SAP Customers Overwhelmingly
Embrace the Cloud
SAP Customers
Overwhelmingly Embrace
the Cloud
Research from ASUG, SUSE, Managecore, and Intel reveals that SAP customers are moving to the cloud in droves and achieve the best returns when working with a managed service provider.
Virtually all SAP customers (84%) currently use cloud services, and organizations utilize the cloud for ease of scalability (62%), to lower costs (55%), and to increase flexibility (53%). These customers also hope to use fewer resources to maintain systems (51%).
Figure 1: The Massive Shift to the Cloud
84%
are currently using
cloud services
Drivers to Move to the Cloud
Easier scalability
62%
Lower costs
55%
Increased flexibility
53%
Fewer resources needed to maintain systems
51%
Migration to SAP HANA
37%
Datacenter consolidation
30%
Source: ASUG, SUSE, Managecore, and Intel research, 2021
Half of the SAP customers not currently using cloud services said they are planning to use cloud services in the future (48%). These customers plan to incorporate cloud services into their organizations within the next four years. More than a third of SAP customers not using cloud services (35%) don’t know or are unsure of their organization’s plan for cloud services. These customers need more help planning their cloud strategy as they look to embolden their businesses by moving to the cloud. Only 17% of SAP customers not currently using cloud services said they do not intend to move to the cloud. They pointed to security concerns and not being ready to integrate their organization with the cloud as the top reasons for not moving.
Almost half of SAP customers (42%) have worked with or plan to use a managed service provider (MSP) to orchestrate the move to the cloud. Slightly more than a third of SAP customers (33%) choose to handle cloud migrations in-house, and 25% don’t know or are not sure whether their organization will use an MSP. Small organizations are more likely than larger ones to reach out to MSPs for assistance. More than half (55%) of organizations with annual revenues of $500 million or less used or plan to use an MSP versus 39% of respondents from organizations with annual revenues greater than $5 billion.
Find a Trusted MSP to Fully Optimize Your Cloud Migration
With so many organizations using or planning to use the cloud, more guidance is needed to ensure that cloud migrations are based on a sound strategy that successfully integrates businesses. Working with a trusted MSP is one of the best ways to ensure that migrations go off without a hitch, especially for smaller organizations that have less in-house resources and cloud acumen. It is critical to find an MSP that offers proactive basis support and can seamlessly integrate your team and technologies.
Share why SAP customers are moving to the cloud.
Cloud Challenges and Benefits
Among SAP Customers
Cloud Challenges
and Benefits Among
SAP Customers
SAP customers are overcoming cloud challenges to reap benefits like scalability, speed to delivery, and reduced workload for IT, research from ASUG, SUSE, Managecore, and Intel shows.
Although cloud use is widespread among SAP customers, it still poses challenges. SAP customers said they struggle with acquiring in-house knowledge to manage the cloud (39%), it being more expensive than they anticipated (27%), and data migration (25%). Customers also noted that they experience inconsistent standards across cloud providers. Organizations need more support to plan effective strategies, especially with the anticipated increase in cloud use within the next four years.
Figure 2: Cloud Challenges and Benefits
Cloud Use Challenges
Lack of in-house knowledge
39%
More expensive
27%
Data migration
25%
Inconsistent standards
20%
Lack of cloud strategy
19%
MSP Use Boosts Cloud Benefits
Challenge anticipated
Challenge experienced
Source: ASUG, SUSE, Managecore, and Intel research, 2021
Despite these challenges, SAP customers report significant benefits from cloud use. The ASUG, SUSE, Managecore, and Intel study found that organizations benefited from ease of scalability (59%), pay-as-you-go pricing/consumption-based pricing (56%), speed to delivery (53%), and reduced workload for IT staff (53%). Although organizations are reaping the benefits of the cloud, more guidance on integration and tools for data management/security is needed so SAP customers can fully realize the value cloud providers offer; less than a quarter of respondents noted these benefits.
