Firms risk disruption as nearly 40% still use on-premise ERP despite looming support deadlines
Nearly 40 percent of global companies still rely on on-premise ERP systems.
As end-of-life support deadlines approach, this reliance significantly increases operational and compliance risks, Strada’s new report The cost of standing still: Why ignoring cloud ERP could harm your business found.
The report identifies Microsoft Dynamics (20 percent) and SAP (19 percent) as the most used legacy platforms.
SAP’s support for ERP Central Component (ECC) will end in December 2025, and Microsoft Dynamics GP will follow by 2029.
Despite these looming deadlines, many organisations remain hesitant to act, with Strada stating that “transformation is no longer a future priority – it’s a present necessity”.
According to Gautam Sukumar, chief operating officer at Strada, companies delaying migration are “not only facing rising costs, but also reduced support as on-premise systems are phased out.”
He said this leaves them unable to pursue opportunities related to AI, data insights, and improved employee experiences.
Barriers to cloud adoption include budget constraints (42 percent), integration complexity (42 percent), and resistance to change (33 percent), according to Strada’s global findings.
These issues are particularly acute in larger entities, where fragmented legacy environments and siloed decision-making processes slow progress.
A disconnect between decision-makers and system users also emerged from the data.
While 92 percent of C-suite leaders rate their HR systems as effective, only 63 percent of frontline employees agree—and just 14 percent say those systems support career progression.
Strada’s report points to this misalignment as a key obstacle in driving effective technology change.
For companies that have already adopted cloud ERP, the results show measurable improvements.
Only 20 percent reported smooth payroll operations prior to migration, but that figure increased to 55 percent post-deployment, as per Strada.
The case for modernising is strengthened by increasing pressure for real-time data, AI integration, scalable infrastructure, and tighter cybersecurity, especially under frameworks like the Corporate Sustainability Reporting Directive (CSRD), according to the report.
Johan Bosschaerts, head of Product and Technology at Strada, said that “delaying migration means relying on systems that weren’t built for today’s demands.”
He noted that cloud platforms support resilience, innovation, and compliance while shifting IT teams from reactive tasks to proactive business management.
