Cloud is aiding digitisation in enterprises in a plethora of ways, with business process transformation being a major area. As organisations realise the transformational role of cloud in their business operations, they are increasingly adopting cloud for running their business applications. With unprecedented disruption among enterprises led by the pandemic, the digital business environment has gained more complexities. To address these complexities, it’s important that enterprises realign their IT best practices with today’s highly competitive market.
The first and most critical step in this direction is simplification of business processes. As businesses witness growth, their workloads and resources increase proportionally, laying greater emphasis on the Enterprise Resource Planning (ERP) application. ERP, which is dominated by SAP services, gives business teams visibility and control over every process on a unified dashboard, thus helping them achieve resource and process optimisation.
While ERP services, including SAP Hosting, have been traditionally on premises, this approach brings its own set of challenges. The major ones have been listed below.
- Large upfront CapEx, combined with support and operational costs
- Maintenance hassles and costs
- Long and complex hardware procurement and deployment periods
- Lack of scalability
- Frequent and unforeseen downtimes
Cloud has proven its benefits and efficiencies in the areas of collaboration and business continuity, with increased migration from on-premise hosting to Software-as-a-Service (SaaS) applications. This shift has been driven by the need for resiliency, agility, scalability, cost effectiveness, process optimisation, and realigning the processes with the distributed workforce.
Reimagining business with SAP Cloud Hosting
SAP applications are integral to your business, and they are no exception when it comes to ‘cloudification’. A report from Emergen Research states that global cloud ERP market size is expected to clock US$ 141.68 billion in 2028, with the APAC market taking the lead by marking the fastest revenue growth rate due to the increasing adoption of cloud ERP solutions among enterprises across industries. In this growth story, India is a key market among other regional counterparts.
Let’s look how SAP hosting on cloud can bring new value propositions for businesses.
SAP services running on cloud are operated and managed by certified SAP service providers that possess the skillsets, resources, and infrastructure to ensure high uptime, service support and updates. It serves as a more viable alternative to on-premises hosting that demands enterprises to hire skilled resources to manage the environment.
As businesses grow, scalability becomes their top priority. However, scaling up infrastructure in a captive environment is a complicated task and involves huge costs, because of which, businesses are often not able to match scalability with the pace of demands. Whereas, in some instances, they might overspend on hardware to scale up quickly, but it eventually results in huge maintenance costs. Addressing this, SAP hosting service on cloud provides you the freedom to scale up or scale down conveniently and within short timelines with the pay-as-you-use model.
Whether your SAP applications are hosted on premises or on cloud, security remains uncompromisable. SAP cloud hosting assures you of superior security for your applications. The robust security mechanisms of cloud ensures that your SAP services run securely, and your critical data is always protected. When SAP instances run on cloud, enterprises can relieve themselves from the worries of data breaches, thanks to end-to-end encryption of data.
Reduced Total Cost of Ownership (TCO)
SAP cloud hosting offers substantial cost savings on operations as it’s offered on a subscription model, eliminating the recurring expenses on maintenance and update of hardware and software. Enterprises can optimise their total cost of ownership by opting for SAP migration service from third party service providers.
Cloud-hosted SAP environment is operated by vendors that provide always-available support services. In contrast, on-premise hosting needs additional purchase of support package, thus adding to the overall costs.
As businesses progress on their digital transformation journey and achieve greater digital maturity, cloud will be increasingly infused in their IT environments. Adopting a cloud-first approach, businesses will be in a better position to achieve their desired outcomes. This will be ensured with transformation of processes and optimisation of cost and resources, and ERP on cloud will be critical determinator of the overall efficiencies and success of businesses.