actively sandboxing one or more Business Objects products, and/or planning to move ahead with one BO product determined to have immediate business benefit. 4. In the midst of a BW 3.5 to BI 7.0 upgrade; will not consider BO products until BI 7.0 upgrade is complete. 5. Evaluating all options for BI functionality, not limited to SAP and/or BO. Slide 7

8 BI opportunities for SAP Customers: 3 Paths PAC has identified 3 typical paths that SAP customers take currently when moving forward on business intelligence projects; and IT services suppliers should be prepared for each Non-SAP Products Best-of-Breed BI Products SAP Customer BW 3.x to BI 7.0 Upgrades SAP Products Business Objects Investment Slide 8

9 Business Objects Buying Considerations 1. Short-term Needs: One of the most important aspects that spurs a Business Objects purchase is an immediate functional need; according to our discussions, this tends to be a reporting product 2. Pricing: While pricing is always central to any software selection, it tends to be quite complicated for SAP customers considering BO products, unless this is for an individual product 5 Skills/ Resources 1 Short-term Needs 2 Pricing 3. Data Compatibility: It is very important for SAP customers to consider the alignment and compatibility of each product with the company s internal data structure and existing BI investments 4. Long-term Interests: the comfort level that the immediate product purchase in question will serve the company s long term BI roadmap 5. Skills/Resources: Since Business Objects and SAP s Business Warehouse are well-established solutions, the technical resources required to implement these solutions are not cost-prohibitive 4 Long-term Interests Business Objects Buying Considerations 3 Data Compatibility Slide 9

10 The SAP BI Roadmap Source: SAP AG Slide 10

11 PAC s Advice for IT Services Suppliers When supporting SAP customers in their selection process concerning BI: be prepared for three approaches: net-new BusinessObjects, BW 3.0 upgrades and third-party solutions. Due to the current lack of deep product integration between SAP ERP and SAP BusinessObjects, SAP customers are still considering a wide variety of BI vendors. Have a clear understanding (and position) of the SAP BI product roadmap and pricing strategy, support SAP customers to develop their long-term BI strategy. In this economic climate, BusinessObjects projects typically begin with a small portion of the portfolio, as a short-term, quick ROI test. Success at this first stage in many cases will create -or- prevent a larger opportunity, with long-term support needs. In nearly all SAP user discussions that PAC had, front-end BI reporting projects tend to under-appreciate & under-invest back-end data cleansing and reliability assessment. It is beneficial for all involved, that the IT Services supplier makes the importance of this project component very clear to the customer upfront! Slide 11

12 Q&A Q&A Session with Peter Russo & Jon Reed Slide 12

13 Upcoming Reports PAC on SAP Reports: The SAP Application Management Market PAC on SAP Reports: Comparison between SAP & Oracle Services Opportunities SAP InBrief & InDepth Reports: Analysis of SAP Consulting & SI and SAP Outsourcing services in 20 countries, 3 regions and a Worldwide view The SAP Global Datamart: market figures and rankings in over 30 countries, 3 Regions and a Worldwide view Countries & Regions covered: Americas Finland Portugal APAC France Romania Australia Germany Russia Austria Hungary Slovakia Belgium India South Korea Brazil Italy Spain Canada Japan Sweden China Mexico Switzerland Czech Republic Netherlands Taiwan Denmark Norway UK EMEA Poland USA Worldwide Slide 13

14 How to Join and for Additional Information? For more information PAC s SAP research, please contact: Global Peter Russo - Senior Consultant, Americas and APAC Lead p.russo@pac-online.com Tel: Thank you for your participation! Slide 14