S/4HANA Cloud is SAP’s SaaS version of its next-technology ERP platform.
The nature of SaaS application allows it to be up to date consistently, and S/4HANA Cloud follows a quarterly launch program, with new features included in every launch.
SAP does not provide precise numbers on how a lot of buyers subscribe to S/4HANA Cloud, but it statements that the variety of users is increasing. The most current version — SAP S/4HANA Cloud 2008 — went are living at the starting of August, with new features for task-based mostly earnings recognition, source chain demand stock management and billing for specialist services.
In this Q&A, Jan Gilg, SAP president of S/4HANA, discusses the latest point out of S/4HANA Cloud adoption. The COVID-19 disruption was a variable in the most current launch, as enhancement groups had to negotiate the new truth of remote or house operate. This did not impact the launch roadmap, Gilg reported, and all the updates that have been promised have been bundled in the launch of S/4HANA Cloud 2008.
What is actually the latest position of S/4HANA Cloud adoption? Have there been substantial new client wins?
Jan Gilg: Soon after Q2, we are now at additional than 14,600 S/4HANA licensed buyers and seven,four hundred are are living. That’s a blend amongst on premises and cloud. We do not split out the numbers, but we see substantial improve in the variety of cloud buyers, and I feel also through COVID now, you can find a apparent shift toward private cloud, but also community cloud is increasing.
Is there larger interest in the SaaS S/4HANA Cloud due to the fact of COVID-19?
Gilg: One particular intriguing point that we’ve witnessed is that use really went up for current buyers in the cloud through COVID. We are not sure why that was, but folks are functioning from house and logging in to the process additional than at any time. We are viewing a lot of inquiries in cloud in standard. Very first, from a industrial perspective, buyers are understandably shying away from big upfront commitments right now and they’re on the lookout additional for a subscription model. So that’s unquestionably the dominant model at the moment that we’re viewing.
On the technological facet, the guarantee of speedy implementation and standardization is unquestionably interesting. It is primarily interesting for net-new buyers that are starting off from scratch and want to appear into a SaaS remedy. For the put in foundation, it truly is however on the fence due to the fact of customizations that they have. Generally, they never want to start out the comprehensive transformation however, but they want to standardize [on the cloud] at some stage in time. There is also a minimal bit of a divide below the place put in buyers are selecting private cloud whilst net-new are going community cloud.
How are put in buyers deploying S/4HANA? Are they absolutely changing on-premises techniques or probably working with S/4HANA Cloud in hybrid environments?
Gilg: We see all distinct situations, frankly. We see a lot of our larger sized buyers like Colgate and other individuals appear into people form of subsidiary or hybrid situations, the place you run possibly a subsidiary or probably a precise M&A [acquired enterprise] on the cloud. We see that very a bit, but we also see that generally higher midmarket companies go with the entire process into SaaS. If you discuss about the Fortune five hundred or Fortune a thousand companies, most of them are however on the lookout into private cloud and on-premises established ups.
What is actually the breakdown of deployments that are community cloud as opposed to private cloud?
Gilg: Principally, the put in foundation is concentrating on private clouds, and we never see as substantially net-new going into private cloud. That really matches what we see from analysts that the current market is obviously going into the SaaS cloud and that’s what we see when we discuss to new buyers and some of the speedy progress companies. They’re all on the lookout into absolutely SaaS ERP alternatives. In our put in foundation, you can find very some interest in the private cloud, but they generally also assume about doing this probably for a element of their enterprise and just take the option to hold a portion community but hold the core in a private cloud. At the finish of the day, it truly is all about the enterprise benefit. The pure technological conversion is generally something that’s not ample and then companies are on the lookout for the minimal-hanging fruit and the place they can leverage and seize benefit right away by doing this move, even although it may well not be a comprehensive move into SaaS.
How is S/4HANA Cloud evaluating with the competitiveness, like Oracle Cloud and other individuals?
Gilg: From my perspective, Oracle Cloud is definitely the major competitor in phrases of the breadth of what it features. We just observed the IDC MarketScape appear out and we’ve been pretty substantially head-to-head with them in the leader quadrant from a functionality perspective. It is really near from my stage of look at. I never know Oracle in depth, but from what I hear talking to buyers and so on, I assume it truly is really similar. Then you have companies like Workday that are really sturdy in HR. They’re getting into finance, which is definitely additional like what we call the admin ERP or financially pushed ERP space. But I feel we have exceptional operation in finance, and as a result of the integration into SAP SuccessFactors, I feel we have a definitely sturdy proposition now in combining people. It is however technically — and most likely commercially — two distinct alternatives, but they have been integrated finish to finish from the person knowledge all the way down to the technological amount. We continue on to operate on that, and in the cloud, I can see that this could be made available as just one remedy at some stage in time, particularly combining HR with SuccessFactors and S/4HANA Cloud.
The last version of S/4HANA Cloud bundled the integration of Qualtrics. Will this continue on now that SAP has resolved to spin Qualtrics off?
Gilg: Yes, it truly is unquestionably going to continue on and particularly for what it did in phrases of merchandise knowledge for S/4HANA by itself. We are amassing suggestions for S/4HANA Cloud from what our buyers and the implementation companions mail us. What we have finished internally is to merge that with use details, which we are amassing in any case from our cloud techniques, and established some pretty intriguing correlations there. For case in point, we can see the correlation amongst suggestions that was despatched in and integrate particular occasions in the lifecycle, whether or not it truly is an enhance or whether or not it truly is a variety of troubles like a greater quantity of tickets. We’ve commenced to create some correlation below and merchandise management is actively on the lookout into that. So, we are definitely working with [Qualtrics] as a tool and it truly is certainly something we want to also make offered to buyers. On top rated of that, we’ve established a entire sequence of use conditions that we want to embed in the merchandise by itself and ship to the client, not only for them to give suggestions on S/4HANA Cloud, but also for them to leverage it in their enterprise. That will continue on despite the announcement. We’ve pretty substantially aligned our roadmaps with Qualtrics with each other, and we’re going to continue on marching down this route, which is pretty promising.