I am excited to share that SAP S/4HANA Cloud Public Edition has been recognized as a Leader in both the Gartner Magic Quadrant for Cloud ERP for Service-Centric Enterprises as well as the Gartner Magic Quadrant for Cloud ERP for Product-Centric Enterprises for the third year in a row.
The recognition is based on our Completeness of Vision and Ability to Execute in the cloud ERP market for both service-centric enterprises and product-centric enterprises.
This is truly fantastic news, and I believe further underlines the impact cloud ERP has on service-centric and product-centric industries by fulfilling their current and future technology needs.
SAP offers integrated cloud solutions that can support an organization’s end-to-end business processes, spanning across all functions. We help manage every part of an organization: enterprise resource management, spend management, human capital management (HCM), and customer relationship management (CRM). This deep know-how enables SAP to understand that every business is different and within a business not every application has the same infrastructure or process requirements.
Here is an overview on both the Gartner Magic Quadrant reports.
2024 Gartner Magic Quadrant for Cloud ERP for Service-Centric Enterprises
As service-centric enterprise customers move their mission-critical ERP processes to the cloud, we believe they seek trusted vendors that can provide the technology needed to drive transformation and unlock business value.
According to Gartner, “Leaders demonstrate a market-defining vision of how service-centric ERP systems and processes can be supported and improved by moving them to the cloud. They couple this with a clear Ability to Execute this vision through products, services, and go-to-market strategies. They have a strong presence in the market and are growing their revenue and market share. In this market, Leaders show a consistent ability to secure deals with enterprises of different sizes and have a good depth of functionality across all areas of core financial management. They have multiple proofs of successful deployments by customers, in their home region and elsewhere. Their offerings are often used by SI partners to support financial transformation initiatives. Leaders typically address a wide market audience by supporting broad market requirements. However, they may fail to meet the specific needs of vertical markets or other, more specialized segments, which might be better addressed by Niche Players in particular. They may also be too complex to deal with or too costly to be considered in less complex functional scenarios.”
We’re honored to be recognized in this space.
Integrated Cloud ERP Solution
IT decisions are shaped by a variety of factors, from the sensitivity and criticality of data to the need for local availability and the ability to scale ERP systems up or down. Given the complexity of modern businesses, the most efficient IT environments are those that seamlessly combine cloud services, leveraging the flexibility SAP offers across public, private, or hybrid solutions.
However, within this complexity lies untapped value and opportunity. At the heart of this transformation is SAP S/4HANA Cloud, empowering companies to grow, optimize, and innovate on their own terms while ensuring seamless integration across all business processes.
An example is REHAU China and its intelligent transformation journey and the value the company unlocked with the latest intelligent technologies, products, and solutions from SAP. This shows how cloud transformation is best achieved with process standardization, where composable services come together to support end-to-end processes.
I believe the Gartner Magic Quadrant for Cloud ERP for Service-Centric Enterprises offers valuable insights into the trends and market forces shaping the industry. Companies that take proactive steps in orchestrating a well-planned digital transformation are better equipped to navigate the significant shifts in today’s 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.”
SAP has developed a unified cloud solution to meet evolving business needs. I’ve often emphasized the importance of customer-driven product design to address unique industry requirements. Customer feedback is the ultimate benchmark for success, helping us innovate and solve today’s challenges while preparing for tomorrow. SAP S/4HANA Cloud empowers businesses with real-time insights, AI-powered capabilities, and seamless integration of end-to-end processes, supporting sustainable global expansion.
A progressive combination of technology and innovation are key to the growth of any business today. New cloud ERP systems are intelligent, flexible, and agile, and they impart these qualities to the businesses that run on them.
With offerings like SAP S/4HANA Cloud at the core of our RISE with SAP and GROW with SAP offerings, we can provide an integrated suite of tools that streamline critical business functions into a unified system. With new AI capabilities with our ERP tools, we can help customers enhance operational efficiency and ensure businesses of all sizes can benefit from tailored ERP systems by offering scalable, flexible, and innovative solutions.
2024 Gartner Magic Quadrant for Cloud ERP for Product-Centric Enterprises
Gartner has also named SAP a Leader in the Gartner Magic Quadrant for Cloud ERP for Product-Centric Enterprises, with SAP S/4HANA Cloud being evaluated. This is very good news, and we believe our positioning reflects our role as an enabler of innovation and in helping organizations become intelligent enterprises. Answering the call from our customers, SAP S/4HANA Cloud transforms the way businesses operate and helps them run at their best.
According to the report, “Gartner defines cloud enterprise resource planning (ERP) for product-centric enterprises as a market for application technology that supports the automation of operational activities for the manufacturing, distribution, delivery, and servicing of goods. Cloud ERP for product-centric enterprises is delivered under a SaaS license model (with frequent mandatory updates), where application support, infrastructure provisioning, and management are the responsibility of the vendor.”
Cloud ERP impacts companies in product-centric industries by fulfilling their current and future technology needs and helps them manage finance and material resources in a sustainable way.
According to the Gartner Magic Quadrant description, “Leaders demonstrate a market-defining vision of how ERP product-centric systems and processes can be supported and improved by moving them to the cloud. They couple this with a clear ability to execute their vision through products, services, and go-to-market strategies. They have a strong presence in the market and are growing their revenue and market shares. In the cloud ERP suite market, Leaders show a consistent ability to win deals with organizations of different sizes. They have a good depth of functionality across all areas of operational and administrative ERP. They have proof of multiple, successful deployments by customers. Their systems integrator partners frequently use their offerings to support business transformation initiatives.”
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 strong example is the greenfield transformation at Hitachi High-Tech, which simplified life for its users, unlocking value with the latest intelligent technologies, products, and solutions from SAP.
SAP S/4HANA Cloud offers both user and developer extensibility, allowing customers to stay agile while balancing innovation and standardization. This flexibility enables businesses to adapt quickly without sacrificing control. The intelligent suite integrates end-to-end business processes across finance, procurement, supply chain, HR, and more, creating a unified system.
SAP S/4HANA Cloud serves as a single source of truth, ensuring consistent data across operations. In today’s fast-changing environment, businesses must continuously and intelligently adjust processes with automated, analytics-driven applications; SAP S/4HANA Cloud empowers them to do just that, fostering growth and sustainability.
We believe SAP’s recognition as a Leader in both the Gartner Magic Quadrant for SAP S/4HANA Cloud in Cloud ERP for Service-Centric Enterprises as well as in the Gartner Magic Quadrant for SAP S/4HANA Cloud in Cloud ERP for Product-Centric Enterprises acknowledges our unwavering commitment to customer-driven innovation.
We further feel that this recognition underscores our focus on delivering lean, responsive solutions that drive business transformation in the cloud.
But we’re not stopping here: our ongoing investments in SAP S/4HANA Cloud will continue to make it smarter and more efficient for businesses of all sizes. By providing flexible, scalable ERP solutions, we aim to help organizations anticipate future challenges and thrive in a rapidly evolving world.
We look forward to continuing this journey with our customers, partners, and analysts as we shape the future together.
Jan Gilg is president and chief product officer for Cloud ERP at SAP.
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Gartner, Magic Quadrant for Cloud ERP for Product-Centric Enterprises, 11 November 2024, Dixie John, et. Al. Gartner, Magic Quadrant for Cloud ERP for Service-Centric Enterprises, 04 November 2024, Robert Anderson, et. Al.
