SAP Cloud Migrations Drive Demand for Ecosystem Services
Moving core ERP functions to the cloud is such a daunting task for enterprises that many question whether it is worth the effort and investment. They look to SAP's diverse ecosystem of providers for migration strategies that answer their challenges.
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The 2025 ISG Provider Lens™ global SAP Ecosystem report finds that many companies have difficulty understanding the total cost of SAP migration and building a strong business case for moving to cloud-based S/4HANA. Though under pressure to act, due to the pending end of support for SAP ERP Central Component (ECC) in 2027, they are moving carefully to maintain business continuity and minimize the impact of the transition.
'Moving core ERP functions to the cloud is such a daunting task for enterprises that many question whether it is worth the effort and investment,' said Bill Huber, ISG partner, digital platforms and solutions. 'They look to SAP's diverse ecosystem of providers for migration strategies that answer their specific business and technical challenges.'
Two major SAP cloud migration offerings, RISE with SAP and GROW with SAP, are gaining traction with different types of organizations, the report says. Both are designed to help enterprises streamline business operations and become more agile, and service providers play key roles in implementing both.
RISE with SAP offers a holistic transformation approach aimed at enterprises starting to move to the cloud. Adoption is growing more slowly than expected, but companies are beginning to understand the components of the package so they can make more informed decisions about using it, ISG says. Service providers that understand specific industries are developing tailored migration plans for quicker deployment and faster time to market. Companies considering RISE with SAP seek providers that can deliver effective communication and comprehensive support frameworks
GROW with SAP, designed as a scalable, accelerated path to cloud adoption, is gaining significant momentum among fast-growing small and lower midmarket companies and subsidiaries, ISG says. The package, which enables the adoption of SAP best practices with minimal customizations, is designed to allow a quick return on investment. Providers are supporting GROW with SAP with prebuilt templates and accelerators.
As companies move SAP workloads to the cloud, they are increasingly focused on cost optimization, the report says. Many are turning to providers for FinOps practices to control cloud spending and maximize return on investment. Companies seek to measure the cost of individual business transactions and processes in the cloud, making AI an increasingly important analytical tool.
A growing number of enterprises are using SAP Business Technology Platform (BTP) to take a Clean Core approach to SAP implementations for easier upgrades and better performance, ISG says. Service providers are building industry-specific solutions on top of BTP to help clients integrate digital processes and accelerate innovation. SAP Business AI, including the Joule generative AI copilot, is also gaining momentum, though some enterprises still want more clarity about its pricing, the report says.
'Joule has many potential use cases across industries and departments to improve insights and decision-making,' said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. 'Enterprises are working with providers to get maximum business value from it.'
The report also explores other trends affecting enterprises using SAP, including rising concerns about compliance and security and the need for change management.
For more insights into the SAP-related challenges facing enterprises worldwide, along with ISG's advice for addressing them, see the ISG Provider Lens™ Focal Points briefing here.
The 2025 ISG Provider Lens™ global SAP Ecosystem report evaluates the capabilities of 45 providers across four quadrants: RISE with SAP Implementation Partners, SAP Business AI and Business Technology Platform (BTP) Services, Cloud Economics and FinOps Services for SAP and GROW with SAP Implementation Partners (Midsize providers).
The report names Accenture, Capgemini, HCLTech, IBM, Infosys and Wipro as Leaders in three quadrants each. It names Cognizant, LTIMindtree, TCS and Tech Mahindra as Leaders in two quadrants each. Atos, Cognitus, Deloitte, Globant, KaarTech, Stefanini, Syntax and YASH Technologies are named as Leaders in one quadrant each.
In addition, Cognitus, Delaware and DXC Technology are named as Rising Stars — companies with a 'promising portfolio' and 'high future potential' by ISG's definition — in one quadrant each.
In the area of customer experience, Wipro is named the global ISG CX Star Performer for 2025 among SAP ecosystem providers. Wipro earned the highest customer satisfaction scores in ISG's Voice of the Customer survey, part of the ISG Star of Excellence™ program, the premier quality recognition for the technology and business services industry.
Customized versions of the report are available from Atos and Cognitus.
The 2025 ISG Provider Lens™ global SAP Ecosystem report is available to subscribers or for one-time purchase on this webpage.
About ISG Provider Lens™ Research
The ISG Provider Lens™ Quadrant research series is the only service provider evaluation of its kind to combine empirical, data-driven research and market analysis with the real-world experience and observations of ISG's global advisory team. Enterprises will find a wealth of detailed data and market analysis to help guide their selection of appropriate sourcing partners, while ISG advisors use the reports to validate their own market knowledge and make recommendations to ISG's enterprise clients. The research currently covers providers offering their services globally, across Europe, as well as in the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia and Singapore/Malaysia, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world's top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data, in-depth knowledge of provider ecosystems, and the expertise of its 1,600 professionals worldwide working together to help clients maximize the value of their technology investments.
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