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| Source: HCL website. |
Migration isn’t just being motivated by potential cost savings, as the research highlights business agility and speed (59%), access to new technologies (46%) and improved customer satisfaction (43%) as big drivers.
“These findings clearly demonstrate that there is a market shift towards moving a greater proportion of existing SAP environments to the cloud,” said Steve Cardell, President of Enterprise Services and Diversified Industries, HCL Technologies. “Improved business agility and speed is undoubtedly a big driver, as is the growing maturity and availability of new cloud-based technologies. For those organisations looking to refresh their existing estates, reduce cost and access HANA-powered applications, SAP’s cloud offerings are an attractive proposition. In fact, 56% of organizations stated they expect to use SAP HANA Enterprise Cloud in the future.”
However, there are challenges to migration. When asked about the biggest inhibitors to moving more SAP applications and infrastructure to the cloud 30% of respondents brought up integration challenges with existing systems, while 36% cited security concerns. This is not particularly surprising considering that 88% of organisations expect to adopt a hybrid model, and 45% stated that integration into their existing landscape had been their biggest cloud implementation challenge to date. The survey also showed that organisations are in need of help when it comes to their cloud strategies, with only 18% stating they had a comprehensive cloud strategy.
“Cloud is undoubtedly disrupting traditional enterprise architectures. Organisations now have to contend with a multi-cloud environment in which they need to integrate SAP and non-SAP applications into their existing landscape. This has ultimately made integration and cloud orchestration a key concern. Only by taking a lifecycle view of cloud enablement, from assessment right through to service delivery, will organisations be able to overcome integration issues and truly realise business benefit,” added Cardell.
The survey also revealed that SAP’s Cloud Extension policy, which enables the partial termination of existing on-premise software licenses and associated maintenance costs, has made moving to the cloud a more attractive prospect for nearly three-quarters (74%) of organisations. These findings are perhaps unsurprising given that 30% of organisations said their existing investments in on-premise and legacy systems had been an inhibitor to moving more SAP applications and infrastructure to the cloud.
The global survey of 100 large enterprises with revenues in excess of US$1 billion was commissioned by HCL Technologies and conducted by independent research company Vanson Bourne. Click here to download the executive summary.
“These findings clearly demonstrate that there is a market shift towards moving a greater proportion of existing SAP environments to the cloud,” said Steve Cardell, President of Enterprise Services and Diversified Industries, HCL Technologies. “Improved business agility and speed is undoubtedly a big driver, as is the growing maturity and availability of new cloud-based technologies. For those organisations looking to refresh their existing estates, reduce cost and access HANA-powered applications, SAP’s cloud offerings are an attractive proposition. In fact, 56% of organizations stated they expect to use SAP HANA Enterprise Cloud in the future.”
However, there are challenges to migration. When asked about the biggest inhibitors to moving more SAP applications and infrastructure to the cloud 30% of respondents brought up integration challenges with existing systems, while 36% cited security concerns. This is not particularly surprising considering that 88% of organisations expect to adopt a hybrid model, and 45% stated that integration into their existing landscape had been their biggest cloud implementation challenge to date. The survey also showed that organisations are in need of help when it comes to their cloud strategies, with only 18% stating they had a comprehensive cloud strategy.
“Cloud is undoubtedly disrupting traditional enterprise architectures. Organisations now have to contend with a multi-cloud environment in which they need to integrate SAP and non-SAP applications into their existing landscape. This has ultimately made integration and cloud orchestration a key concern. Only by taking a lifecycle view of cloud enablement, from assessment right through to service delivery, will organisations be able to overcome integration issues and truly realise business benefit,” added Cardell.
The survey also revealed that SAP’s Cloud Extension policy, which enables the partial termination of existing on-premise software licenses and associated maintenance costs, has made moving to the cloud a more attractive prospect for nearly three-quarters (74%) of organisations. These findings are perhaps unsurprising given that 30% of organisations said their existing investments in on-premise and legacy systems had been an inhibitor to moving more SAP applications and infrastructure to the cloud.
The global survey of 100 large enterprises with revenues in excess of US$1 billion was commissioned by HCL Technologies and conducted by independent research company Vanson Bourne. Click here to download the executive summary.
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