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Analyze Costs before Migrating SAP to the Cloud, Harley Lippman

Forty-four percent of SAP customers moving to S/4 HANA are choosing a cloud model, says the Americas' SAP Users' Group. Moving to SAP S/4HANA Cloud makes sense if companies are trying to reduce costs, particularly implementation costs.

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In a Tech Target article, Harley Lippman, CEO of Genesis10, said that migrating to the cloud can help companies eliminate capital expenses and instead move to an operating expenses model. But that will require companies to conduct a detailed analysis to determine their true total cost of ownership, he said.

SAP or the cloud provider handles the upgrades and maintenance, including patching, scheduled downtimes, regression testing and resolving glitches. "You are always on the latest versions of the operating system, databases and the ERP software itself," Lippman said.

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