The State of Cloud Use
Among SAP Customers
The State of Cloud Use Among SAP Customers
Almost half of SAP customers do not have a cloud strategy in place and need help understanding the benefits of the cloud, research from ASUG reveals.
The cloud is top of mind for most SAP customers, and almost half of SAP customers (47%) use cloud services to host SAP applications. Of the customers currently on the cloud, almost three quarters (70%) use a single provider and 16% use multiple providers. Slightly less than half (40%) use a private cloud, a quarter use a public cloud, and 20% opt for a hybrid cloud environment. Only 10% of these SAP customers are unsure of their organization’s approach to the cloud. The top drivers for SAP customers to move to the cloud include easier scalability (50%), fewer resources needed to maintain systems (46%), digital transformation clear (46%), increased flexibility (45%), and the move to SAP S/4HANA (45%).
Figure 1: SAP Customer Cloud Motivators
Top Drivers to Move to the Cloud
Easier scalability
50%
Fewer resources needed to maintain systems
46%
Part of digital transformation strategy
46%
Increased flexibility
45%
Migration to SAP/4HANA
45%
Lower costs
44%
Improved performance and availability
41%
Source: ASUG research, 2022
The number of SAP customers in the cloud will increase because slightly less than half (43%) plan to host SAP applications on the cloud in the future. More than a third plan to do so more than two years from now. A quarter plan to move to a hybrid cloud environment, 22% plan to use a single public cloud, 19% plan to use a private cloud, and 16% say they will use multiple public clouds. The 15% of SAP customers who say they have no plans to move to the cloud cite security concerns as their reason for not moving.
A staggering number of SAP customers (41%), however, do not know or are unsure of how their organization’s cloud plans. These organizations need more information about the benefits of moving to the cloud. They do not understand how it can enhance their operations. Compounding the fact that organizations need more help with the cloud is the fact that a whopping 40% of SAP customers do not have a specific cloud strategy in place. This means organizations are likely exposed to security risks and are not taking full advantage of the cloud.
Work with an MSP when Migrating to the Cloud
SAP customers need help understanding the value of the cloud and how it can drive an organization forward. Working with a trusted managed service provider ensures your cloud migration will weave your business together to knock down organizational silos and create opportunity for business optimization and growth. And, by working with an MSP, you can ensure your business has the right reference architecture, automation, security, cost management, and planning to utilize the power of the cloud.
Share why SAP customers are moving to the cloud.
The Challenges and Benefits of the Cloud and Usefulness of MSPs
The Challenges and Benefits of the Cloud and Usefulness of MSPs
Working with an MSP boosts cloud benefits and eases cloud challenges, research from ASUG shows.
SAP customers hope to receive a myriad of benefits when moving to the cloud. What they experience, however, is sometimes not in line with their expectations, and cloud benefits are bolstered by working with a managed service provider. Some of the top benefits customers want, such as ease of scalability, cost savings, and improved operational efficiency, are not as robust at organizations that rely on in-house talent to structure their cloud environment, which is the top way SAP customers migrate to the cloud.
Figure 2: Benefits of Hosting SAP Applications in the Cloud by MSP Use
Currently using MSPs
Not using MSPs
Source: ASUG research, 2022
It is abundantly clear that working with an MSP helps SAP customers reap more benefits than organizations who journey to the cloud alone. In fact, SAP customers who use an MSP receive almost double the benefit of a reduced workload for IT. The same is true for ease of scalability, improved operational efficiency, and better alignment with business direction.
Organizations that work with MSPs also face fewer challenges than those that do not. Only 36% of SAP customers working with an MSP report data migration issues. Organizations not working with an MSP reported the problem as more severe, with 45% saying data migration was an issue. And, when it comes to the integration of on premises and cloud-based systems, organizations that work with an MSP only faced issues 25% of the time. Those that do not work with MSPs face the same issue 42% of the time. Security issues and risks also are almost double for organizations that do not use an MSP (19% for those that work with MSPs and 32% for those that do not).
SAP customers who use MSPs experience a greater reduction in the workload for IT than those that rely on in-house talent.
The statement is true!
Our research found that SAP customers who use an MSP receive almost double the benefit of a reduced workload for IT (43% for those using one and 22%
for those not).
Our research found that SAP customers who use an MSP receive almost double the benefit of a reduced workload for IT (43% for those using one and 22%
for those not).
Our research found that SAP customers who use an MSP receive almost double the benefit of a reduced workload for IT (43% for those using one and 22% for those not).
SAP Customers Using MSPs Reap Cloud Benefits and Face Fewer Challenges
MSPs boost cloud benefits and reduce cloud challenges and complexities. Despite this, most SAP customers choose to handle cloud migrations themselves (40%) or hire consultants/temporary staff with cloud skills (37%). These organizations will not get as much out of their cloud migration as the 31% of SAP customers that work with an MSP. MSP use reduces risk, simplifies operations, and achieves superior service levels for the most sensitive applications. It is important to look for an MSP with a repeatable, consistent, and comprehensive deployment model that delivers faster time to cloud, efficient operations, reduced risk, and improved agility for your organization.
