Why are SAP customers migrating to the cloud?

Since 2017, Syntax has conducted annual studies together with the Americas SAP Users Group (ASUG), to take the pulse of the level of cloud adoption among this company’s customers. The latest of these has just been published and yields interesting conclusions, many of which can be extrapolated to other regions. In this post we summarize them.

Cloud adoption is becoming commonplace to meet corporate priorities that set the CIOs’ agenda, in areas such as customer experience, creating value through data, providing organizations with flexible and resilient infrastructures or incorporating technologies that accelerate digital transformation processes. This is what IDC stated in its forecasts for this year and the coming years, and also our experts in their predictions for 2021.

And this is a marked trend that is confirmed by this new study, conducted jointly by Syntax and ASUG, since cloud adoption among companies using SAP systems in the United States has increased by 15% since 2020, and 73% of those that have not yet taken the step, have plans to incorporate cloud services next year.

Cloud usage is high at 81% of all respondents and, of these, 74% are using Platform-as-a-Service (PaaS) and 71% are already working on an Infrastructure-as-a-Service (IaaS) model. In terms of the type of service chosen, the majority (46%) have opted for a hybrid environment, and 61% for using the services of various providers.

The report indicates that companies that are more advanced in cloud adoption are benefiting from greater innovation by incorporating analytics capabilities, automation and technologies such as IoT, machine learning and artificial intelligence. They also get greater ability to scale, more speed in deploying services, and their IT departments have less workload.

Need to innovate drives migrations

The report’s findings indicate that SAP customers need to innovate to achieve cost savings, increase productivity and performance, and improve their customer experience, and they are finding the answer in the cloud.

Currently, they are leaning toward leveraging analytics (54%) and automation (31%) capabilities, versus IoT, Machine Learning and AI solutions, but it will change soon, as by 2022, two out of three respondents plan to integrate these into their cloud innovation roadmap.

The study also delves into the challenges posed by cloud for these organizations. In this regard, many (34%) lack the knowledge to manage these environments or do not have a comprehensive cloud strategy (29%).

Our teams are specialized in solving the challenges involved in a migration project from on-premise SAP environments to the Amazon Web Services (AWS) public cloud, with tangible results for our clients. Companies such as MRG, FAIN, Cepsa, Simon or PortAventura World have already trusted us.

Find out more about our cloud migration services.