Gartner warns that SAP's strategy to bypass IT departments and engage directly with business heads regarding its Rise cloud ERP product could create significant challenges for IT leaders. This strategy comes amidst SAP's push for reduced customization of its core ERP system, which while simplifying upgrades also limits adaptability. The deployment of the SAP Business Transformation Platform faces further challenges, as it is available in only a few cloud regions, raising latency and data sovereignty issues. SAP's CEO emphasizes this shift as central to the company's growth, bolstered by a generous upgrade discount.
SAP's strategy of engaging directly with business leaders rather than IT teams to sell its Rise cloud ERP product could significantly challenge IT leadership in navigating enterprise needs.
Challenges with SAP's Business Transformation Platform include limited cloud region availability, which can affect latency and raise concerns surrounding data sovereignty and transfer costs.
CEO Christian Klein regards the migration of customers to cloud subscriptions as pivotal for SAP's growth, projecting double-digit revenue growth as a result of their cloud backlog.
SAP is incentivizing the transition to its Rise platform with a 50% discount, indicating the company's commitment to accelerating client migration while optimizing implementation costs.
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