Rebooting ERP

Not a shocker: SAP puts HANA at center of new biz apps push

When you hear from SAP these days, the software giant always leads with HANA, its in-memory database. HANA is to SAP what Watson is to IBM — proof that just because a company is getting along in years doesn’t mean it can’t do great stuff.

So it’ s not a huge surprise that SAP’s “next generation” business software suite, S/4, will draw heavily on HANA and sport a single unified interface across the applications. The first of these to be delivered, Simple Finance, was introduced Tuesday with more modules to follow.

At a rollout event in New York on Tuesday, [company]SAP[/company] CEO Bill McDermott characterized this as “the biggest product launch in the last 23 years and perhaps the company’s history.”

No pressure there.

The rewritten S/4HANA applications are now available on-premises across industries and regions. Simple Finance is the first application to be offered via SaaS — it’s also available on premises now, according to a spokeswoman.

Update: An SAP spokesman said these new applications were built from the ground up to run on HANA and will not work with third party databases, which is sort of shocking. (So much for earlier reports that the applications would continue to  work with third-party databases if needed — but would work better, faster, prettier with HANA.)

[company]Oracle[/company] has a similar “better together” story around its database, middleware, analytics, Linux and servers — er, make that engineered systems. All of these vendors talk about being open, but also say they’re more powerful when running with the company’s full array of technologies.

Complicating this particular storyline is that SAP and Oracle used to be more friends than enemies, with the majority of SAP’s business applications running on Oracle databases. Then Oracle decided to dive full on into enterprise applications with its acquisitions of PeopleSoft, Siebel Systems and everything else that wasn’t nailed down, while SAP doubled down in databases, buying Sybase and creating HANA. SAP and Oracle also bulked up their respective SaaS rosters — Oracle buying RightNow, Taleo  and SAP snapping up SuccessFactors.

And of course you know, this means war.

This story was updated at 11:16 a.m. PST to add SAP’s statement that the new applications will not run with third-party databases. 

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