DSAG member investment plans – AI bubbles up, Big Data and IoT lead the way

DSAG member investment plans – AI bubbles up, Big Data and IoT lead the way … The survey analysis suggests that digitalization has led to.

DSAG investments 2019

DSAG, the German-speaking SAP user group has released the results of a survey that talks to member investment plans along with the usual assortment of pain points in the SAP world. Before getting into the detail, it is notable that:

For 40 percent of those surveyed, IT budgets have risen by approximately 16 percent compared to last year. Budgets remained the same for approximately half of the respondents. Investment amounts do not vary by industry: retail, service, and manufacturing sectors are showing comparable trends.

Here are the highlights from the DSAG member investment survey:

Budgets are growing but responsibilities are shifting.

42 percent of companies report that SAP investments saw an increase of 27 percent. This is 10 percent lower than in 2018. In 28 percent of cases, specialty departments are assuming budget responsibility. The survey analysis suggests that digitalization has led to

…responsibility for and expertise in modeling business processes are migrating to specialty departments, as is the relevant budget.

Category winners and losers

Big Data and the Internet of Things are either on the to-do list or have already kicked off…almost one-fifth of companies are neither investing in these areas nor planning any relevant projects.

Digitalization waning?

A full 62% consider their digitalization efforts have not gotten very far. The survey analysis is not entirely clear but Marco Lenck, DSAG chairman suggests that member firms are now a lot more realistic about what is possible (and the effort needed) but that lack of clarity around required budgets is likely problematic.

Switching to cloud?

The survey makes a stark statement:

A lot of companies have already outgrown Business Suite. Main investments in the ERP solution fell considerably, for the third year running (2017: 33 percent, 2018: 29 percent, 2019: 10 percent). However, investments in S/4HANA are not growing at the same rate and remain at 14 percent.

What of cloud then?

  • 16% are planning medium to large scale SuccessFactors investment (same as 2018.)
  • SAP Analytics Cloud interest climbed significantly by 6 percentage points to 9 percent.
  • Investments in the SAP Cloud Platform doubled to 8 percent.
  • Investment in the planning solution Integrated Business Planning also rose to 8 percent. 1
  • 2 percent of companies are making medium to large investments in C/4HANA, which includes solutions such as Hybris.


75% of member firms have some sort of plan to migrate to S/4 but the timescales vary:

  • 5 percent aim to migrate this year
  • 39% plan to in the next three years (+6 percentage points).
  • 30% are 3+ years out (+10 percentage points).

Strikingly, go-lives remain sluggish with only 3 percent reporting project completion.

Ramping existing investments

Despite all the talk about IoT etc, DSAG members appear mired in ERP projects. From the report:

The number of those focusing on existing business models has again risen (+5 percentage points) and is up to 90 percent. “Lots of businesses are busy with ERP and that means they are looking at existing business processes. This explains the high number of planned S/4HANA projects, since S/4HANA is often equated with digitalization,” says Marco Lenck. Almost two-thirds of those surveyed consider investments in new business models to be important, an increase of 2 percent when compared to last year.

My take

I am not surprised by this survey as it confirms trends I saw late last year at vendor events. Even so, surveys of this kind provide valuable insights into real-world activity in important geographies.

One thing to bear in mind. It might seem that DSAG members are overly cautious but that would misread the way in which German-speaking firms execute on their business strategies. As I implied last year, these companies are far more purposeful than may appear to be the case. they fully understand the macroeconomic climate, threats, and opportunities. The fact that IoT figures so strongly should not surprise since so many are engaged in manufacturing enterprises.

DSAG says it wants to emphasize the value of digitalization while ensuring that long term on-premise ERP customers are not left out. Given SAP’s planned roadmap, that should not be a problem. However and despite DSAG’s clear support for pushing SAP’s innovation message, what’s not clear here is the extent to which budgets are moving elsewhere.

SAP competitors have been circling the German bunker for some time and in the last year, we have seen Oracle, Salesforce and Workday make increased investments in that locale. We are led to understand that Microsoft is also on the German investment trail. The Salesforce ecosystem of partners, in particular, represents a credible existential threat to SAP because that ecosystem has a good set of strong ISV developed applications that have cemented their place in the critical, customer-focused parts of the broader CRM market. With budgets devolving to departmental heads, it will be difficult for SAP to maintain the degree of account control it has in the past.

