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Business Wire
09-07-2025
- Business
- Business Wire
New Strada Report Finds Nearly 40% of Businesses Are Still Dependent on Ageing HR Systems as Cloud Migration Becomes Critical
MIAMI--(BUSINESS WIRE)--In a climate where speed, agility, and resilience are essential, too many organisations are still relying on outdated on-premise HR and ERP systems – and the cost of inaction is mounting. New global research from Strada reveals that nearly two in five companies continue to operate on on-premise platforms such as Microsoft Dynamics (20%) and SAP (19%), despite looming end-of-life support deadlines that significantly raise the risk of disruption. Transformation is no longer a future priority – it's a present necessity. Organisations delaying migration are not only facing rising costs, but also reduced support as on-premise systems are phased out. With SAP's mainstream support for ERP Central Component (ECC) ending in December 2025, and Microsoft Dynamics GP following by 2029, Strada's new report The cost of standing still: Why ignoring cloud ERP could harm your business exposes the growing gap between business ambitions and operational realities. Despite clear goals to modernise, adopt AI capabilities, tighten cybersecurity, and enhance the employee experience, many organisations remain stuck. For most, the shift away from legacy infrastructure feels too complex or costly to act on now. "Transformation is no longer a future priority – it's a present necessity," said Gautam Sukumar, Chief Operating Officer at Strada. " Organisations delaying migration are not only facing rising costs, but also reduced support as on-premise systems are phased out. This leaves them exposed and unable to capitalise on the opportunities ahead – from AI and data-driven insights to improved employee experiences.' While 36% of global businesses have prioritised efficiency and productivity, and 35% are focused on realising technology value, many are still struggling to act. Budget constraints (42%), integration complexity (42%), and resistance to change (33%) remain significant barriers – particularly in large organisations where fragmented legacy environments and decision-making siloes slow progress. At the same time, a clear disconnect exists between strategic leadership and frontline users. While 92% of C-suite leaders rate their current HR systems as effective, only 63% of frontline employees agree – and just 14% feel their systems support career progression. This gap highlights a critical issue: those making technology decisions are often out of step with the needs of the people expected to use the systems daily. While many organisations are still suspending change, those that have embraced cloud migration are already reaping the benefits. Just 20% of respondents reported smooth payroll operations before migrating to the cloud. After deployment, that figure jumped to 55%, underlining the value of decisive action and the real operational improvements possible. The case for cloud-based HCM and ERP systems continues to grow. Organisations are increasingly driven by the need for integrated AI, real-time data visibility, scalable infrastructure, stronger security, and compliance with evolving regulations such as the Corporate Sustainability Reporting Directive (CSRD). 'Businesses don't have the luxury of time anymore,' said Johan Bosschaerts, Head of Product and Technology at Strada. 'Delaying migration means relying on systems that weren't built for today's demands. Modern cloud platforms provide a foundation for increased resilience and innovation, enabling organisations to capitalise on AI capabilities while ensuring stronger cybersecurity and easier compliance. By doing so, IT teams are empowered to transition from reactive, technical problem solving to proactive management, driving business imperatives and real progress.' As organisations face end-of-life deadlines for legacy systems and mounting pressure to modernise, the imperative is clear: cloud migration is the gateway to innovation. Cloud platforms deliver real-time insights, integrated AI capabilities, robust security protocols, and compliance with evolving regulations. Acting now not only mitigates operational risks but also positions organisations to capitalise on future opportunities. To access the full report, visit About Strada Strada is a people, payroll, and technology leader that simplifies international workforce management. Across 180 countries, Strada designs and delivers people first solutions powered by cloud-based technology that help organizations grow and enable workforces to perform at their best. To learn more, visit Notes to editors: The findings referenced are based on independent research commissioned by Strada and conducted by CensusWide. The survey was carried out between 19 - 28 February 2025, polling 1,212 professionals working in Finance, HR, or IT departments at companies with 1,000 or more employees. Respondents were based in the United States, United Kingdom, France and Germany and included a mix of C-suite leaders as well as a mix of respondents from various seniority levels.
Yahoo
07-05-2025
- Business
- Yahoo
SAP, buoyed by cloud shift, extends CEO, CFO contracts
This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter. Dive Brief: SAP's supervisory board extended the contract of CEO and Executive Board Chairman Christian Klein and CFO Dominik Asam by two years, the company said in a Monday announcement. Klein's two-year extension will keep him at the helm through April 2030, the year support services for SAP's on-premises ERP Central Component systems are due to sunset for most customers. Asam, who is also on the executive board, had his contract extended through March 2028. The two executives were pivotal in a $2.18 billion restructuring journey aimed at driving customers to cloud-based ERP and embedding AI capabilities across its cloud-based enterprise suite. 'Christian Klein and Dominik Asam, together with the executive team, have played an instrumental role in SAP's ongoing success, providing steady leadership throughout the company's transformation journey,' Pekka Ala-Pietilä, chairman of SAP's supervisory board, said in the announcement. Dive Insight: SAP tied its fortunes to the cloud over a decade ago and ramped up migration efforts under Klein's tenure as CEO, which began in 2020. The company extended the deadline for ECC mainstream support by two years to 2027 the year of Klein's CEO appointment and launched the RISE with SAP migration incentive program a year later. While SAP stood firm on ending extended support services for on-premises ERP in 2030, it will provide business continuity support to customers committed to the RISE program for an additional three years, Klein said during a January earnings call. 'It's not about the extension of on-premises maintenance,' Klein said. 'It's really reaching with a helping hand to a very few large customers who need this offering to fully transform and migrate to the cloud.' The company added migration credits to the RISE with SAP program and expanded technical support services last year, promising a dedicated enterprise architect to ease each customer's journey to cloud last year. SAP also moved fast to deploy automated generative AI agents in an effort to 'supercharge' its Joule AI assistant, Klein said in October. The marriage of cloud and AI paid off during the first three months of the year. SAP increased cloud-based product revenues 27% year over year to nearly $6 billion. Cloud ERP accounted for 85% of the segment's revenues, Asam said last month, during the company's Q1 2025 earnings call.
