Can SAP HANA Compete with SAS in the Analytics Space?

Introduction

The analytics market is a complex landscape, with multiple players vying for market share. One of the most prominent discussions revolves around the competition between SAP HANA and SAS. While some argue that SAP HANA can challenge and even outperform SAS, understanding the nuances of each platform is crucial.

Comparing SAP HANA and SAS

Typically, the choice between SAP BO BusinessObjects and QlikView depends on specific organizational needs. SAP BO is known for its robust enterprise reporting capabilities, which integrate seamlessly with SAP systems, making it ideal for large organizations with extensive data governance requirements. QlikView, on the other hand, excels in data discovery and interactive analytics, offering intuitive visualization and rapid deployment, which are perfect for agile analysis and quick insights.

However, your question revolves around the competition between SAP HANA and SAS. It’s important to note that SAP HANA is just one part of SAP's analytics suite, and it’s an evolution from more traditional reporting tools. The shift in SAP’s approach to analytics was significant, following the acquisition of BusinessObjects, a company renowned for its data visualization capabilities. This acquisition marked a transition for SAP from a reporting-based solution to one that focuses on deep analytics and real-time data processing.

Historical Context

Both SAP and SAS have distinct origins and strengths. SAS started in the realm of statistical analysis, particularly for research-oriented projects. Its first customer was the United States Department of Agriculture (USDA), even before SAS incorporated as a company. On the other hand, SAP originated in operational reporting, targeting numerous functional areas within corporations, such as the CFO or COO.

As business data footprints grew and more unconventional operations emerged, the demand for deeper analytical insights expanded. This shift necessitated a change in approach from traditional reporting to more sophisticated analytics. SAP responded by introducing its Business Warehouse and Intelligence systems, which laid the groundwork for SAP HANA. While SAP BW (Business Warehouse) was not a monumental success, it was a significant step toward addressing the fundamental data volume issues through a more comprehensive database layer.

Current Landscape

The current competitive edge that SAP HANA holds is its ability to perform real-time analysis and machine learning directly on data. This capability is underscored by its integration with R servers, allowing for seamless embedding of machine learning features into HANA SQL scripts. This advancement means that SAP HANA can provide insights derived from large volumes of data in real-time, a feature that historically SAS excelled in but is now seeing challenges from SAP.

Another key factor is the rapid advancement in machine learning and the Internet of Things (IoT) in business contexts. These innovations heavily rely on statistical methods, a field where SAS traditionally has a strong foundation. However, academic institutions are now seeking to democratize these technologies, allowing other companies to catch up. Google, Facebook, Twitter, and Apple are leading this democratization movement, just as they are in the broader technology ecosystem.

Conclusion

While SAP HANA and SAS are not direct competitors, SAP is increasingly expanding into areas traditionally dominated by SAS. This is driven by its powerful visualization capabilities and access to comprehensive business data through its integrated systems. Therefore, it can be argued that SAP HANA is well-positioned to compete and potentially outperform SAS in the analytics domain.

However, it’s essential to recognize that the analytics market is dynamic and constantly evolving. Each platform has its strengths and weaknesses, and the focus should be on understanding which solution best meets the specific needs of an organization. In conclusion, while SAP HANA is indeed competing with SAS, it is doing so with a unique set of capabilities that could make it a formidable opponent in the analytics space.