However, that’s not a slam dunk. There are plenty of situations where departments might think they have control but then IT steps in and kiboshes a deal. That isn’t so easy in cloud scenarios and the rise of Dell Boomi, Mulesoft and Workato as ‘gluing’ technologies may yet serve to persuade IT departments that SAP is not the only game in town.

I still think that Qualtrics – which was not mentioned in this survey – represents an opportunity that changes the value delivery emphasis for SAP but I need to learn more in order to be more certain about its place in the SAP panoply. Watch this space as I haev another update coming on this topic in the next couple of weeks.

Artificial Intelligence (AI) in the Worldwide Construction Market, 2019-2023 – Led by Autodesk, IBM …

The artificial intelligence (AI) in construction market will register a CAGR of over 28% by 2023. Increasing adoption of cloud-based solutions to emerge …

DUBLIN–(BUSINESS WIRE)–The “Global Artificial Intelligence (AI) in Construction Market 2019-2023” report has been added to ResearchAndMarkets.com’s offering.

The artificial intelligence (AI) in construction market will register a CAGR of over 28% by 2023.

Increasing adoption of cloud-based solutions to emerge as major trend in the market

The emergence of AI-as-a-service in construction is trending among various industrial users of AI, as it allows individuals and companies to access AI for various applications with heavy initial investment and lowers the risk of failure.

Increasing demand for data integration and visual analytics

The increasing data proliferation and complexities have made the process of deploying and maintaining reliable data interfaces difficult. AI in construction allows real time synthesizing of data to facilitate real time analysis or effective decision making.

Existing issues of AI

AI hardware that is currently available on the market is limited in its capabilities, as it does not have the ability to stimulate a human brain, and the software cannot match the intelligence of humans.

Key Players

  • Autodesk
  • IBM
  • Microsoft
  • Oracle
  • SAP

Topics Covered





  • Market definition
  • Market sizing 2018
  • Market size and forecast 2018-2023



  • Comparison by solution
  • Software – Market size and forecast 2018-2023
  • Services – Market size and forecast 2018-2023
  • Hardware – Market size and forecast 2018-2023
  • Market opportunity by solution




  • Geographic comparison
  • EMEA – Market size and forecast 2018-2023
  • Americas – Market size and forecast 2018-2023
  • APAC – Market size and forecast 2018-2023
  • Key leading countries
  • Market opportunity



  • Automatic updating and building of projects
  • Increasing investments for intelligent processing
  • Increasing adoption of cloud-based solutions
  • Investment in AI start-ups


  • Overview
  • Landscape disruption
  • Competitive scenario


  • Vendors covered
  • Vendor classification
  • Market positioning of vendors
  • Autodesk
  • IBM
  • Microsoft
  • Oracle
  • SAP

For more information about this report visit https://www.researchandmarkets.com/research/8crfjp/artificial?w=4

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Oracle (ORCL) Shareholder Yacktman Asset Management LP Has Trimmed Its Stake; Acadian …

Acadian Asset Management Llc decreased its stake in Ternium Sa (TX) by 2.3% based on its latest 2018Q3 regulatory filing with the SEC. Acadian …

Ternium S.A. (NYSE:TX) Logo

Acadian Asset Management Llc decreased its stake in Ternium Sa (TX) by 2.3% based on its latest 2018Q3 regulatory filing with the SEC. Acadian Asset Management Llc sold 136,413 shares as the company’s stock rose 7.96% while stock markets declined. The institutional investor held 5.80 million shares of the steel and iron ore company at the end of 2018Q3, valued at $175.75M, down from 5.94 million at the end of the previous reported quarter. Acadian Asset Management Llc who had been investing in Ternium Sa for a number of months, seems to be less bullish one the $5.55 billion market cap company. The stock decreased 2.18% or $0.63 during the last trading session, reaching $28.26. About 159,834 shares traded. Ternium S.A. (NYSE:TX) has declined 2.15% since January 23, 2018 and is downtrending. It has underperformed by 2.15% the S&P500.

