The market for SAP in the AWS cloud is growing noticeably in Germany and offers great business potential for the large cloud providers and their partners. This is reported in the new “ISG Provider Lens AWS Ecosystem Partners Report Germany 2021” by the Information Services Group (ISG).
Many user companies still have reservations about AWS-SAP, especially since SAP solutions often control business-critical processes in the company. However, a change in strategy towards the cloud is becoming more and more common.
According to the ISG analysts, the growth of the rest of the AWS business and that of the AWS service providers is also unabated, especially since the trend towards “cloud native” is picking up speed in Germany. According to a current ISG study for the EuroCloud Native association, 22 percent of users and planners of cloud solutions in German companies with more than 50 employees already rely on “Cloud Native”. Another 27 percent plan to do so within the next twelve months. Cloud-native solutions are out of the question for only three percent.
“Not least the corona pandemic is also accelerating the increasing market success of cloud-based offers. And AWS, as one of the world’s leading cloud service providers, is one of the main beneficiaries,” says Frank Heuer, Principal Analyst at ISG. As far as SAP is concerned, the Walldorf-based company is now increasingly relying on the provision of its software via the cloud, although this is not yet as profitable for SAP as the traditional business. “The fact that SAP is willing to accept a drop in profits shows that this is a market with great potential. This has also been recognized by SAP’s competitors, who have been successfully offering business solutions from the cloud for a long time,” continues ISG analyst Heuer.
Accordingly, numerous IT service providers are also investing in the AWS-SAP business, according to the new ISG study. Customers therefore expect the following skills from their AWS-SAP service providers in particular: a broad portfolio, extensive resources and, above all, industry expertise. Large international companies often turn to service providers who are also globally represented, while smaller and medium-sized companies primarily expect solutions from a single source and with a strong local presence in Germany.
In the “AWS SAP Workloads” submarket of the new AWS study, ISG examined a total of 24 providers in Germany, nine of which were able to position themselves as “leaders”.
The study “ISG Provider Lens AWS Ecosystem Partners Report Germany 2021” evaluates the performance of 52 providers in six market segments (quadrants): In addition to “AWS SAP Workloads”, these are “AWS Managed Services”, “AWS Data Analytics & Machine Learning”, ” AWS Internet of Things (IoT) Services, AWS Migration Services, and AWS Consulting Services.
AWS Managed Services
With the growing spread of AWS cloud services, companies with little AWS know-how and a lack of specialist staff are increasingly coming into contact. According to the ISG study, this is currently increasingly leading to the management of AWS solutions being outsourced. From these managed services providers, end-user companies expected support with multi-cloud landscapes, cost savings, security and data protection, as well as operational experience and end-to-end competencies. Last but not least, providers who offer operations from Germany would stand out positively. This plays an important role, especially for customers with increased data protection requirements and medium-sized companies.
AWS Data Analytics & Machine Learning
The ISG study points out that data and its analysis have become an indispensable resource for the commercial success of the German economy. One of the biggest challenges in this regard is that the amount of data to be analyzed is growing very quickly, for example data from Internet of Things (IoT) systems. The IT service providers in this sub-market are therefore investing heavily in artificial intelligence. Above all, machine learning is a method that facilitates and accelerates the evaluation of large amounts of data.
AWS Internet of Things (IoT) Services
IoT applications have also become more relevant as a result of the corona pandemic. For example, the sudden shift of employees to off-site locations brought IoT issues such as mobile devices, network security and data management to the fore, according to the ISG study. In addition, the demands on traditional IoT solutions have increased, as supply chains, for example, collapse more frequently in the wake of the pandemic. The strongly scalable AWS IoT solutions, among other things, promise a remedy here, for which the partner network is an important success factor even more than for other AWS services.
AWS Migration Services
According to the new ISG study, the migration of tasks and functions is a key topic for getting started with AWS-based solutions. Support for this migration is primarily in the hands of the AWS Migration Partner Network. According to this, leading providers have a long-standing and close cooperation with AWS, combine industry and AWS migration expertise and offer extensive coverage of different platforms.
AWS Consulting Services
Not only for companies that want to use AWS services for the first time, there is a need for clarification as to whether and how the entry can be optimally designed. Existing AWS customers also use consulting services if they want to further develop their commitment or need support during ongoing operations. In its study, ISG states that the question of cost-cutting opportunities through AWS solutions is currently still dominant, also because of the COVID-19 crisis. However, ISG assumes that change management and digital corporate strategies will be in greater demand again in the longer term.
The ISG vendor comparison places Accenture and Capgemini among the leaders in all six quadrants. Atos is listed as a leader in five quadrants and DXC Technology, T-Systems and Wipro in four quadrants each. Claranet, Cognizant, Rackspace Technology and tecRacer are among the leaders in three quadrants each, IBM and Materna in two each, and AllCloud, Computacenter, Deloitte, HCL, Lemongrass, NTT DATA, Reply, Siemens, Software AG, Syntax Systems and TCS in each a quadrant.
In addition, the study designates AllCloud, Computacenter and Materna as “Rising Stars” in one quadrant each. According to the ISG definition, these are companies with a “promising portfolio” and “great future potential”.