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The service providers are also having to partner in a deeper and richer way with SAP to demonstrate their capabilities. To maintain viability, visibility, and presence, the service providers are having to partner with the hyperscalers as the hyperscalers hit prime time in the market. Partnering to Preserve Market ShareĬonsidering the market and business disruption, you may be wondering, “What does all this disruption mean as it relates to the service providers and how they are reacting?” The service providers now find that they must compete on multiple fronts for that business, and they are setting themselves up to do just that. In addition to pivoting in order to address these market influences, enterprise transformation initiatives are accelerating at a rapid pace, coming out of the pandemic with service providers making material investments in improving tools, capabilities and talent to meet this heightened demand and support these major enterprise transformational initiatives. As a result, the service providers have had to make serious go-to-market strategy adjustments and pivots to maintain their position in the market and still be seen as supportive of RISE. Within RISE, the service providers are trying to understand where they have a direct relationship with their clients and how they can support RISE while still maintaining their relationship with their client base.

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These technology advances are forcing more cloud adoption in various ways, including software as a service (SaaS), infrastructure as a service (IaaS), and even security as a service to support that enablement. Service providers, whether it’s system implementation, managed infrastructure, or AMS, are all being impacted by this technology enablement and shift. The hyperscalers have been aggressively going after more markets by getting organizations comfortable with the cloud and their ability to process their transactions and run their applications in the cloud. The introduction of RISE and the mainstream impact of the hyperscalers are introducing new engagement models that compete directly with the SIs for that coveted “first chair” relationship with organizations. RISE and the hyperscalers have had a major impact and have created further business disruption in the market and, consequently, the service provider community.

However, in addition to this assessment, organizations must also understand how the service providers are partnering with SAP to preserve their market shares, the go-to-market strategy impact RISE has had on the service providers, and what the SIs are saying in the wake of RISE. Consequently, the current and evolving market dynamics coupled with the complexity of the evaluation process are overwhelming the companies assessing these delivery models.īecause of the dynamic state of the market, an impact assessment of an organization’s current environment provides critical inputs to determining the organization’s future service provider sourcing and contracting strategy. With the introduction of SAP’s RISE offering, the effort only increases. Historically, many companies have underestimated the effort required to evaluate and select a cloud migration service provider. SAP clients embarking on transformational initiatives now have even more delivery models to vet, including RISE, going direct with a hyperscaler, a bundled SI solution, or any other multi-vendor scenario. This added option means organizations have even more critical decisions to make as they embark on their digital transformation journey. While RISE with SAP will still allow organizations to choose their own hyperscalers and SI relationships, both are now maneuvering to still have a seat at the table to directly engage and influence decisions. SAP’s RISE offering is providing organizations with a simplified engagement model where SAP is customer-facing and supports clients with a single contract.

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Now that RISE with SAP is in full force, many companies are compelled to reevaluate their service partner (SI) and long-term support strategies as they relate to their ECC to S/4HANA digital transformation.