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June 23, 2017

Hybrid IT sits high on the business agenda but not with SAP S4 HANA

A survey finds that businesses have minimal to no interest in moving to SAP S4 HANA despite being keen to adopt hybrid IT.

By Hannah Williams

Hybrid IT is at the core of businesses continuous use of their current SAP ERP releases, with 89% of people expected to continue using them in meeting business needs.

Although businesses are moving ahead with hybrid IT efforts, they are not particularly eager to move to S4 HANA.

There is perhaps surprisingly low rate of commitment to SAP’s S/4HANA, which is based on the “high migration and reimplementation costs,” as citied by respondents of the survey. Almost half of the respondents (47%) believe that SAP’s support and maintenance costs are too high, and to add to this many complain that minimal resources are offered.

SAP S4 HANAThe main issues cited for the problems with SAP’s support were that, “Issues take too long to resolve,” “Lack of support for customisations,” and, “Lack of expertise or adequate knowledge to resolve issues.” This shows that an alternative solution is needed for businesses to get better service from SAP support.

According to a recent survey by Rimini Street, 30% of these respondents are already familiar with adopting a hybrid IT strategy. Most of which is used to maximise the value of their core SAP system as a record, and also to reduce costs and gather resources in order to quickly and effectively drive innovation.

Read more:Half of SAP UK&I customers have no plans to use S4 HANA

Businesses recognise that a hybrid IT strategy boosts transformation while providing effective offerings. It gives users the ability to run the business on a core ERP application, while also being able to adopt new applications and services such as cloud, mobile and analytics.

SAP ERP allows organisations to deploy systems from any technology provider, as well as SAP, to encourage a faster time for innovation together with competitive advantage.

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Based on this, many organisations run their SAP ERP implementations either in their private cloud or hosted environment as they see the benefits of the cloud model without the worry of high costs.

Seth Ravin, CEO, Rimini Street said: “This survey highlights that CIOs and IT decision makers prefer to maximise the value of their current robust SAP ERP system that more than meets their business requirements, rather than advancing to a new platform that is still in development with no current business case to support a full reimplementation.

“It also illustrates how they are pursuing innovation strategies, such as hybrid IT, to help their business gain competitive advantage now, without having to wait indefinitely for meaningful new innovations and capabilities from SAP.”

The survey was conducted amongst CIOs, CTOs, IT VPs and other high execs of industries and business across North America, Europe, Latin America and Asia-Pacific.

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