SAP S/4HANA Migrations Roll Out Slowly in Germany
German enterprises are increasingly adopting SAP S/4HANA, but remain hesitant about transitioning to a SaaS model, as revealed in the ISG Provider Lens™ report. The report highlights a slow migration from traditional SAP ERP systems to S/4HANA, with heightened reluctance towards public cloud implementations. While SAP's RISE initiative has gained traction among midsize clients, larger companies are more cautious. Notably, ISG evaluates 46 providers, naming leaders in various quadrants. The report emphasizes a skill shortage hindering cloud migration projects.
- Increased willingness among German enterprises to transition to SAP S/4HANA.
- SAP's RISE initiative is popular among midsize customers, facilitating cloud transitions.
- The report provides a detailed evaluation of 46 providers, enhancing service provider options.
- German enterprises exhibit significant reluctance to adopt SaaS for S/4HANA.
- Larger companies hesitant to utilize SAP's RISE initiative due to existing licensing agreements.
- A shortage of skilled professionals complicates transition efforts for both providers and clients.
German enterprises are embracing S/4HANA but still cautious about SaaS-based, public cloud implementations, ISG Provider Lens™ report says
The 2022 ISG Provider Lens™ SAP Ecosystem report for
“German companies are conservative about making the full transition to SaaS-based S/4HANA,” said
Last year, SAP launched the RISE with SAP initiative to ease customers’ transitions to cloud-based S/4HANA by offering a bundle of licenses and services. While RISE has developed a following among midsize customers with relatively simple SAP environments, many larger enterprises with longstanding licensing agreements have been reluctant to use it, ISG says.
The report examines a series of questions enterprises face as they consider the transition to cloud-based S/4HANA. These include whether to start by migrating their applications to the cloud or by implementing S/4HANA, or whether to do both at the same time. A shortage of professionals with the skills to carry out such projects further complicates these questions for both providers and clients, ISG says.
SAP also offers the option of replacing ERP systems with a standard process-oriented implementation using SAP Business Technology Platform (BTP). This allows for the integration of SAP and non-SAP applications in a unified platform and supports a digital-first approach that can include new technologies such as AI, machine learning and blockchain. Most German enterprises have been cautious about taking such approaches to full implementation, the report says.
“German enterprises are under pressure to remain relevant and agile,” said
The report also includes insights on other SAP trends in the German market, including the needs driving adoption of SAP managed application services and the importance for midmarket clients of providers having strong onshore and nearshore resources.
The 2022 ISG Provider Lens™ SAP Ecosystem report for
The report names Accenture,
In addition, HCL is named as a
Customized versions of the report are available from
The 2022 ISG Provider Lens™ SAP Ecosystem report for
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across
A companion research series, the ISG Provider Lens Archetype reports, offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.
About ISG
ISG (
View source version on businesswire.com: https://www.businesswire.com/news/home/20220906005368/en/
+49 151 730 365 76
philipp.jaensch@isg-one.com
+49 152 341 464 63
mlongo@palmerhargreaves.com
Source:
FAQ
What does the ISG Provider Lens report say about German enterprises and SAP S/4HANA?
What challenges do German companies face in migrating to SAP S/4HANA?
What is the significance of SAP's RISE initiative according to the ISG report?