Cloud Transitions and AI Integration
Enterprises across Asia Pacific are accelerating SAP modernization initiatives by transitioning to cloud-based systems and enhancing AI readiness, according to a report by Information Services Group (ISG). The 2026 ISG Provider Lens SAP Ecosystem report highlights that the move towards SAP S/4HANA and cloud-centric models is driven by the impending end of support for ERP Central Component systems in 2027. Organisations focus on system stability and long-term upgrade readiness during these transitions.n
“Enterprises in Asia Pacific are approaching SAP transformation with more rigor and clarity as timelines tighten,” said Michael Gale, ISG ANZ and Asia Pacific regional leader.n
Adapting to Regional Differencesn
Cloud adoption strategies vary across the region due to differing regulatory and operational environments. In Australia and New Zealand, businesses are adopting public cloud architectures aligned with hyperscaler ecosystems. In contrast, companies in India and Southeast Asia often opt for hybrid or private cloud models to meet data residency requirements.n
Organisations are integrating SAP Business AI into core processes, such as supply-chain planning and workforce productivity, with a focus on explainable models and transparent audit trails to ensure human oversight. “Companies in Asia Pacific are looking to AI for significant operational improvements but want to retain control over AI deployments from the start,” commented Maharshi Pandya, senior lead analyst at ISG.n
The report identifies leaders in SAP services, naming Accenture, Capgemini, Deloitte, and Infosys as key players. It also acknowledges Atos and Hitachi Digital Services as rising stars in the SAP ecosystem.n
Organisations are embracing clean core principles and eliminating unnecessary customization to maintain stable central SAP systems. They are standardizing business processes and using SAP Business Technology Platform extensions for enhancements, preserving upgrade flexibility.n
Enterprises are cautiously selecting data migration strategies, preferring selective data transitions to retain critical historical data while minimizing migration risks. This requires strong data harmonization and early remediation planning. As the deadline for ERP Central Component systems support approaches, businesses are compelled to adopt more disciplined SAP transformation initiatives to ensure minimal disruption and long-term resilience in their operations.
Last updated: 29 June 2026, 12:15 pm
