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Updates from ASUG

| Geoff Scott |

ASUG Community

YouTube

Anchor

Spotify

Episode #255

Introduction

In episode 255 of our SAP on Azure video podcast we talk about ASUG with Geoff Scott.

In my role as a product manager, I try to stay in contact with customers as much as possible. On the one hand I can help customers get started with new innovations, but I also get to learn and hear their feedback. So at the last Sapphire it was great for me to see, that Geoff Scott, CEO of ASUG, the American SAP User Group, was on stage during the keynote of Thomas Saueressig. Geoff has always great insights when it comes to customers and I am glad that we have him back on our show.

Find all the links mentioned here: https://www.saponazurepodcast.de/episode255

Reach out to us for any feedback / questions:

#Microsoft #SAP #Azure #SAPonAzure #ASUG

Summary created by AI

  • Key Takeaways from Sapphire 2025:
  • Holger and ASUG discussed the main themes and customer feedback from Sapphire 2025, focusing on SAP’s shift to fewer, more focused announcements, the emphasis on ‘AI first’ and ‘suite first’ strategies, and the challenges customers face with modernization and information overload.
    • SAP Announcement Strategy: ASUG explained that SAP has reduced the volume of announcements at Sapphire, responding to customer feedback that too many simultaneous updates can be overwhelming. The focus is now on a few core themes, such as ‘AI first’ and ‘suite first’, to help customers better absorb and act on new information.
    • Customer Modernization Challenges: ASUG highlighted that many customers are currently engaged in complex migrations from legacy ECC environments to S/4HANA, with most opting for private cloud deployments. The looming 2027-2030 deadlines add urgency, and customers are seeking ways to modernize their architectures efficiently.
    • AI and Suite First Messaging: The discussion covered SAP’s dual focus on ‘AI first’ and ‘suite first’, with ASUG noting that while AI is a familiar topic, the ‘suite first’ approach is newer and prompts customers to consider how to consolidate and streamline their software portfolios for better AI integration.
    • Information Overload Risk: ASUG warned that too many simultaneous changes and announcements can lead to information overload, causing customers to disengage. The recommendation is to repeat and reinforce key messages rather than introduce numerous new topics at once.
  • AI Adoption and Integration in SAP and Microsoft Ecosystems:
  • Holger and ASUG explored the current state of AI adoption among SAP customers, the integration of SAP Joule and Microsoft Copilot, and the technical and organizational challenges of leveraging AI across diverse enterprise environments.
    • Joule Adoption Statistics: ASUG shared research indicating that 41% of surveyed members are still in the planning phase for SAP Joule, with only 8% actively using it. Higher adoption is seen in cloud-based products like SuccessFactors, due to easier integration and readiness.
    • AI-Driven Modernization: Both participants discussed the potential for AI to automate and improve the quality of SAP migrations, such as moving from ECC to S/4HANA, and the need for AI tools to support business process innovation beyond just technical transitions.
    • Joule and Copilot Integration: Holger described the integration between SAP Joule and Microsoft Copilot, where each agent leverages its strengths—Joule for SAP data and Copilot for Microsoft data—allowing end users to access comprehensive information through a unified interface.
    • Integration and Agentic AI Challenges: ASUG raised concerns about the proliferation of AI agents and the complexity of integrating multiple AI products within an organization, noting that integration remains a significant technical hurdle reminiscent of earlier eras of enterprise IT.
    • Customer Hesitancy and Timing: ASUG explained that many customers are cautious about adopting new AI tools, preferring to wait until the technology matures and integration challenges are resolved, especially given the risks associated with large-scale organizational change.
  • Data Integration and Business Data Cloud:
  • Holger and ASUG discussed the importance of data integration between SAP and Microsoft platforms, the popularity of Power BI among SAP customers, and the architectural benefits of unified semantic layers like the Business Data Cloud (BDC).
    • Power BI Usage in SAP Environments: ASUG noted that Power BI is widely used for data aggregation and reporting in SAP environments, especially by citizen developers who may not have deep SAP expertise but need access to business data for analysis.
    • Semantic Layer and ETL Simplification: ASUG identified three key benefits of BDC: creating a semantic layer for better data understanding, simplifying ETL operations to reduce brittleness and maintenance, and enabling AI to operate over a consistent data model.
    • Hybrid Data and AI Architectures: The conversation highlighted the value of hybrid architectures where tools like Power BI, Databricks, and Microsoft Fabric can operate over unified SAP data, enabling more effective AI-driven analytics and reporting.
    • Integration Tools and Connectors: Holger mentioned the availability of various partner solutions and connectors that facilitate integration between Microsoft BI tools and SAP data sources, reflecting strong customer demand for seamless interoperability.
  • Microsoft and SAP Partnership from the Customer Perspective:
  • ASUG provided insights into the critical importance of the Microsoft-SAP partnership for enterprise customers, emphasizing the need for continued collaboration, unified integration, and support for joint customer bases.
    • Prevalence of Joint Customers: ASUG estimated that 90-95% of SAP customers are also Microsoft customers, making the partnership between the two companies essential for enterprise IT strategies.
    • Integration Priorities and Trends: Research from ASUG shows that while intra-SAP integration is decreasing, integration between SAP and non-SAP systems (especially Microsoft) is increasing, with 88% of customers working on such scenarios.
    • Customer Expectations for Collaboration: ASUG stressed that customers expect SAP and Microsoft to work closely together, as any friction or lack of integration directly impacts their ability to operate efficiently and innovate.
    • Examples of Successful Collaboration: Holger cited examples such as the integration of Joule and Copilot, and SAP’s recommendation to use Microsoft Entra ID for identity management, as evidence of effective partnership and joint development efforts.
  • Upcoming Events: TechEd and ASUG Tech Connect:
  • Holger and ASUG discussed the scheduling conflict between SAP TechEd in Berlin and ASUG Tech Connect in the US, the digital enablement of both events, and the focus on hands-on learning and peer-to-peer knowledge sharing.
    • Event Scheduling and Digital Access: Both events are scheduled concurrently for 2025, but efforts are being made to co-broadcast keynotes and provide digital access to content, accommodating participants from different regions and time zones.
    • Hands-On Learning Emphasis: ASUG highlighted the importance of hands-on sessions at Tech Connect, enabling attendees to experiment with new tools and technologies, which is seen as critical for driving adoption and innovation.
    • Peer Learning and Customer Stories: ASUG emphasized that hearing real-world stories from peers motivates customers to adopt new technologies, as practical experiences often carry more weight than vendor presentations.

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