Missed Part One? Read it here.
We recently asked Alan Manuel, Chief Product Officer at Protera Technologies, and David Fradin, ERP Practice Lead at Genesis10, to articulate compelling reasons for organizations to move aging on- premises SAP platforms to the cloud. Protera and Genesis10 are in a strategic relationship to help their respective clients with moving their ERP systems to the cloud.
In part one of this blog series, we looked at reasons for moving to the cloud, timing a move, and the triggers that can propel organizations to act now. Now, we dig into the benefits, respond to security concerns, share strategies for staff augmentation, and provide the next steps for moving forward.
In the era of digital transformation, what are some of the benefits the cloud can offer organizations running SAP?
In addition to the cost, quality, and analytics benefits, which we covered in part one of this blog series, moving SAP to the cloud provides such benefits as increased agility, flexibility, and the promise of digital transformation as well as a smaller footprint in the operation, says Manuel. “That’s very attractive to people who run the company.
He recalls a CEO saying recently that the cloud can help an organization running SAP become more agile, which means they can experiment or try things such as a new product or technology or way of marketing much more quickly. “Before, if you wanted to make changes to your business you had to make changes to your SAP platform and that was very difficult,” Manuel says. “The cloud has helped change that. A key benefit to organizations running on the cloud is that they can be more experimental and more innovative—and they can react more quickly when the experiments fail or succeed.”
Manuel continues, “For example, a client on an older version of SAP (BW on premises) considering a move to the cloud thought they had to spend hundreds of thousands of dollars on hardware and software licenses and that it would take several months to get up and running before they could even begin the project. But, with partners like Protera Technologies and Genesis10, they could get that provisioned immediately and quickly get started on their project.”
To add to that, the cloud gets organizations out of the business of running large IT shops with specialized skills. With the cloud, IT operations just got a whole lot simpler. For one, a special room with servers that are costly to operate and manage are no longer needed. These costs are figured into the monthly fee paid to the cloud provider.
How should SAP centric organizations react to the news that support is being extended to 2027?
Fradin’s advice is to not get overwhelmed, but rather develop a plan. “The time to start a move to the cloud is now. There is time but we also know all too well how priorities shift,” he says.
Manuel suggests looking at what has changed and has not changed with the news. “An organization’s business hasn’t changed. The constant need to serve its customers hasn’t changed. They haven’t stopped wanting more. The boss hasn’t stopped wanting it done for less. All the pressures to evolve, innovate and roll things out more quickly are still there. The only thing that really changed is that your software vendor has made a change to its policy.”
Manuel continues, “To Dave’s point, we have to keep going. The reasons you were thinking about the cloud in the first place are still there and may be increasing. You do not know what SAP is going to do on the application level, so you need to put yourself in the best position to make the choice on your terms, with your timing. With that in mind, it’s now more important than ever to get your application up to the cloud. From there, you can decide on the next step.”