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In yet another of a number of recent studies highlighting the lack of adoption of S/4HANA, a new independent study by Nucleus Research finds that 9 out of 10 existing SAP ERP customers expressed no interest in moving to S/4HANA. This correlates with recent research from the Americas SAP User Group (ASUG) and German SAP User Group (DSAG)1,2. In fact, 86% of the users DSAG surveyed said they’re making little or no investment in S/4 HANA3.
According to the Nucleus Research study, most customers do not find SAP’s roadmap compelling enough to consider a future investment and customers fear a complex and painful transition away from their existing SAP ERP implementations.
Rather than undergo a disruptive and risky migration, we find many SAP customers prefer a smarter “Innovation around the Edges” strategy. As stated in the Nucleus study, companies choose best of breed solutions that offer a higher degree of functionality or usability from other vendors. For example, of the last 80 CRM deals Nucleus has reviewed, only two companies considered SAP as a contender.
Given the disconnect between SAP’s marketing messages and customer reality, read this report to understand why SAP’s strategy to migrate their existing ERP customers to S/4HANA may not be so simple after all.