Pavel Zhylko, Senior Partner, ACBaltica
It has been less than two years since SAP announced GROW with SAP, a new cloud ERP offering targeting mid-size companies. Like many, I was initially skeptical about SAP's shift to the cloud: moving away from highly customized on-premise solutions raised concerns about control and flexibility. But now it's clear that cloud-based solutions offer the agility and cost-efficiency businesses need today. My understanding of this offering has also evolved: from initial skepticism and doubts to seeing new opportunities.
Initial skepticism
To be honest, when I first heard about the GROW with SAP initiave, I couldn't help but feel a wave of skepticism. After years of working closely with clients on highly customized, on-premise SAP solutions, shifting to the cloud felt like a step too far. Could companies really achieve the same level of detail and customization in the cloud as they had on-premise? Would businesses give up their deeply ingrained processes to adopt SAP's predefined best practices?
There was also the concern about control. For many of our clients, on-premise deployment was how they gained control over costs and software. Will they trade it for the cloud’s flexibility and scalability?
Then there was stability. Would the cloud provide the same level of reliability? Could it handle large-scale operations without compromising performance and without significant investments?
And then there was the cost, of course. I wondered if moving to the cloud would be as cost-effective as advertised. Wouldn't our clients end up paying even more in the long run – due to subscription fees or unexpected challenges during migration?..
A shift in perspective
Despite my initial skepticism, I couldn't ignore the trends. More and more companies were moving to the cloud, and even Gartner declared cloud computing "an inevitable business necessity". I realized this wasn't just a passing trend—it really was the future of business operations, the new norm. Now it's clear: moving into the cloud is not just a new technology; it's a new mindset that helps businesses become more agile, scalable, cost-effective – and, eventually, more competitive.
The first thing that changed my perspective was seeing how GROW with SAP helps reduce costs. Unlike on-premise, with cloud deployment, you don't buy the license. Instead, you only pay the subscription fees – and the amount of that payment depends on the number of system users. So you can save on initial costs (a significant amount, especially for smaller companies) and be truly flexible, increasing or decreasing the number of system users or features you use at any time and with no effort.
And here comes even more! With on-premise solutions, our clients had to deal with costly hardware, ongoing maintenance, and regular updates. In contrast, in the cloud, they no longer have to worry about infrastructure issues or troublesome updates—instead, they gain a streamlined, efficient system that runs with minimal intervention.
Another argument that helped shift my thinking was the focus on best practices – hundreds of predefined business processes for dozens of industries worldwide. At first, I saw standardization as a limitation, but then I began to understand its value.
Best practices act as navigators, allowing companies to check if the strategies they use are really the most effective. Instead of reinventing the wheel with every new project, they can rely on proven processes that work across the board. Who, if not SAP, with its 50+ years of global success in enterprise resource planning, would know what process is the best choice?
But what if you haven't found a way to adjust the system to your needs or a relevant best practice? You can still customize the solution: develop a relevant process as an application and easily integrate it with your S/4HANA via SAP BTP.
Last (but not least), GROW gives SAP a new direction for further development. Previously, the company mainly focused on large enterprises, but GROW makes SAP software affordable even for smaller companies. Now, they can benefit from years of SAP's experience in ERP management and adopt all those proven best practices. It opens up new opportunities for SAP Partners like ACBaltica—and I love it!
Benefits of GROW with SAP
Once I set aside my doubts, the benefits of GROW with SAP became clearer. First, as mentioned above, the cloud model helps our customers save costs — no more hardware, maintenance costs, or expensive updates. The cloud allows businesses to pay for what they need when they need it without having to worry about maintaining physical infrastructure.
With cloud adoption, businesses don’t really need to keep an internal SAP support team: since the software runs on SAP's servers, the vendor maintains everything, including updates. Instead of a Solution Manager, GROW with SAP utilizes ALM (Application Lifecycle Management), which is mainly focused on agile implementation and operations (while SolMan is a heavier and much more comprehensive solution for lifecycle management). Currently, the only area where you would need a hand from an SAP support team (your own or a certified SAP Partner) is customizations: something beyond the out-of-the-box features. And support for the end-users, of course.
Then, there's agility. With GROW, businesses can easily scale (up or down) and adapt. They can respond to market changes, launch new products, or expand into new regions without being held back by their IT systems.
Also, there's continuous innovation. Yes, I know marketers use this phrase way too often. But GROW with SAP really works like that! If something changes in your business area (new regulation, new processes, etc.), it's SAP who ensures your system supports the change – not you!
And finally, don't forget about those simplified processes: The predefined best practices help reduce the complexity that often comes with over-customization. On the other hand, this approach only suits companies eager to adopt those best practices – and change accordingly. We had clients who wouldn't refuse their "unique business processes" and switch to SAP's predefined best practices. Apparently, they are not the audience for GROW with SAP
New approach for the service providers
As my understanding of GROW with SAP evolved, so did my thoughts on how we, SAP service providers, need to adapt.
One of the most significant shifts we need to make is focusing less on customization and more on business process transformation. In the past, clients often came to us looking for highly tailored solutions that reflected every nuance of their unique processes. Now, we should rather guide them toward adopting the predefined best practices, helping simplify their operations and focus on what truly drives business value. I guess it's important to see ourselves more as consultants, not just technical implementers.
And there’s even more! With SAP’s extensive library of best practices, our consultants are no longer limited by their industry experience. Instead of relying on subjective expertise from past projects, we can now ensure that processes align with proven best practices. On the other hand, constant learning and education are now probably more important than ever. It’s the right moment to invest our time and resources into building new skills and even creating new teams. And in ACBaltica, we will truly focus on that in the meantime.
Reflecting on my journey from skepticism to understanding, I see GROW with SAP as a turning point. Cloud isn't just an option anymore; it's a necessity for staying competitive in a fast-changing world. As SAP service providers, we must continue to evolve: adopt new approaches, strengthen our expertise in cloud technologies, and guide our clients through this exciting (yet complex!) transformation. The shift to GROW with SAP is not just about technology—it's about empowering businesses to be more resilient, agile, and thriving in the years to come. And I’m truly happy that ACBaltica’s team accepts these changes and is now gradually shifting from skepticism to seeing how many new possibilities this new approach can bring.
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