[Global] With nearly 40% of businesses depending on ageing HR systems cloud migration is critical

New research from Strada has found that nearly two in five global companies continue to operate on on-premise platforms such as Microsoft Dynamics (20 per cent) and SAP (19 per cent), despite end-of-life support deadlines, which significantly increase disruption risk.   

SAP’s mainstream support for ERP Central Component (ECC) will end in December 2025, and Microsoft Dynamics GP will follow by 2029. Strada’s new report, The cost of standing still: Why ignoring cloud ERP could harm your business, reveals the growing gap between business ambitions and operational realities.

Despite clear goals to modernise, adopt AI capabilities, tighten cybersecurity, and enhance the employee experience, Strada reportedly found that many organisations remain stuck.  For the majority, the shift away from legacy infrastructure feels too complex or costly to act on now.   

"Transformation is no longer a future priority – it’s a present necessity," Gautam Sukumar - Chief Operating Officer at Strada - said. "Organisations delaying migration are not only facing rising costs, but also reduced support as on-premise systems are phased out. This leaves them exposed and unable to capitalise on the opportunities ahead – from AI and data-driven insights to improved employee experiences.”   

According to the report, 36 per cent of global businesses have prioritised efficiency and productivity, while 35 per cent are focused on realising technology value, but many are still struggling to act. Budget constraints (42 per cent), integration complexity (42 per cent), and resistance to change (33 per cent) continue to be significant barriers; particularly in large organisations where fragmented legacy environments and decision-making siloes slow progress down.   

An evident disconnect reportedly exists between strategic leadership and frontline users. While 92 per cent of C-suite leaders rate their current HR systems as effective, only 63 per cent of frontline employees agree, and just 14 per cent feel their systems support career progression. This gap exposes a critical problem: those making technology decisions are often out of step with the needs of the people expected to use the systems daily.   

Strada found that, while many organisations are still suspending change, those that have embraced cloud migration are already reaping the benefits. Just 20 per cent of respondents reported smooth payroll operations before migrating to the cloud. After deployment, that figure leapt to 55 per cent, demonstrating the value of decisive action and the real operational improvements possible.   

The case for cloud-based HCM and ERP systems is growing stronger. Increasingly, organisations are driven by the need for integrated AI, real-time data visibility, scalable infrastructure, stronger security, and compliance with evolving regulations such as the Corporate Sustainability Reporting Directive (CSRD).   

“Businesses don’t have the luxury of time anymore,” Johan Bosschaerts - Head of Product and Technology at Strada - said. “Delaying migration means relying on systems that weren’t built for today’s demands. Modern cloud platforms provide a foundation for increased resilience and innovation, enabling organisations to capitalise on AI capabilities while ensuring stronger cybersecurity and easier compliance. By doing so, IT teams are empowered to transition from reactive, technical problem solving to proactive management, driving business imperatives and real progress.” 

Source: Strada

(Quotes via original reporting)

New research from Strada has found that nearly two in five global companies continue to operate on on-premise platforms such as Microsoft Dynamics (20 per cent) and SAP (19 per cent), despite end-of-life support deadlines, which significantly increase disruption risk.   

SAP’s mainstream support for ERP Central Component (ECC) will end in December 2025, and Microsoft Dynamics GP will follow by 2029. Strada’s new report, The cost of standing still: Why ignoring cloud ERP could harm your business, reveals the growing gap between business ambitions and operational realities.

Despite clear goals to modernise, adopt AI capabilities, tighten cybersecurity, and enhance the employee experience, Strada reportedly found that many organisations remain stuck.  For the majority, the shift away from legacy infrastructure feels too complex or costly to act on now.   

"Transformation is no longer a future priority – it’s a present necessity," Gautam Sukumar - Chief Operating Officer at Strada - said. "Organisations delaying migration are not only facing rising costs, but also reduced support as on-premise systems are phased out. This leaves them exposed and unable to capitalise on the opportunities ahead – from AI and data-driven insights to improved employee experiences.”   

According to the report, 36 per cent of global businesses have prioritised efficiency and productivity, while 35 per cent are focused on realising technology value, but many are still struggling to act. Budget constraints (42 per cent), integration complexity (42 per cent), and resistance to change (33 per cent) continue to be significant barriers; particularly in large organisations where fragmented legacy environments and decision-making siloes slow progress down.   

An evident disconnect reportedly exists between strategic leadership and frontline users. While 92 per cent of C-suite leaders rate their current HR systems as effective, only 63 per cent of frontline employees agree, and just 14 per cent feel their systems support career progression. This gap exposes a critical problem: those making technology decisions are often out of step with the needs of the people expected to use the systems daily.   

Strada found that, while many organisations are still suspending change, those that have embraced cloud migration are already reaping the benefits. Just 20 per cent of respondents reported smooth payroll operations before migrating to the cloud. After deployment, that figure leapt to 55 per cent, demonstrating the value of decisive action and the real operational improvements possible.   

The case for cloud-based HCM and ERP systems is growing stronger. Increasingly, organisations are driven by the need for integrated AI, real-time data visibility, scalable infrastructure, stronger security, and compliance with evolving regulations such as the Corporate Sustainability Reporting Directive (CSRD).   

“Businesses don’t have the luxury of time anymore,” Johan Bosschaerts - Head of Product and Technology at Strada - said. “Delaying migration means relying on systems that weren’t built for today’s demands. Modern cloud platforms provide a foundation for increased resilience and innovation, enabling organisations to capitalise on AI capabilities while ensuring stronger cybersecurity and easier compliance. By doing so, IT teams are empowered to transition from reactive, technical problem solving to proactive management, driving business imperatives and real progress.” 

Source: Strada

(Quotes via original reporting)