SAP is making a big push to the cloud, and naturally so. SAP targets more than $26 billion in cloud revenue through an accelerated transition to the cloud by 2025. That’s an ambitious target indeed. Having been associated with SAP for over two decades, it will be interesting to see SAP progressing towards this massive goal. There sure is a demand for cloud, as organizations, irrespective of their size, are priortizing on digitally transforming themselves, driven by the Covid pandemic, which converted homes into the workplace.
Many company executives tell me that they seek ways to be agile in their operations to safeguard their revenue and increase their margins and cash flow. Moving from a CAPEX to an OPEX model is no more a debate, is their unanimous view. All of which is speeding up the need for companies to move to the cloud.
International Data Corporation (IDC) is sure of a faster conversion to cloud-centric IT. IDC points out that the total worldwide spending on cloud services, including hardware and software components plus professional and managed services, will surpass $1.0 trillion in 2024, with a CAGR of 15.7%.
In early 2010, SAP launched the SAP HANA database and followed it up by SAP S/4HANA to transition to the cloud. In addition, it acquired Ariba, SuccessFactors, and Concur. In 2017 SAP S/4HANA Cloud was released, and in 2020, SAP Cloud Platform rebranded as SAP Business Technology Platform (SAP BTP).
The launch of SAP S/4HANA in 2015 cemented SAP’s cloud-first strategy. By constantly adding functionality and new features to the cloud platform, SAP S/4HANA Cloud customers get the benefits of the cloud solutions together with the business advantages of SAP HANA’s in-memory computing architecture. Through this, they can gain real-time business statistics and analytics. SAP has made a solid commitment to automating half of all ERP activities in SAP S/4HANA Cloud in the next three years.
Though not a new term, Industry Cloud is gaining momentum now. While the healthcare sector and online education quickly moved to adopt the cloud, many other industries continue to embrace cloud platforms. Examples are retail, supply chain and logistics telemedicine, life sciences, oil and gas, manufacturing, and e-commerce. Every sector comes with its own set of business, legal, regulatory and security issues. So, Industry Cloud can create a customized cloud system to fit a specific industry.
I have seen some customers easily transition to the cloud because of having standardized processes already in place. However, moving to the cloud is not that simple for many others because their IT landscape is historically complex.
SAP gives its customers a choice in moving to the cloud. They can choose a hyperscaler of their choice or run it on the SAP infrastructure. Some customers may even prefer to stay on-premise, and SAP supports them too. With our proven expertise in transforming customers’ business processes, we at vVolve can smoothen the path to the cloud.
Recently one of our clients, Ramky Cleantech Services a wholly owned subsidiary of Ramky Group, a leading multi-disciplinary infrastructure development and environmental management solution provider, wanted to move to the cloud. We supported their transformation from SAP ECC to S/4HANA on Google cloud.
13 October 2020: vVolve, Singapore is delighted to announce the appointment of Bipul Patra as a Microsoft Leader covering South East Asia and Middle East.