Thread regarding SAS Institute layoffs

The Slow Death of SAS - a Pre-sales Perspective

Let me start by saying it’s been fascinating to read some of the posts here, especially from the R&D folks. Thanks for your perspective. I thought I’d add mine from the perspective of a customer facing technical pre-sales consultant at SAS for 15 years, demoing and selling the SAS products.

I joined in 2004, shortly after SAS9 was launched. But already there were warning signs that all was not well. The strategy around SAS9 (focusing on data integration and business intelligence use cases) was solid as these were much bigger markets than advanced statistical analysis, but the execution was poor and SAS was playing catch up. The flagship products, Enterprise Business Intelligence (EBI) Server, and Enterprise Data Integration (EDI) Server were late to their respective markets and were coming up against Cognos and Business Objects on one hand, and Informatica and Datastage on the other…all of which were more mature, superior products. Nevertheless, the tools demoed ok and I managed to sell a fair bit of EDI Server and EBI Server, albeit primarily to the existing SAS user base who thought these tools would expand their power base and make them more relevant. However, their hopes were dashed when they realised how poor these products really were for DI and BI use cases, and the vast majority of the EDI Server and EBI Server implementations ended up being used as old-school Base SAS Servers for executing old-school SAS code, despite attempts by SAS to improve them over time.

However, in the 10 years since launch, SAS’s revenues more than doubled. So on paper that might look like success, but it wasn’t. The SAS9 products fell further and further behind as upstarts like Tableau and Qlik emerged in the BI space, and the massive strategic blunder that SAS made in stopping it’s free use of SAS for education purposes, resulted in R and later Python, emerging as the go-to advanced analytics language for university graduates. Other attempts to expand revenue streams such as in the Customer Intelligence space, similarly failed against superior competitors such as Adobe.

By 2012, SAS was clearly in trouble. It had lost the race in DI and BI, and open source was eating it’s lunch in the advanced analytics / ML space. So a certain individual bets the company on competing in the “big data” space…up against…open source, doh! Spark, Hadoop, etc. Now let’s release a big data BI product….enter SAS Visual Analytics. It demoed quite well to SAS users who had never seen Tableau or Qlik (anyone who had, quickly poked holes in it’s weaknesses). But in practice, it ran like a 3 legged dog and cost an arm and a leg in hardware. Who on earth thought it was a good idea to have to load all the data into memory before doing anything? Oh yes, we all know who! He then doubled down on that strategy with the release of SAS Viya. It was an appalling product from the outset. Demoing SAS Viya was the art of weaving your way through a minefield of bugs and design flaws. We sold it as SAS in the Cloud. It wasn’t - that was so disingenuous it was unethical. Just because we could host it on Azure or AWS, did not make it Cloud. It still took months of effort and 6 figure $ sums to just install it.

I left SAS in 2019, because I got sick of having to apologise to my customers because SAS, both in terms of its products, and in terms of its customer support, was failing to meet their expectations. Having said that, for the first 10 years I had a fantastic time, great memories, and a lot of success - I got to go to Club 5 times. The SAS culture in the country where I was based, was superb!

However, SAS is now dying and that’s easy for everyone to see. If SAS had gone public, 20 years ago things could have been very different. I now work for Salesforce and now appreciate the accountability that comes with being a publicly listed company. Recently our slowing revenue growth resulted in active investors forcing us to layoff 10% of the staff and go through major restructuring. Yes, some very good people got swept up in that and you feel for them, but ultimately these upheavals are necessary and make the company stronger. If SAS had had that level of outside scrutiny, I’m sure many of the stupid decisions SAS has made over the years would never have happened. Too late now. The cancellations will start coming thick and fast over the coming years, as those loyal users and their managers retire. It’ll be grim, so if you’re still at SAS and want to work beyond the next 5 years…get out now. Good luck.

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Post ID: @OP+1mvhMg6t

14 replies (most recent on top)

I don't know if our friends that need a few more years will get them.

Age and salary are big targets on their backs.

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Post ID: @1cycw+1mvhMg6t

Congratulations on your retirement. Ex-SAS Pre-Sales Dude nailed it, described my experience also. It is deeply saddening, for those of us who hoped to build products of lasting value.

When a train hits a truck, it's a disaster for those in the truck. This is like a train going off the tracks, where everyone in the train gets hurt.

The saving grace is, it's happening in slow motion. That makes it hard to watch. But it means that our friends who only need a few more years will probably get them.

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Post ID: @1bvrr+1mvhMg6t

Ex-SAS pre-sales dude gave the best summary of my experience with SAS - first as a customer, next in SAS Pre-Sales, then in R&D -- and finally, as of last Thursday - a SAS retiree :-).

