6 out of 10 SAP Customers wouldn´t buy again [shutterstock: 344938568, banderlog]

6 out of 10 SAP Customers wouldn´t buy again [shutterstock: 344938568, banderlog]

6 out of 10 SAP Customers wouldn´t buy again

At Sapphire recently, SAP claimed that more than 3200 customers had moved to S/4 Hana, and painted a “simple” roadmap for customers making the move.

At Sapphire 2016 Orlando, USA, leaders from different SAP lines of business talked about new cloud options and capabilities for customers. SAP’s new tagline – run simple – also marks a dramatic departure from traditional perceptions (and reality) about SAP solutions. SAP’s new marketing tagline – run simple – is not only grammatically incorrect, it’s grossly inaccurate.

Nucleus analyzed the experience of SAP customers and found varied – at best – satisfaction with existing solutions and great reluctance to adopt SAP’s latest applications. Six out of 10 existing customers wouldn’t buy the same solution from SAP again. When asked if they would consider a future solution, in all markets except ERP those same six out of 10 indicated they would not consider SAP’s future offerings.

Perhaps more telling, for SAP’s core ERP market, 9 out of 10 customers indicated they would not consider a future investment in S/4 Hana and appear to be following a slow tapering-off strategy as they evaluate other opportunities in the market. Nucleus gave SAP an average grade of D. Although there were some promising points in the portfolio, we found overall confusion about product direction, concerns about the disruption and risk posed by moving from existing legacy applications, and a history of challenges with actually making the software work, all of which continued to negatively impact customers’ abilities to get value from SAP.

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SAP has long been the heavyweight in the enterprise software space, and, like many of its traditional competitors, has been slow to move to the cloud, doing so initially mostly through acquisition (SuccessFactors, Hybris, Concur) and more recently with some organic product development (SAP Cloud for Analytics).

To better understand the current and future reality for SAP customers, Nucleus conducted in-depth interviews with more than 40 SAP customers (including many SAP reference customers) spanning the markets of customer relationship management (CRM), e-commerce, enterprise resource planning (ERP), human capital management (HCM), collaboration, and analytics.

Nucleus Research Note 2016: 6 out of 10 SAP Customers wouldn´t buy again

Nucleus Research Note 2016: 6 out of 10 SAP Customers wouldn´t buy again

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