Story image

Why two-thirds of enterprises won’t be migrating to the new SAP S/4HANA product

24 Jun 2019
Twitter
Facebook

Rimini Street revealed the findings from its recent survey of SAP licensees conducted to better understand their plans for S/4HANA and the impact of SAP’s planned 2025 end of mainstream maintenance support for Business Suite 7 core applications on their IT roadmap plans.

Of the IT leaders surveyed who are currently running SAP’s Business Suite 7 or older releases, two-thirds state they either have no plans to migrate to S/4HANA (35%) or are undecided about moving to S/4HANA (32%). The top reasons cited include “lack of resources,” “no business justification,” and a preference to “maximize investment in current applications.”

The number of respondents who stated they have no plans to migrate or are undecided has risen slightly from a previous survey in 2017 – at that time 65% of IT leaders stated they had no plans to migrate or were undecided about S/4HANA. The current survey of SAP licensees was conducted in April 2019 and includes C-level executives and VPs, directors and managers of IT.

SAP Customers Plan to Run Their Current Applications Beyond 2025

Survey responses confirm that nearly 80% of SAP licensees plan to continue to run their customized, mature SAP systems to at least or beyond SAP's planned 2025 end of mainstream maintenance date for Business Suite 7. SAP licensees have made significant investments to implement and customize their highly functional SAP systems that meet their business needs and these existing systems can serve as their reliable mission-critical platform for many years to come without requiring the need to upgrade.

Challenges with SAP Support

When asked about the value of SAP’s support, only 5% of all survey respondents stated they felt the fees for SAP support are well worth the value they receive in return. However, respondents also cited several challenges with SAP’s support, including “lack of support for customizations,” “issues take too long to resolve,” and “no new innovations or enough functional enhancements for what we are paying.”

Lack of expertise or adequate knowledge to resolve issues” also topped the list. Licensees are often left to self-support issues on their own by assigning internal resources or working with outside consultants. The inefficiencies with SAP’s support model can create considerable business disruption and poor use of internal resources spent just to keep the system operational.

Story image
06 Sep
Hush acoustic work pods come to A/NZ
Tech distributor Sektor is bringing the Hush range of acoustic work pods to businesses across Australia and New Zealand.More
Story image
10 Sep
Ditch the certificate, it’s all about practical skills in the world of data
Demonstrable experience may trump certifications in the near future when it comes to data science, according to a major survey completed on behalf of the Data Literacy Project.More
Story image
06 Sep
ServiceNow's latest release offers mobile experiences for everyday work
Powered by the Now Platform, the platform designed to manage complex enterprise workflows across functions, departments and systems, ServiceNow’s new Now Mobile app is designed to simplify everyday work tasks, the company says.More
Story image
11 Sep
Blue Prism rolls out new intelligent automation offering
“We are adding this flexibility without compromising on key enterprise features such as security and scalability. We’ve eliminated the guesswork and taken out any objections or barriers, so innovators and business leaders can begin their RPA journey.”More
Story image
09 Sep
Proofpoint integrates people-centric protection with Okta’s Identity Cloud
The partnership aims to bolster the security posture for organisations’ very attacked people (VAPs) by applying additional adaptive security controls.More
Download image
Whitepaper: Managing cyber risk within your digital strategy
Rackspace research uncovered tension between what organisations seek to achieve through their digital transformation efforts and their concerns about the risks created.More