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Stars
SAP S/4HANA Cloud via RISE sits in the Stars quadrant with SAP commanding roughly 24% of the global ERP market and over 25,000 S/4HANA customers reported by 2024, benefiting from the broad cloud migration wave. Growth remains strong as ECC customers migrate and RISE’s bundled offerings increase switching costs and recurring revenue. Significant go-to-market and migration investment is required, but if adoption momentum continues as the market matures, it can transition into a Cash Cow.
SAP Business Technology Platform (BTP) is the backbone for extensibility, integration, data and AI across SAP estates, with 2024 adoption accelerating as customers standardize on one platform for apps and automations. Demand climbed in 2024 with SAP reporting over 28,000 BTP customers and year‑over‑year usage growth in core services. Realizing its value requires continued investment in ecosystem connectors and developer experience. Keep feeding BTP and it remains the control point for extensions and automation.
SAP SuccessFactors remains a cloud HCM star in 2024 with a deep enterprise footprint and steady net-new wins among global, complex organizations; competitive pressure from Workday (Workday FY2024 revenue ~6.9bn USD) is real, yet demand for global HCM keeps SuccessFactors hot. It needs constant product innovation and brand push to defend wins. Maintain share and it compounds into a durable Cash Cow for SAP.
SAP Ariba Network and Procurement Cloud
SAP Ariba Network and Procurement Cloud benefit from large network effects, deep category coverage, and embedded processes; Ariba connects over 5.5 million suppliers and facilitates more than 3.3 trillion USD in commerce annually (SAP data, 2024), so as supply chains digitize volumes and stickiness grow and spend management becomes strategic, keeping customers engaged. Keep investing in UX, supplier value, and AI to sustain the flywheel.
- Network scale: over 5.5M suppliers (2024)
- Transaction volume: >3.3T USD annual commerce (2024)
- Strategic stickiness: embedded processes drive retention
- Priority: UX, supplier value, AI to amplify growth
SAP IBP (Integrated Business Planning)
SAP IBP is a Star as planning demand surges amid 2024 volatility in demand, supply and inventory; tight S/4HANA integration gives SAP a competitive edge and real-time orchestration for end-to-end planning. Continued platform innovation and partner delivery capacity are required to scale deployments; with sustained adoption it can transition to Cash Cow status.
- 2024 Gartner: SAP IBP positioned as a Leader in supply-chain planning
- Advantage: native S/4HANA integration for real-time data
- Risk: needs continuous R&D and partner ecosystem scale
- Outcome: sustained adoption → Cash Cow
SAP Stars: S/4HANA Cloud (RISE) ~24% ERP share, 25,000+ S/4 customers (2024); BTP 28,000+ customers (2024) as integration/AI spine; SuccessFactors strong vs Workday (Workday FY2024 revenue ~6.9bn USD); Ariba 5.5M suppliers, >3.3T USD commerce (2024); IBP Leader (Gartner 2024) — continued investment can convert to Cash Cows.
| Product | 2024 metric |
|---|---|
| S/4HANA (RISE) | 24% ERP; 25k+ customers |
| BTP | 28k+ customers |
| Ariba | 5.5M suppliers; >3.3T USD |
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Cash Cows
Maintenance and Support for ECC and on-prem suite delivers a large, sticky revenue stream with low growth but high margins, funding SAP’s cloud investments; SAP set mainstream maintenance for ECC through 2027 with paid extended options to 2030. Milk efficiently by optimizing delivery and cost, manage churn, and guide measured S/4HANA migrations to avoid precipitate revenue loss.
SAP Concur, acquired by SAP for 8.3 billion in 2014, remains a category leader with broad enterprise penetration, serving tens of thousands of customers worldwide. Market growth for travel and expense is modest in 2024, yet high renewal and attach rates keep steady cash flow into SAP’s cloud portfolio. Continuous UX and product tweaks—rather than heavy acquisition spend—preserve its moat. Concur acts as a reliable cash engine to fund strategic bets elsewhere in SAP.
