Key Findings & Highlights:

One of the most common approaches to migrating SAP to the cloud has been the migration of legacy landscapes with minimal transformation. In some cases, the transformation involved migrating the database to HANA or the operating system. However, in recent years, there has been an increasing adoption of SAP S/4HANA, contributing to a larger proportion of SAP cloud adoptions. This adoption can occur through migrating legacy environments or implementing new SAP instances directly on the cloud. However, the exact percentage of SAP cloud migrations represented by S/4HANA is not readily available.

Clients who have migrated or adopted SAP landscapes in cloud environments commonly realize value through reduced IT and costs. By shifting from on-premises infrastructure to a cloud landscape, clients can take advantage of the scalability and flexibility offered by the cloud, enabling them to scale resources up and down to meet demand.

To meet clients' evolving needs, vendors are expanding their portfolio of cloud adoption offerings. While a technical lift and shift of a legacy SAP environment have traditionally been the starting point for cloud adoption, leading vendors now provide bundled offerings that offer an industrialized migration to a new landscape pre-configured to address specific industry or functional requirements.

IT service vendors heavily invest in their SAP Cloud Migration capabilities to deliver these services effectively. These investments typically focus on four main areas:

• Transforming the skillsets of their teams to ensure they have the necessary expertise in SAP cloud migration
• Offerings are more cloud-focused, aligning with the latest SAP cloud solutions and best practices
• Mature assets and tools, including automation and migration frameworks, to streamline the migration process and improve efficiency
• Expanded portfolio of industry-focused offerings, providing tailored solutions for specific verticals or business requirements.