The digital transformation journey, especially within the software and SaaS sectors, has seen a significant shift toward cloud-based ERP systems. This trend is driven by various factors, including the need for greater agility, scalability, and efficiency in operations. More large and mid-sized SaaS companies are moving away from traditional on-premise ERP systems or low-end cloud ERPs to comprehensive cloud-based ERP solutions. This shift allows for easier access to data, enhanced collaboration, and real-time analytics.

Previously in this Insights Series, we have touched on a wide range of topics that are important for enabling companies to cost-effectively move to cloud-based ERP implementations. These have included migration tools such as SAP RISE and GROW, reducing Digital Debt, and fast-tracking Subscription Billing with Public Cloud Packaged Solutions. In this new Insights post we focus on SAP Clean Core to explore how it can lay a solid foundation for streamlining the transition to SAP Cloud Public or Private Edition, while also providing an extensible future-forward framework to support both fit-to-standard and company-specific extensions.

With each quarterly earnings announcement showing dramatic increases in cloud ERP revenue, SAP’s strategic shift to S/4HANA cloud services is clearly now in full swing. In Q1 2024, revenue from the Cloud ERP Suite was up 32% and reached $3.48 billion US, marking nine straight quarters of 30%-plus growth. 

Recent posts in this series have provided updates on SAP RISE and GROW, with a focus on how they can help streamline the path for companies migrating to SAP public and private cloud editions.  This new episode drills down into the concept of maintaining a "clean core" in your ERP system to assure a solid foundation that minimizes unnecessary customization, which could impede organizational agility going forward.