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SAP Cloud Momentum Accelerates Significantly & Why Cloud Is on the Rise in 2021

Recently SAP announced a jump in revenue at its cloud unit, which improved the performance of earnings in the third quarter. The total earnings for the third quarter are roughly 2.4 billion euros ($2.8 billion), which is 20% higher compared with the same period in 2020. The company also forecasts that their cloud revenue will grow by 16%-19% in the year as a whole.

Indeed, cloud adoption has been accelerated by 2020’s pandemic and boosted digital transformation of organizations across all industries. Let’s dive deep into the topic and find out why companies choose to migrate to the cloud. 

Cloud Adoption Statistics

In the digital times, organizations create more data than ever before. Considering the fact that 90% of the data in 2013 was created in 2011-2012, it’s obvious that the more data is generated, the more data storage is needed to keep them. As we’ve mentioned above, the COVID-19 economic crisis boosted the adoption of cloud storages, and here are the statistics that prove that: 

  • According to IDG’s 2020 Cloud Computing Survey, 92% of organizations are at least “somewhat” in the cloud.
  • The 2020 IDG Cloud Computing Survey: 59 percent of 551 respondents said they planned to be “mostly” (43 percent) or “all” (16 percent) in the cloud in 18 months, while 38 percent say they are mostly or all in the cloud today.
  • The 2020 IDG Cloud Computing Survey: 54% of applications currently running in the cloud were migrated there from on-premise infrastructure, while 46% were “purpose-built for the cloud.”
  • 83 percent of the enterprise’s workload will be stored in the cloud as the number of companies moving from the private to the public cloud is growing. 

Why Cloud Means Success: Reasons to Choose It

Using Cloud Enables Digital Transformation

According to McKinsey, only 14% of organizations that launched digital transformation experienced sustained performance improvements. And here’s the reason why it happened. Outdated technologies make it harder and more expensive. They require a sophisticated approach to enable outdated and inefficient infrastructures to work for digital operations. This results in higher investments and low ROI. Cloud-based operations can eliminate these issues, but for effective enablement of cloud, it needs changing across all or multiple business functions. 

Cloud Brings Flexibility and Scalability to Your Business

A survey from Statista reports that 48% of the respondents indicate that increased efficiency is the biggest benefit of cloud computing. Indeed, with cloud computing, employees can access solutions and documents they work with from anywhere. They are no longer tethered to their workplaces as their workplace is where they have an internet connection. Cloud-based solutions also allow you to collaborate with others on the same document in real-time.

Cloud Speeds Up Time to Market 

The above-mentioned survey from Statista found out that quick deployment is considered another important benefit from cloud-based solutions. Compared with on-premise software, cloud deployment helps you accelerate time to market. To support this fast cloud adoption, SAP launched the RISE with SAP package that allows customers to leverage Business Transformation as a Service. This SAP’s all-in-one solution will significantly speed up your cloud adoption as it takes about two days to deploy solutions as part of the Rise with SAP package.

Find more details about RISE with SAP  in our recent article where expert Ilya Hirutski expanded on BTaaS and the SAP Cloud offering.

Cloud vs. On-Premise: Key Benefits of Cloud-Based Solutions

There are multiple myths about the cloud like “cloud is expensive’’ or “cloud is only for online work.’’ In this chapter, we’ll unveil the biggest myth about cloud costs and define why cloud is more beneficial than on-premise deployment. 

Cost Reduction

The main point of cloud vs. on-premise comparison is a significant reduction in costs. Cloud service providers charge only for services used and the number of users. There’s no need for hardware or any physical infrastructure to hold servers. Consequently, you don’t need to invest in hiring IT staff for server maintenance. By saving on these costs, you can reallocate the funds to other areas of your business.

Source: RISE with SAP: will the all-inclusive service open the doors to business transformation?
Source: RISE with SAP: will the all-inclusive service open the doors to business transformation?

Real-Time Analytics

Getting real-time analytics collected across all business units is another advantage of cloud capabilities. Real-time reports will provide you valuable insights into how you can improve specific processes, while predictive analytics can help you forecast potential issues.

Source: Tune into the Cloud: Unveiling Myths about Cloud
Source: Tune into the Cloud: Unveiling Myths about Cloud

Increased Efficiency

It’s also a major point of cloud vs. on-premise comparison. Flexibility and scalability allow companies to react instantly to changing customer demands and market conditions. Cloud software providers offer regular updates, which means getting access to the latest technologies.

Source: Tune into the Cloud: Unveiling Myths about Cloud
Source: Tune into the Cloud: Unveiling Myths about Cloud

Read more: LeverX Team of Consultants Simplified Auctions and Procurement Processes in SAP Ariba

LeverX as a Cloud Evangelist

The deployment of software requires tech knowledge. According to IDC, nearly 40% of companies aren’t confident that they have the competency to make the switch to the cloud on their own. Operating as SAP partner for over 18 years, LeverX’s team has gained extensive experience in SAP cloud solutions. With the professional assistance of our experts, you can quickly and easily migrate your current SAP solutions to the cloud or implement a new one in the cloud environment. We’ll accompany you at all project stages, from analysis to implementation and post-release maintenance. Contact us to discuss your business needs in detail.