Does business trust the cloud?

SAPinsider report review with an Enterprise Architect

The trend of moving SAP solutions to the cloud has been going on for more than a decade. In today’s dynamic business world, this migration has become an integral part of organizations’ technology strategies. The ability to launch SAP solutions in a cloud environment is the standard. And while these are proven and effective strategies, many key systems still run on-premises. Is this a mistake?

Current trends in cloud migration

Moving SAP solutions to the cloud is one of the most important trends in the industry. Organizations are realizing that such solutions often not only reduce costs, but also increase flexibility and access to data.

Between August and September 2022, SAPinsider conducted a survey among 134 members of its community. The report shows that 74% of respondents use an enterprise ERP system, including various variants of SAP. The dominant platforms were: SAP S/4HANA, SAP ECC, SAP Business Suite, and RISE with SAP. Other popular solutions in the survey included SAP HANA (39%), CRM solutions (35%), travel and expense solutions (35%), analytics and BI solutions (34%), SAP BTP (34%), and procurement solutions (33%).

Nearly half of respondents (48%) continue to use on-premises solutions. Most were part of SAP’s older offerings: data warehouse, SAP ECC or SAP Business Suite, finance, purchasing, and production and planning.

Janusz Wawrzyniak, Enterprise Architect at Hicron, emphasizes that:

Moving infrastructure elements to the cloud is a global trend, a process that is already very advanced and will become more and more dominant. Of course, within a given organization, moving to cloud solutions is an interactive process that requires conscious short- and long-term planning so that the organization’s system architecture is effectively managed and supports the organization’s business goals.

Janusz Wawrzyniak

Managing Partner, Solution Architect

Security as a priority in cloud environments

Data security is a current priority and one of the top factors influencing the decision to move to the cloud – cited by 45% of respondents. Only flexibility was more frequently cited as a factor influencing the decision (54%).

Ensuring flexibility, the ability to react and change quickly, is of great value to any organization, which is why it should be one of the main aspects when thinking about the architecture of IT systems today. Flexibility is only valuable when combined with a high level of security , so it is not surprising that these two aspects provided by cloud solutions are the key factors that encourage organizations to change.

Janusz Wawrzyniak

Managing Partner, Solution Architect

This topic also comes into play when choosing a cloud service provider. Security is the most important criterion for 63% of respondents. This is followed by partnership with SAP and price.

What’s next?

Migrating to the cloud is an inevitable step for many organizations. 37% of respondents to the survey announced such moves in the near future. With proper planning and analysis, you can determine which elements of your cloud infrastructure will deliver the efficiency you expect and which should remain on-premises. So far, the study shows that financial and basic ERP solutions are the least likely to be included in migration plans.

In summary, companies planning to migrate SAP solutions to the cloud should focus on security, cost analysis, and preparing their teams for new cloud technologies. It pays to choose an experienced and competent implementation partner who can look at the bigger business picture and help set a secure and forward-looking direction for the organization’s development.

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