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According to Gartner, SAP’s plans to migrate customers to S/4HANA in the cloud (which is what most of SAP’s ERP users envision) will lead to complex decisions about software licensing, infrastructure, and business processes. is betraying
In its latest research to address the pitfalls of SAP’s efforts to move thousands of on-premises users of ECC systems or S/4HANA to the cloud, Gartner states: Claim. “
S/4HANA was first launched in 2015 as the German vendor’s next-generation enterprise application platform based on a proprietary in-memory database. While some companies have made the leap to newer systems, either on-premises or in the cloud, many more have yet to migrate their operationally dependent applications. Gartner researchers showed earlier this year that 70% of his SAP customers rely on his ECC and he has yet to upgrade to S/4HANA.
According to new research, the direction of migration for S/4HANA is cloud, given the numbers using a cloud-based test environment.
“As the S/4 HANA application architecture changed from ECC, there was a move from ERP systems to cloud services, replaced by cloud alternatives with customized ERP configured. are proven by our test and development cloud environments, which currently far outnumber on-premises solutions,” said a research note co-authored by Philip Dawson, vice president at Gartner Research.
At the same time, most of the S/4HANA systems that migrated to the cloud were pre-production systems that were still in testing or planning stages.
talk registerDawson said that lifting and shifting existing applications to the cloud is a “Trojan horse” approach to moving to the cloud that offers cost benefits but less business benefits. says.
“This is migration, but application migration, or migration to S/4HANA, is a step in this transformation. And here is my conclusion: You can do these things together or in sequence. But be careful with all of them.
“Are we just procrastinating how can we modernize it in the cloud? It’s not as far away as people think,” he said.
Meanwhile, infrastructure barriers remain in moving to S/4HANA in terms of cloud optimization, database sizing or service level agreements, and configuration capabilities, he said.
In early 2021, SAP announced RISE with SAP. It’s a program designed to give our customers a ‘one hand shake’ in a deal that promises to lift and shift older applications to the cloud, transforming and restructuring their businesses. Moved to S/4HANA. A German vendor claimed the process was simplified. This is because the cloud has built relationships in partnerships that include his infrastructure providers, well-known consultancies and system integrators.
However, Dawson argued that RISE with SAP did not reduce complexity for users and may have added another layer.
“What RISE with SAP brings to the party is an element of customization that SAP hosts on the SAP cloud. Now we have S/4 HANA running in the public cloud and SAP cloud Or you can compare RISE with SAP.Getting that certification and packaging is an additional set of features that you have to consider in your project,” he said.
Gartner points to commercial arrangements and infrastructure complexity, but users are not convinced of the business benefits of moving to S/4HANA in the cloud. Customizations that the company has made in his ECC system over the years do not carry over, forcing business transformation to adopt new business processes embedded in S/4HANA. Making a business case for such a move remains difficult, at least according to SAP’s German-speaking user group DSAG.
Following the launch of RISE with SAP, Thomas Saueressig, who leads SAP’s Board of Directors for Product Engineering, said: register SAP said it would help companies adopt more standardized processes with S/4HANA, but acknowledged that the road is complex and could take years.
“We want to give [customers] A helping hand in migrating them to public cloud infrastructure as a service and using process intelligence to optimize processes step by step,” he said.
Despite SAP’s efforts, analysts and users don’t seem convinced that complexity is giving way to simpler paths. ®
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