- Cloud adoption is driving demand for SAP S/4HANA in Asia Pacific, particularly through greenfield implementations.
- The region is witnessing a surge in digital transformations, with enterprises leveraging SAP for enhanced efficiency and competitiveness.
- Australia and New Zealand show a preference for public cloud options over private clouds in SAP deployments.
According to recent findings by Information Services Group (ISG) (III, Financial), the Asia Pacific region is experiencing a significant increase in the adoption of SAP S/4HANA, particularly through greenfield projects. The ISG Provider Lensâ„¢ SAP Ecosystem report highlights that while global enterprise adoption has been cautious, the Asia Pacific market is rapidly becoming a focal point for SAP implementations as part of broader digital transformation efforts.
One of the primary motivations for this adoption is the need for modern, scalable, and efficient cloud-based infrastructure. The region's diverse markets, especially within the Association of Southeast Asian Nations (ASEAN), are opting for clean-slate SAP deployments on S/4HANA, which align with their strategic goals of operational efficiency and maintaining competitive advantages.
The report further notes that in Asia Pacific, private cloud deployments are generally preferred, with Australia and New Zealand being exceptions where public cloud adoption is more prevalent. This trend is offering numerous opportunities for SAP providers to engage in fresh implementations, contributing to the region's digital overhaul.
Manufacturing remains the dominant sector utilizing SAP, but there is notable growth in other industries such as healthcare, pharmaceuticals, consumer goods, retail, and energy. Midsize enterprises are increasingly adopting SAP solutions embedded with generative AI tools, aiming to streamline processes and enhance decision-making.
ISG's research also emphasizes the rising demand for SAP Application Management Services (AMS) and managed cloud services as businesses seek optimized cloud operations. Leading providers like Accenture, Capgemini, DXC Technology, HCLTech, Infosys, TCS, and Wipro are recognized for their leadership across multiple SAP service quadrants.
For further details on SAP trends and challenges in the Asia Pacific region, the full ISG report is available to subscribers or for one-time purchase on the ISG website.
