TheRegister's platform is a leading technology news website, offering insights into IT industry news, hardware reviews, and software updates. Through articles, analysis, and opinion pieces, TheRegister offers insights into cybersecurity threats, technology trends, and industry developments. Readers can stay updated with the latest news and analysis from the world of technology and IT business.

The Register

SAP's RISE with SAP cloud migration strategy, launched in 2021 after a 2020 share price crash, is falling significantly short of its targets. On-premises software support revenue for 2025 came in at €10.5 billion — €2 billion higher than the €8.5 billion SAP had projected, indicating that far fewer customers have migrated to S/4HANA in the cloud than planned. Only 39% of SAP's 35,000 ECC customers had purchased licenses to begin their S/4HANA transition as of Q4 2024. Key barriers include a weak business case for migration, the complexity of removing ECC customizations for a 'clean core' approach, and economic uncertainty. Some large customers like Kingfisher have outright rejected the migration plan. SAP has since softened its stance on support deadlines and is now shifting focus toward upselling AI and innovation products — including its agentic AI platform Joule — to its legacy install base rather than purely pushing ERP modernization.

SAP's grand cloud escape plan €2B short of the runway

On-prem support revenue shows cloud migration behind schedule

Business case still a barrier for legacy users

SAP shifts focus from migration to 'innovation'