SAP customers non-committal on S4/HANA, says Rimini Street

The third party support vendor surveys SAP customers to get a read on S4/HANA adoption.

The majority of SAP customers are in the maybe camp when it comes to deploying S4/HANA, but a sizeable portion aren't interested, according to a survey by Rimini Street.

Rimini Street, which provides third party support for Oracle and SAP customers, surveyed 233 respondents to get their take on S4/HANA. S4/HANA, rolled out earlier this year, is SAP's next-gen business suite that revolves around analytics.

SAP's S4/HANA master plan: The lingering questions

The respondents were global SAP Business Suite customers. The topline findings are that 33 percent of respondents said they wouldn't use S/4HANA with 52 percent in the maybe camp. The remainder said they would.

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For the customers that were non-committal to S/4HANA, the main issues were that the return on investment was unclear and it was an early stage product.

Given that Rimini Street's findings are timed for SAP's Sapphire powwow in Orlando they are worth noting. SAP would say that a double digit percentage of customers on board with a suite outlined just a few months ago is a good thing. Nevertheless, SAP has some convincing to do when it comes to S/4HANA.

Other key findings:

  • 72 percent of SAP customers use on-premises ECC 6.0 applications and they meet their business needs.
  • 75 percent of SAP customers are on a current enhancement pack release plan.
  • 46 percent say SAP is too expensive for support calls and 37 percent say the vendor charges too much for functionality delivered.

Now it's possible that Rimini Street's sample is a self selecting bunch. These SAP customers wouldn't be in Rimini's database if they thought the vendor's support and maintenance were a good deal.

Rimini's core recommendation was to give S/4HANA time to mature. Not surprisingly, Rimini said SAP customers should consider third party support.

For Rimini Street, Sapphire as well as Oracle's big conferences turn out to be prospecting events. Rimini Street last week launched security support, risk avoidance and innovation and roadmapping services.

In the first quarter, Rimini Street's revenue was $25.9 million, up 40 percent from a year ago. The company also passed the 1,000 customer mark.

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