Yacktman Asset Management Lp decreased its stake in Oracle Corporation (ORCL) by 5.77% based on its latest 2018Q3 regulatory filing with the SEC. Yacktman Asset Management Lp sold 813,158 shares as the company’s stock declined 4.48% with the market. The hedge fund held 13.28 million shares of the prepackaged software company at the end of 2018Q3, valued at $684.82 million, down from 14.10M at the end of the previous reported quarter. Yacktman Asset Management Lp who had been investing in Oracle Corporation for a number of months, seems to be less bullish one the $175.64B market cap company. The stock decreased 0.67% or $0.33 during the last trading session, reaching $48.94. About 13.32 million shares traded. Oracle Corporation (NYSE:ORCL) has declined 3.81% since January 23, 2018 and is downtrending. It has underperformed by 3.81% the S&P500. Some Historical ORCL News: 22/03/2018 – Federal services provider CSRA partners with Google Cloud; 11/04/2018 – Global Financial Analytics Market Report 2017-2021 with Key Players IBM, Microsoft, Oracle and SAP Dominating – ResearchAndMarkets.com; 01/05/2018 – New Groundbreaking Customer Cloud Service Helps Utilities Improve Service, Reduce Costs and Accelerate Time to Go Live; 10/04/2018 – New Oracle Marketing Cloud Analytics Blast through Data Silos and Enable Pinpoint Targeting; 27/03/2018 – A federal court just revived Oracle’s multi-billion dollar copyright case against Google; 21/03/2018 – ORACLE IN PACT WITH MIDWESTERN HIGHER EDUCATION COMPACT; 21/05/2018 – Oracle Closes Above 50-Day Moving Average: Technicals; 25/04/2018 – Oracle acquired Grapeshot, a ‘brand safety’ marketing provider, sources say for up to $400M; 19/03/2018 – Oracle 3Q Software License Update, Pdt Support Rev $5.03B; 11/05/2018 – ORACLE BOOSTS SIZE OF BOARD TO 14 DIRECTORS

Acadian Asset Management Llc, which manages about $65.15 billion and $24.21B US Long portfolio, upped its stake in Mosaic Co (NYSE:MOS) by 29,085 shares to 34,214 shares, valued at $1.11M in 2018Q3, according to the filing. It also increased its holding in Target Corp (NYSE:TGT) by 70,456 shares in the quarter, for a total of 76,804 shares, and has risen its stake in Agilysys Inc (NASDAQ:AGYS).

Among 8 analysts covering Ternium (NYSE:TX), 6 have Buy rating, 1 Sell and 1 Hold. Therefore 75% are positive. Ternium had 16 analyst reports since August 10, 2015 according to SRatingsIntel. On Wednesday, February 24 the stock rating was upgraded by Citigroup to “Buy”. HSBC downgraded Ternium S.A. (NYSE:TX) on Wednesday, November 9 to “Hold” rating. As per Monday, August 10, the company rating was initiated by Goldman Sachs. Morgan Stanley upgraded Ternium S.A. (NYSE:TX) on Wednesday, December 6 to “Overweight” rating. On Tuesday, May 15 the stock rating was upgraded by Credit Suisse to “Outperform”. The firm earned “Buy” rating on Thursday, February 8 by Scotia Capital. HSBC initiated the shares of TX in report on Friday, May 13 with “Buy” rating. The stock has “Overweight” rating by Morgan Stanley on Monday, December 7. Scotia Capital maintained the shares of TX in report on Thursday, April 19 with “Buy” rating. The rating was downgraded by Morgan Stanley on Monday, May 9 to “Equal-Weight”.