It is sort of like watching a Train plow into a Truck at a railroad crossing... in slow motion. You can see that it's gonna happen, you know why - but you are powerless to stop it.

So sad for me as SAS has been a part of my life for nearly half of it!, and I still have a lot of good friends who need it to survive a few more years before they bail out.

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Post ID: @1bxks+1mvhMg6t

In SAS R&D I saw engineering efforts duplicated both internally and externally.

When code was duplicated internally, no one was incentivized to clean it up. Rather, they were incentivized to add features. But sloppy code increases maintenance costs, so over time you add fewer features. Understanding that requires understanding software engineering principles, but people didn't. So usually nothing was done about internal duplication.

Our internal duplication increased, I thought, beginning in the early '90s. Previously, R&D more often followed software engineering principles, and accepted ideas from outside the company. As time went on, more people could not reason about software from first principles, because they did not know those principles. This not only encouraged sloppy code; it encouraged insularity, the "Not Invented Here" syndrome, because when you can't tell the difference between two alternatives, you stick with the one you know.

Around that time, we also began to get more external duplication, in two ways. First, as the previous poster says, we repeatedly built similar projects. When one failed, after several years, we'd build the same darned thing again. I attribute this mostly to the Peter Principle: the people given control of these projects were not our best people. This happens when you can't identify your best people: everyone gets treated as interchangeable "cogs" or "commodities".

Second, we sometimes built similar projects at the same time. This was often a result of silos not incentivized to cooperate. Sometimes it was due to individual managers growing their fiefdoms. But these duplicate efforts were less costly, because they were highly visible. So upper management usually did not tolerate them for long; eventually, they'd remove resources from all but one of the duplicate projects.

If the pattern holds, that will happen with SAS9 and Viya: one of them will be discontinued. But this is a special case: the intention was that customers would switch from SAS9 to the new Viya architecture. They haven't yet, so I suppose that Viya is still lacking features. Someone still at SAS would know more about the current state of these projects.

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Post ID: @2zwd+1mvhMg6t

Speaking of a waste of engineering talent, and not going into which products I supported, I must have tread the same ground I had treaded previously at least three times.
The first time it was in one technology. The second time in another, and the third as part of a larger consolidation effort.

There was not a single product improvement in each of these efforts. Not a single one. Despite the best efforts of many, the Develop Manager in charge of this product did not want to make any of the changes to the mid-tier technologies, regardless of how clunky they were to use, or how loud customers complained. Only later did I realize that making changes to the product would be a 'razing of the shrine' to this person's vanity.

I then watched other efforts intended to calibrate how products worked with one another fail. Every time there was one excuse or another as to why some product couldn't coordinate with another on some lower technical level that would make the products more seamless for customers.

On another project, I watched one of the now anointed ones push his new pet project, a vanity project intended to munge three products together under a single platform, rationalizing it with a series of far-fetched use cases. I watched as this manager waived his hands hoping for some grand technical powers to 'make it so', while not actually communicating and coordinating with them and strategizing how to do the actual work; if he wished it, so it would magically appear. Um, no. This was another mess. I watched how this guy introduced his product to customers, only to have them tell him "this is a bad idea, please don't do this", only to have him ignore them and continue on with his vainglorious achievement. Maybe the product is a success, maybe it isn't.

I'll stop there. The whole experience was frustrating, and there was nothing marketable to salvage from it. Nothing. Not a single thing.

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Post ID: @2jqb+1mvhMg6t

"the best engineering talent is more critical to the success of commercial software than any product manager or marketing initiative"

I'm not a software engineer (not in the last 20 years at least, when I switched to presales), but I totally understand and largely agree with this statement.

I also think that to get the most out of engineering talent, the organisation must be structured the right way. One thing I frequently observed with the SAS9 and SAS Viya products, was how frequently I saw the same functionality being delivered across different products in different ways, resulting in a bad user experience. Of course, this is also massively inefficient use of engineering talent.

Whether this was because of a poor organisation structure with different teams working in silos and not collaborating effectively, or whether it was poor engineering talent who didn't understand how to properly utilise object-oriented programming techniques...or a combination of both, I don't know. Perhaps some other folks here might have some interesting insights from R&D on this...

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Post ID: @2iiy+1mvhMg6t

Post from TheLayoff.com

You make some valid points here. However, there is a lot of cr-p software outside SAS, presided over by Product Management/Marketing and built, using modern “agile“ processes that basically treat engineers like cogs.

