Introduction

As we progress through 2025, major ERP vendors like SAP, Oracle, and Microsoft are navigating significant industry shifts that are reshaping their offerings and strategies. In this article, we are focusing on these three vendors because they represent the most prominent players in the ERP market and are the ones we most frequently receive questions about from clients. Their platforms dominate discussions around enterprise technology, making them crucial for businesses planning their ERP strategies.

• SAP ERP Developments
• SAP Consultant Insights
• Oracle Shifts
• Oracle Consultant Insights
• Microsoft Trends
• Microsoft Consultant Insights

SAP

1. Cloud transition and AI integration

SAP is continuing its strategic push toward cloud-based solutions, with only about one-third of its customers having fully transitioned to the cloud, indicating substantial growth potential. The company has also integrated AI capabilities into its ERP systems, enhancing functionalities such as predictive analytics, automated decision-making, and operational insights.

Source: The Wall Street Journal

• SAP BTP as a Cornerstone

SAP Business Technology Platform (SAP BTP) remains central to SAP’s strategy, providing customers with tools to manage databases (SAP HANA Cloud), orchestrate data (SAP Data Intelligence), seamless application integration (SAP Integration Suite), extend and customize systems (SAP Extension Suite) and develop and deploy AI models (SAP AI Core). SAP is actively encouraging customers to adopt and expand their use of BTP services as part of their broader digital transformation goals.

• ECC support Deadlines Loom

One of the most critical milestones for any SAP customer in 2025 is the impending end of support for ECC (Enterprise Core Components). Compatibility packs support and many ECC packages lose support in 2025, with mainstream support ending in 2027 and extended support concluding in 2030. However, SAP has recently introduced an option to extend ECC support until 2033 for customers who commit to transitioning to RISE. This move underscores SAP’s push toward S/4HANA, especially its cloud-first RISE and GROW solutions.

Source: S/4HANA: Das ist SAP’s neue Strategie zur Business Suite 7

Consultant Insights

SAP’s “Cloud first” strategy is shaping every aspect of its initiatives, from product development to customer migration efforts. The company is focused on phasing out ECC in favour of S/4HANA, with a strong emphasis on its cloud-based offerings RISE and GROW. However, the resistance from customers to abandon ECC  has led to SAP extending its support for those systems until 2033 for organisations that commit to RISE.

For customers, this presents both an opportunity and a challenge:

• Opportunity: The extended timeline for ECC support offers breathing room to develop a clear, actionable transition strategy that aligns with business needs. It also provides an opportunity to evaluate whether RISE or GROW is the right fit.
• Challenge: The pressure to adopt SAP’s cloud solutions remains high, and customers must navigate the potential cost implications and ensure that any migration plan preserves operational continuity.

Key Consideration: With ECC support winding down and SAP’s cloud push intensifying, customers must develop a comprehensive roadmap for their SAP landscape. This roadmap should factor in not only the costs and timeline of migration but also the role of SAP BTP and AI in driving long-term value. Additionally, the evolving regulatory and economic landscape—particularly uncertainties in the US—adds further urgency to secure data accessibility and ensure business continuity throughout the transition.

About the Author

Lasse Rye, SAP Senior Manager

Lasse, a Senior Manager at ITAA, has 20+ years of IT expertise, specializing in SAP licensing, contract optimization, and audit defense. Proficient in the full licensing lifecycle, he has supported organizations across Europe, driving value and compliance in complex IT environments through software asset management and strategic supplier negotiations. 

Oracle

Three Significant Industry Shifts Reshaping Oracle’s ERP Offerings

1. Rising Subscription Costs and Licensing Challenges

Oracle’s annual subscription pricing increases are creating significant cost pressure for customers. Compounding this are licensing metrics that often fail to align with actual deployments, such as dashboards tied to revenue metrics rather than user-based metrics. This disconnect makes it increasingly difficult for organisations to manage and control their ERP costs effectively.

• Aggressive Cloud Migration and Vendor Lock-In Concerns

Oracle’s push to transition customers from on-premises solutions, like E-Business Suite, to Fusion Cloud ERP, aims to boost subscription-based revenue and exploit AI and automation capabilities. However, the hard push introduces risks, including potential vendor lock-in and limited options to return to on-premises solutions. ITAA has observed a remigration trend in the database market but anticipates that such a reversal will be far more challenging for cloud ERP.

