SAP Customers Need to Act Now to Move from ECC to S/4HANA
Mrudula R.
Manager- Sales (Digital Transformation / ECM) @ TechOrbit | MBA, Solution Selling
Global ERP giant SAP has set a 2027 deadline for customers to move off its ECC system before mainstream support ends. However, many users, especially in Germany, Austria, and Switzerland, are worried they won’t meet the 2030 cut-off when extended support also ends.
Key Points:
- Urgent Need for Migration: Jens Hungershausen, chairman of DSAG, a group representing German-speaking SAP users, warns that if companies haven't started migrating yet, they might run out of time. The process of moving from ECC to S/4HANA is complex and time-consuming.
- Current Usage: Despite SAP’s push since launching S/4HANA in 2015, research shows that 68% of DSAG members still use ECC. Customizations in ECC, tailored to specific business needs, make the migration challenging.
- Migration Strategy: SAP suggests creating a "clean core" by removing customizations and using its cloud-based Business Technology Platform (BTP) for extensions. This approach aims to simplify maintenance and enhance processes.
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- Consultant Shortage: There's a shortage of consultants and systems integrators to help with the migration, making it harder for companies to start and complete their projects on time.
- Extended Support: After 2027, SAP offers extended support for ECC at a 2% premium, but this will only last until 2030.
Concerns and Strategies:
- AI Integration: SAP plans to integrate AI through partnerships with AWS and Microsoft, but this will only be available in cloud versions of S/4HANA, not on-premises versions. This decision has upset some users.
- Promises from SAP: SAP CEO Christian Klein promised ongoing investment in on-premises S/4HANA, but significant innovations like generative AI will only be available in the cloud.
Conclusion: SAP users still on ECC need to start their migration to S/4HANA immediately to avoid potential disruptions and loss of support. The shortage of consultants and the complexity of the migration process are significant challenges that need immediate attention.