Triad in the SAP community
Relevance of SAP
In the 2024 investment survey, only a third of DSAG members state that SAP's relevance is likely to increase. Obviously, they are not entirely sure about this either, because "more likely" sounds like an embarrassing answer.
"From SAP's point of view, this is of course a pleasing result. It is certainly also due to the fact that the software manufacturer has strongly penetrated the system landscapes of companies over the past decades. Replacing existing SAP systems is hardly conceivable in many companies simply because of the effort involved," concludes DSAG boss Jens Hungershausen.
Whether the result can really be positive for SAP seems to be more optimism for a specific purpose than euphoria for the future. In reality, the industry association DSAG e. V. still sees significant potential for expansion at SAP when it comes to supporting companies in their transformation projects. SAP's relevance could even decline further due to strong partner offers and alternatives on the IT market. Replacing the core ERP systems is certainly not on the agenda of DSAG members and existing SAP customers, but alternative ERP offerings are gaining in importance and therefore relevance at the margins.
Investment report 2024 on the SAP situation
The 2024 investment report from the German-speaking SAP user group confirms this: IT and SAP investment budgets continue to rise - albeit at fewer companies than in 2023. At the same time, the willingness to invest in S/4 is growing, but user companies see a need for discussion when it comes to the S/4 cloud strategy. Rise and Grow with SAP appears to be gaining in importance among respondents. According to the DSAG Investment Report 2024, the topic of artificial intelligence (AI) may also increase.
SAP budgets are adjusted to the economic situation
The proportion of companies whose IT and SAP investment budgets remain the same or decrease has risen significantly. Market conditions are difficult and uncertain. It is therefore understandable that companies are taking a wait-and-see approach. What the German-language Manager Magazin reported in mid-September seems remarkable: "Ms. Yu Zhang is a multi-supervisory board member and China expert: all other nations rave about Germany's hidden champions, nowhere is the SME sector as powerful as in Germany."
The mixture of industrial location and great cultural nation is very inspiring, says entrepreneur and author Yu Zhang in Manager Magazin Online and adds: "In Germany, the false narrative that everything is doomed is currently gaining ground. Yet there is plenty of evidence to the contrary. The DSAG Annual Congress 2024 will provide an important picture of the mood, as the SAP share price has reached an all-time high, while the mood among partners and users is more subdued.
SAP Business Suite 7 versus SAP S/4 Hana
When asked about the ERP solutions used in 2024, SAP Business Suite is still clearly in the lead with 68%, ahead of S/4 On-prem with 44%. The use of S/4 Private Cloud and S/4 Public Cloud has increased overall. Thus, 11 percent rely on private cloud and 6 percent on public cloud. The cloud operating models for S/4 continue to play a subordinate role. This is not surprising, as companies face numerous challenges when switching to the cloud. Strategic reasons, such as investments already made and security concerns regarding critical IT infrastructures, certainly also play a role here. The DSAG annual congress in Leipzig will provide a reassessment of this development.
SAP cloud strategy
For the first time, DSAG member companies were asked what they think of SAP's S/4 Cloud strategy. The DSAG members surveyed take a critical view of SAP's S/4 Cloud strategy. Only 13 percent of those surveyed had a positive opinion, while just under half had a negative one. The respondents want to ensure that on-prem customers can also fully consume the strategic innovations. However, this assessment has hardly any impact on the willingness to invest in S/4 overall.
When asked about the relevance of the Business Suite for SAP investments in 2024, four percent of companies are planning high investments and 18 percent medium investments. Investments in S/4 continue to increase. In terms of SAP cloud solutions and their relevance for investments in 2024, Business Technology Platform (SAP BTP) is in first place ahead of SAP SuccessFactors with high and medium investments of 33%.