• AI and Automation Integration as Value Drivers

Oracle’s ERP solutions increasingly incorporate AI driven features, such as predictive analytics, expense automation, and machine learning models. These capabilities  enhance decision-making, streamline operations, and enable tailored insights. While these tools offer clear value, businesses must weigh their benefits against rising costs and assess whether they retain full access to their own data, especially when continuity is critical.

Consultant Insights

Oracle’s strategy is clear: Drive cloud adoption while increasing pricing. While AI features and automation bring real benefits, organisations must look beneath the surface. The uncertainty surrounding US economic and regulatory policies adds another layer of risk, making it even more critical to consider an exit strategy. A hybrid approach, focused on maintaining cost control and ensuring data accessibility, can act as an “insurance policy.” This forward-thinking strategy could give you a competitive edge if your peers fail to prepare for similar challenges.

About the Author

Reemer Feddes, Oracle Licensing Specialist

Reemer is a seasoned Oracle Licensing Specialist with over 13 years of experience. He is known for pioneering innovative solutions, optimizing license compliance, and delivering cost-saving strategies. At ITAA, Reemer helps clients navigate complex Oracle licensing challenges and achieve measurable business value.

Microsoft

Highlighted below are the significant trends influencing Microsoft’s approach this year:

1. Strategic Alignment with AI and Emerging Technologies

Microsoft continue to incorporate their AI technologies across their suite of applications, and Dynamics 365 is no different. Smart AI lends itself well to CRM and ERP systems, as its intelligent insights and predictive analytics should provide answers and planning options on par with human analysis.

• Integration Within the Microsoft Ecosystem

If your roadmap includes significant Microsoft technology, Dynamics 365 should be considered as your CRM system of choice. Its ability to integrate with Microsoft’s broader product portfolio should reduce friction and enhance collaboration across teams. Although Dynamics 365 has a high price tag, discounts should be able to be leveraged if your organisation has a significant Microsoft footprint.

Additional info: Integrate Dynamics 365 apps with other systems – Dynamics 365 | Microsoft Learn

• Adaptability to Industry-Specific Needs

Dynamics 365 is designed for flexibility and scalability, catering to organisations of varying sizes and industries. Microsoft’s release schedule for October 2024–March 2025 introduces features targeting industry-specific requirements, reflecting a commitment to staying relevant in diverse market segments.

Release Schedule: What is the Dynamics 365 release schedule and early access? – Dynamics 365 | Microsoft Learn

Consultant Insights

These shifts demonstrate Microsoft’s efforts to revitalise Dynamics 365 amidst intensifying competition, leveraging AI, ecosystem integration, and adaptability to retain market relevance.

Overall, Dynamics 365 is a mature solution that will likely continue to be chosen as the ERP system of choice for many organisations. It is rated highly in the industry but comes with a premium price tag – our advice is to be stringent on licenses in the negotiation stage. Committing to high license minimums on a long contract will incur high costs over the length of the term, especially as often only a minority of licenses are deployed and actively used.

About the Author

Lucy Baker, Senior Microsoft Consultant

Lucy Baker is a Senior Microsoft Licensing and IT Asset Management Consultant with extensive expertise in license risk remediation, optimization, and audit defense. Known for delivering tailored, customer-focused solutions, Lucy specializes in Microsoft 365 optimization, contract negotiation, and ITAM strategy, helping organizations navigate complex licensing environments with innovative thinking and precision.

About the Author

Robert Wright, Microsoft Consultant

Robert Wright is an ex-Microsoft auditor turned Licensing Consultant. He focuses on license compliance with a strong emphasis on cost-saving strategies. With a proven track record, he excels in optimizing licensing portfolios across various industries, particularly in the public sector.

Conclusion and Key Takeaways

In an increasingly complex ERP landscape, navigating vendor-specific challenges requires deep expertise and strategic insight.

At ITAA, our team of seasoned consultants brings extensive experience across SAP, Oracle, and Microsoft and many others, offering unparalleled guidance in licensing, compliance, and optimisation.

From ex-vendor specialists to procurement experts adept at negotiating high-stakes contracts, we provide the breadth and depth of knowledge needed to help organisations maximise value, mitigate risk, and maintain control over their wider software investments.

Whether you are planning a cloud migration, tackling licensing complexities, or optimising your procurement approach, ITAA provides the expertise you need to navigate these challenges with confidence.