Enterprise Apps Unpacked28 Tammi 2025

SAP in 2025: S/4HANA, cloud pressure builds

A case can be made that for the past decade and a half, SAP has been almost entirely focused on two things: getting customers to adopt its next-generation ERP platform, S/4HANA, and shifting its development efforts from on-premises systems to the cloud – and getting customers to follow.

Now, with the calendar turned to 2025, the December 31, 2027 deadline -- when SAP says it will stop supporting legacy on-premises ECC and R/3 systems, in effect requiring most customers to upgrade to S/4HANA -- looms uncomfortably near. A Gartner survey shows most have yet to make the move.

SAP enters the new year having struggled through a 2024 that presented its own challenges. The vendor underwent major personnel shakeups as three C-level executives left the company, legendary cofounder Hasso Plattner retired, and 10,000 employees were moved into strategic initiatives – primarily AI -- or left after being bought out.

SAP customers and industry analysts will be looking to see if SAP can stabilize its management structure and re-establish trust with its employees. At the same time, SAP will face more pressure than ever to show progress on getting customers to move to S/4HANA and the cloud.

In this podcast, Jim O'Donnell, senior news writer at Informa TechTarget's SearchSAP website, joins host David Essex to discuss last year's developments and their impact on SAP and its customers going forward. They also analyze the effectiveness of the Rise with SAP and Grow with SAP programs in guiding customers on a path to S/4HANA Cloud, and what SAP must do to right the ship and show more progress in moving customers to S/4HANA and the cloud.

Other topics discussed in the podcast include:

the impact of SAP'S promise to limit major innovations to the two cloud versions of S/4HANA
how confusion over S/4HANA migration could benefit competitors like Oracle and Workday
whether SAP might extend the 2027 deadline

Host: David Essex, Industry Editor, Informa TechTarget

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