The skills gap in IT is nothing new. For decades CIO have struggled to get enough people with the right skills to help them get the most out of their IT investments. A large factor in creating this gap is the ongoing innovation in technology which require fast learners.
In the SAP world, until recently, setting up and managing SAP systems largely remained the same since the ‘90s. On-premise installations were familiar to all Basis teams and customers found a large, easy to access pool to talent to help with their systems.
Now, SAP professionals are facing a revolutionary change as SAP moves to the Cloud. And it’s creating its own skills gap.
Moving SAP to the Cloud is Becoming an Urgent Task
In 2027, the support for SAP Business Suite 7, including SAP ECC 6, will end. SAP wants its users to migrate their SAP installations to the Cloud and use SAP S/4HANA. There are opportunities to pay premiums to receive ECC support until 2030. However, everyone knows that taking that path is only a short-term fix.
Sooner or later, every SAP installation will need to run in the Cloud. Not only for the support, but because the capabilities in the Cloud will give companies a competitive advantage. Those who fail to migrate will be left behind.
Why is the SAP Cloud Skills Gap Widening?
A skills gap can be defined as the gap between the skills and abilities a company needs, and the skills and abilities their employees possess. Given the widespread use of SAP as a premier ERP software solution, there are many IT professionals who know how to operate and customize an SAP installation running on-premises. However, migrating to the Cloud and managing the system afterward requires a very different set of skills.
Migrating from on-premises to the Cloud is a challenge for any type of software. When ERP software is migrated, the risks are higher because the organization-wide system touches many departments, and it runs mission-critical operations. Listed below are several areas where the skills gap is particularly evident.
SAP Infrastructure Management
When you’re running SAP on-premises, you own and control the infrastructure. When you move to the Cloud, the Cloud provider owns the infrastructure, meaning that you won’t need staff for on-premises physical infrastructure management. What you will need are employees who understand how Cloud platforms work, and how to
provision and manage virtual machines, storage, networking components, and more in the Cloud.
Application Integration
Your team will need to understand how to integrate SAP with other cloud-based applications and often on-premises applications. You will need employees who are experts in both on-premises and cloud application integration technologies and know how to manage the integration between the two. This is especially important if your company chooses a hybrid environment within the SAP application.
Cybersecurity
When you migrate and start to operate SAP in the Cloud, you’re at a very vulnerable place when it comes to security. You can’t afford to be the victim of a security breach or fall out of compliance. The security considerations are much different in the Cloud. You’ll need experts who understand cloud-specific security measures and can quickly set up best practices to protect your new installation.
Cost Management
When you run SAP on-premises your infrastructure costs are relatively straightforward to manage. If you need more capacity, there’s a very well-defined process you must follow. In the Cloud, your costs are based on resource consumption. You’ll need employees who know how to monitor usage, set budgets, set rules, and optimize the value you’re receiving for the investment.
If you’re using auto-scaling, you’ll need employees who understand how to configure and optimize auto-scaling mechanisms. This is critical in an environment where someone could decide to run tests that will make your costs skyrocket. You’ll need to have processes, procedures and good people in place to avoid surprises.
The Future of SAP is in the Cloud
It’s obvious that the future of SAP is In the Cloud. However, today, companies haven’t been running SAP in the Cloud for a long period of time. As a result, the pool of SAP Cloud experts hasn’t had time to grow.
Many companies are in the early stages of running in the Cloud, and their employees are going through a learning curve. Ten years from now, the SAP skills gap will be much less of a problem.
In 10 years, these fledgling SAP Cloud experts will have years of experience behind them. Finding experts won’t be as big of a problem. But, right now, the skills gap is still a critical issue. If you’re facing a skills gap, download our eBook, “How to Manage the Widening SAP Cloud Skills Gap” to learn how you can avoid being affected by it. You can also contact us to explore how Lemongrass can help you obtain the benefits of running SAP in the Cloud before support runs out.
