ISG Provider Lens™ SAP Ecosystem - RISE with SAP Implementation Partners - Global 2025

SAP’s transition to the cloud drives RISE with SAP and GROW with SAP, but not at the expected pace

As enterprises navigate their digital transformation journeys, several key trends are shaping the adoption and utilization of SAP solutions. Many businesses face difficulties constructing a robust business case for migrating from SAP ERP to SAP S/4HANA. Understanding the TCO for the initial years remains a significant hurdle, with organizations seeking more clarity and frameworks to evaluate potential returns and justify the transition investment effectively. While pressure exists to migrate to SAP S/4HANA, firms are taking a cautious approach globally to ensure business continuity and pace the timing of the migration to minimize impact.

The shift toward cloud-based solutions is also prominent. Enterprises embarking on their cloud journey consider RISE with SAP, which offers a holistic transformation approach, while rapidly growing subsidiaries and smaller firms lean toward GROW with SAP for a scalable, accelerated path to cloud adoption. Both approaches aim to streamline business operations and enhance agility.

Joule’s integration into SAP S/4HANA Cloud Public and Private editions marks a significant advancement. However, enterprises express concerns regarding pricing structures and the complexity associated with implementation,
necessitating clear communication from SAP to ensure seamless adoption.

With the increasing interest in cloud migrations, understanding cloud economics and implementing financial operations (FinOps) strategies becomes critical. Enterprises focus on optimizing cloud spending and ensuring cost efficiency while maximizing the value derived from cloud investments.

Furthermore, digital initiatives are increasingly built on the SAP Business Technology Platform (BTP), emphasizing maintaining a Clean Core to ensure minimal customization for easier upgrades and better system performance.
Application integration via BTP supports broader digital strategies, enabling innovation and operational excellence.

These trends underscore SAP’s evolving landscape and highlight the importance of strategic planning and informed decision-making for successful transformation outcomes.

RISE with SAP

RISE with SAP’s adoption is growing, albeit slower than anticipated. While there is optimism about its future growth, it is not expected to surpass traditional on-premises deployments in the near term. Nevertheless, an increasing number of enterprises are gaining clarity on the RISE with SAP package’s components, leading to more informed adoption decisions. For details, please refer to the 2024 edition of the SAP Ecosystem IPL study.

One key development is Joule’s inclusion within the RISE with SAP offering, particularly for SAP S/4HANA integrations. However, this addition has received mixed reviews, with enterprises struggling to identify applicable use cases. This ambiguity underscores the need for enhanced communication and education to help businesses maximize the benefits of Joule’s integration.

Service providers are pivotal in facilitating RISE with SAP’s successful adoption. Understanding different industries’ unique nuances, these providers develop tailored, industry-specific propositions to ensure quicker deployments and reduce time to market. Their cloud expertise is critical, as they assist clients in balancing workloads and managing cloud expenditures effectively, optimizing both performance and cost.

Transitioning to the cloud and adopting a new operational model introduces inherent risks, particularly regarding compliance and security, which are paramount in regulated industries. Service providers actively guide clients through
these complexities, ensuring regulatory requirements are met and security protocols upheld. Post-rollout change management has emerged as a crucial focus area, ensuring that organizations are well-prepared to adapt to new
processes and systems, which is essential for long-term success.

Partners’ strong alignment regarding the solution’s capabilities and advantages is a significant strength in the RISE with SAP ecosystem. Partners have targeted strategies, robust frameworks and advisory services to support organizations transitioning to modern, cloud-centric ERP solutions. Addressing client concerns about complexity, costs and potential operational disruptions remains vital. Effective communication and comprehensive support frameworks are essential for easing these concerns and driving broader adoption.

GROW with SAP

GROW with SAP’s package includes SAP S/4HANA Public Cloud Edition, SAP BTP and SAP Build products. The package includes best practices guides, acceleration services, AI and automation services, and learning resources. It is available in base and premium versions. The base version contains core ERP and SAP BTP, while the premium version
includes additional services such as enhanced analytics, business process automation and advanced integration services. The proposition emphasizes that this leaner version enables faster implementation and quicker ROI than
traditional ERP projects. Simplified deployment models and preconfigured best practices are integral to accelerating adoption. The solution also supports business growth by equipping organizations with tools to optimize processes,
enhance efficiency and enable data-driven decision-making.

