Thought Leadership
SNP SE has illuminated the current status of SAP S/4HANA migration in its meta-study “Confidently into the Cloud – RISE with SAP and SAP S/4HANA”
The study summarizes results from various studies and user surveys from technical, operational, and strategic perspectives. Key insight: On one hand, companies are still grappling with challenges, but on the other hand, they also recognize opportunities – and are increasingly relying on RISE with SAP for the transition.
According to SAPinsider, globally, 21 percent of companies using SAP ERP systems are already using SAP S/4HANA, 20 percent are currently switching, while 45 percent are planning to do so. The study shows that in 2024, almost 60 percent of SAP customers still cite the end of maintenance as the most important factor for migration. However, opportunities are also recognized: 39 percent see migration as a chance to redesign processes to better align with operational requirements. In another SAPinsider survey (“Infrastructure and Landscape Trends 2024”), the aspect of having to implement systems to support generative AI and other innovations is mentioned for the first time this year.
SaaS and cloud as preferred deployment options
The Foundry study has identified a prevalence for ERP solutions as SaaS/cloud variants in the GSA region: 40 percent of respondents prefer this deployment option. 35 percent pursue a hybrid ERP strategy, where the core ERP system is operated on-premises and extended with SaaS cloud applications. When choosing cloud, 38 percent opt for the Private Edition and 61 percent for the Public Edition. At the European level, a slightly different picture emerges: Only 9 percent of participants in the PAC CxO survey indicated that they choose deployment via public cloud (IaaS, hyperscaler) for their most important SAP S/4HANA solutions.
RISE with SAP: Assessment still diverge
With RISE with SAP, the Walldorf-based company offers a subscription-based service that bundles tailored ERP solutions, transformation services, and business analytics. According to the Foundry study, 62 percent of companies using an ERP, cloud ERP, or SAP solution believe this service is the best and most efficient way to implement SAP S/4HANA Cloud. Currently, one in ten large companies uses or intends to use RISE with SAP in the future, and four percent of small and medium-sized enterprises opt for it. According to SAPinsider, the proportion of companies already using SAP S/4HANA and considering switching to RISE with SAP is increasing year by year: While it was 23 percent in 2022, it has risen to 30 percent in 2024.
Choosing the right migration approach
Brownfield remains the migration approach of choice: As the Foundry survey shows, 39 percent of companies opt for it, while 26 percent rely on Greenfield. The BLUEFIELD approach, which combines the advantages of Brownfield and Greenfield, is chosen by 27 percent of companies. The advantage of this selective approach is that only the actually needed data is migrated while ensuring access to existing systems during the upgrade. Particularly larger companies with a turnover of at least ten million euros prefer this approach alongside Brownfield (31 percent).
Partners as enablers
To master the typical challenges – time, costs, and resources – SAP customers rely on external support that efficiently assists them with migration. Foundry has found that 9 out of 10 surveyed companies work with one or more SAP service providers, 55 percent of them for the duration of the migration and 35 percent permanently. The PAC CxO survey confirms that for 84 percent of participants, services and templates that a service provider can offer to simplify migration are crucial when choosing a provider.
(vm/SNP)
