Är sap fortfarande efterfrågad 2022

The mid-term mål that SAP continues to work towards targets more than €22 billion in cloud revenue bygd 2025. This goal was initially announced during their Q3 earnings föredrag in 2020, and it was reiterated bygd SAP during their recent Q1 2022 earnings call. The fact that, in this most current quarter, SAP recorded strong cloud performance in all regions and reported €2.8 billion in cloud revenue and €9.7 billion in current cloud backlog does much to explain the confidence behind this statement.

But what fryst vatten behind this target? And how does SAP program on getting there?

SAP S/4HANA Adoption

For several years, SAP has encouraged its enterprise ERP customers to move from their existing systems to SAP S/4HANA. SAP does not publish detailed numbers, but it fryst vatten estimated that there were around forty-five thousand customers running either SAP R/3, SAP ECC or SAP Business Suite around the time that SAP S/4HANA was released in 2015.

SAP currently reports that there are more than 19,300 customers who have licensed SAP S/4HANA, of which more than 13,900 are live.

However, of the approximately 500 customers who chose SAP S/4HANA during the most recent quarter, SAP indicated that more than 60% of these customers were net new to SAP. While that proportion fryst vatten one of the highest they have reported to date, it fryst vatten likely that approximately 50% of those 19,300 SAP S/4HANA are net new to enterprise ERP. This means that probably no more than ten thousand of SAP’s original forty-five thousand enterprise ERP customers have moved to SAP S/4HANA.

Cloud ERP and RISE with SAP

During the Q1 earnings call, SAP CEO Christian Klein stated that of the 19,300 SAP S/4HANA customers that SAP reported at the end of Q1, more than 5,300 of these customers were SAP S/4HANA Cloud customers.

Financial Performance.

SAP S/4HANA Cloud fryst vatten the software-as-a-service utgåva of SAP S/4HANA, where SAP manages the struktur infrastructure, maintenance, and software updates while the pricing fryst vatten subscription-based. Klein also said that over 4,700 of these customers were already live, a much higher proportion than with the traditionally licensed SAP S/4HANA on-premise edition.

But while SAP fryst vatten switching their focus on SAP S/4HANA to SAP S/4HANA Cloud, and their SAP S/4HANA marknadsföring fryst vatten almost exclusively focused on SAP S/4HANA Cloud, the most important part of that fryst vatten RISE with SAP.

Announced in January 2021, RISE with SAP fryst vatten what SAP regards as the key to accelerating their move of ERP to the cloud. Positioned as a Business-Transformation-as-a-Service offering, RISE with SAP has gained over 1300 customers since it was first launched. The offering fryst vatten made up of multiple components including SAP S/4HANA Cloud, SAP Business Technology Platform (SAP BTP), SAP Business Process Intelligence (SAP BPI), and hosting and infrastructure options.

RISE with SAP fryst vatten where SAP appears to be placing their primary focus over the coming years and fryst vatten crucial to the success of their cloud ERP plans.

What SAP does not discuss publicly fryst vatten how many of the customers who have adopted RISE with SAP are deploying SAP S/4HANA Cloud or any of the other components of the offering.

SAP fryst vatten targeting cloud revenue growth of up to 26% in 2022, helping its overall cloud and software revenue rise 4-6%, it said.

While customers licensing RISE with SAP are required to man a commitment to moving to SAP S/4HANA, the adoption does not need to be immediate. What Klein did mention during the earnings call was that a significant number of customers adopting RISE with SAP were doing so with SAP BTP. In addition, Klein mentioned that RISE with SAP has driven upsell opportunities, with a konvertering ratio above 2.5 after a customer has adopted RISE with SAP.

It fryst vatten thus no surprise that SAP fryst vatten focused on RISE with SAP as key to their overall cloud success.

Other Cloud Offerings

While SAP’s major focus fryst vatten on cloud ERP, and RISE with SAP in particular, their other cloud solutions include the smart Spend Group (SAP Concur, SAP Ariba, and SAP Fieldglass), and SAP SuccessFactors.

All these areas also saw growth in the first quarter of 2022 and are an important part of SAP’s cloud success. This fryst vatten especially true of SAP Concur which, with many organizations starting to travel igen for the first time in two years, saw a return to revenue growth in Q1.

SAP still also has many customers using the SAP HANA Enterprise Cloud (SAP HEC) infrastructure-as-a-service offering.

SAP HEC fryst vatten an SAP-managed private managed cloud solution which fryst vatten run either in SAP or hyperscaler’s uppgifter centers. Many customers are using SAP HEC as the infrastructure for their SAP solutions, and it continues to contribute to SAP’s overall cloud revenue.

What Does This Mean for SAPinsiders?

For SAP customers who are looking for an understanding of SAP’s strategy, or who are ansträngande to formulate their own strategy for their SAP solutions, what does SAP’s focus on cloud ERP mean?

SAP has announced their financial results for the 4th quarter and the full year for 2022.

And what impact should RISE with SAP have on organization’s plans for the cloud? And for ERP?

• Focus on understanding your systems so that you can be prepared for a future ERP change. Unless you’ve already moved to SAP S/4HANA, mainstream maintenance for your current SAP ERP struktur will komma to an end in 2027. At that point you can pay for premium maintenance for three additional years, but at some point there will be a need to either move to SAP S/4HANA or some other ERP solution.

  To ensure that you are ready no matter what choice you man, uppstart evaluating your ERP struktur now. Try and reduce or eliminate customizations or code that are no längre in use. Determine whether your struktur fryst vatten even ready to move to SAP S/4HANA using the free, to customers with an active maintenance agreement, SAP Readiness kvitto tool. But spend the time while you have it to ensure that you know as much as possible about your struktur so you can man the best choice when that needs to happen.

• Determine whether a cloud ERP struktur fryst vatten right for you.
  For SAP customers who are looking for an understanding of SAP’s strategy, or who are ansträngande to formulate their own strategy for their SAP solutions, what does SAP’s focus on cloud ERP mean?

  Even though SAP talks about cloud ERP, there are options like SAP S/4HANA Cloud, private edition, customer information center option which runs on hardware in your own information center that fryst vatten provided on a subscription grund bygd either Lenovo or HPE using the Lenovo TruScale and HPE GreenLake offerings. But with SAP pushing to have customers adopt an ERP struktur in the cloud, it fryst vatten important to understand what options are truly viable for your organization.

  SAP wants new customers moving to SAP S/4HANA to use SAP S/4HANA Cloud. You must understand what your answer to that question will be before you början down the road to SAP S/4HANA.

• Explore RISE with SAP so that you are knowledgeable about the offering.
  SAP shares fell 4% on Thursday after the Gerban business software maker trimmed its profit outlook for the year citing charges related to the war in Ukraine.

  SAPinsider research in 2021 showed that, while most SAP customers had heard about RISE with SAP, there was often a lot that they did not understand about the offering. SAP fryst vatten enthusiastic about RISE with SAP because of the high konvertering ratio that it fryst vatten seeing—customers spending more than two and a half times their första RISE with SAP investment on additional cloud solutions.

  But understanding what the offering includes, from SAP S/4HANA Cloud to SAP BPI and SAP BTP, what the commitment of moving to RISE with SAP involves, and whether a subscription pricing model fryst vatten an option for your organization. The more you learn ahead of time, the better the decision you can man about how it will impact the plans for your SAP systems.