At a time when agility, adaptability and technological resilience make the difference between success and stagnation, many organizations continue to cling to business management (ERP) and human resources (HR) systems (HR). This choice can translate into increasing costs and operational vulnerabilities that threaten its continuity.
A recent global study by Strada, reveals that about 40 % of companies still depend on on-premise platforms such as Microsoft Dynamics and SAP. With the technical support of these systems approaching their end in the coming years, the urgency of migrating to cloud solutions is increasingly evident.
The clock progresses for Microsoft Dynamics and Sap
The end of the support for ERP Central Component (ECC) of SAP is scheduled for December 2025, while Microsoft Dynamics GP will stop offering it in 2029. This situation raises a critical scenario for companies that have not started the transition to Cloud systems, facing high interruption risks and support loss.
“The transformation is no longer a future priority, it is a present necessity,” says Gautam Sukumar, Strada Operations Director. “Organizations that delay migration not only increase their costs, but are exposed to an increasingly limited support, losing the opportunity to take technologies such as artificial intelligence, advanced data analysis and improvement of employee’s experience.”
Barriers for modernization and gap between address and employees
Although 36 % of companies prioritize efficiency and productivity, and 35 % seek to extract value from technology, the complexity of integrating new platforms and internal resistance stop the progress. Budgetary restrictions and fragmented environments complicate the process, especially in large organizations.
In addition, there is an obvious disconnection between leaders and employees who use these systems. While 92 % of senior managers consider that their HR systems are effective, only 63 % of workers agree, and only 14 % believe they support their professional development. This gap shows the need for alignment for a real and effective transformation.
Real benefits to migrate to the cloud and adopt
Companies that have already made the leap to the cloud report notable improvements. Before migrating, only 20 % reported a fluid payroll management, a figure that rises to 55 % after migration, demonstrating the positive impact on daily operations.
“The dependence on outdated systems limits the capacity for innovation and response,” says Johan Bosschaerts, product director and technology at Strada. “Cloud platforms are the basis for greater resilience, integrating artificial intelligence and reinforcing cybersecurity, in addition to facilitating regulatory compliance. This allows IT teams to anticipate problems and focus on promoting strategic priorities.”
With the imminent disappearance of support for traditional systems and the growing pressure to innovate, migration to the cloud is not only a technical issue, but a strategic decision. Integrated artificial intelligence, real -time visibility of the data, and the robust security protocols are essential to face current and future challenges.
