Earlier this month, SAP and Sybase delivered the mobile CRM application they promised a year ago when they announced a co-innovation agreement. Actually, there were two new applications: Sybase Mobile Sales for SAP CRM and Sybase Mobile Workflow for SAP Business Suite, for iPhone and Windows Mobile, with a RIM Blackberry version coming out later this year. Now, existing SAP customers can extend their CRM applications to an on-the-go sales force, giving them anytime, anywhere access to SAP CRM 2007 to immediately complete business transactions, such as workflow items and alerts or travel requests wherever they may be.
The apps are built on Sybase’s Unwired Platform, technology that enables developers to create mobile applications that connect any device to back-end business data. It is, as Sybase says, a flexible, open standards-based infrastructure that greatly simplifies mobile application development. It also includes device management and security capabilities, important elements when building out a mobile workforce.
With the Sybase partnership, it seems SAP has come a long way in its mobile strategy. SAP has a CRM application that it created, but it was not connected to the back-end database. It behaved more like a disconnected laptop, I was told by an SAP spokesperson. The Sybase solution, therefore, is a more serious step toward enterprise mobility. But it’s not the only step in the right direction.
SAP is big on building out partner ecosystems in order to tap into expertise it doesn’t possess. And the partnerships are rarely exclusive. For example, SAP’s adaptive manufacturing partner ecosystem includes just about every automation vendor under the sun. But that makes sense, as manufacturers have already invested in their control and operations management software, meaning an all-encompassing partner plan helps ensure that SAP has a solution for every circumstance.
It seems SAP is following the same mindset with its mobility partner program. Click on the SAP EcoHub web page and search for ‘mobile crm.’ The results display about two dozen partners. There’s Syclo, which offers a mobile suite for SAP systems for asset management and field service order management; ClickSoftware workforce scheduling and optimization software; and 3i Solutions Inc.’s mobile workplace, among others. Similarly, a quick search for ‘mobile infrastructure’ brings up Sybase, Antenna Software’s Concert development platform, and SkyConnect from Sky Technologies.
I question whether or not SAP needs the same broad base of partners in mobility as it does in manufacturing. Most manufacturers are just starting to implement a wireless strategy, and since it is untapped terrain for them, they may just want a turnkey solution from SAP, not a menu of choices.
I think SAP’s mobility group should rip a page from its manufacturing practice, which early on identified the critical pieces it needed, like shop floor to top floor integration and MES, and acquired those assets via its Lighthammer and Visiprise buyouts, respectively. Then SAP built out a partnership framework to support what it was creating in house.
To that end, SAP’s next move should be to acquire a mobile infrastructure vendor upon which it can build a stable of wireless applications that fit into its — and its customers’ — long-term mobile enterprise plan. The company can continue co-innovating, but it needs to lead the effort. SAP has a rare opportunity right now to shape an emerging market.
2 Comments
Good buy Sybase. Goodbye Syclo?
It’s the question at the top of many people’s mind – SAP customers, partners, prospects, employees and the analyst community. Now that SAP has shown their hand and made a clear decision to acquire market leading MEAP provider Sybase for 6 big ones, and yes $6 billion, what will happen to the future of the Syclo MEAP Agentry platform? Is there any reason to have two MEAP providers? Two technology platforms, two market messages, two support organizations, two road maps? If I were SAP what would I intend to do? Promote a third party solution MEAP (Syclo) or their own MEAP application? I wonder!
An SAP spokesman said today: “We remain committed to our open ecosystem strategy and enabling customer choice by working with a range of partners that drive customer value.’’ We all know that when an organization pays billions of dollars to acquire another company their shareholders are going to look for fast return on investment. Do customers really have a choice on mobile?
I spent time today with Sybase and the SAP community at SAPPHIRE and there was a common perception that in the long term (meaning as soon as the acquisition is completed) the de-facto standard for mobilisation of SAP back end systems is going to be Sybase, whether it’s for SAP CRM, SAP Enterprise Asset Management or field service..
It is also expected that in the long term SAP will jointly develop the field services and mobile asset management capabilities that up to now Syclo has specialized in. It is also expected that SAP will eventually push customers toward an SAP-Sybase platform. SAP has the knowledge, technology and people to develop the Syclo EAM template functionality without much trouble.
RIM have the customer base to ensure its continued growth irrespective of SAP and Syclo.
Two questions which are still unclear are what will happen to RIM and SAP Mobil Asset Management? Will SAP build on the SAP NetWeaver platform using Sybase? Whatever the answer, one thing is clear, SAP finally has a company wide mobile strategy. Unlike the short-lived co-innovation partnership, this one is here to stay, like it or hate it. Well done SAP, customers can really benefit from this acquisition.
Stephanie,
Your analysis is right on target. SAP has all of the “existing” hooks in place to simplify their customers need for mobility. Additionally, they provide a “single throat to choke” for the customer and that is worth quite a bit as well. The fact that is took SAP and Sybase, two fantastic companies, a year to deliver their applications would seem to indicate the problem. The solution approach is too complex.
Using the existing SAP technology and a new “platform” solutions can be deployed that provide functional access to the transactional data of the SAP. Customers don’t want another device based software application that is overly complex when the only thing they are attempting to do is perform a transaction that is part of a much larger, longer and more complex process. It seems like the solutions are over-engineered and the architecture is a bit dated. Think of the IT struggle of mobile phone OS versions, support, etc.
These out-dated approaches are why mobility is, as you’ve stated, is untapped terrain for most customers even though mobile workers have been around since the beginning of work itself. Amazing that it has taken decades of Enteprise Computing to finally realize that nearly 1/2 of its “customers” are up and walking around. With an estimated 331M mobile workers in the industrialized nations it is stunning to know that less than 4% use mobile computing.
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