Cloud Dual Leadership

Americans have a more pragmatic approach to IT in general and cloud computing in particular. The half-life of a CIO in the US is also much shorter than in Europe. In the U.S., many CIOs have great careers by successfully using lift and shift to move the company's ERP to the cloud, saving money in the short term. By the time the big catastrophe hits five years later, these CIOs have already moved on to their next employer.

Cloud computing must be an invention of the devil because it all looks great in the beginning, but then there a rude awakening awaits users at the end. ERP users can move to the cloud quickly. Hundreds of thousands of dollars and euros can be saved in one fell swoop. The CIO becomes the hero and savings champion.

In the medium and long term, the cloud can become an expensive cost factor that adds value on the provider’s side. Cloud computing is a cash cow for vendors like SAP because users have virtually no way to escape this particular vendor lock-in. What about a cloud exit?

SAP is starting the new year with a cloud double whammy: SAP Executive Board member Thomas Saueressig is getting a new department, and SAP Executive Muhammad Alam will also become a member of the SAP Executive Board as Saueressig's successor. SAP's goal seems remarkable: the global ERP market leader wants to become a cloud company like Amazon, Google, or Microsoft.

This paradigm shift will put the global ERP leader in the same league as Microsoft, IBM, Amazon, Oracle, and Google. Christian Klein wants to make SAP the leading IT company in cloud computing, but this will be no easy task, as SAP's USP (unique selling point) has always been its business and organizational processes. Now, however, the massive use of technology is to ensure survival and profit. Christian Klein has formed SAP's new dual leadership team of Thomas Saueressig and Muhammad Alam.

Thomas Saueressig will be responsible for customer satisfaction and efficiency to ensure a positive customer experience in the cloud, while new board member Muhammad Alam will take over Thomas Saueressig's responsibilities and further develop cloud solutions.

In Europe, however, the hopes for sustainable cloud success melted away like snow in the spring of last year. The S/4 public cloud concept is only marginally present in Europe. SAP is now pinning all its hopes on the American market. In the U.S., IT users are much more open to the cloud. Even if the US market has a more positive attitude towards the cloud, this sympathy does not necessarily apply to SAP, but primarily to the hyperscalers, plus Oracle and IBM. SAP is a beginner and a follower in areas such as cloud computing.