ISG Report: Global Demand Grows for SAP S/4HANA ERP Software

SAP HanaLarge enterprises across the globe are moving to SAP’s S/4HANA package, with many focused on installing the ERP software on premises, as opposed to hosting it in the cloud, according to a new report published by Information Services Group (ISG).

The 2019 global report, ’ISG Provider Lens SAP HANA and Leonardo Ecosystem Partners,’ finds many large enterprises looking for service providers to help install or update their ERP software to S/4HANA on premises because of complexities related to geographic scale and application customization. Cloud hosting, on the other hand, is gaining traction with smaller enterprises that have limited scale.

SAP S/4HANA, which has seen nearly 30 percent growth in its customer base in 2019, is being adopted across large and medium-sized enterprises in the manufacturing, consumer packaged goods, retail, energy, automotive and utilities industries, according to the report.

SAP Service Providers

SAP-focused service providers are using proprietary frameworks with standardized templates and methods to help customers address technical issues, the ISG report says. It also finds providers building industry-specific solutions and accelerators for S/4HANA and SAP Leonardo, particularly for the manufacturing, retail, consumer packaged goods and utilities industries. These targeted solutions are aimed at helping customers seeking implementation expertise and business agility to become intelligent enterprises and achieve faster time-to-market.

In addition, SAP service providers are beginning to use software bots in application maintenance services to respond to basic activities such as logging a ticket and reducing time to resolution. Bots are helping service providers reassign staff to higher value and more complex tasks, the report says.

SAP Leonardo

The report also examines the SAP Leonardo market and finds many enterprises are slow to adopt the software and microservices package that enables customers to leverage technologies like the Internet of Things (IoT), machine learning, blockchain, analytics and big data. Many service providers are using SAP Leonardo to build proof-of-concept demonstrations to help address specific industry issues or empower enterprises with emerging technologies, the ISG report says.

The 2019 ISG Provider Lens SAP HANA and Leonardo Ecosystem Partners Global Report evaluates the capabilities of 26 providers across six quadrants: SAP S/4HANA & Business Suite on HANA Transformation, SAP S/4HANA & Business Suite on HANA Managed Services, SAP BW/4 on HANA and BW on HANA Transformation & Operations, SAP Leonardo Transformation, SAP Cloud Platform Support Services, and SAP HANA Cloud Infrastructure and Platform Services.

Founded in 2006, and based in Stamford, Connecticut, global technology research and advisory firm ISG (Information Services Group) employs more than 1,300 “digital-ready” professionals operating in more than 20 countries The research firm delivers its services to more than 700 clients, including more than 70 of the top 100 enterprises in the world.

For more information on the global report, ’ISG Provider Lens SAP HANA and Leonardo Ecosystem Partners,’ visit

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