New Strada report finds nearly 40% of businesses are still dependent on ageing HR systems as cloud migration becomes critical
LONDON – 9 July, 2025 – In a climate where speed, agility, and resilience are essential, too many organisations are still relying on outdated on-premise HR and ERP systems – and the cost of inaction is mounting. New global research from Strada reveals that nearly two in five companies continue to operate on on-premise platforms such as Microsoft Dynamics (20%) and SAP (19%), despite looming end-of-life support deadlines that significantly raise the risk of disruption.
With SAP’s mainstream support for ERP Central Component (ECC) ending in December 2025, and Microsoft Dynamics GP following by 2029, Strada’s new report The cost of standing still: Why ignoring cloud ERP could harm your business exposes the growing gap between business ambitions and operational realities. Despite clear goals to modernise, adopt AI capabilities, tighten cybersecurity, and enhance the employee experience, many organisations remain stuck. For most, 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. 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.
Gautam Sukumar
Chief operating officer Strada
While 36% of global businesses have prioritised efficiency and productivity, and 35% are focused on realising technology value, many are still struggling to act. Budget constraints (42%), integration complexity (42%), and resistance to change (33%) remain significant barriers – particularly in large organisations where fragmented legacy environments and decision-making siloes slow progress.
At the same time, a clear disconnect exists between strategic leadership and frontline users. While 92% of C-suite leaders rate their current HR systems as effective, only 63% of frontline employees agree – and just 14% feel their systems support career progression. This gap highlights a critical issue: those making technology decisions are often out of step with the needs of the people expected to use the systems daily.
While many organisations are still suspending change, those that have embraced cloud migration are already reaping the benefits. Just 20% of respondents reported smooth payroll operations before migrating to the cloud. After deployment, that figure jumped to 55%, underlining the value of decisive action and the real operational improvements possible.
The case for cloud-based HCM and ERP systems continues to grow. Organisations are increasingly 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. 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.
Johan Bosschaerts
Head of product and technology Strada
As organisations face end-of-life deadlines for legacy systems and mounting pressure to modernise, the imperative is clear: cloud migration is the gateway to innovation. Cloud platforms deliver real-time insights, integrated AI capabilities, robust security protocols, and compliance with evolving regulations. Acting now not only mitigates operational risks but also positions organisations to capitalise on future opportunities. Access the full report here.