SAP Business One (>70,000 customers) and ByDesign (>10,000 tenants) form a cash-cow SMB ERP duo with a big installed base and broad partner distribution across 100+ countries. The market is mature, delivering steady net-new growth rather than explosive gains, while cloud and on‑prem renewals plus professional services sustain high margins. Prioritize delivery optimization and partner enablement to protect renewal rates (~90%) and maximize recurring yield.
SAP HANA on-prem and runtime licenses
SAP HANA on-prem and runtime licenses remain a cash cow, entrenched across thousands of SAP landscapes even as cloud data shifts accelerate; license and runtime revenue streams deliver stable, high-margin cashflows with modest ongoing investment needs. Harvest now while proactively steering customers toward SAP cloud data offerings and migration paths.
- Entrenchment: widespread on-prem adoption
- Revenue: stable, high-margin license/runtime cashflows
- Investment: modest maintenance spend
- Strategy: harvest today; migrate customers to cloud data
SAP BW and classic analytics footprint
SAP BW and classic analytics remain core for many enterprises, powering on‑premise reporting while organizations modernize to cloud data stacks. Growth is low but usage is dependable, with migration and maintenance services generating steady revenue as customers plan moves to BW/4HANA and SAP Datasphere. Minimal promotion needed; prioritize support and clear migration paths.
- Legacy footprint: widespread on‑prem deployments
- Role: steady revenue via maintenance/services
- Strategy: focus on migration to BW/4HANA/Datasphere
Maintenance/support for ECC and on‑prem suites yields low-growth, high-margin cash funding SAP cloud; mainstream maintenance set to 2027 with paid options to 2030. Concur (acquired 2014 for 8.3B) and Business One (>70,000 customers)/ByDesign (>10,000 tenants) deliver steady renewals. HANA licenses and BW provide entrenched, high-margin runtime revenues; focus on cost-efficient delivery and guided S/4HANA/Datasphere migrations.
| Asset | 2024 metric | Role |
|---|---|---|
| ECC maintenance | Mainstream to 2027; ext to 2030 | High-margin renewals |
| Concur | Acq 2014: 8.3B; tens of thousands customers | Steady cloud cash |
| Biz One/ByDesign | >70k / >10k | SMB recurring |
| HANA/BW | Thousands deployments | Runtime/license cash |
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Dogs
SAP CRM on-prem (legacy) shows low growth and shrinking relevance versus modern cloud CX suites, with cloud CX adoption exceeding 70% of new CRM deployments by 2024 and accelerating vendor transitions. Market share is thin outside SAP’s installed base, driving declining new-license revenue and concentrating usage in maintenance accounts. Turnarounds require large migration investments that distract from cloud CX priorities and often exceed the ROI threshold for customers. Best routed to maintenance-only and phased retirement.
SAP Solution Manager (on-prem ALM) has been largely superseded by Cloud ALM, and by 2024 SAP positions Cloud ALM as the preferred path for cloud-first customers. Adoption growth for on-prem Solution Manager is near zero and further expansion is unlikely. Heavy reinvestment in on-prem ALM will not deliver adequate ROI. Recommend containing costs, freeze new feature spend, and plan a graceful sunset and migration path.
SAP Mobile Platform/older NetWeaver mobile is a Dog: outpaced by modern low-code and native stacks, while low-code/no-code market grew >20% YoY in 2024 and draws ecosystem energy. Market pull is limited, rebuilds are costly with low odds of share gains. Decommission and steer customers toward SAP BTP extensions and cloud-native mobile strategies.
SAP BW/4HANA as primary data strategy
SAP BW/4HANA sits in Dogs: modern data clouds drew buyer preference in 2024 and BW/4HANA sees limited growth and scarce net-new wins; aggressive sales push is unlikely to reverse this market shift. Maintain for installed base, prioritize migrations where TCO justifies, and avoid large new bets.
- Market trend: 2024 momentum to cloud data platforms
- Strategy: sustain for existing customers
- Risk: low net-new growth
- Action: no major new investments
On-prem Hybris/legacy commerce deployments
On-prem Hybris/legacy commerce deployments are Dogs in the SAP BCG Matrix as cloud-first commerce has eclipsed on-prem models; Gartner 2024 reports >60% of new commerce deployments are cloud-native. Upgrades are costly and slow, with typical enterprise migration projects taking 12–24 months and often exceeding $1M. Market share drifts to cloud competitors if not transitioned, so prioritize migration paths over fresh on-prem investment.
