Can SAP Balance Cloud Expansion with Customer Support Needs?

SAP has made headlines with its recent announcement of extended support for customers navigating complex ERP migrations, emphasizing its commitment to aiding these transitions through 2033. Despite this pledge, the company will cease maintenance support for on-premises SAP ERP Central Component (ECC) by 2027, with extended services wrapping up in 2030. This move signals SAP’s determination to drive cloud adoption while simultaneously offering a grace period for organizations needing more time to migrate. Through the RISE with SAP program, the company plans to provide a private cloud transition option starting in 2031, reflecting a blend of innovation and customer support.

Expanding Cloud Revenue Through RISE and GROW Programs

Increases in Cloud Revenue

SAP’s shift towards cloud services has been significantly reinforced through financial incentives and technical support embedded within its RISE and GROW with SAP programs. As a result, the company has seen a remarkable increase in cloud revenues, which soared by 25% year over year to reach €17.1 billion ($17.8 billion). Of particular note, cloud ERP contributed a substantial 84% of this growth, showcasing the successful driving force behind the cloud-first strategy.

SAP offers a robust suite of tools and support mechanisms to facilitate these transitions, identifying that businesses require more than just software to make the leap to the cloud. To further smooth the path, SAP plans to integrate essential management systems like LeanIX IT management, Signavio business process software, and WalkMe digital adoption platform into the RISE with SAP package. These integrations aim to challenge any lingering hesitation businesses might have towards transitioning by offering complete and cohesive solutions. By bundling these resources, SAP not only simplifies the migration process but also enhances the RISE with SAP program’s overall value, fortifying its cloud expansion goals.

New Licensing Options and Strategic Restructuring

SAP has also introduced new licensing options designed to enable seamless upgrades across its business suite, eliminating the need for intricate negotiations. Such measures are part of an expansive restructuring strategy credited with driving double-digit revenue growth for SAP for the third consecutive quarter. This success is reflective of SAP’s ability to innovate while maintaining customer-focused solutions. During the Q4 2024 earnings call, CEO Christian Klein underscored the importance of this approach, reiterating SAP’s mission to avoid leaving any customer behind as the company pushes forward with its cloud initiatives.

The company’s robust restructuring plans highlight its multifaceted strategy to balance innovation with customer support. By providing clear pathways for existing customers to upgrade and transition to cloud services, SAP can preserve its long-standing relationships while fostering growth. The introduction of simplified licensing is a crucial move, showcasing SAP’s understanding of customer pain points and its proactive measures to address them. Such steps reinforce the company’s position as a leader in ERP solutions, adaptable and attuned to evolving market demands.

Internal Efforts to Enhance Migration and AI Integration

Appointment of Dedicated Migration Leadership

Internally, SAP has made significant strides to underscore and streamline its migration efforts. A notable move was the appointment of Thomas Saueressig to head a newly dedicated migration division, an indication of the company’s serious commitment to easing customers into the new cloud paradigm. Saueressig’s extended contract by three years exemplifies the trust and expectations placed upon him to guide this crucial aspect of SAP’s growth strategy effectively.

Moreover, the expansion of Philipp Herzig’s role to encompass both global CTO and Chief AI Officer reflects SAP’s plans for substantial investments in artificial intelligence, further enhancing its cloud offerings. By allocating resources towards AI development, SAP demonstrates a clear vision for the future, aiming to leverage intelligent solutions to enrich their services. The mobilization of over 30,000 developers for this initiative underscores the significance of these efforts and the scale at which SAP is operating.

Future Prospects in AI and Cloud Innovations

SAP recently announced an extended support framework for customers dealing with complex ERP migrations, highlighting its dedication to facilitating these transitions until 2033. Although this indicates SAP’s continued assistance, the company has confirmed that maintenance support for on-premises SAP ERP Central Component (ECC) will end in 2027, with extended support services concluding in 2030. This approach underscores SAP’s push for cloud adoption while still providing a transition period for companies needing extra time to migrate.

SAP’s commitment to customer transition is evident through its RISE with SAP program, which aims to offer a private cloud transition option starting in 2031. This initiative combines innovation with customer care, ensuring organizations receive the necessary support to adapt to new technologies. By offering extended support and cloud transition options, SAP balances its goal of driving cloud adoption with the needs of its customers, ultimately reflecting a blend of cutting-edge advancements and reliable support.

Explore more

A Unified Framework for SRE, DevSecOps, and Compliance

The relentless demand for continuous innovation forces modern SaaS companies into a high-stakes balancing act, where a single misconfigured container or a vulnerable dependency can instantly transform a competitive advantage into a catastrophic system failure or a public breach of trust. This reality underscores a critical shift in software development: the old model of treating speed, security, and stability as

AI Security Requires a New Authorization Model

Today we’re joined by Dominic Jainy, an IT professional whose work at the intersection of artificial intelligence and blockchain is shedding new light on one of the most pressing challenges in modern software development: security. As enterprises rush to adopt AI, Dominic has been a leading voice in navigating the complex authorization and access control issues that arise when autonomous

Canadian Employers Face New Payroll Tax Challenges

The quiet hum of the payroll department, once a symbol of predictable administrative routine, has transformed into the strategic command center for navigating an increasingly turbulent regulatory landscape across Canada. Far from a simple function of processing paychecks, modern payroll management now demands a level of vigilance and strategic foresight previously reserved for the boardroom. For employers, the stakes have

How to Perform a Factory Reset on Windows 11

Every digital workstation eventually reaches a crossroads in its lifecycle, where persistent errors or a change in ownership demands a return to its pristine, original state. This process, known as a factory reset, serves as a definitive solution for restoring a Windows 11 personal computer to its initial configuration. It systematically removes all user-installed applications, personal data, and custom settings,

What Will Power the New Samsung Galaxy S26?

As the smartphone industry prepares for its next major evolution, the heart of the conversation inevitably turns to the silicon engine that will drive the next generation of mobile experiences. With Samsung’s Galaxy Unpacked event set for the fourth week of February in San Francisco, the spotlight is intensely focused on the forthcoming Galaxy S26 series and the chipset that