SAP AG
Analysis of SAP AG, and most especially its memory-centric BI Accelerator technology. Also covered are SAP’s overall database, connectivity, and analytics strategies. Related subjects include:
- SAP’s Business Objects business intelligence subsidiary
- Memory-centric data management
- Columnar database management
- (in Text Technologies) SAP’s TREX search engine and Inxight text analytics technology
- (in The Monash Report) Strategic issues for SAP
- (in Software Memories) Historical notes on SAP
Ray Wang on SAP
Ray Wang made a terrific post based on SAP’s annual influencer love-in, an event which I no longer attend. Ray believes SAP has been in a “crisis”, and sums up his views as
The Bottom Line – SAP’s Turning The Corner
Credit must be given to SAP for charting a new course. A shift in the management philosophy and product direction will take years to realize, however, its not too late for change. SAP must remember its roots and become more German and less American. The renewed focus must put customer requests and priorities ahead of SAP’s bureaucracy. The emphasis must focus on the relationship. When that reemerges in how SAP works with customers, partners, influencers, and its own employees, SAP will be back in good graces. In the meantime, its time to get to work and deliver. Oracle’s Fusions Apps are coming soon and competitors such as IBM, Microsoft, Epicor, IFS, and SalesForce.com will not relent.
I recall the 1980s, when SAP’s main differentiator, at least in the English-speaking US, was a total commitment to customer success, and when it could be taken for granted that SAP would do business ethically. Things change, and not always for the better.
Anyhow, the reason I’m highlighting Ray’s post is that he makes reference to a number of interesting SAP-cetric technology trends or initiatives. Read more
| Categories: Analytic technologies, Business intelligence, Memory-centric data management, MOLAP, SAP AG, Solid-state memory | 1 Comment |
Some issues in comparing analytic DBMS performance
The analytic DBMS/data warehouse appliance market is full of competitive performance claims. Sometimes, they’re completely fabricated, with no basis in fact whatsoever. But often performance-advantage claims are based on one or more head-to-head performance comparisons. That is, System A and System B are used to run the same set of queries, and some function is applied that takes the two sets of query running times as an input, and spits out a relative performance number as an output. Read more
| Categories: Data warehousing, Exadata, Oracle, SAP AG | 1 Comment |
Initial reactions to IBM acquiring SPSS
IBM is acquiring SPSS. My initial thoughts (questions by Eric Lai of Computerworld) include:
1) good buy for IBM? why or why not?
Yes. The integration of predictive analytics with other analytic or operational technologies is still ahead of us, so there was a lot of value to be gained from SPSS beyond what it had standalone. (That said, I haven’t actually looked at the numbers, so I have no comment on the price.)
By the way, SPSS coined the phrase “predictive analytics”, with the rest of the industry then coming around to use it. As with all successful marketing phrases, it’s somewhat misleading, in that it’s not wholly focused on prediction.
2) how does it position IBM vs. competitors?
IBM’s ownership immediately makes SPSS a stronger competitor to SAS. Any advantage to the rest of IBM depends on the integration roadmap and execution.
3) How does this particularly affect SAP and SAS and Oracle, IBM’s closest competitors by revenue according to IDC’s figures?
If one of Oracle or SAP had bought SPSS, it would have given them a competitive advantage against the other, in the integration of predictive analytics with packaged operational apps. That’s a missed opportunity for each.
One notable point is that SPSS is more SQL-oriented than SAS. Thus, SPSS has gotten performance benefits from Oracle’s in-database data mining technology that SAS apparently hasn’t.
IBM’s done a good job of keeping its acquired products working well with Oracle and other competitive DBMS in the past, and SPSS will surely be no exception.
Obviously, if IBM does a good job of Cognos/SPSS integration, that’s bad for competitors, starting with Oracle and SAP/Business Objects. So far business intelligence/predictive analytics integration has been pretty minor, because nobody’s figured out how to do it right, but some day that will change. Hmm — I feel another “Future of … ” post coming on.
4) Do you predict further M&A?
