New report finds cloud adoption grew by 15% over the past year, while 73% of organizations not currently using cloud services are planning to consider them, making it imperative to innovate quickly or risk falling behind
Syntax, the leading multi-cloud and multi-ERP managed cloud provider for mission-critical applications, and the Americas’ SAP User Group (ASUG) released findings from their annual cloud survey. The research shows SAP customers that have migrated to the cloud are innovating at faster rates than those not using the cloud. They are reaping benefits like reduced costs, improved productivity and business process efficiency, and a better customer experience.
“We are proud to partner with ASUG for the fifth straight year to learn how SAP customers are adopting and innovating in the cloud,” said Roan Low, SAP Solutions Architect at Syntax. “To remain competitive, SAP users are increasingly seeing the benefit of fostering a culture of innovation. Our goal is to assist SAP users in this transformation through valuable insights and supportive SAP services.”
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The pace of innovation is moving faster than ever before and migrating to the cloud offers greater flexibility, agility, and opportunities for innovation. Businesses unable to keep up the pace will be left behind. Syntax and ASUG surveyed more than 100 SAP users to gauge where SAP customers stand on cloud migration, why they’re moving to the cloud, along with what challenges they’re experiencing along the way.
Key findings include:
- Primary drivers of cloud innovation include reduction in costs, improving business processes and competitive edge. There was also a 15% increase in cloud newcomers (customers who have been on the cloud for less than two years), and 34% of respondents identified as cloud “innovation laggards.”
- 73% of respondents not currently using cloud services are planning to consider them. The most popular cloud deployment is the hybrid cloud at 46%, followed by the public cloud (28%) and the private cloud (25%). Only 38% of respondents use a single cloud provider; 61% are using multiple cloud providers.
- The top cloud challenges that SAP customers reported are a lack of in-house knowledge to manage the cloud (34%), a lack of cohesive and detailed cloud strategy (29%), and unplanned downtime (27%). Additionally, the returns that self-identified “cloud innovators” see are not widely shared across the SAP community because most customers are not innovating, a critical mistake as more and more organizations move to the cloud.
- 1/3 of respondents plan to have artificial intelligence (AI), machine learning (ML), and/or automation innovations in the cloud within the next year. When leveraging cloud technology, SAP customers are currently using business analytics (54%) and automation (31%). Companies are still figuring out how to best find value with the Internet of Things (IoT), though, as a third of respondents are unsure about their organizations’ plans. Another third are not planning to have IoT innovations in the cloud.
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As an early SAP adopter and customer, Syntax has provided SAP managed services for customers throughout the proliferation of its Enterprise Resource Planning (ERP) software in the cloud. Syntax was also the first global provider to hold the Application Management Services (AMS) certification for SAP S/4HANA. This year, the acquisition of SAP Platinum Partner Illumiti, which added more than 250 SAP professionals to the company, further validates Syntax’s unparalleled, end-to-end technical and functional SAP solutions and expertise. More recently, Syntax expanded its SAP offerings with the launch of its AWS SAP Migration Factory to support customers in managing their SAP systems on AWS.
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