More notable recent Ternium S.A. (NYSE:TX) news were published by: Globenewswire.com which released: “Glancy Prongay & Murray LLP Reminds Investors of the Deadline in the Class Action Lawsuit Against Ternium SA – GlobeNewswire” on January 22, 2019, also Globenewswire.com with their article: “SHAREHOLDER ALERT: Bronstein, Gewirtz & Grossman, LLC Reminds Investors of Class Action Against Ternium SA (TX) & Lead Plaintiff Deadline: January 28, 2019 – GlobeNewswire” published on January 04, 2019, Globenewswire.com published: “SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims on Behalf of Investors of Ternium SA – TX – GlobeNewswire” on January 19, 2019. More interesting news about Ternium S.A. (NYSE:TX) were released by: Globenewswire.com and their article: “CLASS ACTION UPDATE for ATUS and TX: Levi & Korsinsky, LLP Reminds Investors of Class Actions on Behalf of Shareholders – GlobeNewswire” published on January 13, 2019 as well as Prnewswire.com‘s news article titled: “Johnson Fistel, LLP Notifies Investors of Class Actions Against Sogou Inc., Immunomedics, Inc., and Ternium SA; Investors Encouraged to Contact Firm – PRNewswire” with publication date: January 12, 2019.

Analysts await Ternium S.A. (NYSE:TX) to report earnings on February, 19. They expect $1.52 earnings per share, up 65.22% or $0.60 from last year’s $0.92 per share. TX’s profit will be $298.41 million for 4.65 P/E if the $1.52 EPS becomes a reality. After $2.49 actual earnings per share reported by Ternium S.A. for the previous quarter, Wall Street now forecasts -38.96% negative EPS growth.

Investors sentiment decreased to 0.63 in 2018 Q3. Its down 0.19, from 0.82 in 2018Q2. It worsened, as 56 investors sold ORCL shares while 640 reduced holdings. 133 funds opened positions while 304 raised stakes. 2.03 billion shares or 4.41% less from 2.13 billion shares in 2018Q2 were reported. Commerzbank Aktiengesellschaft Fi holds 0.1% of its portfolio in Oracle Corporation (NYSE:ORCL) for 200,564 shares. Thompson Davis Inc accumulated 34 shares. Cim Mangement Incorporated has 10,342 shares. Sei Investments, Pennsylvania-based fund reported 1.09 million shares. Destination Wealth Mngmt has 1.4% invested in Oracle Corporation (NYSE:ORCL) for 487,684 shares. Causeway Mngmt Ltd Llc has 6.52M shares. Illinois-based Gofen & Glossberg Ltd Company Il has invested 0.09% in Oracle Corporation (NYSE:ORCL). Eaton Vance Mngmt has 0.48% invested in Oracle Corporation (NYSE:ORCL) for 4.20 million shares. Cape Ann Bancorporation has invested 0.38% in Oracle Corporation (NYSE:ORCL). Swedbank owns 1.70M shares for 0.39% of their portfolio. British Columbia Management reported 1.11 million shares. Conning reported 84,421 shares. Optimum Invest Advisors has 0.44% invested in Oracle Corporation (NYSE:ORCL). Avalon Advsr Ltd Liability Company holds 0.34% of its portfolio in Oracle Corporation (NYSE:ORCL) for 232,038 shares. 15.25 million were accumulated by Macquarie.

More notable recent Oracle Corporation (NYSE:ORCL) news were published by: Fool.com which released: “Will Oracle and Accenture Help Secoo Stay Relevant? – Motley Fool” on January 07, 2019, also Livetradingnews.com with their article: “Oracle Corporation (NYSE:ORCL) 2019 – Live Trading News” published on January 02, 2019, Benzinga.com published: “J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT), Oracle Corporation (NASDAQ:ORCL) – MercuryGate Taps Oracle Executive As CTO; Outsider To Oversee Company’s IT Infrastructure – Benzinga” on January 07, 2019. More interesting news about Oracle Corporation (NYSE:ORCL) were released by: Streetinsider.com and their article: “Tesla (TSLA) Names Oracle’s (ORCL) Larry Ellison and Kathleen Wilson-Thompson to Board – StreetInsider.com” published on December 28, 2018 as well as Seekingalpha.com‘s news article titled: “U.S. sues Oracle over pay discrimination – Seeking Alpha” with publication date: January 22, 2019.

