SAP S/4HANA Cloud Is a Leader in the 2023 Gartner® Magic Quadrant™ for Cloud ERP for Service-Centric Enterprises


We are excited and honored to share that SAP has been recognized as a Leader in the Gartner Magic Quadrant™ for SAP S/4HANA Cloud in Cloud ERP for Service-Centric Enterprises for the second year in a row.

The recognition is based on our completeness of vision and ability to execute in the cloud ERP market for service-centric enterprises. As service-centric enterprise customers transition their mission-critical enterprise resource planning (ERP) processes to the cloud, we believe they look to recognized vendors for the technology to transform and realize business value. According to Gartner, “Leaders execute well against their current vision and are well positioned for tomorrow.” We’re honored to be recognized in this space.

Magic Quadrant for Cloud ERP for Service-Centric Enterprises. Source: Gartner (August 2023). Click to enlarge.

This is truly fantastic news and, I believe, further underlines the impact cloud ERP has on the service-centric industries by fulfilling their current and future technology needs. SAP offers integrated cloud solutions that can support an organization’s E2E business processes, spanning across all functions. SAP helps manage every part of an organization: enterprise resource management, spend management, human capital management, and customer relationship management. This deep know-how enables SAP to understand that every business is different and that within a business not every application has the same infrastructure or process requirements.

An Integrated Cloud ERP Solution

IT decisions are influenced by several different factors, whether it be the sensitivity and gravity of the data, the locality and level of availability required, or the need to scale ERP systems up and down. Businesses are complex entities and, as such, the most efficient IT environments will be able to combine cloud services – leveraging the flexibility of choice SAP provides, whether they are public, private, or hybrid solutions. But complexity conceals value and opportunity. SAP S/4HANA Cloud is at the core of this transformational process that enables companies to grow, optimize, and transform on their own terms while providing for the smooth integration of all business processes.

A great example is REHAU China and its intelligent transformation journey to more countries in Asia under its “Cloud Asia Until 2025” plan. According to Chengbo Yu, CIO, Asia-Pacific Region, REHAU AG China, the company looked to “building a cloud-based business platform that’s fit for the future in a dynamic market and facilitating business process standardization and integration across Asia Pacific and the world and achieving supply chain excellence along the industry value chain.” That is the value it unlocked with SAP’s latest intelligent technologies, products, and solutions. This is a classic example of how cloud transformation is best achieved with process standardization, where composable services come together to support end-to-end processes.

Download a copy of the report

I believe the Gartner Magic Quadrant™ for Cloud ERP for Service-Centric Enterprises is an interesting report of what trends and market forces drive conclusions. Businesses that are prepared to act quickly by orchestrating a planned digital transformation early on are better suited to respond to the dramatic changes in the operating environment. To quote the report, “this Magic Quadrant reflects Gartner’s definition of ‘composable ERP.’ We define this as an adaptive technology strategy that enables the foundational administrative and operational digital capabilities for an enterprise to keep up with the pace of business change. This strategy delivers a core of composable applications and as-a-service software platforms that are highly configurable, interoperable, and flexible to adapt to future modern technology.”

With this in mind, SAP has pursued a unified solution in the cloud that responds to our customers’ business requirements. I have often written about how product design needs to be customer-driven and how we need to meet their unique industry needs with solutions that enable their growth and profitability. “No matter what industry you are in, there is no greater benchmark of success than customer feedback,” said Thomas Saueressig, member of the Executive Board of SAP SE, SAP Product Engineering. “The more feedback we get from our customers, the better we can serve them with innovations that help companies solve today’s business problems and take on tomorrow’s challenges. With SAP S/4HANA Cloud, they are best positioned to do so impactfully and sustainably.”

This perspective guides every decision our teams make when we are defining, investing in, and designing our solutions for every business, including organizations that aren’t yet completely ready for the cloud. SAP S/4HANA Cloud is a complete, composable cloud ERP solution powered by artificial intelligence (AI) and analytics that helps customers run mission-critical operations in real time from anywhere and can give them the insight and information they need to steer their business through changing and challenging times. It enables them to digitally transform their business by helping build flexible value chains with end-to-end processes, introduce new business models in their industry, and expand globally yet sustainably with a trusted partner in SAP.

Making real progress on sustainability requires real data. We’re rising to that challenge at SAP by introducing the green ledger, ledger-based accounting for carbon so companies can manage the carbon entering and leaving their systems and balance their “carbon books” the same way they balance their financial books. SAP Sustainability solutions help customers replace estimated or average emissions values with actual, verified data, accelerating the move toward a green ledger where bottom-up, audit-ready sustainability values are managed with the same accounting quality as corporate financial data. The green ledger offers deep insights by being embedded into RISE with SAP S/4HANA Cloud and the GROW with SAP solution, with additional capabilities added with every release.

Get ready-to-run cloud ERP with SAP S/4HANA Cloud

With SAP’s cloud-first approach, SAP S/4HANA Cloud is at the core of our RISE with SAP and GROW with SAP offerings, which help unlock new ways of doing business. The goal is to respect organizations’ individual pace of movement to become an intelligent and sustainable enterprise by supporting them with clear and transparent road maps and by helping ensure that new innovations can be made available to them on a continuous basis.

A progressive combination of technology and innovation are key to the growth of any business today. We believe SAP’s inclusion in this Gartner Magic Quadrant™ for Cloud ERP for Service-Centric Enterprises once again highlights the fact that we are doing the right thing by our customers in creating a leaner, more responsive, customer-oriented business to help drive and deliver innovative solutions in the cloud. Customers repeatedly tell us they recognize that software-as-a-service (SaaS) ERP is their ultimate end-state.

We are thrilled to be recognized as a Leader again in this year’s Gartner Magic Quadrant™ for Cloud ERP for Service-Centric Enterprises. But our ambitions don’t stop here. We are continuing to invest in making SAP S/4HANA Cloud even better with innovations that will make our products smarter and more efficient for enterprises of all scale – global, large, and mid-market. We understand the importance of making the right investment decisions when it comes to digital transformation, and we believe a strong digital backbone is the centerpiece. With SAP’s cloud ERP solutions, we continue to focus on growth and value generation for businesses and their customers and we are here to be a partner on this journey.

You can read the full report here.

Jan Gilg is president and chief product officer of Cloud ERP at SAP.

Gartner, Magic Quadrant for Cloud ERP for Service-Centric Enterprises, Denis Torii, Sam Grinter, Tim Faith, Naveen Mahendra, Neha Ralhan, Robert Anderson, 29 August 2023.
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