Study: Most SAP Customers Prefer Multi-Vendor ERP Strategy

A recent global study reveals a significant shift in strategy among SAP customers, with a growing preference for multi-vendor composable ERP approaches over following SAP’s prescribed migration path to S/4HANA. Commissioned by Rimini Street and conducted by Freeform Dynamics, the research surveyed 455 IT and business decision-makers worldwide, uncovering widespread uncertainty about SAP’s evolving policies and a strong desire for greater flexibility and cost control.

The findings indicate that while nearly all SAP customers struggle to build a compelling return on investment case for S/4HANA, many are actively pursuing alternative strategies. These involve integrating specialized third-party solutions and emerging technologies more rapidly, allowing organizations to preserve autonomy over their technology roadmaps and budgets. According to the data, 83% of respondents see clear value in composable approaches for faster adoption of innovations like artificial intelligence, and an overwhelming 94% emphasize the importance of selecting best-fit solutions for specific business needs.

Substantial concerns emerged regarding SAP’s transition to a subscription-based model. A notable 83% of participants admitted they do not fully grasp SAP’s latest migration policies and deadlines, while 84% reported varying degrees of apprehension about how current messaging will affect their operations. Constant changes to deadlines, packaging options, and product names are compounding this uncertainty, complicating long-term planning and motivating exploration of different paths forward.

Dale Vile, analyst and co-founder at Freeform Dynamics, observed that SAP customers are increasingly embracing open, composable architecture. He noted that this business-led strategy, rather than one dictated by a single supplier, has become standard in other IT domains due to its advantages in flexibility, control, and innovation access. Vile mentioned that approximately 30% of ECC customers have effectively stopped expecting innovation from SAP, with many moving past frustration into a pragmatic mindset, encouraged by the availability of a supportive partner ecosystem.

Although 77% of respondents expressed general acceptance of Software-as-a-Service models, they voiced specific reservations about SAP’s execution. A striking 92% cited escalating and unpredictable subscription costs as a major operational concern, and 95% described building a positive S/4HANA ROI case as either significantly effortful or genuinely challenging.

Scott Hays, senior director of product marketing at Rimini Street, stated that the survey data validates the hypothesis that many SAP customers seek to avoid vendor lock-in. They aim to innovate according to their own priorities and extend the value of their current software investments. Hays expressed surprise at the extent of confusion, with 83% of customers unclear on migration details, suggesting that SAP’s leadership may be prioritizing investor relations over customer needs. He pointed to frequently changing, overly complex policies and pricing as primary sources of difficulty.

Rimini Street, which has provided third-party support for enterprise software for nearly two decades, hopes these findings reassure SAP customers that they are not alone in seeking alternatives. The company aims to raise awareness that viable, business-first options exist outside SAP’s official roadmap, offering potential relief from associated costs, effort, and disruption.

(Source: ITWire Australia)