German multinational company SAP, dedicated to the design of computerized business management products, has been doomed to failure, since 69% of their customers coming from ERP Central Component (ECC) have not licensed their latest software, SAP S/4HANA, which has been in the market for more than seven years. After 2027, the company will continue to offer ECC maintenance and migration from one support to another, but at a 2% premium.
S/4HANA is enterprise resource planning software used by large companies to keep their employees connected to business networks, logistics, IoT, and big data solutions. It allows make decisions in real time and through predictive analysis. And it stores data in memory, rather than in a layout, allowing you to run advanced analytics and high-speed transactions on a single system.
SAP S/4HANA has experienced more than 20,000 customer sales (60%) in the last quarter, but even so, he has not been able to complete said transfer. SAP, which in Europe represents the largest software company and the third largest in the world, has launched its RISE program as a complement in early 2021, which accounted for 50% of sales. Thus, annual S/4HANA cloud revenue was growing by 81%, representing 800 new releases.
Given the good experience with ECC, customers resist moving to S/4HANA, so you must work to make a complete business plan, even with external support. Also, many find it unnecessary to pay more to get the same features.
It is peculiar but, a survey carried out with German-speaking users in March revealed that, at the beginning of 2022, only for 50% of organizations was S/4HANA relevantwhile in the previous year the figures were close to 56%.
The figures by zones
It must be taken into account that in the United Kingdom and Ireland the situation is very different from Spain. In fact, of the 114 SAP user organizations consulted, nine out of 10, that is, 89% stated that they are currently using SAP S/4 HANA as a future projectunlike the 74% who used it in 2021.
Migrations to SAP S/4HANA will be progressivelyin such a way that 70% assure that they will carry it out in the next 36 months.
If companies are betting on moving to SAP S/4HANA, it is mainly motivated by the announcement of the 2027 maintenance deadline for Business Suite 7 / SAP ECC 6. However, regardless of this majority cause, 49% say that the change would be motivated by the need to access a new functionalityand the remaining 47% as a result of being in favor of carrying out a broader commercial transformation.
