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SAP Cloud Migration Services

Market Analysis

by David McIntire

published on Jan 18, 2021

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Report Overview:

NelsonHall's market analysis of SAP ERP cloud migration services consists of 60 pages.

Who is this Report for:

NelsonHall’s “SAP ERP Cloud Migration Services” report is a comprehensive market assessment report designed for:

  • Sourcing managers investigating sourcing developments within the use of vendors for SAP ERP Cloud Migration Services
  • Operational decision makers exploring the benefits and inhibitors of undergoing SAP ERP Cloud Migration initiatives
  • Vendor marketing, sales and business managers developing strategies to target SAP ERP Cloud Migration opportunities
  • Financial analysts and investors specializing in the IT services sector, including SAP ERP Cloud Migration Services.

Scope of this Report:

This report analyzes the market for SAP ERP Cloud Migration Services. It addresses the following questions:

  • What is the current and future market for SAP ERP Cloud Migration Services?
  • What are the customer requirements SAP ERP Cloud Migration Services?
  • What are the benefits/results which vendors have been able to achieve for their clients?
  • What SAP ERP Cloud Migration Services are organizations buying from IT services vendors?
  • What is the size and growth of the SAP ERP Cloud Migration Services market?
  • Who are the leading vendors within SAP ERP Cloud Migration Services?
  • What are the vendor selection criteria, challenges, and critical success factors for vendors targeting SAP ERP Cloud Migration Services?

Key Findings & Highlights:

NelsonHall’s market analysis of SAP ERP Cloud Migration Services consists of 60 pages (plus detailed appendices).

Historically the most common path used to migrate SAP ERP to cloud has been the migration of legacy ERP landscapes to the cloud with minimal transformation. At most, transformation was the migration of the database to HANA or the OS. Over the last two years with the increasing adoption of S/4HANA, it is taking on an increasing proportion of SAP cloud adoptions; whether through migration of a legacy environment or through a new implementation on the cloud. However, NelsonHall estimates it still represents less than 40% of SAP ERP cloud migrations completed by vendors to date.

Clients that have undertaken the migration or adoption of SAP ERP landscapes in cloud environments have most commonly realized value through the reduction of IT and ERP costs. The shift from on-premise infrastructure to a cloud landscape with the ability to scale up and down to meet demand and eliminate on-going operations and maintenance allows clients to realize IT cost savings of 20-30% on average.

Vendors are expanding their portfolio of cloud adoption offerings to ensure their portfolio has the breadth to meet client needs. A technical lift and shift of a legacy SAP ERP environment has been the starting point for ERP cloud adoption offerings but now leading vendors are offering bundled offerings that provide an industrialized migration to a new landscape pre-configured to address specific industry or functional requirements.

To deliver these services, IT service vendors are investing heavily in their SAP ERP Cloud Migration capabilities. These investments are frequently focused in four main areas:

  • Transforming the skillsets of their teams
  • Evolving cloud-focused offerings
  • Evolve and mature assets and tools
  • Expand portfolio of industry-focused offerings.

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