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SAP cloud adoption, and an SI's tackle upward thrust with SAP - behind the numbers with Syntax and ASUG

Making sense of where SAP customers stand on cloud adoption isn't an easy difficulty. by using now, most SAP consumers have journey with SaaS apps, in addition to managing cloud workloads inner - and outside - of SAP.

Then we've upward push with SAP. one in every of SAP's core pitches with upward push is assisting shoppers movement more SAP workloads to the cloud - and simplify/control the client's hyperscaler relationship, as a minimum for SAP workloads.

One open question with rise: how will smaller SIs reply? SAP management has informed me, on a couple of occasion, that their midmarket companions are both on board with upward push, or within the method of getting up to speed. i am speakme to a couple of these companions now, and taking a pulse: do they position with upward push, against upward push, or take a extra upward push-agnostic approach?

As you may are expecting, there is rarely one uniform answer. One enterprise on my short checklist is Syntax. Syntax has been within the ERP features market considering the fact that 1972, but they've changed with the instances. A core a part of their features is offering SAP customers with cloud hosting alternate options, from public cloud to their personal Syntax private cloud. Of course, that includes S/4HANA migrations.

The Syntax - ASUG annual cloud survey: astounding facts aspects

For the remaining 5 years, Syntax has partnered with ASUG, Americas' SAP person group, on an annual cloud survey of SAP shoppers (that you could get the 2021 white paper, free with check in). word: although this annual survey is based on North American users, ASUG also considerations an SAP survey with DSAG, which focuses on SAP consumer cloud adoption, attitudes on upward thrust with SAP, and SAP S/4HANA. On diginomica, ASUG CEO wrote concerning the contrasting views on S/4HANA cloud adoption from US and German SAP valued clientele.

As 2021 wound down, I caught up with Roan Low, options Architect at Syntax, to focus on all of the above. however first, a couple highlights from this year's Syntax and ASUG survey:

  • primary drivers of cloud innovation consist of reduction in fees, improving company strategies and aggressive aspect. There was also a 15% boost in cloud newbies (shoppers who were on the cloud for only two years), and 34% of respondents identified as cloud "innovation laggards."
  • seventy three% of respondents no longer at the moment the use of cloud features are planning to trust them. the most standard cloud deployment is the hybrid cloud at 46%, followed by using the general public cloud (28%) and the private cloud (25%). only 38% of respondents use a single cloud provider; sixty one% are using distinct cloud suppliers.
  • So, Mr. Low, were they any surprises this year? sure, one in certain. As he instructed me:

    We asked purchasers, 'what number of workloads are you working within the public cloud, private cloud, or on-premise?' All three went up. That shook me a bit bit. i would are expecting one among them to stay stagnant or drop, and the other two to move up. What we primarily saw turned into the on-premise workloads went up. [Author's note: the increased workloads were: public cloud 3.7%, private cloud 3.2%, on-premise workloads 5.8%.]

    now not all statistics elements are self-explanatory:

    I shouldn't have a great perception as to why i am considering that, to be honest, but the facts is precise. i am not disputing it. It simply really opened my eyes to the fact that whereas the cloud is definitely an answer of choice, or device of option for some organizations, they are nonetheless many companies accessible that absolutely want their steel.

    Low believes this records suggests whatever of a retreat from "cloud as a methodology," to "cloud as a device ":

    Cloud strategy is a term I hear a great deal. I think this is given means a bit bit to the view that cloud is rarely a strategy. Cloud is rarely an answer. Cloud is only an additional tool that a corporation, if used accurately, can benefit company value out of.

    And yet, we did see, over the total survey, an eleven% enhance in corporations spending greater than 1,000,000 a year on cloud features. So we are seeing an usual cloud spending vogue. Low spoke back:

    but as i discussed earlier, it really is a shift from, 'Cloud is the subsequent smartest thing; it's the answer'... in its place, it be more of a selective option, 'How will we leverage cloud, to more desirable do X?'

