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-prem 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-premises landscapes, high data protection requirements, and a strong awareness of investment security. This explains the more cautious but sustainable approach many companies are taking to cloud transformation," says Jens Hungershausen, DSAG Chairman of the board.

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“Customers need real freedom of choice and must be able to decide for themselves whether they want to run their systems on-premises, in the private cloud, or in the 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 fundamentally accelerate their move to the cloud.

Thanks to the Rise and Grow offerings, 15 percent (ASUG: 22 percent, UKISUG: 10 percent, JSUG: 28 percent) plan to move to the cloud more quickly. The newly structured cloud offerings are designed to help customers gradually modernize their landscapes. Even though these announcements are already creating initial incentives for moving to the cloud, more initiatives are needed to accelerate the transition. Many companies still operate highly customized systems with S/4 Hana on-prem.

Hybrid system landscapes come first

When asked about the system landscapes currently in use, 78 percent of DSAG members are using hybrid on-prem and cloud solutions (ASUG: 49 percent, UKISUG: 56 percent, JSUG: 55 percent). 7 percent rely solely on the private cloud (ASUG: 23 percent, UKISUG: 14 percent, JSUG: 10 percent). The public cloud is the favorite among 1 percent of DSAG members (ASUG/JSUG: 4 percent, UKISUG: 8 percent), while 7 percent prefer a mix of private and public cloud (ASUG: 24 percent, UKISUG: 17 percent, JSUG: 27 percent).

"Companies' reluctance to adopt the public cloud is due, among other things, to the complexity of existing customer landscapes, fears of losing system adaptations and well-established functions, and, last but not least, the economic conditions, which cause some to doubt the return on investment. Finally, potential dependence on a single provider also plays an important role in the considerations”, Hungershausen summarizes.

Almost half (49 percent) of DSAG members (ASUG: 21 percent, UKISUG: 33 percent, JSUG: 29 percent) are concerned about a 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). When it comes to planning S/4 Hana deployment, on-prem is also ahead at 31 percent (ASUG: 15 percent, UKISUG: 10 percent, JSUG: 6 percent). S/4 Hana is used as a private cloud edition by 18 percent of respondents (ASUG: 33 percent, UKISUG: 18 percent, JSUG: 44 percent). Public cloud deployment is comparatively low, with only 4 percent of DSAG members surveyed here using this option so far (ASUG/UKISUG: 10 percent, JSUG: 13 percent). Private cloud deployment is planned by 35 percent (ASUG: 50 percent, UKISUG: 35 percent, JSUG: 28 percent). 7 percent of DSAG members plan to use the public cloud (ASUG: 11 percent, UKISUG: 10 percent, JSUG: 16 percent).

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

According to the survey, this translates into the following figures: 45 percent of DSAG members (ASUG: 52 percent, UKISUG: 47 percent, JSUG: 31 percent) have security and data protection concerns when operating central SAP workloads and applications 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 a decisive factor in favor of the cloud for survey participants. 43 percent of DSAG members (ASUG: 32 percent, UKISUG: 36 percent, JSUG: 37 percent) expect greater flexibility in this area. This result reflects DSAG's demand for an open, standardized, and flexible operating model for the public and private cloud.

“Customers need real freedom of choice and must be able to decide for themselves whether they want to run their systems on-premises, in the private cloud, or in the 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 DSAG demand from the DSAG Annual Congress 2025.

Source: DSAG