Here is some FYI from someone who had a long R&D career and can lend at least some perspective.

The reason SAS originally built it sound C compilers were that for the targeted hosts (the mainframe, especially), suitable optimizing compilers did not exist. Eventually, these compiler products were discontinued, and those used by hardware and major OS vendors were adopted. What is impressive is the level of innovation and first principles computer science that SAS possessed to build these compilers in the first place, not to mention that this expertise was tremendously helpful as we ported to various host platforms.

As for the “not invented here“ mentality, that is a point well made. I can assure you a significant number of the most competent and dedicated developers did not follow that mantra and were willing/proactive in partnering with other vendors and even looking to external expertise to help with the design of critical components. roadblocks to this occurred, when business people were not willing to step up with the level of dedication and commitment that Developers had shown in the due diligence phase.

As to your point about Developers being “commodity resources” outside of SAS R&D, that is not entirely true, especially for the most innovative and driven companies where top engineers are compensated in 500k+ range because their technical insight and rare skills are understood to be critical to the success of the products. I know this firsthand having had a professional life after SAS R&D. I’m all but certain that the best engineering talent is more critical to the success of commercial software than any product manager or marketing initiative. This is the hard truth but those who don’t truly understand the discipline of software engineering have a hard time accepting.

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Post ID: @1phw+1mvhMg6t

So the lack of sales were due to forced reductions in product quality caused by inept management from one or more departments outside R&D. I will agree with the inept management part, but not in the reduction of quality being the cause for SAS's downfall.

Regardless of who you want to label as inept, SAS had a closed culture which nurtured delusional beliefs of technical impotence. For whatever reason, there seemed to be a culture which believed that anything not invented there was substandard; SAS developers seemed to believe they could build better versions of whatever and the world would just be in awe of it and snap it up in droves. Whomever perpetuated that belief was delusional; it worked here and there, but it was inconsistent.

Additionally, the culture was big on this Montessori nonsense, where special snowflakes would work in silos to create their own vanity products, show them to 'daddy', get pats on the back, and create new products from that. This style resulted in tremendous, unorganized waste. Why are SAS developers creating custom C compilers? Why create custom HTML 5 and Flex versions? Why? Off the shelf not 'good enough' for whichever prima donnas advocated for it? Apparently not. SAS believes they can do it better.

Now for a harsh lesson in reality...
Outside of SAS, R&D and Developers are simply commodity 'resources'. Product Managers and Marketing team members determine product direction. They produce the plans, and R&D and Development simply looks for ways to implement and execute upon that plan, to a schedule, and to a specified quality level. If they don't produce on that, they are replaced. For better or worse, they aren't Gods, they are easily replaceable commodities. All of us are now, unfortunately.

Reality hurts. Sorry to burst your bubble.

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Post ID: @1qpr+1mvhMg6t

Thanks SAS-Proud for your explanation of the decline in R&D - very insightful!

The post from "anonymous" that says "you just don't get it" and "your smugness" warrants a response.

You're right, I had nothing to do with SAS before 2004 (other than a brief stint near the start of my career as a SAS developer for a year in 1995), so you're correct that I don't get what was going on pre-2000, that "SAS-Proud" has shed some light on. My original post was based on my observations from 2004 onwards.

As for "smugness", no that's not one of my emotions when I reflect back...but some sadness and regret.

A little sadness, for the people (both employees and customers) who have been negatively impacted by poor decision making by certain individuals at SAS.

Also, regret. I have regret. I should have left 10 years earlier than I did. A lot of that's about missed opportunity from being stuck in a privately held company where I got paid decent market rates but enjoyed none of the spoils of a publicly listed company. I look around at my veteran colleagues at Salesforce who are in similar roles and have been there for 15 years. Their restricted stock units, and subsequent discounted stock purchases have gone up in value by over 2000% in that time and are now worth many many millions. Same is true for people working for numerous other tech companies whose valuations rocketed up over that period. I made my choices, I'm not envious of others, I'm just reflecting on what could have been different.

That leads me to the planned SAS IPO. It's ridiculous...everyone knows that there is no growth left in this company so the only direction a share price will head in, will be downhill. The IPO is all about JG sorting out his family's inheritance so they can enjoy the $. Employees won't benefit at all.

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Post ID: @1cnw+1mvhMg6t

The two viewpoints are easily reconciled. Lower quality R&D produced lower quality products that were harder to sell. It was cause and effect.

The interesting question is why R&D declined. I can't explain it by arrogance, except in a few individual cases. Most of the decline is explained by the Peter Principle.

