U.S. Enterprises Seek Cloud Migration Solutions Amid SAP Transition

Service providers deploy new technologies to reduce client concerns about risks, delays in moving to cloud, ISG Provider Lens™ report says

A new report from Information Services Group (ISG) III reveals that U.S. enterprises are increasingly considering the migration to SAP S4/HANA cloud, driven by advancements in generative AI and real-time analytics.

Current Migration Trends and Provider Strategies

The 2025 ISG Provider Lens™ SAP Ecosystem report for the U.S. highlights that hesitancy surrounds the transition from on-premises SAP ECC environments to cloud-based SAP S/4HANA. This cautious stance persists even in the United States, where SAP enjoys its largest customer base. To accommodate these concerns, SAP has postponed the end of support for SAP ECC 6.0 to 2027, offering extended support until 2030 for an additional fee. In response, ecosystem partners are leveraging innovative technologies and specialized expertise to facilitate a smoother cloud migration process for clients.

Concerns and Solutions for Migration

“Many companies are worried about how long it might take to complete an S/4HANA migration and realize a strong return on investment,” stated Bill Huber, ISG partner in digital platforms and solutions. “Providers are using real-time analytics and GenAI to show clients the potential operational improvements and strategic advantages.”

Migrating from SAP ECC to S/4HANA entails intricate data extraction, transformation, and loading processes to maintain data integrity. According to ISG, enterprises are beginning to grasp how GenAI can aid this transition. Service providers employ GenAI to meticulously assess clients’ SAP ECC environments and address operational concerns, helping clients choose suitable implementation strategies such as greenfield, brownfield, or bluefield approaches. Moreover, the capability to conduct real-time analytics on enterprise data is a growing attraction for S/4HANA users.

Client-Centric Migration Approaches

ISG observes that service providers are adopting GenAI and other technologies to enhance their customer-focused strategies for S/4HANA migrations. They’re expanding consulting services that include readiness assessments and showcasing industry-specific use cases tailored to each client. This strategy aligns with the growing trend among enterprises seeking comprehensive services from single providers to streamline their cloud migrations.

Implementation Growth Trends

Currently, greenfield migrations, which involve establishing brand new SAP implementations on S/4HANA, represent approximately 45% of all migration projects. However, this figure has declined recently. Small and midsize enterprises are more likely to take this route, while growth is now strongest in brownfield projects, allowing enterprises greater control over data transfer, and bluefield implementations, which adopt a phased approach.

“Most large companies in the U.S. consider greenfield implementations of SAP too risky,” remarked Jan Erik Aase, partner and global leader of ISG Provider Lens Research. “Providers are assisting them in pursuing more gradual transition methods.”

Additional Insights and Rankings

The report also analyzes other trends within the SAP ecosystem across the U.S., noting the growth of service provider workforces and the increasing appeal of pre-built best-practices templates for implementation.

Evaluating the capabilities of 45 providers across five quadrants, the 2025 ISG Provider Lens™ SAP Ecosystem report categorizes them into SAP S/4HANA System Transformation for Large Accounts, SAP S/4HANA System Transformation for Midmarket, SAP Application Managed Services, Managed Cloud Services for SAP ERP, and SAP SuccessFactors HXM Partner Services.

Accenture, Capgemini, Infosys, TCS, and Wipro are designated as Leaders in four quadrants each. Cognizant, Deloitte, EY, HCLTech, and IBM are recognized as Leaders in three quadrants each. Atos, Birlasoft, DXC Technology, Hexaware, Kyndryl, LTIMindtree, NTT DATA, Strada, Syntax, Tech Mahindra, and UST are acknowledged as Leaders in one quadrant each.

Moreover, DXC Technology is highlighted as a Rising Star in two quadrants, marking a company with strong future potential. Cognitus, Hexaware, KaarTech, and Syntax are acknowledged as Rising Stars in one quadrant each.

In terms of customer experience, Wipro stands out as the global ISG CX Star Performer for 2025 among U.S. providers within the SAP ecosystem, achieving the highest customer satisfaction scores in ISG’s Voice of the Customer survey.

Customized versions of the report are also available from Cognitus and Hexaware.

The full 2025 ISG Provider Lens™ SAP Ecosystem report for the U.S. is available for subscribers or for a one-time purchase on the ISG website.

About ISG Provider Lens™ Research

The ISG Provider Lens™ Quadrant research series is a unique evaluation of service providers that combines empirical, data-driven research with market analysis and insights from ISG’s advisory team. Enterprises can access a wealth of detailed data and market analysis to guide their selection of appropriate sourcing partners. ISG advisors utilize the reports to validate their market knowledge and provide recommendations to their clients. This research currently covers providers operating globally, including regions such as Europe, the U.S., Canada, Mexico, Brazil, the U.K., France, Benelux, Germany, Switzerland, the Nordics, Australia, and Singapore/Malaysia.

About ISG

ISG III is an international AI-focused technology research and advisory firm. It serves over 900 clients, including 75 of the world’s top 100 enterprises, and is recognized for its leadership in technology and business services. Founded in 2006, ISG leverages proprietary market data and insights from its global team of 1,600 professionals to assist clients in maximizing the value of their technology investments.

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Press Contacts:

Will Thoretz, ISG

+1 203 517 3119

[email protected]

Julianna Sheridan, Matter Communications for ISG

+1 978 518 4520

[email protected]