“ROI Proof Remains Difficult” Concerns Spread Among Companies Over SAP Subscription Transition

Source: CIO Magazine

Recent research indicates widespread concern among SAP customers regarding the company’s transition from permanent licenses to subscription-based pricing. Many respondents expressed fear over potential price increases over time and difficulty in demonstrating the return on investment (ROI) for SAP’s S/4HANA suite. Scott Hayes from Rimini Street highlighted that nearly 95% of respondents find it challenging to justify the ROI for S/4HANA, reflecting apprehensions about SAP’s pricing strategies and the future direction of the ERP market.

Despite some customer dissatisfaction, SAP reported a 31% increase in cloud ERP revenue between the third quarter of 2024 and the third quarter of 2025, indicating a strong growth trend for its cloud products. However, concerns remain as many customers view the shift to a subscription model as potentially limiting their future options and control over their ERP systems. A notable 80% of surveyed customers are considering adopting a modular ERP approach rather than relying solely on SAP, reflecting a broader trend towards combining solutions from multiple vendors.

Analysts acknowledge that while modular approaches to ERP are emerging, the actual movement away from SAP remains limited. Many companies continue to express satisfaction with existing solutions, particularly SAP’s ECC, and are cautious about transitioning to the cloud, seeking a clear, beneficial business case for any change. The expectation that SAP might extend support for existing systems is also prevalent among users who wish to carefully evaluate their next steps within the SAP ecosystem.

👉 Pročitaj original: CIO Magazine