SAP wins but did Oracle even bid?

Steve Brooks
Enterprise Times











Lloyds Register begins new dawn with SAP cloud ERP software



Lloyds Register has selected SAP SE to deliver a cloud based ERP and business management solution. This is a huge win for SAP as Lloyds Register has traditionally been an Oracle customer, even presenting last year at Oracle Openworld 2014 about a mobile application they had developed.

On Sunday (10/25) Larry Ellison, CTO and Executive Chairman of the Board at Oracle made his opening keynote at the event and was dismissive of SAP as he stated: “We now compete with Salesforce.com and a new company called Workday in applications, those are the companies that we see most frequently when we sell applications in the marketplace. We virtually never ever see SAP, this is a stunning change. The largest application provider in the world is SAP, but we never see them in the cloud, and we sell a lot of applications in the cloud.”

This latest announcement by SAP questions not only the above statement but also one wonders what the Oracle sales team have been doing. Large cloud wins by Oracle and SAP have been, unlike Workday who seem to be gaining customers at both their expense, quite often.


What are Lloyds Register doing?


In the past companies announce wins that seem trivial once the actual detail is understood. While there is no revelation about the value of the deal itself and for how long it will be, there are several pertinent facts that are relevant.

Lloyds Register is not a small company. It has £1 billion turnover with 9,000 employees operating in 78 markets supporting more than 60,000 clients. Those markets are rapidly changing, each becoming digital at a different rate of change. To meet this challenge Lloyds Register has embarked on a major transformation program. They decided to look for a solution that would be part of that program and enable the changes required to the company’s finance, project management, project resourcing and human resources processes.

After an “extensive review of cloud technology vendors”, one assumes that this included Oracle, Workday, SAP and Netsuite but the actual names of the vendors were withheld, Lloyds chose SAP, as Andrew Punter, transformation director, Lloyd’s Register commented in the release:

“We are 255 years old, but standing still is just not an option. Today, businesses like Lloyd’s Register are global, we need the most modern, mobile, easy and user-friendly solutions possible to ensure we provide the right people with the right tools to make their jobs easier.

“SAP Business ByDesign and SuccessFactors can remove complexity and allow our team to focus on business innovation, not process.”

This will not be a small project, with a two year implementation plan one wonders exactly how much cloud revenues that SAP will be able to book during that two year period either.

The solution chosen, will be delivered using Software as a Service (SaaS) via SAP Business ByDesign and SuccessFactors on the SAP HANA platform. It will support the multi-language and multi-currency requirements that Lloyds Register has. More importantly Lloyds Register will be moving to a shared service operating model and this new solution will enable that.

It will be interesting how quickly the solution comes online as Lloyds Register are committing to a continuous release cycle for the solution updates. For SAP this is an important win though as Cormac Watters, Managing Director UK and Ireland at SAP commented: “Lloyd’s Register has a tremendous heritage of innovation which is why we’re so pleased to be collaborating with them on this major strategic initiative. We look forward to helping them transform the way they work and simplify their business processes.”

The SAP win is not just a blow to Oracle but as Lloyds Register were looking for new tools to support their full HR lifecycle, from “hiring to retiring” it will also be a loss to Workday. That SAP has won what appears to be an HCM centric opportunity will be a blow and one that SAP will hope to leverage in the future.


Conclusion

Whether Ellison, or his speech writers should have modified their tone a little in the keynote is worthy of note. The timing of this announcement by SAP seems rather opportune though, but despite that this it is a big win for SAP, SAP HANA and its cloud solutions. Lloyds Register has global brand recognition and SAP will no doubt hope to leverage that in the same way that Oracle did last year. With a two year implementation one hopes that the project goes well for SAP and Lloyds Register as this is clearly a major project.

If Oracle never see SAP in cloud bids, perhaps they need to enter more bids themselves. Ellison’s comments do bring into question how much cloud business they are actually going after. Perhaps this is one reason why they opened up their partner channel to all comers in another announcement at Openworld.




This article originally appeared in the Enterprise Times and is republished here by the permission of its author.


Links 11/5: Cask Data will develop sales team with $20M funding, led by Safeguard Scientifics; Tableau soars again







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Comcast brings data caps to more cities, says it’s all about “fairness” (Ars Technica)

Comcast's Past, Present and Future (Fortune)


Is $300m ARR the New $100m? (Enterprise
Irregulars)

Software startup Cask Data will develop sales team with $20M funding, led by Safeguard Scientifics
(Silicon Valley Business Journal)

Tableau Software Soars 17% on 3Q Earnings (TechCrunch)

Google and SAP enter patent agreement, open door for other collaborations (Inside SAP)
Where the importance of a press release announcing a partnership is directly correlated to the level of the individuals quoted from each side.

