SAP cloud migration is continuing to gain popularity in Brazil, with the latest report from Information Services Group (ISG) finding that more and more businesses are deciding to make the switch.
By combining the empirical, data-driven research and market analysis conducted by ISG’s worldwide advisory team with the insights of service providers themselves, the ISG Provider Lens research series offers a thorough assessment of service providers. This quadrant approach helps buyers better understand the complex IT services landscape, identify the most appropriate vendors for their specific needs and assess provider capabilities across multiple dimensions. Furthermore, the ISG report is a valuable tool for IT decision-makers, providing insights into an SAP partner’s strengths and weaknesses, as well as their market positioning by segments.
Earlier in March, it was announced that the comprehensive ISG Provider Lens SAP Ecosystem – 2022 series would cover different markets spanning Brazil, France, Germany, the Nordics, the United Kingdom, and the United States. This series provides an in-depth look at various providers operating in the SAP ecosystem in order to help organizations make more informed decisions when selecting a partner.
More specifically, the recent ISG report for Brazil outlines that most organizations in the country still run their SAP enterprise resource planning (ERP) applications on-premises or with third-party data centers, but as cloud technologies become more prevalent, a growing number are beginning to migrate them. Large and midsize enterprises often approach this transition differently, weighing the pros and cons of each solution before making a decision. Ultimately, the goal for many companies is to find a balance between on-premises and cloud-based systems that meets their specific needs.
Bill Huber, ISG Partner, Digital Platforms and Solutions, said in a statement:
“SAP’s strategy of encouraging clients to move to the cloud is paying dividends in Brazil. With the help of service providers, many companies are able to modernize their SAP environments.”
SAP Cloud Migration Gains Traction Among Brazilian Enterprises
SAP S/4HANA is one of the most popular ERP software in Brazil, so it’s no surprise that most companies upgrading their ERP systems choose to implement it on a public cloud. The ISG report indicated that the big advantage of using a public cloud is that companies can continue to work with the cloud providers and service partners they already know and trust.
However, midmarket enterprises often prefer the Business Transformation as a Service (BTaaS) signature cloud offering RISE with SAP because, according to them, it is simpler and easier to use. Jan Erik Aase, Partner and Global Leader at ISG Provider Lens Research, noted that SAP can be a reliable partner for infrastructure services, especially for smaller businesses.
“Larger firms that already have infrastructure partners prefer not to add one more,” he added.
SAP’s demand for more partner investments to develop industry-specific expertise has led to a decrease in the number of certified partners in Brazil, from 165 in 2019 to 114 in 2022, according to ISG. However, the top 40 partners have been able to grow an average of 22% last year, partly due to investing in training and education.
Moreover, the findings of the report suggest that there are a number of trends emerging in the SAP ecosystem in Brazil. These trends include an increasing concern for environmental, social and governance (ESG) compliance, as well as the emergence of the SAP Business Technology Platform (SAP BTP).
SAP BTP is designed to enable the integration of SAP applications with client and partner cloud-native solutions. In an article released by SAP Brazil last July, RISE with SAP — which provides comprehensive cloud ERP for all business needs with scalability and intelligence — continues to win over customers. The inclusion of SAP BTP in this offering is especially appealing to customers looking for a complete solution. (InsideSAP references articles from websites in other languages to bring you as much information as possible.)