SAP Watch

Jul 3 2008   1:11PM GMT

ASUG CEO Steve Strout on sudden SAP ERP 6.0 upgrades

JackDanahy Jack Danahy Profile: JackDanahy

I asked Steve Strout, CEO of ASUG for his take on the recent surge of customers upgrading to SAP ERP 6.0 since the latest enhancement package release. He was able to shed some light on the issue:

Well, I believe the 10,000 is a global number of ERP 6.0 customers who have or are in the process of upgrading. And I think the reason it was so “easy” for SAP to hit this number is the value that this particular release provides. First, it’s an extremely stable release. People are able to do a technical upgrade without much hassle. I know of people who have eliminated upwards of 70% of their custom code just by moving to this release. I also think SAP has done a tremendous job of making the migration a relatively easy one. I know that when I went from 4.6c to 6.0, it was a pretty straight forward process and we didn’t find any real surprises. We upgraded our single instance when I was CIO at Morris Communications by taking only 5 months for the project and the cutover weekend was literally a “non-event”.

There are many cases where having the most up-to-date software, which can often take steps out of a business process and reduce the transaction cost, can certainly be a competitive advantage. If a company doesn’t do upgrades on a regular basis and their competitors do, they could very well be at a pricing disadvantage.

And finally, I think people are realizing that they get access to a whole list of new functionality and ease of access to their technology that they hadn’t had before. In addition, I think if they are a reasonably sophisticated shop, they will start taking advantage of Service Oriented Architecture and expose access to their SAP environment and create new ways of taking out steps of a business process – thus reducing their overall costs. We are starting to see people use SOA technologies to innovate and create new ways for their business to do all new things. And this innovation can’t occur at the same price point with the older technology.

Words I think we all can agree with.

Eric Samuels, Assistant Site Editor

2  Comments on this Post

 
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  • JackDanahy
    Hi Eric, Thanks for sharing latest info on ECC 6.0 adoption. I would like to ask a question that SAP has 40,000 customers and 10,000 are on ECC6.0 i.e. just 25% customers. I think many of them might be from a new licence sell. What do you think, Is current rate of adoption is really encouraging for SAP? And what is the likely adoption level by say 2008 and 2009.
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  • JackDanahy
    That all depends on if SAP can continue to offer industry specific functionality upgrades with ease through enhancement packages or by other means. With 3rd party support now offered we may see the number of upgrades begin to dwindle.
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