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Mid May 2021: Mulesoft detailed its new Connectors for SAP during an analyst’s briefing. The SAP connector is most interesting, since it aims to speed up the development of lightweight, agile customer-facing, online self-service capabilities, while building on the weighty (not exactly agile) capabilities of SAP.  

Mulesoft has out-of-box integrations (called connectors) for existing data sources including AWS, Google, GCP, Azure, Snowflake, Salesforce, Splunk, Stripe, Oracle, ServiceNow, Zendesk, Workday Jira, Trello, Azure, SAP, Microsoft Dynamics, etc. Mulesoft has identified 900 common enterprise applications, though only 28% of these have pre-existing integrations. Mulesoft states that on average 35 different apps are needed for a single customer-facing enterprise digital solution. Therefore, it is investing heavily in developing additional connectors for enterprise solutions, with at least 50 planned for release in 2021.

Why it’s Important

In late 2019 and early 2020, IBRS conducted a series of 37 detailed interviews with organisations that found organisations with ERP SaaS platforms supported by low-code workflows and integration, saw at least 3 times (and up to 10 times!) as many customer-facing services delivered annually as compared with on-premise solutions with traditionally managed API integrations. A recent series of 67 interviews confirms these findings.

During COVID-19, the big winners of the ‘prepackaged integration’ model (specifically, the model outlined in the 'Trends for 2021-2026: No New Normal and Preparing For the Fourth Wave of ICT'), were business-to-consumer organisations that quickly pivoted from a myriad of shopfront locations to digital stores in a matter of weeks. As Mulesoft has figured out, this is not just an issue of having the ability to integrate, but having a consolidated core of ERP capabilities to provide core data and processes, surrounded by a fabric of low-code application, workflow and integration services.

Who’s impacted

  • COO
  • CIO
  • Head of sales 
  • DevOps leads
  • Enterprise architects

What’s Next?

Organisations should consider how their current environment - including legacy ERP - can evolve to support the fourth wave of enterprise architecture. This will impact upgrade decisions for ERP and other enterprise applications, the selection of low-code application development and integration tools.  

Related IBRS Advisory

  1. Trends for 2021-2026: No New Normal and Preparing For the Fourth-wave of ICT
  2. Accelerating Remote Services Deployment

Conclusion: SAP ECC on-premise versions required ownership of ERP infrastructure and multi-year licensing. The business cases for such investments considered ERP systems essential to remain competitive in IT service industries, logistics and resource-intensive sectors.

The next stage of the SAP journey recognises that Cloud infrastructure associated with S/4HANA can remove the large capital investment and reduce operating costs. Even with this infrastructure saving, the data migration risk remained with CIOs looking to identify a reliable data migration method. Any data migration considered to be high risk should be avoided in the current environment. Many are unfamiliar with the best method to migrate from on-premise SAP solutions to SAP S/4HANA in the Cloud.

SAP and its partners are now making this data migration journey not only more transparent but achievable in a timeframe that is measured in months not years. This is being achieved through Cloud platforms that can interrogate and integrate legacy data, then present migration paths in real time whilst retaining the data integrity before, during and after the migration.

Conclusion: As-a-Service solutions offer organisations agility, flexibility and scalability but the graveyard of unused software piling up should ring alarm bells. Neglected software utilisation and compliance will be factors that should drive a new Software Asset Management (SAM) investment. The impact of an unmanaged Cloud SaaS or IaaS solution will be quickly revealed during audits. At a time when management is a focus, this should be an easy win.

Organisations will need to quickly identify if they are running single or multi-tenanted instances and whether production and non-production environments are being managed efficiently for the purposes of SAM product selection.

Selecting a SAM tool should be proportionate to the cost of non-compliance. Unmitigated software licence costs can be eye-watering. Consider these factors when selecting your SAM product for Information Technology Asset Management (ITAM):

  1. Data points
  2. Software overspend
  3. Inefficiency
  4. Compliance

IBRS iQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.