Global Demand Grows for SAP’s S/4HANA ERP Software


Large enterprises across the globe are moving to SAP’s S/4HANA package, with many focused on installing the ERP software on premises, as opposed to hosting it in the cloud, according to a new report published today by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

The 2019 global report, “ISG Provider LensSAP HANA and Leonardo Ecosystem Partners,” finds many large enterprises looking for service providers to help install or update their ERP software to S/4HANA on premises because of complexities related to geographic scale and application customization. Cloud hosting, on the other hand, is gaining traction with smaller enterprises that have limited scale.

SAP S/4HANA, which has seen nearly 30 percent growth in its customer base in 2019, is being adopted across large and medium-sized enterprises in the manufacturing, consumer packaged goods, retail, energy, automotive and utilities industries, according to the report.

“S/4HANA forms the core of SAP’s Intelligent Enterprise vision, and the company is looking for the software to strike a chord with enterprise customers looking for efficiencies by automating their business processes and reducing complexity in their ERP landscape,” said Esteban Herrera, partner and global leader of ISG Research.

SAP-focused service providers are using proprietary frameworks with standardized templates and methods to help customers address technical issues, the report says. It also finds providers building industry-specific solutions and accelerators for S/4HANA and SAP Leonardo, particularly for the manufacturing, retail, consumer packaged goods and utilities industries. These targeted solutions are aimed at helping customers seeking implementation expertise and business agility to become intelligent enterprises and achieve faster time-to-market.

In addition, SAP service providers are beginning to use software bots in application maintenance services to respond to basic activities such as logging a ticket and reducing time to resolution. Bots are helping service providers reassign staff to higher value and more complex tasks, the report says.

The report also examines the SAP Leonardo market and finds many enterprises are slow to adopt the software and microservices package that enables customers to leverage technologies like the Internet of Things, machine learning, blockchain, analytics and big data. Many service providers are using SAP Leonardo to build proof-of-concept demonstrations to help address specific industry issues or empower enterprises with emerging technologies, the report says.

The 2019 ISG Provider LensSAP HANA and Leonardo Ecosystem Partners Global Report evaluates the capabilities of 26 providers across six quadrants: SAP S/4HANA & Business Suite on HANA Transformation, SAP S/4HANA & Business Suite on HANA Managed Services, SAP BW/4 on HANA and BW on HANA Transformation & Operations, SAP Leonardo Transformation, SAP Cloud Platform Support Services, and SAP HANA Cloud Infrastructure and Platform Services.

The report names Accenture, Capgemini and IBM as leaders in five quadrants and HCL and Wipro as leaders in four. Cognizant and Infosys are named as leaders in three, NTT DATA and Tech Mahindra as leaders in two and Atos, AWS, Microsoft Azure, Deloitte and DXC as leaders in one.

Customized versions of the report are available from Mindtree, which was named a “rising star” in SAP Cloud Platform Support Services, and NTT DATA, named a leader in SAP S/4HANA & Business Suite on HANA Transformation and in SAP HANA Cloud Infrastructure and Platform Services.

The 2019 ISG Provider LensSAP HANA and Leonardo Ecosystem Partners Global Report is available to ISG Insights™ 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 and Latin America, as well as in the U.S., Germany, the U.K., the Nordics and Brazil, with additional markets to be added in the future. For more information about ISG Provider Lens research, please visit this webpage.

The series is a complement to the ISG Provider Lens Archetype reports, which offer a first-of-its-kind evaluation of providers from the perspective of specific buyer types.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 70 of the top 100 enterprises in the world, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit

SOURCE Information Services Group, Inc.

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