85 percent of SAP licensees is not committed to new S/4HANA, said a global survey by Rimini Street, a provider of enterprise software support.
The survey said lack of strong business case, unclear RoI, unproven platform, early stage product are the top reasons for poor demand for SAP S/4HANA product. Only three percent of respondents are using any HANA in their environments today.
Rimini Street conducted the survey to help SAP licensees benefit from peer insights on how other companies are responding to the challenges surrounding SAP’s S/4HANA product with mandatory re-platforming to HANA. Rimini Street in March 2015 surveyed more than 230 SAP Business Suite applications licensees representing a variety of industries, roles, company sizes in North America, South America, Europe, the Middle East and Asia Pacific.
The company said development of the new S/4HANA release is expected to require more than 400 million lines of code to be re-written and a project labor effort potentially near full re-implementation and migration for many existing SAP software users.
Details of the survey
85 percent of respondents are not committed to SAP’s new S/4HANA, with 68 percent citing lack of business case/unclear ROI as the top factor for their lack of commitment.
72 percent is choosing to remain on their existing SAP ECC 6.0 platform, with three percent reporting they are using HANA today. 75 percent running the ECC 6.0 platform are still leveraging SAP Enhancement Pack 6, or earlier releases, rather than the most current Enhancement Pack 7.
David Rowe, chief marketing officer, Rimini Street, said: “Survey respondents cited HANA and S/4HANA as unproven, speculative products with little or no compelling business case in return for the cost and risk of implementation. Pursuing HANA and S/4HANA strategies at this time create unnecessary risk at significant expense with no clear business benefit.”
14 percent of SAP licensees have committed to using S/4HANA, if and when it becomes available in the future.
No strong business case/unclear ROI (68 percent); unproven, early stage product (44 percent); and higher migration and re-implementation costs (36 percent) are the top reasons for foregoing S/4HANA.
The number one reason for not replacing current mature, proven application platforms was because current version meets business needs (43 percent). Other top reasons included cost prohibitive to upgrade (37 percent) and move to new application later (23 percent).
75 percent running ECC 6.0 said they are on Enhancement Pack 6, or earlier releases, instead of the most current Enhancement Pack 7. Current version meets business needs (72 percent); cost prohibitive to upgrade (35 percent); and not enough new and valuable functionality (30 percent) were cited as the top three reasons.
Licensees responded that SAP support and maintenance is: too expensive for support calls (46 percent); too expensive for functionality delivered (37 percent); and offers no support for customizations (35 percent).