Always. 🙂
Related links
- Official word from SPSS and IBM
- Blog posts from Larry Dignan and James Taylor
- James Kobelius‘s post, which includes the obvious point that Oracle — unlike SAP — has pretty decent data mining of its own
- Eric Lai‘s actual article
| Categories: Analytic technologies, Cognos, IBM and DB2, Oracle, SAP AG, SAS Institute | 8 Comments |
Hasso Plattner calls for in-memory OLTP column stores
Former SAP CEO Hasso Plattner has written a paper called A Common Database Approach for OLTP and OLAP Using an In-Memory Column Database, in association with a SIGMOD keynote address.* The approach Plattner advocates is an MPP in-memory column store, presumably somewhat akin to SAP’s frequently renamed Business Warehouse Accelerator/Business Intelligence Accelerator/BWA/BIA/Son-of-TREX technology. There also are strong similarities to the MPP in-memory row store project H-Store/VoltDB, although I don’t know whether Plattner would go so far as to adopt the H-Store view that all transactions should run in stored procedures. Unsurprisingly, SAP applications are used as the OLTP paradigm throughout.
*Thanks to Dave Kellogg for tipping me off to Plattner’s paper. I only went to two SIGMOD sessions, neither of which was Plattner’s. Nobody actually mentioned Plattner’s talk to me when I was down at SIGMOD.
Perhaps the most interesting part is Plattner’s claim that what’s demanding about OLTP isn’t database updating per se, but rather maintaining aggregates for quick-response analytics. In his main example of that point, Plattner proposes a real-life “more than 18” table schema, of which 2 are base tables, and (most of?) the rest are materialized views that his proposed database architecture dispenses with (because analytic performance is sufficiently good without them). Thus, Plattner’s core columnar argument seemingly is
columnar –> natively fast analytics –> no need to maintain aggregates –> much lower update burden.
That said — if Plattner’s paper contained a clear statement of how much more expensive it is to insert or update a single row in a columnar vs. row-based system, I overlooked it. Instead, Plattner seems to be arguing that the volume of base-table updates is low enough that — whatever it may be — column-store update overhead is an acceptable price to pay. (At one point he claims that only 5% of the data inserted in a financial application ever gets changed.) That may actually be true in a financial accounting system, but seems more questionable in a sufficiently large application that gets its updates from automatic devices, or from the consumer web.
Other highlights include: Read more
An example of what’s wrong with big vendors’ approaches to BI (SAP in this case)
I just found Chris Kanaracus’ article about SAP’s rollout last month of its “clear enterprises” strategy. The money quote comes from Sara Lee, the user SAP seems to have trotted out:
But Sara Lee has not yet decided to purchase the software, and there are substantial underlying tasks to perform as well, he added.
“This is giving us the horsepower [to analyze data] but we need to have harmonized and structured data underneath it.”
This is from the leading test user of the product?
Business intelligence and the associated data management processes need to be reimagined, and I’m increasingly coming to suspect that the big BI conglomerates aren’t up to the task.
| Categories: Analytic technologies, Business intelligence, SAP AG, Specific users, Theory and architecture | Leave a Comment |
Reinventing business intelligence
I’ve felt for quite a while that business intelligence tools are due for a revolution. But I’ve found the subject daunting to write about because — well, because it’s so multifaceted and big. So to break that logjam, here are some thoughts on the reinvention of business intelligence technology, with no pretense of being in any way comprehensive.
Natural language and classic science fiction
Actually, there’s a pretty well-known example of BI near-perfection — the Star Trek computers, usually voiced by the late Majel Barrett Roddenberry. They didn’t have a big role in the recent movie, which was so fast-paced nobody had time to analyze very much, but were a big part of the Star Trek universe overall. Star Trek’s computers integrated analytics, operations, and authentication, all with a great natural language/voice interface and visual displays. That example is at the heart of a 1998 article on natural language recognition I just re-posted.
As for reality: For decades, dating back at least to Artificial Intelligence Corporation’s Intellect, there have been offerings that provided “natural language” command, control, and query against otherwise fairly ordinary analytic tools. Such efforts have generally fizzled, for reasons outlined at the link above. Wolfram Alpha is the latest try; fortunately for its prospects, natural language is really only a small part of the Wolfram Alpha story.
