Global survey by HCL reveals integration and security as biggest inhibitors towards speedier SAP cloud migration
Research released by HCL Technologies has revealed that $39 billion of SAP landscape could move to the cloud in the next two years, as large enterprises plan to migrate 46% of their existing SAP on-premise environment.
The global survey of 100 executives from large enterprises focused on their current and future plans to deploy SAP applications and infrastructure in the cloud. It revealed that 45% of organizations have increased their SAP cloud investments over the past year and that they expect to nearly double these investments in the next 12 months. 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 organizations 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.”
When asked about the biggest inhibitors to moving more SAP applications and infrastructure to the cloud 30% of respondents noted integration challenges with existing systems, while 36% cited security concerns. This isn’t surprising considering 88% of organizations expected to adopt a hybrid model, while 45% stated that integration into their existing landscape had been their biggest cloud implementation challenge to date. The survey also showed that organizations are in need of help when it comes to their cloud strategies, with only 18% stating they had a comprehensive cloud strategy.
