SAP AMS in the Digital Era

Reason for adopting SAP AMS in the Digital Era?

Reason for adopting SAP AMS in the Digital Era?

SAP Application Management Services (AMS) are services provided by various organizations to companies that need to outsource some or all of their SAP enterprise application support. AMS providers are organizations that offer IT and application management expertise for other companies. 

Spending on application management services (AMS) is on the rise. Grand View Research valued the global AMS market at 3786.08 in 2015 and forecasts it to reach 6187.49 billion by 2025. According to some SAP Intelligence, the global AMS market reached 6187.49 billion in 2016 and will experience CAGR of 4.75% to reach 7503.58 billion by 2021.

Reason for adopting SAP AMS in the Digital Era?

Reason for adopting SAP AMS in the Digital Era?

What is AMS?

Time to value is at the core of a good AMS offering. These services can range from on-demand SAP support through full application outsourcing and managed cloud. This can include application enhancements (change requests (minor or major), upgrades, roll-outs) and optimization (advisory services, assessments, roadmaps).

Services are delivered by highly qualified consultants who leverage their SAP expertise and business knowledge to deliver maximum value to your organization. Because they do this repeatedly and have teams of experts across the SAP landscape, time to value is reduced. The AMS provider becomes an extension of your organization, giving you the ability to be more strategic with your SAP solution.

Following are the top 3 reasons why you should consider adopting SAP AMS:

AMS has evolved from cost-cutter to transformation partner

An estimated two of every three IT dollars is spent on day-to-day maintenance and support of existing technology. That such a high percentage of IT spend remains locked in the management of the existing IT state stands in direct contrast to the tremendous pressure on CEOs and CIOs to embrace transformation, accelerate innovation and advance business.

Historically, Application Managed Services was a means for improving operational efficiency, reducing costs and freeing up internal resources. Basically, AMS was about “Keeping the Lights On”.

When we consider the proliferation and ascension of technology in business, the accepted truism that every company is now a technology company, the blinding speed with which technology evolves, and the wholesale business transformation being driven by technology, AMS providers with the right stuff are being re-discovered and re-embraced as strategic business partners vital to success, transformation, and growth.

Enterprises today need to innovate, evolve and stay connected 24/7 to achieve better business returns. The AMS outsourcing conversation today is moving away from tactical efficiency gains to providing strategic capabilities for transformation and innovation.

AMS gets scalable and agile

Applications are at the heart of digital transformation, and the only constant in transformation changes. Applications are moving to the cloud. Agile and DevOps methodologies are reinventing the way development and operations teams design and deliver applications. New practices like design thinking are elevating speed and time-to-value over lengthy, complex project cycles.

In addition, in today’s digital world, application development and management tend to be more agile and faster with higher quality. IT and AMS work in conjunction to investigate new technologies and trends. Thus, it can foster adaptive planning, quick delivery and, continual enhancements.


The onus today is on IT and AMS to work in concert to investigate new technologies and trends, define the specific business opportunities they make possible for your organization, and continuously and quickly deliver iterative releases of multiple applications that delight end-users and advance business. Based on the principle of evolving requirements and solutions through collaboration among self-organizing, cross-functional teams, Agile can foster adaptive planning, early delivery, and continual improvement.

AMS gets intelligent & automated

The demands that today’s businesses place on IT are intense — applications must be free of downtime, highly available, and performing optimally at all times. Providing these capabilities requires intensive monitoring and maintenance, which can be difficult in the complex IT environments that are now typical of many organizations. IT leaders are looking for ways to gain insight into issues before they impact end-users.

AMS teams need to avoid duplicate effort and finger-pointing and instead focus on optimizing allocation, anticipating incidents, and shifting from a reactive approach to a proactive approach. This isn’t change for the sake of change; companies that pursue such initiatives on the way to end-to-end IT operations visibility have been found to be three times more likely to fix issues more quickly, more than two-and-a-half times more likely to have lower IT error rates, and more than two times more likely to have high availability of IT systems and services.

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