- Cloud adoption: Gartner 2024 >60%
- Upgrade cost/time: 12–24 months; typical project >$1M
- Risk: market share erosion to cloud rivals
- Action: prioritize migration paths over fresh on-prem spend
SAP legacy on‑prem products (CRM, Solution Manager, Hybris, Mobile, BW/4HANA) show low/negative growth vs cloud: cloud CX >70% of new CRM deployments (2024), low‑code market +20% YoY (2024), commerce cloud >60% of new installs (Gartner 2024). Net‑new revenue is shrinking; migrations cost 12–24 months and often >$1M. Recommend maintenance/sunset and migration prioritization.
| Product | 2024 metric | Risk |
|---|---|---|
| On‑prem CRM | Cloud CX >70% new | Declining new licenses |
| Commerce | >60% cloud (Gartner) | Migration >$1M |
Question Marks
High-growth data and AI market (>20% CAGR; AI software forecast from $136B in 2022 to $407B by 2027) offers big upside. Snowflake (FY2024 revenue $3.03B) and large Databricks valuations create intense competition. Strategic fit with SAP apps is strong but share is still nascent; Datasphere requires heavy investment in connectors, governance, and performance. If product-market fit tightens, this flips to Star.
Growing analytics demand meets a crowded field—Gartner 2024 names Microsoft Power BI and Tableau as dominant leaders—creating tough headwinds for SAP Analytics Cloud (SAC). SAC’s clear advantage is native integration with S/4HANA and BW/4HANA, simplifying data modeling and governance. To capture share in a BI/analytics market IDC projects to grow at ~10%+ CAGR to 2028, SAP must sharpen self-serve UX, boost performance, and use aggressive pricing or bundling to convert customers.
SAP Customer Experience (CX) Cloud sits in a high-growth CX market projected at roughly $90B in 2024, but trails market leader Salesforce (≈30% share, $36.9B FY2024 revenue) and Adobe (≈8% share). SAP's strength is tight process integration back to SAP ERP and S/4HANA, enabling end-to-end commerce and service flows. To move from Question Mark to Star, SAP needs focused wins, deep vertical plays and partner-led implementations. Prioritize deals where ERP integration is decisive or narrow scope to win fast.
Industry Cloud solutions
Question Marks: SAP Industry Cloud offers outcome-focused vertical packs as buyers demand solutions over toolkits; SAP reported over 1,000 Industry Cloud solutions in 2024, but adoption remains patchy across industries and regions.
Success requires co-innovation with partners and clear ROI case studies; with demonstrated traction in select verticals these can graduate to Stars.
- vertical-outcomes
- patchy-adoption
- partner-co-innovation
- ROI-stories
- graduate-to-stars
Joule and GenAI across SAP
AI copilots are surging but the category remains young and crowded; Gartner 2024 projects about 70% of enterprises will deploy copilots by 2026, increasing market pressure. SAP’s Joule and GenAI can win if deeply wired into SAP workflows and live data context, not as standalone chat layers. Significant, ongoing investment in safety, data quality, auditable models and prioritized industry use cases is required to convert pilots into measurable ROI.
- Edge: embed into ERP/CRM dataflows
- Invest: model safety, versioning, governance
- Use cases: prioritize 3–5 high-ROI scenarios per industry
- Win-metric: reduce process time or FTE cost, measure adoption
Question Marks: high-growth AI/data and CX markets (AI SW $136B→$407B 2022–27; CX ≈$90B 2024) offer upside but face strong incumbents (Salesforce $36.9B FY2024; Power BI/Tableau leaders). SAP strengths: S/4HANA integration, Industry Cloud (1,000+ solutions 2024) and Joule; must invest in connectors, UX, pricing, governance and ROI use cases to convert to Stars.
| tag | 2024 metric | priority |
|---|---|---|
| AI | Market $136B→$407B (22–27) | governance, 3–5 use cases |
| CX | Market ~$90B; SF $36.9B | vertical wins, bundling |
| Industry Cloud | 1,000+ solutions | ROI case studies |