International SAP User Group Survey on Cloud Use

76 percent of DSAG members surveyed currently use cloud solutions for business applications, workloads, or data storage (ASUG: 84 percent, UKISUG: 70 percent, JSUG: 72 percent). The system landscapes used are predominantly hybrid, i.e., they consist of on-premise and cloud solutions.

„In an international comparison, we see that cloud usage is also steadily increasing among our members—albeit with a different dynamic than in the US, for example. The DACH region is characterized by mature on-premise landscapes, high data protection requirements, and a strong awareness of investment security. This explains the rather cautious but sustainable approach of many companies to cloud transformation,“ says Jens Hungershausen, CEO of DSAG.

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„Customers need genuine freedom of choice and must be able to decide for themselves whether they want to operate their systems on-premises, in a private cloud, or in a public cloud.“

Jens Hungershausen,
Chairman of the Board,
DSAG.

Impact of the changed SAP licensing models on cloud plans

10 percent of DSAG members (ASUG: 21 percent, UKISUG: 15 percent, JSUG: 24 percent) believe that the Rise and Grow Journeys will significantly accelerate their transition to the cloud.

Thanks to the Rise and Grow offerings, 15 percent (ASUG: 22 percent, UKISUG: 10 percent, JSUG: 28 percent) are planning a faster transition to the cloud. The newly structured cloud offerings are designed to help customers modernize their landscapes step by step. Although these announcements are already creating initial incentives to move to the cloud, further initiatives are needed to accelerate the transition. Many companies still use highly customized systems with S/4 Hana on-premises.

Hybrid system landscapes come first

When asked about the system landscapes currently in use, 78 percent of DSAG members stated that they use hybrid on-premise and cloud solutions (ASUG: 49 percent, UKISUG: 56 percent, JSUG: 55 percent). Seven percent rely exclusively on the private cloud (ASUG: 23 percent, UKISUG: 14 percent, JSUG: 10 percent). The public cloud is popular with 1 percent of DSAG members (ASUG/JSUG: 4 percent, UKISUG: 8 percent), while 7 percent prefer a mixture of private and public cloud (ASUG: 24 percent, UKISUG: 17 percent, JSUG: 27 percent).

„Companies“ reluctance to embrace the public cloud is due, among other things, to the complexity of existing customer landscapes, fears of losing system customizations and established functions, and, last but not least, economic conditions that cause some to doubt the profitability of the investment. Finally, potential dependence on a single provider also plays an important role in these considerations," summarizes Hungershausen.

Almost half (49 percent) of DSAG members (ASUG: 21 percent, UKISUG: 33 percent, JSUG: 29 percent) are concerned about potential dependence on a single provider. In addition, 27 percent of DSAG members (ASUG: 18 percent, UKISUG: 22 percent, JSUG: 27 percent) have concerns about a lack of internal expertise or cloud readiness.

Cultural and structural reasons

S/4 Hana On-Prem is used by 55 percent of DSAG members (ASUG: 28 percent, UKISUG: 23 percent, JSUG: 18 percent). On-premises is also ahead in terms of S/4 Hana deployment planning, at 31 percent (ASUG: 15 percent, UKISUG: 10 percent, JSUG: 6 percent). S/4 Hana is used by 18 percent of respondents as a private cloud edition (ASUG: 33 percent, UKISUG: 18 percent, JSUG: 44 percent). Deployment in the public cloud is comparatively low: only 4 percent of DSAG members surveyed have used this option so far (ASUG/UKISUG: 10 percent, JSUG: 13 percent). Deployment in the private cloud is planned by 35 percent (ASUG: 50 percent, UKISUG: 35 percent, JSUG: 28 percent). Seven percent of DSAG members plan to use the public cloud (ASUG: 11 percent, UKISUG: 10 percent, JSUG: 16 percent).

The reluctance of DACH companies to embrace the cloud continues to be more cultural and structural than technical in nature. The pronounced need for data protection in the DACH region and the associated concerns about possible access to data stored by US hyperscalers, for example, certainly play a role here.

According to the survey, the situation is as follows: 45 percent of DSAG members (ASUG: 52 percent, UKISUG: 47 percent, JSUG: 31 percent) have concerns about security and data protection when central SAP workloads and applications run in the public cloud. 63 percent in the DACH region (ASUG: 36 percent, UKISUG: 58 percent, JSUG: 49 percent) fear a loss of system customizations and functions.

More flexible deployment models

SAP's deployment models are an important reason for survey participants to choose the cloud. Forty-three percent of DSAG members (ASUG: 32 percent, UKISUG: 36 percent, JSUG: 37 percent) expect greater flexibility in this area. This result reflects DSAG's call for an open, standardized, and flexible operating model for the public and private cloud.

„Customers need genuine freedom of choice and must be able to decide for themselves whether they want to operate their systems on-premises, in a private cloud, or in a public cloud. SAP must create the conditions for this—with transparent and scalable licensing and cost models as well as clear migration paths,“ says Hungershausen, emphasizing a key demand made by DSAG at the DSAG Annual Congress 2025.

Source: DSAG