SAP Fosters Cloud First Strategy for Modern Enterprises
In an era where agility and innovation are key, SAP is leading the charge by helping customers adopt a cloud-first strategy, ensuring they stay at the forefront of technological advancement and business efficiency.
SAP’s cloud journey dates back to its origins as a pioneer in enterprise resource planning (ERP) systems. The company’s evolution has seen it embrace cutting-edge technologies like artificial intelligence (AI) and cloud computing. SAP’s RISE with SAP program marks a significant milestone in this journey. It’s not just an upgrade or a shift in technology; it’s a transformation of business models and operational paradigms. This program specifically targets the challenges of scope and cost associated with cloud migration.
The RISE with SAP program is engineered to simplify the daunting task of migrating complex ERP systems to the cloud. It also addresses the elimination of custom code, the breaking down of data silos, and the simplification of processes. Additionally, this initiative is crucial for businesses seeking to harness the potential of cloud innovations, including AI and sustainability solutions.
Accelerating Migration and Transformation
Understanding the financial implications of cloud migration, SAP has also introduced a range of incentives and support mechanisms. To alleviate the migration and transformation costs, SAP offers a limited-time incentive, potentially reducing these costs by up to 50%. This is a strategic move to recognize the investments customers have already made in SAP systems and to aid them in transitioning to more advanced cloud solutions.
Furthermore, customers moving to RISE with SAP or GROW with SAP solutions will have access to credits, applicable towards maintenance, cloud services, or cloud subscriptions. This incentive covers a wide range of SAP solutions, including SAP S/4HANA Cloud and various line-of-business solutions, thereby offering a comprehensive financial cushion for businesses embarking on this transition.
A vital component of SAP’s cloud-first strategy is the RISE with SAP Methodology. This framework ensures consistency and quality in implementation across various projects, whether conducted directly by SAP or through its partner ecosystem. Moreover, the methodology emphasizes project transparency and includes milestone checks supported by SAP services and specialists. This approach not only streamlines the migration process but also prepares customers to be innovation-ready.
SAP is actively training and validating its partners in the RISE with SAP Methodology, fostering a collaborative environment to deliver uniformity and excellence in implementation.
Recognizing that some customers may need additional time for migration, SAP has introduced the SAP S/4HANA Cloud Safekeeper service. This service caters to customers in the midst of migrating, providing them with upgrade services and infrastructure optimization while ensuring the continuity of their current systems. It offers an extended support period, including updates and patches, for two additional years, thereby facilitating a smoother transition to the latest SAP S/4HANA version.
SAP’s Continued Growth and Cloud-First Strategy
SAP’s foray into cloud computing has proved to be a key growth driver. In Q4 2023, the company’s cloud revenue surged by 20% to €3.70 billion, with a significant 25% increase at constant currencies. This growth was predominantly fuelled by SAP’s combined Software as a Service (SaaS) and Platform as a Service (PaaS) portfolio. Specifically, the SAP S/4HANA Cloud segment witnessed a remarkable 55% revenue increase, reaching €1.03 billion, a clear indication of the successful implementation of SAP’s cloud strategy.
Christine Grimm of the DSAG Executive Board has shed light on SAP’s understanding of the complexities involved in cloud transition. SAP’s current initiative demonstrates an acute awareness of the challenges customers face and an acknowledgment of their previous investments in SAP systems. The expansion of the RISE with SAP offering to include financial incentives and support is a testament to SAP’s commitment to facilitating this transition for their customers.
DSAG, representing a broad base of SAP users, appreciates this initiative. The organization sees it as a step towards improving and expanding its offerings in collaboration with SAP, addressing the complex needs and challenges of its members. The goal is to ensure that customers benefit fully from the extended possibilities and innovations that RISE with SAP brings to the table.
SAP’s cloud-first strategy represents a paradigm shift in how businesses approach their digital transformation. With comprehensive programs like RISE with SAP, financial incentives, and a robust methodology, SAP is not just offering a technological upgrade but a strategic pathway to future-proof businesses. This strategy ensures that SAP customers are not only keeping pace with the technological advancements but are also positioned to leverage these for sustainable, long-term growth and innovation.
