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See this blog post from Jarret Pazahanick for details (like the comments). I see no logic in how SAP may charge customers for Fiori, while liberating HR Renewal to existing customers at no charge. The argument up to now is simple: customers are paying maintenance on existing SAP products, and Fiori can be an enhancement to the people products. Therefore, SAP should make it open to customers freely. This was and is my position. 150 smooth fee per user is the least of their problems.
Fiori needs current produces of SAP products. Some years ago, SAP introduced the concept of enhancement packs, whereby customers could selectively apply upgrades to individual SAP products of installing a completely new release instead. This process is good: it lets customers can more easily install only the updates they really need or want. But it addittionally means that lots of customers will never be completely up-to-date on all improvement packs.
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Therefore, whenever a customer wants to set up a Fiori app, the customer may first need to upgrade to a more current version of the product and install certain enhancement packs. Depending on how back-leveled the customer is, the update can be a major effort. The prerequisites for every Fiori app are detailed on SAP’s website.
Fiori needs HANA. Lost in the debate is the fact that Sometimes, to use Fiori, customers need to be running HANA underneath their SAP products. SAP explicitly says that HANA is a hard requirement for Fiori fact sheet applications and Fiori analytic apps. Another source highlights that slow adoption of HANA is a significant impediment to Fiori.
Out of approximately 40,000 SAP Business Suite customers, no more than 1,000 have obtained Business Suite on HANA, and SAP doesn’t say just how many of these are live on HANA. If all of them are go on HANA Even, that is less than 3% of Business Suite customers. Charging for Fiori is “a small barrier” in comparison to the necessity to put into action HANA. So, if the price tag for Fiori is the least of customers problems, why not turn it around and have, what would it imply if SAP were to provide Fiori to existing customers at no charge? It would provide a positive reason for SAP customers to update to HANA.
The real opportunity, for me, is not some small amount of income SAP might receive from sales of Fiori to existing customers. It really is in moving those customers to HANA. SAP has staked its whole product strategy on HANA. Yet, as we’ve just shown, less than 1% of Business Suite customers have purchased HANA. If SAP desires to be successful, it should do everything it can to go customers to HANA.
Fiori changes that. SAP can say now, if you go to HANA, an individual can be changed by you experience of SAP with these Fiori apps. Fiori, in effect, may be the trojan horse for HANA. It would sell more SAP user licenses. The only individuals who may use Fiori apps within a customer’s business are those who have a user permit for the fundamental SAP product. Fiori, therefore, may hint the scales in favor of getting more users licensed for SAP products. I have any facts to aid this don’t, but it seems sensible from a technique perspective.