Once a dependable system of record, ERP is now expected to support faster decision-making, enable automation and AI, scale with the business, and adapt as markets change. This shift is reflected in adoption patterns: more than 70% of ERP deployments were cloud-based in 2024 (DocuClipper, 2025), as organizations modernize core systems and move away from legacy architectures.

This gap between what growing businesses need from ERP as they scale operations and expand into new markets and what legacy systems can deliver is becoming harder to ignore. Aging infrastructure slows innovation, upgrade cycles stretch longer, and IT teams spend more time keeping systems running than enabling new capabilities. Forbes predicts that three-quarters of global businesses will move away from traditional monolithic ERP by 2027, underscoring the urgency of modernization at scale (Forbes, 2025).

Five reasons public cloud matters now

The forces driving ERP toward the public cloud

Public cloud ERP has emerged as a response to these pressures, giving growing organizations scalable infrastructure, continuous updates, and modern capabilities without the burden of managing underlying systems. With the cloud ERP market projected to nearly double to $173 billion by 2029 (MarketsandMarkets, 2025), organizations don’t want to keep overhauling their ERP. Businesses want public cloud to evolve with it, helping them prioritize real-time integration, data access, and ongoing innovation. .

This shift goes beyond a simple technology upgrade. It reflects a change in how ERP supports a growing business from a back-office system to a foundation that is core to its operations. With public cloud ERP, businesses are enabled to drive more innovation, provide more flexibility, and create stronger security and resilience against data risk.

Public cloud ERP as a platform for innovation

One of the key advantages of public cloud ERP is that it makes it easier to keep improving over time. In traditional on-premise environments, upgrades are often delayed by cost and complexity. Public cloud ERP removes that barrier by delivering regular updates, giving organizations ongoing access to capabilities like analytics, automation, and AI across core business processes.

Designed to work easily with other cloud services, public cloud ERP makes it easier to bring intelligence into everyday operations. AI-powered capabilities like predictive analytics and forecasting help teams move from reactive reporting to more proactive decision-making without needing to rebuild their systems. With the right support, organizations can embed these capabilities into how work gets done, turning AI into a practical, repeatable part of daily operations rather than a standalone tool.

Balancing standardization and flexibility

A common concern about public cloud ERP is whether standardization limits flexibility. In practice, modern platforms are designed to balance both. Standardized core processes help reduce complexity, while extensions and integrations allow organizations to adapt as they grow.

With the right governance and a thoughtful approach to customization, organizations can modernize ERP without recreating the complexity of legacy systems. This helps them stay flexible while building a more stable foundation for growth.

Security, compliance, and resilience in the public cloud

Security and risk are top priorities for any ERP transformation. Public cloud ERP platforms build in security, compliance, and monitoring from the start and keep them up to date over time.

With built-in patching, encryption, and identity management, public cloud ERP helps organizations stay ahead of security threats and changing regulations. When implemented well, it can strengthen security without adding extra overhead, reducing risk from outdated systems and improving overall resilience.

From migration to continuous value

One of the biggest shifts is thinking about ERP not as a one-time project, but as something that continues to deliver value over time.

Public cloud ERP makes this shift possible by helping organizations adapt to changing market conditions, scale as they grow, and continue improving without disruptive upgrades. In this model, ERP is not something you implement and leave behind. It is a platform that evolves as the business grows and priorities change.

Getting value over time takes more than just the initial move to the cloud. It requires ongoing optimization and the ability to keep improving as the business evolves. This is where the right technology and implementation partners can help, supporting not just the move to the cloud, but how organizations continue to get value from it as they grow.

How SAP enables public cloud ERP at scale

As organizations move ERP into the public cloud, they need platforms designed for how cloud systems work, not legacy systems adapted after the fact. SAP Cloud ERP, public edition is an out-of-the-box solution that provides real-time insights, built-in AI, and the ability to scale across finance, supply chain, procurement, and more. With preconfigured best practices, organizations can get started quickly and adopt proven processes from day one while reducing complexity.

Delivered as an evolving service, the platform allows organizations to adopt new capabilities without disruptive upgrades. Teams can adjust processes, extend what the system can do, and enter new markets without adding unnecessary complexity. This creates a public cloud foundation that supports steady growth while maintaining the stability and security of the core ERP.

Where Deloitte comes in: turning cloud capability into business value

Technology alone does not guarantee a successful ERP transformation. While public cloud ERP creates new opportunities, it also brings new decisions around how systems are set up and managed. Moving to the cloud is one step, but making it work within everyday business processes is what drives real results.

This is where Deloitte can play an important role as a consulting services and implementation partner.

Building on its long-standing alliance with SAP and deep cloud expertise, Deloitte helps organizations move beyond deployment to focus on value. This includes INTEGRATE, a set of solutions designed to speed up ERP implementation and reduce risk as organizations scale. INTEGRATE brings together preconfigured capabilities, built-in integrations, and automation to help connect systems more easily and support ongoing improvements through analytics and AI.

These solutions are supported by Deloitte’s advisory and change management services, helping organizations continue to get value after go-live. Rather than treating ERP as a one-time project, Deloitte helps integrate it into the broader business so it can keep improving over time.

The role of hyperscalers

Public cloud ERP runs on hyperscalers, which are cloud providers that offer the infrastructure and scale needed to support modern systems. These platforms make it easier for ERP systems to run more flexibly and efficiently than traditional on-premise environments.

Among SAP-certified hyperscalers, Amazon Web Services (AWS) is a common choice for organizations running ERP in the public cloud. It provides on-demand infrastructure, global availability, and flexible pricing, along with services that support data, automation, and AI. Running ERP on AWS helps organizations combine modern ERP capabilities with a cloud environment that is secure, scalable, and able to grow with the business.

The takeaway: public cloud ERP as a strategic advantage

As public cloud ERP becomes the standard for growing organizations, the focus is shifting from just moving to the cloud to getting long-term value from it. Organizations are looking for ERP platforms that can evolve over time, support ongoing improvements, and keep up as business needs change.

SAP’s public cloud ERP offering, supported by hyperscale infrastructure and implementation partners, is one way organizations can get this value. Together, SAP, AWS, and Deloitte help simplify ERP, support data and AI-driven work, and create a system that can grow and adapt over time.