Layoffs Hit Gumroad As The E-Commerce Startup Restructures (TechCrunch)
First Round had participated in both the seed and Series A for Gumroad. From reading this TechCrunch article I have absolutely no idea what is happening to Gumroad which leads to the following logical alternatives:

A) I am having my usual evening dip in reading comprehension (no mood-altering substance, just tired) or
B) The writer of this article also has absolutely no idea what is happening to Gumroad.


Links 11/4: FanDuel expects fewer ads, more laws, and no IPO anytime soon









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iPipeline hiring developers, analysts as sales jump (Philly Deals)

FanDuel CEO: Expect Fewer Ads, More Laws, and No IPO Anytime Soon (Bloomberg)

As we were saying: "Its too early to say, but there's a chance that DraftKings and FanDuel may have suffered irreperable damage from the alleged insider dealing scandal at DraftKings, Even if every one is cleared of wrongdoing, it still puts the spotlight on them and its unclear whether states and the federal government will continue to find their games legitimate." Philly Tech News: 10/25/2015.

Wi-Fi Alliance tries to win consumer support as LTE-U showdown looms (PC World)


EPAM Reports Results for Third Quarter 2015 (Globe Newswire)
Revenue increased to $236 million, up 22.5% over the same period last year. Quarterly diluted EPS on a GAAP basis was $0.44, up from $0.38 in the third quarter of 2014.
EPAM Systems, based in Newtown, now has a market cap of almost $4 billion.

MeetMe Reports Third Quarter 2015 Financial Results
Mobile Revenue Increased 73% Year Over Year
Like Facebook, MeetMe has almost completed its transition to mobile, achieving 81% of revenue from mobile in its last quarter.

Ex Comcast exec creates the "anti TV channel" (Press of Atlantic City)

Union leader: Philly.com 'gutted' by layoffs (Philadelphia Inquirer)

CenturyLink Meets Q3 Earnings Expectations; Considers Selling Data Centers (CRN)


Jet: Clear sailing or desperation for ecommerce startup's next financing round?







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Jet.com raises $500 million from Fidelity
(Fortune)

Actually, the Wall Street Journal's description of Jet's position is that it is much more tenuous than that, and that the $500 or $550 million has not actually been committed yet.

This is a shorter version of the WSJ article on Jet, carried by Dow Jones on another site, no subscription required.

From the Journal article:

"The new round of funding would value Jet, which began operations in July, at $1.55 billion, according to people familiar with the matter. Mutual-fund giant Fidelity Investments is in talks to lead the round with a $90 million investment, according to these people. They said the financing wasn't yet closed.

When Jet began the fundraising effort in October, it had hoped for a $2 billion valuation, the Journal reported earlier. Over the summer, Jet discussed a valuation of $3 billion with investors."


Somewhat disparate views; perhaps tomorrow we'll get clearer picture.



Links 11/3: Ebay Enterprise sale completed, company carved up






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Zeta Interactive Acquires eBay Enterprise’s CRM Business (TechCrunch)

eBay Enterprise Business Taken Private, Broken Up (Fortune)

At Impact: Do Philly tech investors think too small? (Philly Deals)


While cable TV "unbundles," streaming services bulk up (Fortune)

Comcast CEO on Notoriously Bad Customer Service: 'Steady Improvements' (Fortune)



Comcast Seeks to Learn From Descartes (Light Reading)


UKISUG conference will help you understand how SAP’s future roadmap suits you (CloudPro)

Microsoft nixes unlimited OneDrive storage for Office 365 users, caps free space at 5 GB (Geekwire)


IBM Buys Gravitant, Aims To Create Default Cloud Broker Platform (CRN)


Plymouth Meeting-based Accolade names new management team, led by ex-Concur President Singh

Tom Paine



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Accolade, the Plymouth Meeting-based corporate health services firm, announced that Rajeev Singh has joined the company as chief executive officer and member of the company's Board of Directors. Singh most recently was co-founder, President & COO of Concur prior to its acquisition by SAP last year for $8.3 billion. Also, two other former Concur execs will join the company; Michael Hilton, another Concur co-founder, and Rob Cavanaugh will both be in senior operating positions. Along with their additions a dual headquarters structure will be established with a Seattle headquarters to complement the one in the Philadelphia area.

Rajeev Singh , new Accolade CEO


Singh was quoted in the Seattle Times as saying that Accolade’s Seattle headquarters will grow quickly and is eventually expected to house a triple-digit number of employees.

But that doesn’t mean the company will need to relocate its 700-plus employees, most of whom are in Philadelphia, Singh said, citing as examples other 'big technology' companies that need to have a “massive presence” in multiple cities.


Earlier this year, Accolade received $22.5 million in strategic financing from the parent company of Independence Blue Cross, and McKesson Ventures. According to CrunchBase, that round valued Accolade at $500 million.