One way SAP customers can reap more cloud benefits is by working with a managed service provider (MSP). Organizations that use MSPs experience a larger share of key benefits than those that do not. In fact, organizations that use an MSP reaped more benefits from pay-as-you-go pricing/consumption-based pricing than those that do not (67% versus 45%, a 22% increase). Cost savings also jumped out as an area where MSPs make a significant impact: 55% of organizations using an MSP reported cost savings. Only 38% of organizations not using an MSP reported cost savings, which is 17% less than businesses that use one. MSP use also has a direct impact on creating better alignment with the direction of the business. Almost half (43%) of businesses using an MSP received this benefit; only 36% of organizations not using an MSP reported they received it.
The top cloud use challenge SAP customers face is data migration issues.
Hiring a Trusted MSP Leads to Greater Cloud Benefits
SAP customers face several obstacles as they move to the cloud or expand its use. Because many organizations lack the in-house knowledge to successfully execute these projects, it is critical to work with an MSP. This will help SAP organizations develop cohesive cloud strategies that fully integrate their business, all while having proactive support to seamlessly integrate your teams and technology. This also will allow them to reap more benefits like cost savings and alignment with the business than organizations that do not use an MSP.
Discover how MSP use helps SAP customers overcome challenges.
Although half of SAP customers are working with managed service providers to migrate to the cloud, security should play a larger role in migration strategy and implementation, research from ASUG, SUSE, Managecore, and Intel shows.
Slightly more than half of SAP customers (52%) use managed service providers (MSPs), which have been shown to provide tangible benefits such as cost savings and better alignment with the business. The bulk of these organizations (37%) plan to keep their MSP use at the same level, while 15% plan to increase use of MSPs. Only 5% plan to decrease their use of MSPs, and another 5% plan to start using MSPs in the future. SAP customers planning to increase their reliance on MSPs belong to organizations with annual revenues greater than $5 billion. Overall, large organizations typically rely less on MSPs than small ones. These larger companies likely will see greater cost savings and improved organizational performance after bringing an MSP on board.
Figure 3: Current and Planned Use of Managed Service Providers
Hover to reveal percentages
37%
Yes, and we plan
to continue using
MSPs the same
amount
15%
Yes, and we plan
to increase our
reliance on MSPs
5%
Yes, and we plan
to reduce our
reliance on MSPs
5%
No, but we plan to
start using MSPs
in the future
15%
No, and we have
no plans to start
using MSPs in
the future
23%
Don't know/
not sure
Source: ASUG, SUSE, Managecore, and Intel research, 2021
Although more than half of SAP customers are turning to MSPs to help build out and further connect their operations, only 9% of SAP customers turn to a technical MSP for help developing their cloud security strategy and implementing it. More than a third of organizations (37%) also handle security in-house, which could leave their organizations at risk because the top challenge customers face is a lack of in-house knowledge.
When seeking operating systems for SAP environments, slightly less than half of SAP customers (42%) turn to SUSE and 27% look to Red Hat. Organizations said they looked for security, as well as stability, so they could easily scale their environments with little worry.
“You need security to make sure your infrastructure performs and remains stable—no matter your use case and workload.”
–SAP customer
Your Managed Service Provider Should Make Security a Priority
Security should be top of mind as organizations look to MSPs to help them ramp up operations. With only 9% of organizations using a technical MSP for security, there is room for improvement when it comes to developing and implementing security protocols. This can cause significant challenges depending on the complexity of your environment, especially if your organization is in a heavily regulated industry or lacks in-house knowledge. Working with an MSP that has security-first principles can give you peace of mind that your company’s data assets are protected.
Share why security should be a priority when using the cloud.
SAP Customer Business Transformation
Plans and the Move to SAP S/4HANA
SAP Customer Business
Transformation Plans and the
Move to SAP S/4HANA
SAP customers are eager to digitally transform but need more information about RISE with SAP before they can decide whether to add it to their technology stack, research from ASUG, SUSE, Managecore, and Intel shows.
