RISE with SAP

2024: Low sales

In mid-September 2024, it became known that the German company SAP faced a sharp decrease in demand for its flagship product RISE with SAP to transfer the local infrastructure of companies to the SAP cloud. Sales of this solution go to the bottom.

The RISE with SAP offering includes an AI-enabled cloud ERP system managed and updated by SAP. The platform provides services and tools created by SAP based on the Clean Core approach and allows you to migrate local systems, transform business processes, constantly innovate and use flexible cloud computing capabilities. At the same time, the cloud ERP system helps to optimize processes, expand opportunities, and ensure the sustainability of the business.

Bloomberg

Gartner estimates that RISE with SAP accounted for 71% of SAP sales by number of customers in the third quarter of 2023. However, by the second quarter of 2024, this figure fell to 41%. One of the reasons for the sharp reduction was the emergence of the GROW with SAP solution, aimed primarily at medium and small businesses. GROW with SAP, available from March 2023, is a pre-configured SAP software package that includes the SAP S/4HANA Cloud Public Edition cloud ERP system.

Denis Torii, an analyst at Gartner's corporate operations group, says that many users avoid offering RISE with SAP because they do not want to abandon local deployments in favor of subscription licenses. In addition, existing SAP customers conclude that the new service acquisition model represents a more expensive way to operate ERP without obvious benefits. Therefore, the demand for RISE with SAP has sharply decreased.^[1]

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