Gartner Insights Abstract

Competitive Landscape: SAP S/4HANA Application Service Providers

Published: 16 April 2024

Summary

SAP S/4HANA represents a big opportunity for service providers due to the numerous pending upgrades and implementations. Service providers must provide low-cost automated assessments, cost-effective upgrades and personalized deployment to highlight the benefits of and ease migration to SAP S/4HANA.

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Overview

Key Findings
  • SAP S/4HANA represents a big opportunity for service providers as over 22,000 legacy SAP Business Suite customers haven’t yet acquired SAP S/4HANA, as they struggle to create the business case for the migration.

  • Over 70% of SAP S/4HANA existing customers will see their software support expire at the end of 2025, forcing the need to migrate to a newer version or take on increased maintenance costs.

  • Brownfield and hybrid deployment methods are growing, accounting for 50% of total deployments (up from 37% in 2019).

Recommendations

To compete in the SAP S/4HANA market, service providers must:

  • Offer free or low-cost automated current

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Analysts:

Fabio Di Capua

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