Two-fifths of SAP Americas users yet to ditch legacy ERP • The Register

Round two fifths of North America’s SAP customers have but to start migrating to S/4HANA with simply two years till mainstream assist ends for legacy methods.

Analysis from the Americas’ SAP Customers’ Group (ASUG) discovered that a little bit greater than 60 % of 173 members are already dwell or actively switching to S/4HANA, the in-memory database system first launched a decade in the past.

The remaining customers are more likely to be reliant on legacy system ECC or earlier. Mainstream assist for ECC ends after 2027, whereas prolonged assist is offered till the tip of 2030, for a 2 % premium.

The analysis — commissioned by information integrity vendor Exactly — does not outline “within the course of”, although ECC-to-S/4HANA migrations can take years for giant organizations.

Figures from Gartner, launched earlier this yr, paint a bleaker image: simply 39 percent of worldwide ECC customers had licensed S/4HANA to start migration, suggesting customers within the Americas lead their world counterparts.

The ASUG analysis discovered enterprise course of change was the best barrier to migration amongst 49 % of the customers surveyed.

“The shift from ECC to S/4HANA is just not a easy ‘lift-and-shift’. It requires firms to basically rethink how core SAP information creation and administration processes are structured and administered,” the report states — a big problem given SAP runs a few of the world’s largest, most complicated organizations.

Customizations ranked second at 44 %. SAP mandates a clear core implementation with extensions constructed outdoors the core on its cloud-based Enterprise Know-how Platform.

“Many organizations have constructed distinctive, business-critical processes in ECC that can’t be transferred with SAP’s customary migration instruments. This makes adopting SAP’s ‘clear core’ technique tough, usually requiring extra customized software improvement or handbook workarounds,” the analysis says.

Organizational inertia introduced limitations to migration for 37 %. “Change administration stays one of the vital underestimated challenges. Corporations constantly inform us that the cultural and operational shifts related to shifting to SAP S/4HANA are as difficult because the technical migration itself,” the report provides.

One of many issues is that customers wrestle to justify main expenditure and disruption for software program that primarily replicates present performance.

Whereas SAP touts S/4HANA agility and productiveness features, another recent survey discovered 95 % of legacy customers say constructing a constructive case emigrate requires an enormous effort or is genuinely difficult. Freeform Dynamics’s ballot of 455 CIOs, senior-level IT roles, SAP specialists, and enterprise managers additionally discovered that 83 % of customers didn’t totally perceive SAP’s newest migration insurance policies and deadlines. And a few 84 % expressed concern about present messaging and the way it could influence their operations. ®