A growing number of enterprises in the U.S. are engaging with SAP services providers for cloud migration and digital transformation projects, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.
The 2023 ISG Provider Lens™ SAP Ecosystem report for the U.S. finds the number of transformation projects involving SAP has risen since ISG’s 2021 assessment, though many enterprises have not yet decided how to upgrade their ERP systems and are struggling to calculate the potential return on investment of migrating to SAP S/4HANA. Those pursing a hybrid or brownfield migration rather than a brand-new greenfield implementation are taking a wait-and-watch approach.
“The U.S. is home to SAP’s largest client base, and demand for SAP services here is growing,” said Bill Huber, partner, digital platforms and solutions, for ISG. “SAP S/4HANA adoption and related digital transformation slowed during the pandemic but are on the rise again, particularly among midmarket companies embracing the RISE with SAP offering.”
RISE with SAP is the ERP giant’s subscription-based offering that bundles existing SAP tools, technologies and intelligence into a holistic Business Transformation as a Service model. Many midsize companies with greenfield implementations are opting for this all-in-one service, while larger enterprises often choose SAP Business Technology Platform (BTP) to transform their more complex legacy environments.
Service providers and their U.S. clients remain focused on cost as they migrate business-critical SAP applications to the cloud, the report says. In most of the 500 use cases ISG analyzed, enterprises aimed to improve operational efficiency and worked with consultants to handle the complex requirements of business model transformation and organizational change management.