Are S/4 migration patterns changing in the run up to 2027 and 2030
SAP are pretty clear about the end of standard maintenance on ECC and the period for which they will offer extra support, and although this could change, it is all we have to go on currently… I think it is interesting to reflect on how the next few years will go.
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If you are a reasonably simple or smaller SAP ECC client then really there is still some time to sort everything out, an upgrade is still achieve able easily, even if you start at the beginning of 2023, run an analysis or tender process for a few months, you will still be sorted out in 2024 and so you can obviously delay your decision a while if you have to. Though undoubtedly, a start after mid 2025 may be a bit sweaty and expensive as clients compete for scarce?resources but I am sure the process will be hugely industrialised. And the cost of the extra maintenance if you do miss will not be too great.
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In the larger more complex clients, the picture is less simple. If you have a large estate, where perhaps you want to rationalise and transform (say you have multiple instances and want to move to one) or you want to make some radical changes to your org structures or reporting etc., I think we are getting to a point where things have to move pretty fast.
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In a large client with a turnover or €1bn plus it is likely there will be a period of analysis, a tender to run, perhaps a business case to create etc. etc. and in my experience this is going to take 12 months or so, given the usual delays caused by ‘events’ whether they be external or internal. Such as changes in sponsors etc., it would be prudent to allow an extra 6 months. So starting now you get to the beginning of the project at the start of 2024 or maybe ? way through. That gives larger clients between 2?? years to do it in the normal maintenance window or 5 ? years with the special support. Given that a new Greenfield S/4 replacing ECC in a large client may take up to 3 years (or more if there are bumps along the way such as change of focus or an acquisition etc.) I think the message is -you better be getting on with it (just saying). And though most large clients are planning the move not as many have started and decided what?and how they are going to do it.
领英推è
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So what am I saying, and observe:
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- I note that quite a few clients who did simple migration to S/4 with no change, seem to be pretty happy and are taking full advantage, however some are choosing to sort out underlying data and organisational structure issues that they could have done when they upgraded using selective data migration
- Large clients that are considering a major transformation as they upgrade really need to get a move on, they have time but they have not allowed a lot of contingency for ‘events’ and programme delays
- The really huge clients are going to have push really hard to get the move completed on time, though I really doubt they will lose support as SAP are very close to them
- Inevitably as the clock ticks down, more people will go for upgrades rather than transformation, there is still plenty of time to do a straight upgrade or a selective data transformation/renovation as this will take between 12 and 30 months depending on the amount of change, number of instances etc.
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So in summary if you don’t think you have full commitment from your business to start your major ECC to S/4 transformation, it may be better to migrate and renovate and save the heart ache and pressure to the ticking clock…
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2 å¹´there is nothing wrong about starting with a technical migration first. However, the better option is to reduce the technical debt of heavy custom solutions and increase flexibility and agility while moving to S/4HANA,
Director, SAP Global Alliance at VMware
2 å¹´Good post David. Are you seeing some of the complexity being introduced by SAP and their new drive to convert customers to cloud/subscription licenses? RISE seems to be a primary topic along with converting customers to S/4 HANA Cloud licenses. Would like to get your PoV.
General Manager / Principal Enterprise Solution Architect Corporate Applications and SAP
2 年Waiting is not too much of an option…
Helping SAP customers transform with our partner ecosystem. Opinions are personal.
2 å¹´David Lowson As you rightly said, most large companies struggle for a commitment from business. Only a few consulting leaders walking through the CIO's door are helping him sell the case to his business on Why now to S4. Most of them start the conversations around how ( Green, brown, or pick a colour)?to move to S4 based on an arbitrary deadline and dont make any headway. The former, who are very few, are winning the battle in the marketplace.? That may be why we still have more than 80% of ECC customers who need to move to S4, especially companies with more than a few billion in revenue.
Good reading