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See this blog post from Jarret Pazahanick for details (including the comments). No logic is seen by me in how SAP may charge customers for Fiori, while launching HR Renewal to existing customers at no charge. The argument to this point is simple: customers are paying maintenance on existing SAP products, and Fiori is an enhancement to those products. Therefore, SAP should make it available to customers freely. This was and it is my position. 150 smooth fee per consumer 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 approach is good: it lets customers can easier install only the updates they actually need or want. But it also means that many customers will never be completely up-to-date on all enhancement packages.

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Therefore, when a customer wants to set up a Fiori app, the client may first need to up grade to a more current version of the merchandise and set up certain enhancement packs. Depending on how back-leveled the customer is, the upgrade can be a major work. The prerequisites for every Fiori app are listed on SAP’s website.

Fiori needs HANA. Sometimes lost in the debate is the fact that, to use Fiori, customers have to be running HANA underneath their SAP products. SAP explicitly says that HANA is a hard requirement for Fiori fact sheet apps and Fiori analytic apps. Another source points out that slow adoption of HANA is a major impediment to Fiori.

Out of around 40,000 SAP Business Suite customers, no more than 1,000 have bought Business Suite on HANA, and SAP doesn’t say just how many of them are live on HANA. If all of them are go on HANA Even, that is significantly less than 3% of Business Suite customers. Charging for Fiori is “a small barrier” compared to the need to put into action HANA. So, if the price tag for Fiori is minimal of customers problems, why not transform it around and have, what would it not suggest if SAP were to offer Fiori to existing customers at no cost? It would provide a positive reason behind SAP customers to upgrade to HANA.

The real opportunity, in my opinion, is not some small amount of revenue SAP may receive from sales of Fiori to existing customers. It is in moving those customers to HANA. SAP has staked its entire product strategy on HANA. Yet, as we’ve just shown, less than 1% of Business Suite customers have purchased HANA. If SAP desires to reach your goals, it should do everything it can to move customers to HANA.

Fiori changes that. SAP can say now, if you go to HANA, the user can be changed by you experience of SAP with these Fiori apps. Fiori, in place, could be the trojan horse for HANA. It could sell more SAP consumer licenses. The only people 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 and only getting ultimately more users certified for SAP products. I don’t have any facts to aid this, but it makes sense from a technique perspective.