SAP customers on Business Suite: New strategy, same old concerns

SAP in February dusted off its legacy on-prem Business Suite label and resurrected it for the cloud era under a new strategic banner “Business Unleashed.” Early response from customers has been guarded, as representatives of the German-speaking SAP User Group (DSAG) at this year’s Technology Days likened the new SAP strategy to a new game of call, raise, or fold.

SAP’s Business Unleashed strategy focuses on three core elements:

• The new Business Suite, on which SAP wants to center its cloud strategy 
• The Business Data Cloud (BDC), through which SAP promises cross-system harmonization and use of SAP data
• The Business Technology Platform (BTP), known for years and now the technical foundation of Business Suite and BDC, which will play a central role in the integration of the various SAP solutions 

SAP’s primary goal through this strategy is to support its customers’ process chains from end to end. To achieve this, however, the software giant must further refine its portfolio, customers contend; from their perspective, the planned Business Suite’s success rests on having a consistent architecture.

“To achieve this, SAP must continuously harmonize its product landscape and consistently implement uniform standards, for example, in data models and identity and security services,” said DSAG CTO Sebastian Westphal. “Because, by definition, a suite requires the seamless integration of the SAP solutions it contains, uniform operating models, and clear migration and implementation strategies along the way.” 

What’s wanted in Business Suite: Flexible integration

In addition, DSAG members expect a modular suite that can be flexibly adapted to corporate requirements and integrated into corporate architectures without undue effort and expense. Moreover, several points of SAP’s strategy still need to be clarified. According to Westphal, transparent cost structures and contract models, as well as long-term support for partner solutions, are key concerns. “There’s still a lot to do to create a fully integrated business suite,” Westphal said.  

RISE Migration expected to be extended

Regarding migration, DSAG customer companies welcome SAP’s continuation of its RISE Migration and Modernization program, originally announced at the beginning of 2024 — and originally scheduled to expire at the end of last year. This program is expected to significantly reduce the costs and time required for migrating to the new SAP world, for example, by offsetting previous investments in SAP products. According to the DSAG, SAP will continue the program in 2025 under a different name. A corresponding announcement is expected in the coming weeks. 

DSAG

SAP wants to accommodate its customers. SAP CTO Philipp Herzig, a member of SAP’s extended Executive Board, points to the SAP-managed approach the company favors in the future. SAP aims to offer as much functionality as possible preconfigured out-of-the-box. Leaving customers responsible for a lot of the work involved in assembling and operating systems is error-prone and usually results in high costs. To avoid this and leverage the benefits of SAP-managed solutions, Herzig tells SAP customers, users must also utilize the solutions SAP has already implemented. 

The CTO emphasizes that all newly developed functions by SAP are fully integrated into the overall system. As an example, Herzig cites AI Hub. Customers can already access approximately 210 embedded AI functions. 

Business Data Cloud can be a big hit 

German SAP users are clearly placing great hopes in the SAP’s Business Data Cloud (BDC), introduced earlier this year. DSAG representative Westphal emphasized the offering’s high potential and spokes of it as SAP’s biggest strategic shift since S/4HANA. By harmonizing the fragmented data structures many companies operate with, Business Data Cloud has the potential to transform existing architectures into a future-proof, cloud-centric one, he said. Above all, SAP also intends to assume operational responsibility for the integration and provision of uniform data models. 

Still, Westphal demands BDC be available to all SAP customers, “including on-premises systems and independent of commercial constructs such as RISE with SAP and GROW with SAP.” Furthermore, the success of the BDC will also depend on how SAP’s new data platform can be integrated into existing architectures and how it provides SAP data without technical and commercial restrictions, he said. After all, many SAP users have already implemented modern data lake and data lakehouse architectures. 

Customers still see need for correction 

SAP has the potential to score points with customers with its new strategy, DSAG members say. User representatives see good prospects for the BDC in particular. But the Germany-speaking user group believes there is still a lot to be done for SAP’s strategy to take hold. Their demands are well known, but it remains to be seen to what extent the Walldorf, Germany-based software company will embrace them.

These are the DSAG’s core demands: 

• SAP must offer its architecture consistently and harmonized with a unified operating model. 
• All SAP services must be able to be integrated into the customer’s existing business processes. 
• SAP must make its products, especially new developments in AI and data products, accessible to all customers — even on-premises. 
• SAP must offer its customers a transparent and consistent pricing structure. It also needs flexible, transparent licensing and discount models with understandable volume discounts. 
• SAP must offer its customers a robust roadmap for greater planning security and a reliable migration strategy.