SAP
This is what SAP is making the argument for these days. Although these relate more to buseinss needs, Cloud Computing plays an important role as a technology platform.
HANA, the high performance application appliance, aggregates all the information in main memory and creates a platform where SAP users can apply BI (business intelligence) techniques to come up with answer that goes across different functions. For example, what impact does higher petro price has on my earning as my large vs small car mix shifts.
SAP Cloud include Business ByDesign which has 1,000 installs this year. Business ByDesign aims to provide the on-promise SAP capabilities for small- and mid-sized companies through the cloud. SAP is also launching Sales OnDemand which is similar to Facebook which helps the Sales process.
NetSuite
NetSuite is a pure-play Cloud player who competes against the likes of SAP. The basic argument that NetSuite makes is that its customers have gotten bigger and bigger because they want to run their expensive enterprise resource planning (ERP) software cheaper in the cloud than in their own data centers and do it better.
SuiteCloud is NetSuite's platform that allows other vendors to participate in its ecosystem. For example, Box.net provides file storage and collaboration and SuccessFactors provides human capital management solutions for NetSuite customers.
The trouble is that on-premise software costs about 2 percent of revenue getting it running and keeping it running in the filed. At a business model level, it becomes a competitive disadvantage. While improving the cost model gets you that 2 percent back, but the real payoff comes from the productivity gains because you can do things differently.
My take
SAP's Business byDesign was launched a while back and withdrawn. It is not clear from the reporting that if there is any meaningful change to its new Cloud incarnation. More importantly, the potential for cannibalization was not addressed in light of the fact that the enterprise world is getting more comfortable with Cloud Computing.
It is interesting to contemplate NetSuite's platform. It clearly needs to build a robust ecosystem so that it provides a full suite of solutions to its install base without overstretch its resources in different directions. On the other hand, it is also not obvious to me that the role of integrating these services cannot be better fulfilled by SI (system integrator) who has more vertical/customer insight.
The overall new is good. Enterprises are, if implicitly, endorsing the push toward Cloud solutions despite the initial misgivings on issues such as security. It would be most interesting to monitor what Cloud "synergy" is possible as claimed by NetSuite.
Related entries:
* Bill McDermott, SAP Co-CEO, on Cloud http://allthingsd.com/20111031/seven-questions-for-sap-co-ceo-bill-mcdermott/?mod=mailchimp
* Zach Nelson, NetSuite CEO, on Cloud and SAP's Cloud http://allthingsd.com/20111103/netsuite-sales-surge-making-for-a-good-day-in-the-cloud/?mod=mailchimp
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