Customers want more information about cloud and AI strategy from the German ERP giant. Credit: Nitpicker / Shutterstock The German-speaking user group for enterprise software giant SAP says that customers’ willingness to invest in the company’s S/4HANA cloud product is rising, but still lags behind flagship ERP products like ECC 6, and some customers see the need for more discussion on SAP’s prolonged move to the cloud. DSAG, a group representing SAP users in Germany, Austria and Switzerland, also released data from a survey of its members. It found the most-used SAP product was still its traditional ERP line, with 68% of respondents saying they used it, compared to 41% for S/4HANA on-premises and 11% and 6%, respectively, for S/4HANA private and public cloud. DSAG’s chairman, Jens Hungershausen, said that perception of SAP’s cloud strategy was highly mixed, despite small gains made in cloud usage. “The DSAG members surveyed are critical of SAP’s S/4HANA cloud strategy,” he said in a statement. “Only 13% of those surveyed had a positive opinion, just under half had a negative one.” Security and AI were both important topics to DSAG members, as growing percentages cited it as a key topic for the future in the group’s survey. Fully 88% of those polled rated security as of either medium or high relevance to them, while the number of respondents saying they planned to invest in AI more than doubled in the last two years, to 28%. In the latter category, the group again wanted to see SAP take more input from the community, with just 31% rating the company’s AI strategy as “good” or “satisfactory.” Part of the problem for SAP, according to IDC senior vice president for research Bob Parker, is that the company isn’t seen as a leading partner for more transformative technologies, like AI and cloud. “AWS and Azure, Google Cloud, etc., tend to have more enviable positions,” he said. “So SAP is still in the midst of this transition to the cloud.” As for AI, Parker added that SAP’s moves in that area may take some time to bear fruit, but that they’re leading the company in positive directions. A unified data layer called Datasphere should prove a critical capability for businesses looking to take advantage of AI, as will acquisitions like Signavio, which provided a process mining and mapping capability. “So these are all very positive movements for them to start doing more innovative stuff,” he said. “They’re brilliant software engineers in Walldorf, it’ll just take some time, because their install base is very complex.” Related content feature CDOs’ biggest problem? Getting colleagues to understand their role Chief data officers face several challenges, including new demands from AI, but they must also sell the value of their jobs to coworkers unsure what CDOs do. By Grant Gross May 07, 2024 7 mins Chief Data Officer Data Governance Business IT Alignment interview SAP forecasts clarity in the cloud After customers and user groups that adopted S/4HANA early accused SAP of bait-and-switch tactics, CIO editor-in-chief in Germany Martin Bayer recently sat with Christian Klein, CEO of the multinational software company, to clear the air on cloud rea By Martin Bayer May 07, 2024 5 mins SAP Generative AI Cloud Architecture opinion Rethinking ‘Big Data’ — and the rift between business and data ops As an era, ‘Big Data’ may be over, but its underlying value (and tensions) live on, even as organizations seek to make the leap to an AI future. By Thornton May May 07, 2024 5 mins Big Data Business IT Alignment Data Management news ADNOC, G42 and Presight partner to accelerate AI solutions By Andrea Benito May 06, 2024 3 mins Artificial Intelligence PODCASTS VIDEOS RESOURCES EVENTS SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe