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Companies Weigh Options, Costs for SAP Migration

RISE with SAP, SAP BTP with Business AI gain ground, while enterprises study economic impacts of moving applications to cloud, ISG Provider Lens™ report says

As enterprises worldwide migrate business-critical applications to the cloud, programs and tools from SAP and its ecosystem partners are gaining traction, according to a new research report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2024 ISG Provider Lens™ global SAP Ecosystem report finds that companies are beginning to embrace both the RISE with SAP proposition and SAP’s Business Technology Platform (BTP) and Business AI offerings, depending on their individual needs. As more SAP cloud implementations take shape, enterprises are also adopting cloud economics and FinOps capabilities from SAP ecosystem partners to maximize their return on investment.

“Cloud migration is becoming essential for enterprise flexibility and agility but can be complex and expensive for organizations of any size,” said Bill Huber, ISG partner, Digital Platforms and Solutions. “Enterprises planning digital transformations are exploring multiple tools from SAP and its ecosystem.”

RISE with SAP, which allows companies to acquire cloud infrastructure, applications, integration services and support for SAP implementations under a single contract, serves as a catalyst for expediting migrations to SAP S/4HANA at many organizations, especially those embarking on large-scale business transformations, the report says. RISE is attracting customers among larger midmarket organizations and also gaining momentum in the large enterprise segment.

Though some companies are uncertain about long-term cost savings and future flexibility for innovation under RISE with SAP, they are considering the proposition while weighing factors including cost, security, performance, ease of migration and integration with SAP BTP, ISG says. Many service providers are closely aligned with SAP’s vision and offering assistance with RISE adoption.

Companies are looking toward SAP BTP, a multi-cloud, multi-purpose platform for enterprise application integration, to enable faster software deployment and easier adoption of both SAP innovations and updates required by new regulations, the report says. Stakeholders throughout the SAP market are still studying the combination of BTP and SAP Business AI, which is designed to deliver benefits including accelerated project delivery. Enterprises have yet to fully grasp the advantages of combining BTP with Business AI, ISG says.

As organizations move their SAP environments to the cloud, they are increasingly concerned about the ongoing costs of cloud resources and services, the report says. Companies are turning to SAP ecosystem providers for assistance with both cloud economics, to understand the costs and benefits of cloud migration and operation, and FinOps, the set of practices used to optimize cloud investments by anticipating and controlling cloud spending.

“Migrating to SAP is a complicated process that must be done carefully, weighing both benefits and costs,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “SAP ecosystem partners make the process easier and provide valuable tools and services to ensure the move to the cloud pays off.”

The report also explores other trends affecting the SAP ecosystem, including provider investments in GenAI development and the addition of SAP’s Joule AI assistant.

For more insights into SAP-related enterprise challenges, including the abundance of available S/4HANA variations and the urgency of choosing cloud migration strategies on deadline as ERP Central Component (ECC) nears the end of its life, along with advice for addressing these issues, see the ISG Provider Lens™ Focal Points briefing here.

The 2024 ISG Provider Lens™ global SAP Ecosystem report evaluates the capabilities of 29 providers across three quadrants: RISE with SAP Implementation Partners, SAP Business AI and Business Technology Platform (BTP) Services, Cloud Economics and FinOps Services for SAP.

The report names Capgemini, HCLTech and Wipro as Leaders in all three quadrants. It names Cognizant, Eviden (an Atos Business), Infosys and Tech Mahindra as Leaders in two quadrants each. Accenture, Deloitte and Kyndryl are named as Leaders in one quadrant each.

In addition, LTIMindtree, PwC and UST are named as Rising Stars — companies with a “promising portfolio” and “high future potential” by ISG’s definition — in one quadrant each.

In the area of customer experience, Infosys is named the global ISG CX Star Performer for 2024 among SAP ecosystem partners. Infosys earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, which is part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.

Customized versions of the report are available from Capgemini, HCLTech, KaarTech and Kyndryl.

The 2024 ISG Provider Lens™ global SAP Ecosystem report is available to subscribers or for one-time purchase on this webpage.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI and automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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