SAP wants to go to the cloud, whether customers want it or not
- April 25, 2023
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In discussions with investors, SAP emphasizes that a step into the cloud is unavoidable in the long term. Scott Russell, responsible for SAP, speaks on the board of
In discussions with investors, SAP emphasizes that a step into the cloud is unavoidable in the long term.
Scott Russell, responsible for SAP, speaks on the board of directors customer successinvestors are making the cloud a reality for all customers. He says that within the large customer base that includes many companies that have been running SAP for decades, everyone has already made the decision to move to the cloud.
Since the beginning of 2021, SAP RISE has been a commercial offering that supports customers in their work lift and moveMove to the cloud with bundled offerings. SAP is aware that the path to the cloud will be different for every company, but it will happen at some point. Russell emphasizes this when speaking to investors.
According to The Register, this contradicts customer stories and Gartner’s analysis. “SAP has to listen because not all major customers want to move to the cloud. They don’t have any standardization that SAP can offer there,” said Sebastian Westphal, board member of DSAG, a leading German SAP user group.
Gartner tells The Register that earlier this month SAP admitted it would be difficult to move all customers to the cloud. “Many companies are struggling with complex environments and see no value in making the switch. The notion that everyone should move sooner rather than later is definitely wrong.”
BTP as cash cow
DSAG emphasizes that on-site adjustments are a major challenge in the cloud. You need ABAP Cloud based on SAP’s Business Technology Platform (BTP), a cloud replacement for the NetWeaver runtime environment. Westphal: “Users worry about having to pay money for subscriptions to run services in the cloud that make adjustments to mimic the on-premises scenario.”
SAP CEO Christian Klein just shared this story with investors: BTP needs to grow SAP’s cloud revenue. “Within an ecosystem of more than 500,000 SAP consultants, we are working on a change from NetWeaver to BTP. So we don’t make it easy lift and movebut are working on a transformation to reduce complexity.”
Once an application is on top of BTP, companies can take good advantage of the numerous extensions available. These, in turn, are driving cloud adoption, which SAP is keen to see. In their opinion, BTP is one of the most important assets to generate revenue in the coming years.
Source: IT Daily
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