While the cloud promises ultimate flexibility, the dream has not always become a reality when users had to depend on a vendor to create complex environments at short notice. Organizations sometimes struggle to reduce the amount of software they use after signing up to subscription deals, either because line-of-business owners refuse to give up seats on the software they'd been promised, or because of inflexibility from the vendor. It was also a concept creating difficulties when businesses try to downsize. But most of our customer base is learning this for the first time. Most manufacturing plants, for example, have been at this for a long time, and they know how to budget electricity. "It's kind of like electricity, right? You hope you get it right, but you pay by the consumption model. It's a matter of when, not if, customers move to the cloud, SAP tells investors.SAP users not happy about German giant's price rises.SAP signs IBM Watson deal, ChatGPT showstopper waits in the wings.SAP gets cloudy with a chance of AI in bid to woo on-prem brigade. While on-prem, customers had been used to buying perpetual licenses and the capital costs of hardware, which created a "fixed dollar figure", the migration to subscription and consumption-based pricing meant that predictability had gone away, Scott said. Firstly, in terms of budgeting, it was an adjustment. that's not the case."Īt the same time, the commercial aspects of how SAP was getting customers into the cloud was presenting them with challenges, he said. When you go to a RISE deal, you kind of give some of that away and you expect that SAP is going to be able to do this at a level of sophistication, at least equal to yours or better. Where I see customers tending to vibrate the most is they're used to having control over some aspects. "Most of the customer base is very savvy operators of SAP software, not good creators of it.
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