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Defying the crisis with rising IT investments

According to this year's DSAG Investment Report, IT investment budgets continue to rise even in pandemic times, but S/4 projects are impacted by Covid-19.
E-3 Magazine
March 15, 2021
[shutterstock: 1493123198, kkssr]
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This text has been automatically translated from German to English.

The total budget for IT investments will increase in 2021 at 39 percent of DSAG companies in Germany, Austria and Switzerland, even in times of the corona crisis. The same applies to investments in SAP IT at 43 percent of companies. These are the findings of the Investment Report 2021 published by the German-speaking SAP User Group (DSAG). Slightly rising figures are also emerging for the switch to S/4 Hana. Only in the case of three-year planning are companies somewhat more cautious with their investment forecasts.

The immediate impact of the Corona crisis on companies was felt overwhelmingly last year. Many have had important experiences with the overall situation and its direct consequences. But they also learned quickly from it, which puts the outlook for 2021 in a positive light.

For example, the DSAG Investment Report revealed that the budget for general investments in IT will increase this year at 39 percent (2020: 46 percent) of the companies surveyed in Germany, Austria and Switzerland (DACH). At slightly less than a third of these, by between ten and 20 percent.

37 percent expect the rate to remain the same. 18 percent of respondents indicated falling values, with 44 percent of these also down by between ten and 20 percent. As far as SAP investments are concerned, 43 percent of respondents want to invest more, a slight decrease compared to the Investment Report 2020 with 49 percent.

Dsag Investment Report 2021 Roof
To what extent are the following cloud solutions relevant to your SAP investments in 2021?

Budgets for SAP will fall for 18 percent of respondents, compared with 19 percent in 2020. At 35 percent, investments will remain the same (2020: 32 percent). In manufacturing, the budget will increase at 47 percent (2020: 46 percent), and at 40 percent (2020: 47 percent) of companies in the service provider and retail sectors.

When it comes to switching to S/4, 13 percent of respondents had not yet made a decision last year, and this is also the case this year. At the same time, 14 percent are already using S/4 (2020: 10 percent) and another 10 percent (2020: 9 percent) are planning to make the switch this year. In the next three years, 39 percent (2020: 40 percent) also plan to rely on S/4.

Nevertheless, it is important to continue the dialog with SAP on S/4 and that the solution is consistently developed further. There is still potential to be exploited, e.g., with regard to the differentiation between on-premises and cloud or smooth integration.

Dsag Investment Report 2021 Roof2
Is your company planning to migrate to S/4 Hana?

Despite SAP's cloud-first strategy, investments in corresponding solutions are still within manageable limits. According to the investment report, high and medium investments in the following SAP cloud solutions are planned for the first three places in the ranking for 2021: SAP Analytics Cloud at 14 percent (2020: 13 percent), SuccessFactors at 15 percent (2020: 14 percent) and SAP Customer Experience at 8 percent (2020: 11 percent). They are followed by Ariba and SAP Integrated Business Planning, each with 8 percent, and Concur with 6 percent. Industry Cloud (2 percent), Qualtrics (2 percent) and Fieldglass (1 percent) bring up the rear with a slight gap.

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Working on the SAP basis is crucial for successful S/4 conversion. 

This gives the Competence Center strategic importance for existing SAP customers. Regardless of the S/4 Hana operating model, topics such as Automation, Monitoring, Security, Application Lifecycle Management and Data Management the basis for S/4 operations.

For the second time, E3 magazine is organizing a summit for the SAP community in Salzburg to provide comprehensive information on all aspects of S/4 Hana groundwork. All information about the event can be found here:

SAP Competence Center Summit 2024

Venue

Event Room, FourSide Hotel Salzburg,
At the exhibition center 2,
A-5020 Salzburg

Event date

June 5 and 6, 2024

Regular ticket:

€ 590 excl. VAT

Venue

Event Room, Hotel Hilton Heidelberg,
Kurfürstenanlage 1,
69115 Heidelberg

Event date

28 and 29 February 2024

Tickets

Regular ticket
EUR 590 excl. VAT
The organizer is the E3 magazine of the publishing house B4Bmedia.net AG. The presentations will be accompanied by an exhibition of selected SAP partners. The ticket price includes the attendance of all lectures of the Steampunk and BTP Summit 2024, the visit of the exhibition area, the participation in the evening event as well as the catering during the official program. The lecture program and the list of exhibitors and sponsors (SAP partners) will be published on this website in due time.