Hybrid Cloud applications with SAP

[sam_bayer]

I think the topic of "hybrid cloud applications" are undervalued in the SAP marketing world...including the SCN.  By definition, I believe that hybrid cloud applications are a combination of an on premise (or private cloud) SAP implementation that is complemented with a cloud based application.  The cloud application should be dependent on the SAP system for data or business rules that enable it to function. 

I know of one company that has developed a very cool custom hybrid application that enables a Salesperson to SMS a product number to a cloud application which then processes that request and passes it to their SAP implementation to inquire as to the price and inventory position of that item.  SAP then sends the response to that Cloud application which in turn sends an SMS to that Salesperson's phone with the results.

In my mind that is a great hybrid application.  The cloud based SMS portion of the solution has no standalone value.  The on premise SAP implementation doesn't add business value to the Salesperson in the manner they require.  Combine the two and voila!  The perfect hybrid Cloud application.

By the way, I don't think that "integrating" a Cloud application with SAP necessarily means that you've created a Hybrid Application.  Take the recent hybris acquisition as an example.  hybris is a standalone eCommerce solution that can run in the cloud.  Passing an order that was created in hybris over to SAP which is running on premise doesn't constitute a "hybrid application"...in my opinion.

I would love to learn more about the various cloud based hybrid SAP applications that are in production today.  Should we have more visibility to these types of solutions?

Sam

[lukemarson · Accepted solution]

Hi Sam,

These vary across each pillar of SAP's Cloud strategy (People, Money, Suppliers, and Customers). As a HCM specialist I can and will only cover this area for you

SuccessFactors is the People element of SAP's Cloud strategy and is an entire HCM suite in the Cloud. For the Hybrid model, SAP define this as using SAP HCM for core HR and SuccessFactors BizX suite solutions for Talent Management (Performance & Goals, Recruiting, Learning, Compensation, and Succession & Development).

By adding these Cloud solutions together with SAP HCM on-premise do we get additional synergies as you describe in the Hybrid model? To be honest, I'm not so sure. The real added value here is the fact that the solutions in the BizX suite are - invariably - better than SAP's on-premise equivalents. Their design is different and the theory behind them is different. The pace of innovation is far ahead of what SAP has provided and is providing in the on-premise Talent Management applications.

Interested on your thoughts given your comments above.

Best regards,

Luke

[sam_bayer · Accepted solution]

Luke,

Your comments underscore the complexity of this whole "hybrid application" topic...at least in my mind.

By adding these Cloud solutions together with SAP HCM on-premise do we get additional synergies as you describe in the Hybrid model? To be honest, I'm not so sure. The real added value here is the fact that the solutions in the BizX suite are - invariably - better than SAP's on-premise equivalents. Their design is different and the theory behind them is different. The pace of innovation is far ahead of what SAP has provided and is providing in the on-premise Talent Management applications.

Does integrating two products that weren't designed to need each other and hosting one in the cloud really constitute a "hybrid" application?  I have no idea what the integration between the BizX suite and SAP HCM looks like, but my guess is that there is a lot of complexity associated with: managing redundant data, overlapping business rules and processes and harmonizing the user experience.  That's always the challenge of "bolting" two applications that were born of different parents together.  I'm also pretty certain that the evidence of the complexity of that integration spills over to the users and administrators of the combined "hybrid" application. 

SAP had that challenge with CRM and will have that challenge with the Ariba and hybris integrations.  I'm not sure why, but I just don't think it's fair to call these combinations...just because one runs in the cloud...a hybrid application.

I do think that those applications that SAP has build themselves, that absolutely can't run with out SAP ERP and that run in the cloud, like their Travel Management, deserve the moniker "hybrid application" more than the others.

By the way, I'm not dismissing the value that BizX brings to SAP clients.  I'm sure it's huge.  But it just doesn't feel like it fits the "Agile" spirit of the cloud and "hybrid" applications when you bolt two "ERP" class applications together.

Sam

[lukemarson · Accepted solution]

Hi Sam,

In large parts I agree; in this scenario BizX and SAP HCM are quite different from a data model perspective and the integration can be complex depending on your scenario. However, in SAP's Hybrid model the BizX suite would be your system of record for Talent unless you did reporting out of SAP HCM for Talent using, saw, BW. For Talent you largely only need employee and organizational data, skills and competencies, and salary or performance data (depending on the processes being used). So, it doesn't have to be all that complex .

But I feel a Hybrid approach does add value because you are taking your core HR Master Data and using it in best-of-breed Talent Management applications that consistently top all of the top analysts' review of Talent Management suites.

SAP don't consider using SuccessFactors Employee Central with SAP HCM as Hybrid model and, by your definition, rightly so. But I think having multiple versions of the Hybrid name for different types of the model doesn't really work... or does it? Interested to know your thoughts.

Best regards,

Luke

[sam_bayer · Accepted solution]

Hi Luke,

You'd think I have better things to do than to worry about the semantics of marketing jargon.

So I've been thinking of the Toyota Prius, which is dubbed a "hybrid" vehicle.  It's not totally gas, it's not totally electric, it's a hybrid of the two.

The core power source is gas.  No doubt about it.  The Prius can't run on battery for any really useful period of time.  But it adds a phenomenal amount of value to the overall system as expressed by improving the miles per gallon rating and overall distance on a tank of gas.  Quite impressive actually.

How does this relate to our discussion?  Well, we're actually using the term "hybrid" to mean two different things simultaneously.  We're referring to the hosting models of our applications (on premise versus cloud) AND, I believe, the fact that there are two different applications that are working together.

Frankly, my impression is that the industry is using the "hybrid" term to specifically mean that one application is on premise and the other is in the cloud.  In other words, if BizX was integrated with SAP ByDesign (or ECC running in the cloud), this wouldn't be considered a "hybrid" application?

What would you call that marriage of applications? 

In the end, I think this whole "hybrid" term will disappear.  It's a temporary term being used to distinguish on premise apps from cloud apps.  Tomorrow there will only be cloud apps and this will be a moot point.

That's my final answer :-).

Sam