Among 47 analysts covering Oracle (NYSE:ORCL), 22 have Buy rating, 1 Sell and 24 Hold. Therefore 47% are positive. Oracle had 141 analyst reports since July 30, 2015 according to SRatingsIntel. Raymond James maintained the stock with “Buy” rating in Friday, December 15 report. Canaccord Genuity maintained Oracle Corporation (NYSE:ORCL) rating on Thursday, August 24. Canaccord Genuity has “Buy” rating and $56.0 target. Raymond James maintained it with “Buy” rating and $55.0 target in Friday, September 15 report. The stock of Oracle Corporation (NYSE:ORCL) has “Buy” rating given on Wednesday, August 16 by BMO Capital Markets. The firm earned “Outperform” rating on Thursday, June 22 by Wedbush. Nomura maintained the stock with “Buy” rating in Friday, June 29 report. On Wednesday, March 16 the stock rating was maintained by UBS with “Buy”. The rating was maintained by KeyBanc Capital Markets with “Buy” on Monday, July 17. The firm has “Buy” rating by Jefferies given on Friday, August 25. The company was upgraded on Thursday, July 30 by Jefferies.

Oracle Corporation (NYSE:ORCL) Institutional Positions Chart

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Oracle’s priorities for 2019? Repeat this handy mantra: Applications! Automation! Integration!

However, the tone of the event was set before it had even begun, with top dog Mark Hurd telling a New York event that Oracle would dominate the …

Analysis All too aware database sales alone won’t sustain it, Oracle’s execs are seeking to push Big Red as a one-stop shop for cloudy apps.

Big Red, which has been struggling to gain foothold in the cloud market, is looking to make applications and integration the order of 2019 to help it win 50 per cent of the corporate apps market. Execs were seen highlighting Oracle’s AI chops at every opportunity, and, as you’d expect taking aim at those, er, forking open-source vendors.

Certainly, those were the main takeaways from Oracle OpenWorld London last week, which marked the first world tour for the firm in addition to its annual San Francisco gabfest.

However, the tone of the event was set before it had even begun, with top dog Mark Hurd telling a New York event that Oracle would dominate the web-based corporate applications market.

“Today, there’s no one with more than 50 per cent [share],” he said in an on-stage interview with Bloomberg. “In fact, the highest application percentage of any company in any segment is sort of mid-20s. This generation will see a leader that’s much more material than that, and I volunteer us to do it.”

Currently, applications make up about a third of Oracle’s overall revenues, but these figures have been rising steadily in recent quarters – and thus make a good target when overall revenues remain resolutely flat.

Oracle’s strategy has been to talk up “intelligent” business applications, having announced last year that it had embedded machine learning into application software products across its portfolio.

“It’s changing the whole concept of a business application,” systems and technology SVP Andrew Sutherland told attendees. Previously, he said, applications were “largely passive”; now they are responsive to a business’s needs.

Oracle logo, image by GongTo via Shutterstock

Oracle exec: Open-source vendors locking down licences proves ‘they were never really open’


Sutherland billed a move to the cloud as a good way for businesses to stop having to worry about upgrades, saying that after they make the leap, “life becomes a lot easier”.

Indeed, “the last upgrade you’ll ever do” is Oracle’s tagline for its ERP sales push as it tries to nab SAP customers weighing up whether to make the major infrastructure shift to the German firm’s in-memory HANA database.

Similar messages of simplicity are used to sell the firm’s autonomous database, which was announced with much fanfare in 2017 and became generally available last year. Cloud senior veep Steve Daheb said there were “thousands” of trials of autonomous and “half a million installed base [of] database customers”.

But, beyond selling the database itself, it’s clear that Oracle wants to use discussions with customers as a jumping off point to cross-sell its wares.

“Autonomous is interesting, its gravitational effect: it pulls integration,” he said. “Even if what they’re doing is looking at something like autonomous data warehouse, it winds up being a bigger conversation.”

Integration, integration, integration

The event saw a lot of references to integration and overlap. For instance, the crossover between different applications, with Sutherland saying that “some of the divides between ERP and SCM… don’t always make sense”.

The senior cloud veep was keen to latch on to this message, saying that “at some point, as you do ML, you’re just asking business questions” and that means bringing data in different systems together.

“Where does one application stop and another begin? I think there’s a really interesting opportunity there. Oracle has all those pieces,” he said.

