SAP users prioritize economic efficiency over aggressive cloud migration
A report by the DSAG indicates that economic pressures are driving more selective investment in SAP landscapes, with many firms delaying S/4HANA transitions.
Investment in SAP landscapes is becoming more selective as companies react to ongoing economic instability, according to the latest report from the German-speaking SAP User Group (DSAG). While 43 percent of surveyed companies intend to increase their SAP budgets, this represents a decline compared to previous years. Approximately 28 percent of respondents plan to reduce their spending.
DSAG board member Jens Hungershausen noted that geopolitical uncertainties and energy costs are forcing companies to scrutinize investments more closely. Economic efficiency and contractual terms were identified as the primary drivers for investment decisions, significantly outweighing concerns related to product portfolio complexity or system architecture.
The report highlights a persistent preference for on-premises solutions within the DACH region, which frequently diverges from the software vendor’s strategic push toward cloud-based ERP. Notably, a significant portion of firms currently operating on the legacy ECC system plan to delay their migration to S/4HANA until late 2030, showing limited alignment with SAP's current cloud-focused product roadmap.