[June 22, 2017] |
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Survey Finds Majority of SAP Licensees Plan to Continue Running Their Proven ERP Release and Are Not Committed to Moving to S/4HANA
Rimini
Street, Inc., a global provider of enterprise software products and
services, and the leading independent support provider for Oracle and
SAP (News - Alert) products, today revealed the findings from a recent global survey of
SAP licensees conducted by Rimini Street to better understand their SAP
application strategies and future plans. A key finding in the report is
that the dominant strategy for SAP licensees, selected by 89% of
respondents, is to continue running their current proven SAP ERP releases1,
given that the rich functionality of their current releases meet
business needs and also forms the foundation of a preferred hybrid IT
model. Additionally, 65% of survey respondents have no plans to, or are
currently not committed to, migrate to S/4HANA2, with the
number one reason for not committing to S/4HANA cited as "no strong
business case and unclear ROI." The report, "Rimini Street Survey: 2017
SAP Applications Strategy Findings," is based on responses from CIOs,
CTOs, IT VPs, directors and managers from a broad range of industries
and company sizes across North America, Europe, Latin America and
Asia-Pacific.
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Survey finds Majority of SAP Licensees Plan to Continue Running Their Proven ERP Release and Are Not Committed to Moving to S/4HANA (Photo: Business Wire)
Hybrid IT Strategy Optimizes the Value of SAP ERP
Of the survey respondents that plan to stay on their current SAP
Business Suite application, 30% are already adopting a hybrid IT
strategy to maximize the value of their core SAP system as a system of
record, while also freeing up funds and resources that can be used to
more quickly and flexibly drive innovation through systems of
engagement. A hybrid IT strategy offers the best of both worlds - it
provides the ability to reliably run the business on a robust core ERP
application, and at the same time enables an organization to more
quickly adopt new innovative applications and services, including cloud,
mobile and analytics. Organizations have the flexibility to deploy
systems of engagement from any technology provider, including SAP, which
enables faster time to innovation and overall competitive advantage. In
addition, an increasing number of companies are running their SAP ERP
implementations in their private cloud or hosted environment, realizing
many benefits of the cloud model without a costly, risky
reimplementation. By shifting IT funds from expensive, disruptive
upgrades to innovation, a hybrid strategy can accelerate the achievement
of business objectives.
"When I speak with SAP customers, one of the most common strategies they
enlist to maintain their core ERP while still having the ability to
innovate, is to take a hybrid IT approach," said Vinnie Mirchandani, CEO
of Deal Architect and author of SAP Nation. "The SAP Business
Suite is remarkably robust and feature rich, but SAP's ability to
successfully innovate outside core ERP has not kept up, so a two-speed
approach makes sense. Stick with the proven core, but continue to
innovate around the edges with many modern solutions that are available
from some very nimble companies in the market today."
b>High Cost and Risk of S/4HANA with Low ROI
In addition to citing "no strong business case and unclear ROI," for the
low commitment to S/4HANA, another top reason by survey participants for
the low commitment to S/4HANA is the "high migration and
reimplementation costs." Of those respondents who have committed to
S/4HANA, 56% estimated the total cost of reimplementation for a move to
S/4HANA to be between $10 and $100 million, an expensive undertaking
which makes it difficult to build a positive business case for the move
and is financially untenable for many organizations.
Additional Survey Highlights:
-
47% of respondents consider SAP's support and maintenance costs to
be too high
Nearly half of all respondents feel that SAP
support and maintenance costs are too high, including those who state
that the costs are "way out of control." With the continued high cost
of SAP support, budgets are squeezed and resources stretched thin.
With Rimini Street, clients consistently realize cost savings of up to
90% in total maintenance costs as they are no longer on the upgrade
path dictated by the vendor, no longer need to budget resource for
self-support and no longer need to seek outside support for their
customizations which are not covered by the vendor.
-
Respondents cite top issues with SAP's support
The top
three areas cited as problematic for SAP support, based on a survey
question that allowed for multiple responses, include "Issues take too
long to resolve" (36%), "Lack of support for customizations" (33%),
and "Lack of expertise or adequate knowledge to resolve issues" (29%).
These critical gaps in SAP support point to the need for an
alternative solution that offers better, more responsive service than
is available from the vendor today. Rimini Street addresses all of
these issues by providing full support for SAP customizations, a
dedicated Primary Support Engineer with an average of 15 years'
experience with SAP applications, and a guaranteed service level
agreement response time of 15 minutes for critical issues.
"This survey highlights that CIOs and IT decision makers prefer to
maximize the value of their current robust SAP ERP system that more than
meets their business requirements, rather than advancing to a new
platform that is still in development with no current business case to
support a full reimplementation. It also illustrates how they are
pursuing innovation strategies, such as hybrid IT, to help their
business gain competitive advantage now, without having to wait
indefinitely for meaningful new innovations and capabilities from SAP,"
said Seth
Ravin, Rimini Street CEO. "Today, Rimini Street supports nearly
1,300 clients running IBM, Microsoft (News - Alert), Oracle and SAP software, providing
them with our premium-level enterprise software support and reducing
their total maintenance costs by up to 90% - costs which can be
redeployed to fund strategic initiatives for their business."
To download a copy of the report "Rimini Street Survey: 2017 SAP
Applications Strategy Findings," please click here.
For additional information on support services available to SAP
licensees, please go here.
About Rimini Street, Inc.
Rimini Street is a global provider of enterprise software products and
services, and the leading independent support provider for Oracle (News - Alert) and
SAP products. The company has redefined enterprise support services
since 2005 with an innovative, award-winning program that enables
licensees of IBM (News - Alert), Microsoft, Oracle, SAP and other enterprise software
vendors to save up to 90 percent on total support costs. Clients can
remain on their current software release without any required upgrades
for a minimum of 15 years. Nearly 1,300 global Fortune 500, midmarket,
public sector and other organizations from a broad range of industries
currently rely on Rimini Street as their trusted, independent support
provider. To learn more, please visit http://www.riministreet.com,
follow @riministreet on
Twitter (News - Alert) and find Rimini Street on Facebook
and LinkedIn.
Forward-Looking Statements
This press release may contain forward-looking statements. The words
"believe," "may," "will," "plan," "estimate," "continue," "anticipate,"
"intend," "expect," and similar expressions are intended to identify
forward-looking statements. These forward-looking statements are subject
to risks and uncertainties, and are based on various assumptions. If the
risks materialize or our assumptions prove incorrect, actual results
could differ materially from the results implied by these
forward-looking statements. Rimini Street assumes no obligation to
update any forward-looking statements or information, which speak only
as of the date of this press release.
© 2017 Rimini Street, Inc. All rights reserved. "Rimini Street" is a
registered trademark of Rimini Street, Inc. in the United States and
other countries, and Rimini Street, the Rimini Street logo, and
combinations thereof, and other marks marked by TM are trademarks of
Rimini Street, Inc. All other trademarks remain the property of their
respective owners, and unless otherwise specified, Rimini Street claims
no affiliation, endorsement, or association with any such trademark
holder or other companies referenced herein.
1, 2 Rimini Street Report, "Rimini Street Survey: 2017 SAP
Applications Strategy Findings," May 2017
View source version on businesswire.com: http://www.businesswire.com/news/home/20170622006012/en/
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