GROW with SAP’s adoption is witnessing significant momentum, particularly among smaller and lower midmarket firms and large enterprises’ subsidiaries. The overall increase in cloud adoption drives this trend, positioning GROW with SAP as a strategic solution that enables the adoption of SAP best practices with minimal customizations. Industries such as manufacturing, energy and consumer packaged goods (CPG) are at the forefront of this adoption wave, leveraging GROW with SAP to enhance operational efficiency and agility.

Service providers play a pivotal role in GROW with SAP’s success by emphasizing their unique strengths, such as industry-specific solutions, long-standing client partnerships and localized market expertise. Additionally, providers are utilizing prebuilt templates and accelerators designed to reduce deployment timelines and lower costs, enhancing GROW with SAP’s appeal.

Service providers are encouraged to enhance customer engagement by integrating feedback loops throughout the transformation journey to drive greater success. This approach allows for continuous improvements and effectively
addresses evolving client needs. Leveraging data analytics tools is another critical strategy, enabling providers to assess implementation effectiveness, track performance metrics and deliver more personalized CX based on informed decision-making.

Moreover, a strong emphasis on training is essential. Developing robust training programs during the initial  implementation and postimplementation ensures client teams can effectively leverage new technologies. This approach fosters sustained adoption and maximizes the value derived from GROW with SAP.

SAP Business AI and BTP

SAP BTP is critical in enabling a Clean Core and integrating with broader IT landscapes to support digital initiatives. Service providers are actively building industry-specific solutions on BTP, ensuring that businesses can seamlessly integrate digital processes and drive innovation. The adoption of SAP Business AI, including Joule, is also gaining momentum, although pricing clarity remains a concern for enterprises. Service providers have an essential role in helping clients understand Joule’s use cases and demonstrating its value within their operational frameworks.

Joule’s use cases are diverse across industries. In the utility sector, it facilitates text categorization for service ticket classification, enhancing operational efficiency, and supports AI-assisted field service bots. In HR, natural language query-enabled cognitive search capabilities help improve intelligent employee interactions with HR systems. In  sustainability initiatives, customer-centric solutions focus on carbon footprint management, leveraging LLMs for improved outcomes. Additionally, life sciences benefit from document translation services and smart assistive  technologies that enhance service efficiency.

Enterprises leverage SAP Business AI and analytics to enhance business resilience by improving decision-making and insights. These technologies streamline processes, reduce manual errors and contribute to operational excellence. The acceleration of digital transformation and improved business agility further underscore their importance, enabling
companies to achieve faster time to value.

For service providers, facilitating the adoption of these technologies involves more than implementation. It requires guiding clients through the complexities of pricing, use cases and integration strategies while ensuring effective utilization for maximum business impact. Service providers can be pivotal in advancing digital transformation journeys by enhancing clarity around solutions like Joule and delivering industry-specific innovations on BTP.

Cloud Economics and FinOps for SAP

With the increasing migration of SAP workloads to the cloud, cost optimization has emerged as a key priority. FinOps practices are becoming essential for controlling cloud spending and maximizing ROI. Strategies such as optimizing
resource utilization, leveraging cloud provider discounts and identifying and eliminating wasteful spending become crucial here. For SAP BTP, there is an increasing focus on specialized FinOps strategies to address its unique cost models. This step requires implementing tools and processes for effective expense monitoring and management, ensuring transparency and control over financial outlays.

Cloud economics is gaining attention as organizations seek to measure the cost of individual business transactions or processes within the cloud. This granular approach provides insights into cloud-based SAP applications’ profitability and cost structures. Automation and AI play a crucial role in enhancing FinOps efficiency. Automated tools facilitate real-time cost monitoring, reporting and optimization, while AI and ML analyze spending patterns to identify potential costsaving opportunities.

Integrated FinOps strategies are critical for managing deployments involving SAP BTP and hyperscaler services such as AWS, Azure and Google Cloud. Governance policies further enhance control by defining clear resource provisioning, usage and cost management guidelines. A cultural shift promoting cost awareness and accountability across organizations is also required. Educating employees about cloud costs and empowering them to make cost-effective decisions is essential for sustainable financial management.

Service providers are instrumental in supporting firms with tailored strategies that ensure operational efficiency and financial clarity. Their diverse approaches help clients navigate financial complexities during cloud migrations, ranging from structured to agile methodologies. The collaborative efforts of multiple stakeholders ensure smooth transitions, emphasizing cost optimization, transparency and risk mitigation. Ultimately, robust FinOps practices and governance
frameworks are critical for maximizing value from SAP cloud investments.

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