    Multi-cloud usage? most likely - but now not genuine multi-cloud

    When we say valued clientele are the use of varied clouds, I don't see that as "proper multi-cloud." To me, authentic multi-cloud may be the means to have moveable workloads that might without difficulty be shifted from one cloud to a different, either for rate, performance, scale, or functionality. that's no longer the place multi-cloud is nowadays. So, after I read from the Syntax-ASUG survey that about half of these surveyed are the usage of 2-three clouds (47% in 2021), that does not imply they are simply transferring workloads between them. Low replied:

    The aspect we deserve to differentiate is that this survey goes out to ERP purchasers. These don't seem to be customarily what i'd believe cloud native businesses that grew up within the cloud world, and are working cloud-native applications,

    ERP is light years far from the place it was... however's nonetheless a stateful utility, and stateful purposes have technological restrictions that make it tricky for them to in reality include and locate value of their cloud agility... in case you just take SAP, and the theory of spinning up an software server on-demand for a consumer assignment,  it be not impossible - nevertheless it's pretty impractical.

    Whereas, if you take a cloud native utility; let's opt for on video streaming. it's truly easy to arise a node that can circulation 300 video streams for one other range of makes use of, and shut it down when these makes use of triple. SAP, with its lower back-conclusion database, and its stateful nature, doesn't lend itself towards that.

    I do not suppose multi-cloud, within the transportable means I described, is a truth for most apps. in no way for ERP. Low:

    within the beginning, I did hear a lot about multi-cloud, 'Let's be in a position to shift workloads from X internet hosting accomplice to Y hosting companion, in keeping with means, in keeping with price, in response to use case.' but yeah, I haven't seen that. 

    Our purchasers, there are a really few that do - and it be no longer with SAP. it's essentially homegrown purposes which are capable of do this. but it's now not automated. it be on-demand; or not it's guide. For the great majority of our valued clientele, they're leveraging the cloud in a means that is committed to certain workloads.

    So for example, in the event that they've received industrial IoT with SAP, that every one runs on AWS. lively directory, and perhaps a single signal-on, that could be working on Azure, or operating on a non-public cloud. and people workloads don't shift from side to side throughout the distinct cloud providers.

    upward push with SAP - what is the Syntax stance?

    If Syntax is knee-deep in SAP cloud internet hosting, they have to take a position on upward push with SAP. So are they for, against, or neither? Low made a vital element about upward push: it's going to be understood no longer just as a means to control SAP cloud workloads, but to do it on a subscription groundwork:

    we've got taken an agnostic strategy. We fully remember the price of upward push to many shoppers. I see upward push as an SAP partner-enabled approach to cloud internet hosting, mixed with subscription licensing.

    We do have consumers that need to do upward push, that see the benefit in upward thrust, and want to move in that path. We don't discourage them. We work with them to take into account the place they see the benefits, and where they see the risks, and perhaps we them about some further advantages, or some lesser hazards.

    It is dependent upon each and every individual condition. but we're an increase companion; we are able to support a rise implementation. thus far, I haven't in my view carried out one, just to put that in. however we fully are speaking to customers about upward push, and we are able to support it. So it be a totally agnostic approach.

    Low believes the agnostic position is the appropriate one, now not just for upward push, however for all cloud functions:

    or not it's the identical component that we do with cloud. We offer cloud hosting, inner most cloud, AWS, Azure. upward push encompasses the remaining two: Azure and AWS. As such, we do not go into a customer and say, 'hey, you've received to do inner most cloud.' We're agnostic on cloud; we're agnostic on upward push. The cause of it is: what is correct for us isn't always correct for the consumer.

    The real query becomes, 'what is your long-time period approach? Why are you in view that this move? Why are you even speakme to us? What are the company benefits you might be hoping to obtain?' if you're looking at let's say, computer researching, or might be industrial IoT, we're likely going to delivery asking questions, even steer you towards AWS at this time. because that is where we see many of the company advantages for those areas. if you're doing maybe machine discovering or AI, probably then we'll birth speaking to you about Azure, because it's the place we see some of the advantages of Azure.

