Why the World Still Runs on SAP
TLDR
- AI is becoming a layer on top of SAP, Salesforce, and ServiceNow, making them more programmable without replacing them.
Key Takeaways
- Upgrading from SAP ECC to SAP S/4HANA can cost $700M, take 3 years, and require a 50-person Accenture team.
- Digital workers toggle between apps ~1,200 times per day, losing about 4 hours per week; 47% struggle to find information needed to do their jobs.
- The software implementation and system integration market was ~$380B in 2023, driven largely by ERP friction and failed transformations.
- A new startup category is emerging: implementation copilots, usage agents, and extension tools that sell into CIO/CFO transformation budgets by reducing SI headcount and timeline risk.
- Computer-use agents (e.g., Factor Labs, Sola) complement API-first tools by automating the 30-40% of enterprise workflows with no clean API endpoint.
Why It Matters
- Legacy ERP systems encode irreplaceable institutional memory: permissions, posting logic, custom workflows, and compliance controls built over decades.
- The winning pattern is a unified data-and-action plane that reads from systems of record and exposes governed thin apps, keeping the core system clean while shipping fast purpose-built experiences on top.
- Startups that price to delay avoided and integrate with existing SI partner motions can displace bloated consulting engagements without requiring a rip-and-replace.
Eric Zhou, Seema Amble, Andreessen Horowitz · 2026-03-16 · Read the original