A second theme has more recently emerged — using text indexing to get at data more flexibly than a relational schema would normally allow, either by searching on data values themselves (stressed by Attivio) or more by searching on the definitions of pre-built reports (the Google OneBox story). SAP’s Explorer is the latest such view, but I find Doug Henschen’s skepticism about SAP Explorer more persuasive than Cindi Howson’s cautiously favorable view. Partly that’s because I know SAP (and Business Objects); partly it’s because of difficulties such as those I already noted.
Flexibility and data exploration
It’s a truism that each generation of dashboard-like technology fails because it’s too inflexible. Users are shown the information that will provide them with the most insight. They appreciate it at first. But eventually it’s old hat, and when they want to do something new, the baked-in data model doesn’t support it.
The latest attempts to overcome this problem lie in two overlapping trends — cool data exploration/visualization tools, and in-memory analytics. Read more
| Categories: Analytic technologies, Business intelligence, Google, Memory-centric data management, Microsoft and SQL*Server, SAP AG | 19 Comments |
The SAP/Teradata deal explained
When I first saw the press release about the latest SAP/Teradata deal, I thought it sounded very Barney. But it turns out there’s a little bit of substance, as well. Amazingly, SAP BW doesn’t really run on Teradata right now. This deal will fix that. The time frame seems to be that SAP-BW-on-Teradata will ship with SAP BW 7.2 whenever that goes out. (First half of 2010?) Early adopters may be able to get their hands on it as early as Q3 2009.
Note: It surely would be more precise to insert “NetWeaver” a few times into that paragraph.
Just to be clear — I still don’t see this as a big deal. It doesn’t portend any grand SAP/Teradata joint mission to smite Oracle, IBM, and/or Microsoft. Nor is it a telling first step toward an SAP/Teradata merger. It just removes a particular competitive disadvantage Teradata had vs. Oracle et al., from which Teradata’s smaller specialist competitors still suffer. And it offers SAP BW customers another high-quality DBMS option.
| Categories: Business intelligence, Data warehousing, SAP AG, Teradata | Leave a Comment |
Somebody is spreading Teradata acquisition rumors again
An mass email from Tom Coffing was forwarded to me today that starts:
I have heard from reliable sources that both HP and SAP have purchased more than 5% of Teradata stock. My sources tell me that both companies appear to be positioning themselves for a bid.
I got my version of the same email from Coffing yesterday with a different introduction but otherwise the same substance (he’s pushing a new product of his). It also had a different From address.
Possible explanations include but are not limited to:
- Coffing knows something (seems unlikely, but I haven’t actually checked www.sec.gov to confirm or disconfirm)
- Coffing thinks he knows something
- Coffing just made this up (I hope not)
- There’s an April Fool’s Day prank going on (not by me — after my bizarre March, I’m recusing myself from April Fool’s pranks this year)
| Categories: Data warehousing, HP and Neoview, SAP AG, Teradata | 4 Comments |
More Oracle notes
When I went to Oracle in October, the main purpose of the visit was to discuss Exadata. And so my initial post based on the visit was focused accordingly. But there were a number of other interesting points I’ve never gotten around to writing up. Let me now remedy that, at least in part. Read more
SAP slashed 1000 VP-level employees?
The late Art Buchwald, when giving talks at conventions, used to start by expressing his pleasure at the opportunity to see “thousands and thousands of vice presidents.” Well, according to a Seeking Alpha blog post,
SAP cut 1,000 VP-level employees in North America in 2008, and has plenty of room for additional cuts.
As Dave Kellogg points out, that would be 2% of SAP’s entire work force, all in laid-off VPs or VP-equivalents. That doesn’t seem right to me. At least in the parts of SAP’s organization I used to deal with, SAP didn’t seem particularly VP-heavy. Even with the grade inflation commonly represented on salespeople’s business cards, I’d be surprised to learn SAP had 1,000 VPs total, let alone 1,000 spare ones to lay off.
| Categories: SAP AG | Leave a Comment |