    My take

    i am not going to take a seat here and inform you how smaller SIs should method upward push with SAP. That comes down to their personal valued clientele and company model. I've seen a number of smaller SIs bash upward push on social media. The worst part of the bashing is not the bashing - they can bash whatever they want. To a point, it's clean. however in many cases, they don't appear to take into account what they're bashing. customers want informed execs and cons - including informed criticism. rise hyperbole, whether it be wonderful or negative, doesn't clarify anything. I've viewed too lots of both, frankly.

    probably mocking upward thrust receives advertising consideration. maybe being "agnostic" is rarely terribly horny. but "agnostic" puts you in the position to teach customers on their alternate options. it's what i would like to see even more of, each from SAP and its partners. That mentioned, i am due for a rise 2022 replace from SAP; i could be speaking with greater SIs on the listing about rise also. i'll say this: SAP still has a great deal to prove on rise. If SAP is assured upward thrust can bring, i might want to believe they'd welcome this problem. See my piece, Is SAP rise altering the S/4HANA company case, or now not? UKISUG goes behind the numbers of their newsmaking rise with SAP survey.

    A note on the cloud adoption numbers: we're talking a few place-certain survey, with a comparatively small demo dimension (114 in 2021, 34 of which are S/4HANA customers). So, that raise in on-premise workloads comes from a fine looking modest sample. but if this indeed a broader vogue, i am now not terribly surprised.

    while i'm an undeniable cloud advocate, I don't consider shifting ERP from on-premise to cloud hosting is an awful lot of a enterprise case. There need to be a broader transformation indispensable, and a purpose to modernize programs - now not simply movement them someplace. I actually have lots of criticisms of rise, however one thing I do like: with upward push, SAP presents a coherent view of a way to circulation a heavily-custom-made equipment lower back to typical - over time. or not it's complicated to build enterprise situations with closely-custom-made ERP.

    Cloud should still under no circumstances be a methodology unto itself. but if your approach is serving your purchasers and suppliers in the most transparent and, in case you can stomach the buzzword, agile manner viable, then I do not trust that you would be able to actually battle cloud - as the long term direction, in most industries. Aerospace and defense may well be the most exceptional exception.

    Take this instance from the Syntax - ASUG survey: "1/three of respondents plan to have artificial intelligence (AI), computer studying (ML), and/or automation innovations in the cloud inside the subsequent year." decent good fortune applying AI/ML to your older, on-premise workloads. And decent luck trying to take in new predictive and technique automation functionality on older, legacy systems.

    That stated, shoppers need to set their personal modernization priorities. Some big SAP customers have very sophisticated IT shops - and are greater than able to pulling facts out of legacy methods the place vital, with out upgrading them or moving them anywhere.

    One factor that really impressed me: the quantity of cloud innovation the surveyed clients are investing in. They could have great on-premise workloads, but the cloud exercise is infrequently just elevate-and-shift. illustration: fifty four% have cloud analytics in region, with 23% planning this in 2022. ML and automation actions within the cloud are gaining ground quick. To Low's aspect, a sharper figuring out of the company merits of cloud appears to be coming into focal point - as opposed to just a PaaS/IaaS tech/workloads viewpoint.

    I asked ASUG analysis for his or her views on how this survey compares to prior years. ASUG Director of research Marissa Gilbert pointed out that moving to the cloud is still a focus for ASUG individuals. She pointed to the number of cloud inexperienced persons this year (15%), and expects an identical trajectory moving ahead.

    Low informed me that in his Syntax follow, the number of large-scale S/4HANA tasks turned into surging against the end of 2021 - a distinction to the pandemic decelerate.

    starting in the core of the third quarter onwards, we've considered a definite uptick... We're truly getting loads of respectable dialogue, and we've got had some decent signings around the S/four migration.

    in terms of SAP course, Low says all of his new S/4HANA projects are cloud: "a hundred% of them are either deepest or public cloud."  Low introduced that his colleagues in Germany and elsewhere may be seeing distinctive numbers, but it truly is what he is seeing within the US.

    it be too early within the 12 months to make any categorical statements, but i am hoping this piece is a starting point for 2022 records and debate.


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