Daheb went on to list various applications from other companies that enterprises might have to connect together, finishing by saying: “I mean, wow, I thought cloud was supposed to be easy.”

“People want heterogenous systems and we understand that… but there are things we can do naturally given we have the breadth of applications,” he said. “We have that stack – which is the cloud platform – that allows us to connect and extend and enrich and get those insights.”

Executive veep for cloud platform Amit Zavery also raised this idea of overlap, telling The Reg that Oracle’s 2019 development plans would “bring in a lot of integration between app services, and how you use it in a collected fashion”.

However, for the cloud platform, Zavery said that integration extends to other technologies and systems, noting that it had been built to connect into applications like SAP or Workday, as well as other third-party stacks.

“[We have] customers who want to integrate who want analyse and extend, and they need a platform for doing that,” he said. “We’re starting to see a user model of adoption in a very heterogeneous fashion.”

But Zavery acknowledged that there was a “big value proposition” for Oracle in this. “We compete with vendors out there who are building proprietary stacks – they might say they’re building open source, but they’re using a forked open source. But if you want to build something on it… it doesn’t work really.”

He contrasted this with what he said was Oracle’s approach: “If we adopt any open-source stuff, we take standard technology, that way customers can deploy that service to build on it, either in an on-premise environment, on Oracle cloud or on a third party cloud.”

The dig at open-source vendors echoes comments made by database exec Andy Mendelsohn, who said that firms like MongoDB, which is locking down their source code, would soon no longer be seen as the “good guys”.

Zavery extended this argument to AWS, claiming that its streaming big data service Kinesis, an implementation of Kafka, would cause problems for customers.

“They thought, it’s Kafka-ish, so it’s fine… but now they’re realising that they can’t build on it. You can’t run any of the AWS services anywhere else.”

This is becoming more important to businesses now, he said, as they switch from trying out cloud to using it in real production environments and large systems. “You can’t do this thinking ad hoc anymore. [Customers] are starting to think about long-term implications.”

Changing customer demands

Elsewhere, Zavery said that Oracle was increasingly likely to speak to non-IT bods in organisationsm – and that the firm had “invested heavily” in simpler messaging and product design.

“It has changed a lot over the last few years, especially on the platform, PaaS, side,” he said. “You used to sell to IT, to sophisticated users. They didn’t mind – well I won’t say didn’t mind – but were used to the complexity. With cloud, and autonomous, all those things go away.”

Now, he said, firms are selling to line-of-business users who want ease of use or drag-and-drop – not things Oracle is known for. Asked whether he agreed that Oracle’s products were traditionally seen as complex, Zavery said “100 per cent”.

“But I think we recognised very clearly that that’s not the way it should be now, because our user community had changed,” he said, adding that he had hired “a lot” of people in Stateside with different experiences, including UX and consumer-focused staff.

“It’s become a big investment. It used to be sort of engineers designing for engineers,” he said. “It’s no longer that mindset. I don’t let our engineers design our experiences anymore.” ®

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Analytics outfit OmniSci hires new federal lead

Launched in 2013, OmniSci specializes in analytics powered by graphics processing units that search for and visualize large amounts of data.


Analytics outfit OmniSci hires new federal lead

  • By Ross Wilkers
  • Jan 22, 2019

San Francisco-based analytics company OmniSci has hired 25-year government market veteran Ray Falcione Jr. as vice president of the federal business.

Falcione will focus on expanding OmniSci’s partnership and customer base in the federal government space with respect to the company’s portfolio of big data and analytics services, OmniSci said Thursday.

Launched in 2013, OmniSci specializes in analytics powered by graphics processing units that search for and visualize large amounts of data. The company builds its platform to work in public and private cloud environments.

Intelligence community venture capital arm In-Q-Tel is an investor in OmniSci.

Prior to OmniSci, Falcione was director of federal programs at Adobe. He also held executive and other senior management roles at Software AG Government Solutions, Brocade, Oracle and Sun Microsystems.

About the Author

Ross Wilkers is a senior staff writer for Washington Technology. He can be reached at rwilkers@washingtontechnology.com. Follow him on Twitter: @rosswilkers. Also find and connect with him on LinkedIn.

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