Market Analysis
published on Oct 11, 2017
Report Overview:
NelsonHall's market analysis of the SAP HANA and S/4HANA industry and trends consists of 58 pages plus detailed appendices.
Who is this Report for:
NelsonHall’s “SAP HANA and S/4HANA Services” report is a comprehensive market assessment report designed for:
- Sourcing managers investigating sourcing developments within the use of vendors for SAP HANA and S/4HANA services
- Operational decision makers exploring the benefits and inhibitors of undergoing SAP HANA and S/4HANA initiatives
- Vendor marketing, sales and business managers developing strategies to target SAP HANA and S/4HANA opportunities
- Financial analysts and investors specializing in the IT services sector, including SAP HANA and S/4HANA services.
Scope of this Report:
This report analyzes the market for SAP HANA and S/4HANA services. It addresses the following questions:
- What is the current and future market for SAP HANA and S/4HANA services?
- What are the customer requirements SAP HANA and S/4HANA services?
- What are the benefits/results which vendors have been able to achieve for their clients?
- What SAP HANA and S/4HANA services are organizations buying from IT services vendors?
- What is the size and growth of the SAP HANA and S/4HANA services market?
- Who are the leading vendors within SAP HANA and S/4HANA services?
- What are the vendor selection criteria, challenges, and critical success factors for vendors targeting SAP HANA and S/4HANA services?
Key Findings & Highlights:
SAP HANA is a more mature product with a clearer value proposition than S/4HANA. Currently, the majority of existing large enterprise SAP business suite clients are migrating to HANA rather than directly to S/4HANA. With significant costs sunk in customizing objects within legacy ERP systems (including processes, interfaces, reports, and forms), clients are looking to IT service vendors to undertake shorter consulting projects to define the value to be realized by migrating to HANA or S/4HANA, and the level of effort required.
The majority of S/4HANA adopters engaging IT services vendors to date have been electing to implement a greenfield S/4HANA environment. As the end of support deadline looms for ECC clients, the market for S/4HANA services will evolve toward more migrations.
Many HANA and S/4HANA initiatives are still in progress, in the early days of production, or represent a single phase on a multi-phase journey. Realizing the full benefits of these initiatives will generally require a longer-term perspective, as multiple phases are completed and softer changes such as business process changes mature.
In addition to HANA being introduced earlier than S/4HANA, the biggest driver of the difference in adoption is the less clear business case for migrating to S/4HANA. HANA’s business case relies on direct cost reductions (infrastructure footprint) and clear improvements in data and analytic capabilities.
The S/4HANA business case focuses on softer benefits such as user experience, shorter business process cycle time, and providing a foundation for further investment in digital transformation.
To deliver these services, IT service vendors are investing heavily in their SAP HANA and S/4HANA capabilities. These investments are primarily focused in three main areas:
- Expanding HANA and S/4HANA skilled workforce
- Develop industry-focused offerings to supplement the core S/4HANA capabilities
- Building out cloud-focused and edge solutions (such as IoT) to expand the value of S/4HANA.