Growing number of organizations embrace SAP's cloud migration strategy

In the German-speaking areas of Europe, particularly Austria, Germany, and Switzerland, SAP users are increasingly recognizing the need for cloud migration. A survey by DSAG, significantly focused on these regions, revealed that a remarkable 48 percent of respondents have either enrolled or plan to enroll in RISE with SAP, a cloud migration initiative introduced in early 2021. This marks a substantial increase from just 16 percent in 2024, highlighting the growing urgency among organizations to initiate cloud migration strategies. The survey, conducted in January and February 2025, encompassed 243 individuals from the user group, and it indicated a noteworthy shift in perspectives. Previously, there had been a significant number of users, 61 percent in 2024, who were not planning to adopt RISE with SAP, but that figure has dramatically decreased to 23 percent in the current survey. This change suggests an increasing acknowledgment that the long-term future for many organizations lies in a shift to cloud-based solutions, largely driven by SAP's evolving roadmap and the impending end of maintenance for various on-premises solutions. However, there are concerns regarding the pace of SAP's transition and the pressure being placed on organizations to adapt quickly, which may not be feasible for all. Jens Hungershausen, the chairman of DSAG, emphasized that while customers feel compelled to move forward, the speed of SAP's approach is a challenge for many. He advocated for a more realistic and economically viable migration plan that considers the diverse needs of businesses. As SAP continues to push its legacy users toward cloud adoption, there remains a pressing concern about the ability of many organizations to keep up. Data from research firm Gartner revealed that as of now, only 39 percent of users with licenses for ECC, SAP's older ERP system, had transitioned to the newer S/4HANA platform, which has been available since 2015. Gartner's analysis points to a potential problem, as some of these users might struggle to migrate before mainstream support for ECC ends in 2027, with as many as 40 percent of users possibly remaining on the legacy system even after extended support concludes in 2030. The situation paints a complex picture, as the migration initiative underscores the importance of transitioning to innovative solutions while considering the varied capacities of organizations to adapt to these changes.