SAP and Vendavo deepen partnership with Profit Optimization Solutions

 SAP and Vendavo announced a significant expansion of the development road map and partnership based on the SAP HANA platform aimed at providing customers with new real-time profit optimization solutions. The announcement was made at SAP TechEd, being held October 21-25 in Las Vegas.

Vendavo plans to run the next release of its Profit Analyzer application on the SAP HANA database. The solution will harness companies’ enterprise Big Data to identify opportunities to help sell more profitably. The power of SAP HANA will help make the solution a more powerful margin analytics application designed to give pricing analysts guided insight into high value profit improvement opportunities and is planned to offer superior performance and lower total cost of ownership (TCO) for both existing and new customers

In this Profit Analyzer solution, planned for release in early 2014, use of SAP HANA is planned to replace Vendavo’s current proprietary in-memory technology, which runs on a traditional Oracle or DB2 database. Vendavo’s integration of SAP HANA has been facilitated by collaboration with the SAP® Co-Innovation Lab, where SAP and Vendavo have worked together to deliver the industry’s first profit optimization solution integrated with SAP HANA. Vendavo Profit Analyzer joins previously released Profit Finder as the first two of Vendavo’s profitable selling solutions to transition to run on the real-time SAP HANA platform.

“Our experience working with SAP and developing on the SAP HANA platform has greatly exceeded our expectations, giving us confidence in transitioning our whole enterprise product line to running on SAP HANA,” said Neil Lustig, Chief Executive Officer and President, Vendavo. “Customer response has been unprecedented and we expect rapid uptake due to the benefits SAP HANA delivers, such as lower total cost of ownership, faster data uploads, greater accessibility to enterprise Big Data, lightning-fast performance and the ability to easily scale to billions of rows of data.”

As further expansion of the existing solution extension partnership that began in 2005, SAP and Vendavo are updating the Vendavo-developed products on the SAP price list. This includes plans to add capabilities for running pricing dashboards and analytics in the SAP® Price and Margin Management application by Vendavo on SAP HANA to harness the added efficiency, speed, scale and data accessibility. SAP will also offer new flexibility and greater choice for customers in terms of when and how they choose to adopt functionality in SAP Price and Margin Management.

“We must continually renew our relationships with partners and look for new ways to deliver innovation,” said Dr. Vishal Sikka, member of the Executive Board of SAP AG, Products & Innovation. “We look forward to building on an already successful relationship with Vendavo to deliver even more value to our customers.”

Vendavo customers, representing over US$1.75 trillion in annual revenues, typically have realized margin improvement between 100 and 300 basis points.