It won’t be an exaggeration to say that cloud technologies played a central role in helping businesses sail through the COVID-induced challenges. The COVID-19 pandemic made businesses overnight shift to fully remote mode of operations with highly distributed teams. Cloud solutions helped companies ensure business continuity, foster team communication and collaboration, and keep their customers engaged.
It is no surprise that investments in Cloud have increased multifold. Gartner predicts that Cloud will make up 14.2% of the total global enterprise IT spending market in 2024 (up from 9.1% in 2020)!
Organizations that have been using SAP solutions to manage their business operations are also now considering moving their implementations to the cloud. But when is the right time to move to the Cloud?
Let’s take a look –
When you need massive scalability
Moving SAP applications to the cloud gives organizations instant access to practically unlimited capacity and performance resources, enabling them to scale the system up or down with ease, depending on the workload. If they want to shed unnecessary resources, they can do that with a click or two. Similarly, if the project requires additional resources, they can instantly add plenty of storage or computing power. In today’s digital age powered by data, bringing the cloud into the equation grants a business unprecedented flexibility and agility in decision-making.
When you want to save costs
Technology costs often become too overbearing for businesses. Procurement of hardware and software add to the CAPEX. Moving to the cloud, however, helps slash the costs substantially, making running the business more financially viable. Organizations also don’t need to hire and maintain a team of technical experts for tasks like server support or hardware maintenance. With all the IT infrastructure on the cloud, the onus of looking after the infrastructure is on the service provider. This allows businesses to move their CAPEX to OPEX and achieve substantial cost savings.
When the speed of delivery is important
Speed of delivery is one of the basic requirements for a business to maintain a competitive advantage. By moving their SAP solutions to the cloud, organizations can improve their efficiency levels, foster innovation, and improve the pace of product or service delivery. It helps them meet these business goals, grow revenues, and reduce costs. Cloud-based infrastructure helps them rapidly respond to the changing requirements in the business environment.
When innovation is critical
Cloud-based SAP facilitates the agile development of applications in line with specific business requirements and goals. Useful innovations in cloud-based applications may include integrating multiple data sources, connecting collaboration networks, and adapting end-to-end automation across applications. Generally, in the early days of an enterprise, employees work in silos with insights drawn from close customer relationships. However, as organizations grow and become more digital, it is critical to enable communication and collaboration between various teams and foster innovation.
When you want to geographically expand your company
Moving SAP to the cloud brings along access to services from data centers stationed globally. The SAP Cloud enables organizations to deploy their application workloads across several continents or build a specific application closer to their end-users. Thanks to the advanced cloud infrastructure, applications work with single-digit millisecond latency. Cloud-based SAP can serve businesses across virtually all industries and sizes – across the globe.
When you want to make your data more resilient
Have there been instances when your organization lost precious data because of an infrastructure outage? Basing the data on the cloud helps in eliminating all such instances, helping organizations get rid of major operational hazards. What is more, the cloud is more than mere data storage or file access at will. Once organizations move their SAP solutions to the cloud, they can effectively leverage Cloud as a data recovery tool as well. When the data is business-critical and sensitive, data resiliency is even more important and Cloud helps in ensuring the availability of data – anytime, anywhere.
When you need data security
Cloud SAP takes data security to the next level. Organizations get access to various encryption techniques, network hardening, and extensive testing, thereby reducing or removing the perils of data leakage. It is not to say that the on-premises SAP deployment model has any issues regarding data security but taking into account the other advantages of the cloud, SAP on the cloud certainly comes in with some big pluses. Experts on the cloud can effectively take care of data security issues such as human errors, malicious intruders, insider threats, transfer errors, configuration errors, and compromised hardware.
When you want to access your data from anywhere
Hosting SAP on-premises limits the business activities to a physical location. Taking it to the cloud allows organizations access to their business data at will, regardless of the place. SAP cloud servers are located in various parts of the world, enabling organizations to choose a location that they consider the most appropriate for their systems. Keeping it closer to their business also helps in reducing latency and subsequently business costs.
When you want to be competitive with larger companies
The data from the Public Affairs Pulse survey reveals that 92 percent of Americans give small businesses a favorable rating. So far, so good! But how can small businesses compete with the infrastructural might of the big guys? One sure-shot way to give their capabilities a fillip is to move their SAP applications to the cloud. While their own on-premises infrastructure may understandably lack a bit when compared to the big boys out there, they can substantially make up for it by getting a cloud company behind.
Preparing for the future
Migrating to the cloud offers several benefits, such as access to a robust infrastructure, unprecedented flexibility, and huge cost-efficiency. For a company striving to augment its operational efficiency, the cloud can be the best alternative in hand. As the business evolves, the move to the cloud is going to be the imperative rather than an option.
Let’s connect, and our SAP experts can help you define a strong cloud strategy for your SAP initiatives.