Prior to this summer, Accolade had raised approximately $74 million, again according to CrunchBase. Carrick Capital Partners has been one large investor, while Comcast Ventures was another investor.

In the Spring of 2014, Accolade acquired konciergeMD, a software company based in Newtown Square, Pa., to enhance its consumer healthcare engagement service.


Tom Spann, Accolade co-founder who will now serve as Vice Chairman and COO, said in the release: "Raj and his team have deep experience in consumer design, technology, data science and serving large organizations."

I assume there was an investment transaction of some kind related to this move, though none was indicated in this announcement. I can guess there are some possible additional players behind it, but will await further information on that as well.



Links 11/2: Philadelphia Media Network plans 46 newsroom union layoffs; Quinn: SAP works to blend the generations in the office








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QVC: The unlikely juggernaut of mobile shopping
(The Washington Post)
Another piece from seems like an endless QVC PR offensive.

Quality Systems, Inc. Acquires HealthFusion for $165M (HIT Consultant)
Not clear whether this business, which essentially replaces one it just sold but is more focused on the Cloud, will be directly under Horsham-based NextGen Healthcare's direction.

Philadelphia Media Network plans 46 newsroom union layoffs (Philadelphia Inquirer)


How Virtustream founders turned down one acquisition and then sold for 3X at $1.2B (VentureBeat)

Oracle OpenWorld 2015 – Oracle’s Omni-Cloud and its relevance in today’s digital world (Diginomica)

Quinn: SAP works to blend the generations in the office (San Jose Mercury News)


Email marketing giant Constant Contact acquired for $1 billion (VentureBeat)

Publicis Buys Healthcare Unit Of PDI (MediaPost)


phillytechnews bytes






Sunday Morning Tech Buzz 11/1: Does an 'army' run the business; Oracle vs AWS, The Weather Company & IBM; Rite Aid

Tom Paine



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(Where I somehow try to answer questions I haven't been able to answer the rest of the week, at a time when I'm least capable of doing so. And sometimes don't finish on time.)




I have a theory thst any business is run by an "army", the most significant part of a business that defines its culture and often its profits. In some organizations its the salesforce, in others its the engineers etc. In others it crosses functional boundaries, such as friends of the founder. In any event, this army sets the marching beat for the entire company, and anyone who crosses it does so at it their own peril.


For those of you who can remember Circuit City, its army was probably its highly commisioned salesforce. But Circuit
A Circuit City Store being decommissioned /
Wikipedia
City failed to recognize that the salesforce was less needed, perhaps no longer needed at all, to sell consumer electronics to a more educated generation of consumers. And a company called Best Buy walked right over them. Of course, since then Best Buy has been walked over by the Internet, but so far has found ways to survive.

At its best, the army is a powerful machine. But at its worse, it bcomes a self-protecting mechansim that fails to let a company adapt to change

As Oracle proclaims its competitiveness with Amazon Web Services, I lsugh at the idea of a highly commisoned Oracle salesperson taking an order for a one server at $10 per month. Of course, that would never happen, but there are many other ways that Oracle salespeople, several of them senior executives, could take its own low-cost effort down.



The idea of splitting up the Weather Company (in which Comcast's NBC has partial ownership) and selling the data/analytice portion to IBM as in the deal announced this week, raised enough questions, such as "is this what IBM really needs to invest in to save its declining business". But the idea caught more fire on the Internet, where many people who didn't know as much about the details took potshots at it, such as, "IBM has finally found a way to buy into the clouds" etc. Read more in this Fortune article.



Rite-Aid, which announced this week its sale to Walgreens (leaving us with what, two national drug store chains), owned a company, atarted by an ex-Sunoco executive, called SASI, which provided in store point of sale (POS) systems that were considered innovative at the time. SASI, which stood for Stores Automated Systems Inc., was based in Bristol, Bucks County.

Couldn't find a trace of it after 1997, so if anyone knows what happened to it, reach me at @phillytechnews on twitter or email me at phillytechnews@gmail.com.


Highlights 11/1: Ad Age tells story of SAP's, others' links with telco data







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SAP Chief Bill McDermott Embarks on Health Care Mission After Losing His Eye
(NY Times)

The $24 Billion Data Business That Telcos Don't Want to Talk About (Ad Age)


EMC May Float Pivotal in IPO Next Year in a Plan Blessed by Dell (Re/code)

Square breathes sigh of relief as Amazon discontinues its credit card reader (The Verge)

Android, Chrome May Become Single OS: Rumor Mill (Information Week)



QVC BRINGS SHOPPING TO APPLE TV (Pymnts)

IBM buying The Weather Company is literally a joke on Twitter (Fortune)