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Gartner weighs mySAP ERP costs, benefits

In a report slated for release next week, Gartner Inc. research director Yvonne Genovese states that SAP's new mySAP ERP package has already confused the upgrade landscape for R/3 users. However, customers could benefit from the new deployment path, she said. Clients must do their own homework while SAP works on its weak spot -- communicating its strategy to customers.

Is it the same amount of work?
Yes. From a pure upgrade standpoint, the work is exactly the same. The other thing to consider when you're talking about upgrades is that R/3 is going to start going away. The future is with mySAP ERP. Isn't some of this just repackaging?
Yes. MySAP ERP is the repackaging of R/3 with some additional capabilities. It is more than just Enterprise and NetWeaver, though. You do get these additional functions. What types of enterprises will be looking at mySAP ERP?
Businesses that have already looked at the information integration side of things. That's just about everyone. I've never met a company that didn't have a heterogeneous environment and some sort of transportation planning or warehouse management issue. It makes that side of things much easier. The other kind of customer that it makes sense for is someone thinking about adding some of the mySAP modules. If they're already considering at least one more mySAP component, then it makes sense. What are the key differences between R/3 Enterprise and mySAP ERP?
There are two: cost and functionality. If you're on maintenance today and you move to R/3 Enterprise, it does not involve a cost -- unless you add users or mySAP components. But if you move to mySAP ERP, you have to re-license the technology. You will have to switch your licensing plan from R/3 to mySAP plans. And what do I get with mySAP ERP that I wouldn't get with R/3 Enterprise?
Mostly it's analytics. We're talking about financial analytics, workforce analytics and operations analytics. You also get employee life cycle management and employee relationship management. And there's a financial supply chain component. The NetWeaver piece gives you portal capabilities and better integration capabilities for integrating your applications with applications from other vendors. Let's start with upgrades. Do I still have to go through 4.6C if I choose mySAP ERP?
Yes. There is not an upgrade that bypasses 4.6C. Currently, 52% of the installed base is on 4.6, and they are trying to get to 4.6C, at least, because of the support deadline. Some are trying to get to R/3 Enterprise. Now they have to consider going to mySAP ERP instead. What have you been hearing from your clients since the mySAP ERP announcement?
They are confused. They are asking: "Do I go to R/3 Enterprise or mySAP ERP? How much will it cost? Why are they doing this now? They don't understand. They don't get it. People are not necessarily suspicious of it. But most people do think it's just R/3 with NetWeaver wrapped around it. At the end of the day, is mySAP ERP a good idea for existing R/3 customers?
I think it's a really good stepping stone if you're thinking of moving toward the mySAP Business Suite anyway. I think it will help the user by providing them an offering that is mySAP-oriented with the business processes and analytics. But you are going to have to pay for it.

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