Over the next few years, more than a thousand domestic companies will have to move to the cloud. The reason is the transformation of the popular enterprise software SAP and the end of support for the existing non-cloud solution at the end of 2025. However, most companies are still afraid of this long-delayed step. What are their reasons and what is the reality today?
Cloud over the past few years
Just 5 years ago, on-premise solutions were widely represented chinese overseas america database in the Czech Republic and change was only just beginning to be felt. “I myself was still competing between cloud and on-premise systems back then. But Covid and the subsequent crises changed everything and today the cloud is trumping on-premise systems,” says Jaroslav Luc from Enehan, which specializes in digital transformation and company automation.
In times of crisis, such as the Covid crisis, the advantage of cloud applications has become clear, and the cloud has experienced a sharp growth. This was largely due to the “anywhere operations” model, which in the case of cloud applications means the ability to work from anywhere in the world and on any device, since all that is needed to use them is an internet connection. This increases the ability to collaborate between workers and their efforts in real time.
But this is not the only advantage that companies have begun to realize in recent years. In times of constant change, flexibility was and is absolutely key. This added value is especially evident in small and medium-sized companies. For example, the cloud can only exist for a certain period of time or perhaps only as part of a seasonal business. It can also be used only to cover a certain type of process within the company. And it can also exist only for selected users or roles. All of this has come in handy more than ever in recent years.
Who has the lead and who will catch up?
Companies in the financial sector are the ones that are realizing these how to work with ecommerce? essential tips for starting your online business benefits the most or the fastest. “There is a lot of pressure in banks and insurance companies for digitalization and the related transition to the cloud. These companies aim to consolidate applications and want to have easily configurable and sustainable platforms, which is why there is a high demand for No-Code and Low-Code solutions. The automotive industry is also telling a similar story,” describes Luc.
This year and next, the transition to the cloud will be key for the Energy, Utilities and Manufacturing segments. Companies in Energy and Utilities urgently need to consolidate an excessive number of their existing internal applications, while manufacturing companies must digitize to remain competitive.
Forced transition
These three segments have one thing in common, however. “Companies with a turnover of over 300 million CZK that we deal with here practically all use SAP as their ERP system. And even in the example of this one of the largest SW companies in the world, it is clear that the cloud is currently trumping on-premise solutions,” explains Luc from Enehan.
SAP is declaring the end of support for the old SAP R3 solution in December 2025 and is migrating to a new cloud version. This migration to the cloud will represent a large amount of finance and human capital for companies, because it is essentially a new system that not only management, but especially ordinary users, must prepare for. “If such a transformation is to be successful, it must begin in the spring of 2024. Companies should start taking action in these weeks,” advises Luc.
Who has the catch up?
Although it won’t be easy or cheap for companies, it will also be a thailand data new opportunity for them. Moving to the cloud will open the door to using new, often smarter or more appropriate systems, for example for customer relationship management.
The point is that in on-premise solutions, SAP was used by companies not only as an ERP system, but often also as a CRM system for customer relationship management. This will no longer be necessary thanks to the transition to the cloud. Companies will be able to use cloud SAP as an ERP system, but for CRM they will be able to choose another software that specializes in this area, such as Salesforce or Microsoft.
Who has the lead and catch up?
“For example, Salesforce allows you to merge multiple original CRMs, for example for B2B and B2C, into one system. In addition, the company will gain many more options for using CRM, because today there are already specific solutions tailored to individual segments. The migration itself is not difficult, practically all you need is data from the ERP,” says Jaroslav Luc.
Is there anything to be afraid of?
Let’s take a look at the two most common concerns that companies have about the cloud, in addition to the migration itself.