Discover how MSP use helps SAP customers overcome challenges.
Cloud environments should fit the specific needs of SAP customers. Working with a managed service provider ensures your organization has the correct setup, according to research from ASUG.
SAP customers are moving to the cloud in droves. But the environments they use when they migrate must reflect the needs of their organization—a realization that some SAP customers make too late in their journey that can result in costly delays and lost efficiency. As landscapes become more complex, SAP customers are hosting applications on multicloud or hybrid cloud environments to increase flexibility and meet multiple business needs. This approach offers cost reductions, most specifically for those who use a public cloud with multiple providers.
Figure 3: Cloud Challenges and Factors for Success
Hover to reveal percentages
Top Challenges Managing Multicloud
or Hybrid Cloud Environments
75%
Internal skills
shortages
43%
Cost management
39%
Contractual
complexities with
multiple vendors/
cloud providers
Top Factors to Ensure Successful
Multicloud or Hybrid Cloud Environments
39%
Clear cost
management processes
36%
Well-defined
cloud strategies
in place
36%
Support from MSPs
Source: ASUG research, 2022
SAP customers are moving to multicloud and hybrid cloud environments to take advantage of increased flexibility (61%), to serve multiple business needs (61%), as part of a digital transformation strategy (48%), to avoid being locked into a single vendor (45%), and for cost reductions (42%). Taking a multicloud or hybrid cloud approach also allows organizations to create more efficiency among IT teams, lower operational costs, and increase application development productivity.
Although the benefits of hosting SAP applications on a multicloud or hybrid cloud environment are clear, doing so poses significant challenges. Three quarters lack the internal skills to successfully execute these projects, almost half face cost management issues, and more than a third experience contractual issues managing multiple vendors and cloud providers. Customers also said they lack the internal resources to manage their cloud environment indefinitely and lack unified security and governance for their systems.
Work with an MSP to Create a Cohesive Cloud Environment
SAP customers need significant help establishing their multicloud and hybrid cloud environments. They do not have the internal skills to create and manage these environments. Working with an MSP is one of the top ways SAP customers are overcoming cloud challenges. An MSP establishes cost management processes and well-defined strategies that leave organizations on solid ground as they move their businesses forward. SAP customers already using multicloud and hybrid environments pointed to these factors as being critical to moving to the cloud or expanding its use. They also said using an MSP allowed them to migrate, optimize, and grow in ways they could not have done on their own.
Share how MSPs allow you to successfully migrate, optimize, and grow.
SAP Customers Use MSPs
to Innovate in the Cloud
SAP Customers Use MSPs
to Innovate in the Cloud
SAP customers that rely on in-house talent to innovate in the cloud often miss out on its capabilities and benefits, research from ASUG.
Migrating to the cloud is an undertaking. Utilizing the cloud to its fullest capabilities, however, is quite another. Most SAP customers cannot fully realize the benefits of the cloud and its potential for innovation without working with a managed service provider. SAP customers want cost savings (28%), system availability (28%), and security (23%). More than half of SAP customers (53%) use MSPs to help make these cloud wants a reality and set themselves up for innovation. A quarter of SAP customers are still relying on in-house skills to optimize the cloud; these organizations are likely to miss out on cloud benefits and the potential for innovation because they don’t have the expertise to build a cohesive cloud environment.
Figure 4: Digital Transformation Benefits Desired from Cloud Use
Hover to reveal percentages
64%
Scalability
57%
Increase agility
55%
Access emerging
innovations
53%
Improve business
processes
47%
Improve cost
models
46%
Security and
compliance
Source: ASUG research, 2022
Many SAP customers are examining their approach to the cloud as they migrate to SAP S/4HANA. In fact, 81% of SAP customers are moving or have moved to SAP S/4HANA. Three quarters of SAP customers say moving applications to the cloud is an important part of their SAP S/4HANA journey. Migrating applications is an essential component of setting organizations up for innovation.
More than half of respondents believe cloud migrations will improve operational efficiencies and allow the implementation of emerging technologies, which pave the way for innovation. More than two thirds say a cloud migration increases scalability, and more than half believe they will have more agility. Organizations are hot to implement emerging technologies (55%) such as automation, AI/ML, IoT, and data analytics. The improvement of business processes also was cited as a top factor in cloud migrations and digital transformations. Seizing these opportunities, however, requires careful planning and expertise that most SAP customers lack.
Use an MSP to Foster Innovation in the Cloud
Although most SAP customers know that moving applications the cloud is an important part of innovation, they lack the knowledge and skills to capitalize on these migrations. Working with an MSP will set your organization up for success by building a cloud environment that is ready for innovation. SAP customers will be able to innovate, create, and experiment in ways they never could before. This will allow businesses to move more quickly, test new ideas in real time, and improve the customer experience. The skills gap that many organizations face can and should be overcome by seeking the support of a trusted MSP.
Learn how organizations are innovating in the cloud.