I've never seen sales more clearly correlated with R&D than in this thread. Thanks so much for posting.

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Post ID: @1adp+1mvhMg6t

42 minutes ago by Anonymous | no reactions
Post ID: @1bjw+1mvhMg6t

…. Likely has no history with SAS prior to the year 2000. You just don’t get it. Historically SAS R&D had a good relationship with our customer facing sales folks, many more of us attended SAS (and other important industry) conferences in those days and also knew customers first hand.

Of course the dynamics, are more varied and detailed than what has been expressed in these relatively short posts. Yet, in your smugness, you act as if you seem to have some kind of special insight into what could have made things different — perhaps you do?. That said, you’re really close to the prize when you point out the decisions likely made by one person, who essentially holds all of the real power.

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Post ID: @1tct+1mvhMg6t

Reconciling these two comments is fascinating, and quite telling. There's no reconciling them, and this is why SAS struggles.

On the one hand, there is the pre-Sales guy who interfaces directly interfacing with the customers and the competing technologies. This commenter hears the customer feedback, experiences the wins, the losses, and the explanations for those losses. They also saw how internal decisions, most likely by one individual, hampered any ability to move forward and achieve more sustained wins.

On the other hand, we have the SAS R&D person who waxes nostalgic about 'the great intellectual horsepower' of R&D, and how that intellectual 'greatness' was 'stunted' by the politics of middle management. "If middle management had just gotten out of the way, we could have continued with our greatness..." It sounds like Al Bundy reminiscing to Peg about his glorious high school football days:

"Hey......hey Peg.......bring me a beer. If only I could have continued on with that Montessori model of employment, and they let me play with my technical toys longer, I would have eventually scored a winning deal for the company!"

"Oh, Al. You weren't listening to the customers or paying attention to your competitors anyhow. Other people had better customer focus and discipline to move their technical toys ahead of yours...Here's your beer, honey (kiss on the forehead). I'm off to go shopping with Marci. See you later!"

(Al sits on the couch, grimaces, and with his hand down his pants)

It seems that customers were giving SAS plenty of messages and opportunities, and whomever at SAS just didn't want to hear it. It seems that the company was stuck on this mantra "Look no further, we have the greatest Statistics products available. Just listen to us (you d-mb customers), we know what's best for you." That worked for awhile, and then competitors appeared; it stopped working. It's technical arrogance.

There is no reconciling these two viewpoints, and that is one of the reasons why SAS is in it's current state.

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Post ID: @1bjw+1mvhMg6t

I would add to this that MVA SAS (beginning in ver 6) and beyond was less user extensible than the earlier generations of SAS which provided documented interfaces and capabilities for user written PROCS, functions and formats. This created a tenuous relationship with then long-term SAS allies in the academic community, who were accustomed to being able to implement new statistical, and other applied math techniques as user written PROCS.

Eventually the SAS Toolkit was developed for MVA, but I don’t think it ever gained much ground. At that point the damaged been done.

I attribute all of this to SAS’ slow departure from its R&D roots, beginning as far back as the mid 90s.

On that note, many reading or commenting may not understand the deep level of innovation going on within R&D in the 80s to mid 90s.

At one point someone from the outside stated that “SAS, is either the world’s largest statistical software package, or the world’s smallest operating system”. The MVA Host and Core layers were rigorously designed and programmed to allow SAS to be ported to and run on virtually any OS or machine architecture, while mostly having to only compile the existing core and application layer code (PROCS, Data Step, etc.) on each target platform. A full complement of OS level services including memory management, task, management and highly optimized machine code generation was commonly defined in the core layer with OS/platform specific optimizations and features implemented in the host layer.

SAS R&D had world class experts in many areas, including very deep in host OS internals and machine architectures. We even built our own C compilers. There was a significant amount of knowledge sharing and “cross pollination”. By the late 90s, this began to wither and by 2004 a micromanaging middle-management layer had all but taken over. Some of them even used their “authority” to keep developers, who had long been innovative, collaborators from communicating at any meaningful level. This marked the rise of the “political class” within SAS and especially with an R&D. I was there for the entire ride and witnessed it all. There is much more that I could share.

Hopefully this confirms and complements what pre-sales dude shares in the OP. There was definitely a cause-and-effect relationship between the micromanaged “d-mbing down” of R&D and what he experienced in the field with our products

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Post ID: @1fef+1mvhMg6t

RE "massive strategic blunder that SAS made in stopping it’s free use of SAS for education purposes"

Yes. By far one of the biggest blunders ever for SAS. I hold a big grudge towards management for this.

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Post ID: @1vdh+1mvhMg6t

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