Trends and Outlook: Cloud Adoption for SAP S/4HANA
In July 2021, SAP announced it had passed 17,000 S/4HANA licensed clients in Q2 2021, andmore than 10,000 were running in production. Compared to the same quarter three years before, the number of licensed users has grown nearly 2.5 times, an extraordinary compound annual growth rate (CAGR) of 35 percent.
Because SAP has been an ERP market leader for more than 20 years, S/4HANA has not replaced all legacy versions the company has sold. Many loyal SAP clients run their business on legacy SAP ERP. ISG surveyed 152 IT leaders in the Americas, Europe and Asia Pacific to understand their acceptance of SAP S/4HANA and their plans for the next five years.
This survey found 30 percent of the total respondents were satisfied with running SAP S/4HANA and another 47 percent are planning to run it. These 77 percent respondents showed positive expectations by recognizing SAP S/4HANA benefits. The remaining 23 percent indicated that they have no intention to adopt the new ERP (or may not be using ERPs).
Most of the respondents (67 percent) will be running on SAP S/4HANA by 2024, more than double of today’s 30 percent. Considering respondents’ project timeframes and the positive responses regarding SAP S/4HANA in the cloud, IT leaders are invited to explore how they can avoid pitfalls and accelerate the modernization of their ERP systems.
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