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Brazil Slow to Upgrade SAP as Support Deadline LoomsSÃO PAULO, Aug. 22, 2019 /PRNewswire/ -- Enterprises in Brazil have been slow to upgrade their SAP installations to S/4HANA or Business Suite on HANA, even as older installations will no longer be supported after 2025, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm. The 2019 ISG Provider Lens™ SAP HANA and Leonardo Ecosystem Partners Report for Brazil finds many enterprises in the country buying new HANA licenses to stay compliant with licensing terms, while not planning to upgrade their old systems. Enterprises making upgrades are often opting for so-called brownfield deployments, in which new SAP software packages must coexist with legacy software. These businesses are using conversion tools to transfer their configurations and customizations to BW on HANA, the report says. An estimated 1,300 SAP systems should be converted to S/4HANA or BW on HANA before 2025, the report notes. "Large enterprises are waiting for SAP incentives to update, or they are quietly betting on an extension to the 2025 end-of-support date," said Esteban Herrera, partner and global leader of ISG Research. "SAP partners are enthusiastic about the revenue stream that would come from widespread upgrades, but they worry that by waiting, enterprises will cause a logjam that opens the market up to competitors." While adoption of new SAP tools has been slow in Brazil, the potential market in the country is large, the report says. Since 1996, SAP has won more than 3,700 customers in Brazil, and its partners employ more than 13,000 SAP consultants there, according to the report. Although many large enterprises are opting for brownfield upgrades, the midmarket in Brazil often adopts S/4HANA as a greenfield project, in which the software is deployed as a new package. Midmarket companies are adopting SAP software to replace in-house systems or obsolete packaged ERP systems, the report says. While the report shows a slow upgrade path in Brazil, it finds a robust managed services market for maintenance, enhancement and operations. The managed services market for AP products is a highly competitive market, with many companies fielding teams of 150 to 1,000 consultants. The 2019 ISG Provider Lens SAP HANA and Leonardo Ecosystem Partners Report for Brazil evaluates the capabilities of 36 providers across six quadrants: SAP S/4HANA & Business Suite on HANA Transformation — Large Accounts; SAP S/4HANA & Business Suite on HANA Transformation — Midmarket; SAP S/4HANA & Business Suite on HANA Managed Services; SAP BW/4 on HANA and BW on HANA Transformation & Operations; SAP Leonardo Transformation, and SAP HANA Cloud Infrastructure and Platform Services. The report names Tech Mahindra a leader in five quadrants; Accenture, Atos, IBM and T-Systems as leaders in three quadrants, and FH, Infosys, Softtek and Sonda as leaders in two. AWS, Cast group, DXC Technology, ITS Group, Microsoft Azure, Resource, SAP Consulting, Seidor, SPRO and TIVIT are all named leaders in one quadrant. Customized versions of the report are available from FH and T-Systems. The 2019 ISG Provider Lens SAP HANA and Leonardo Ecosystem Partners Report for Brazil is available to ISG Insights™ subscribers or for one-time purchase on this webpage. About ISG Provider Lens™ Research The series is a complement to the ISG Provider Lens Archetype reports, which offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types. About ISG View original content to download multimedia:http://www.prnewswire.com/news-releases/brazil-slow-to-upgrade-sap-as-support-deadline-looms-300905508.html SOURCE Information Services Group, Inc. |