SAP customers are eager to expand their operations by moving to SAP S/4HANA and by transforming their businesses. More than half (53%) of SAP customers are live on SAP S/4HANA (31%) or are in the process of moving (22%). More than a quarter (27%) are planning to move but have not started the process and plan to migrate within the next two years. About half (40%) of customers also plan to increase managed service provider (MSP) use when they migrate, which will likely help them reap more benefits during and after their migration than organizations that do not. Only 18% of SAP customers are still deciding whether to move.
Figure 4: Digital Transformation Plans Among SAP Customers
SAP S/4HANA Migrations
18%
Deciding
whether to move
27%
Have plans
to move
22%
Have started
to move
31%
Are live
3%
Currently have no plans to move
Likelihood to Consider RISE with SAP
Unlikely, we are not actively pursuing RISE with SAP
34%
Unsure, we are investigating more about RISE with SAP
35%
Likely, we are actively engaged in a sales cycle
2%
Would describe likelihood
another way
6%
Don’t know/not sure
24%
Source: ASUG, SUSE, Managecore, and Intel research, 2021
As customers examine how to improve their organizations, they also are considering RISE with SAP, which delivers business transformation as a service in a comprehensive package. Almost half of SAP customers (47%) are somewhat familiar with RISE with SAP and 2% are extremely familiar with it. SAP customers need more information about RISE with SAP to better understand the offering as 41% have heard of it but are not familiar. Additionally, 10% never have heard about RISE with SAP.
More than a third of organizations (35%) are investigating RISE with SAP, but 34% are unlikely to consider it. Only 2% of organizations are currently moving forward with purchasing RISE with SAP, which further demonstrates that SAP customers need to be better educated about the offering and how it can transform their business.
Most SAP customers are moving or have moved to SAP S/4HANA.
Hiring a Managed Service Provider Strengthens Business Transformations
Although many SAP customers have implemented SAP S/4HANA or are on their journey to do so, they need more information about RISE with SAP before they can fully optimize their SAP landscape. Furthermore, working with a trusted MSP can help organizations understand and receive benefits from both. As organizations learn more about RISE with SAP, the number of customers moving to the platform is likely to increase in the coming years as more organizations reap its benefits and demonstrate concrete results.
Learn how organizations are transforming their operations.
ASUG is the world’s largest SAP user group. Originally founded by a group of visionary SAP customers in 1991, its mission is to help people and organizations get the most value from their investment in SAP technology. ASUG currently serves thousands of businesses via companywide memberships, connecting more than 130,000 professionals with networking and educational resources to help them master new challenges. Through in-person and virtual events, on-demand digital resources, and ongoing advocacy for its membership, ASUG helps SAP customers make more possible.
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Managecore is a certified SAP Partner and the leading provider of SAP Technical Managed Services. Utilizing highly skilled engineers and industry leading technology, Managecore is providing intelligent solutions for the enterprise customer. Managecore is also a recognized leader in SAP HANA transformations, Cloud solutions and Basis managed services.
SUSE is a global leader in innovative, reliable and enterprise-grade open source solutions, relied upon by more than 60% of the Fortune 500 to power their mission-critical workloads. We specialize in Enterprise Linux, Kubernetes Management, and Edge solutions, and collaborate with partners and communities to empower our customers to innovate everywhere –- from the data center, to the cloud, to the edge and beyond.
Intel and SAP bring you faster access to more data in the cloud with SAP HANA instances optimized on Intel® Xeon® Scalable processors and Intel® Optane™ persistent memory technology. Businesses are migrating to the cloud, enabling operational automation, on-demand elasticity, security, and compliance capabilities. RISE with SAP, offered only on cloud instances powered by Intel Xeon Scalable processors, provides a holistic on-your-terms and on-your-timeline transformation to an intelligent enterprise.