SAP has been helping businesses streamline operations, improve efficiency, manage data, and make informed decisions for a long time since its launch of SAP R/1 in 1972. Over the years, the software has evolved, with SAP ECC 6.0 being released in 2005 and widely adopted across industries. Today, over 400,000 companies and approximately 269 million cloud users rely on SAP solutions worldwide.¹
Recently, SAP introduced S/4HANA, a new generation of ERP software. It simplifies data models, offers a modern user interface, and integrates advanced technologies like AI and machine learning. However, only around 45% of users have switched to SAP S/4HANA.² This could be concerning since SAP plans to end mainstream support for ECC by 31 December 2027.³
What Does This Migration Deadline Mean?
After 2027, SAP will stop providing new features, updates, and critical security patches for ECC users. This puts businesses relying on ECC at risk of losing the support needed to maintain and secure their systems.
Imagine running your business on software without security patches or critical updates. It’s like driving a car without insurance—every day, you’re exposed to potential risks, and the cost of dealing with those risks on your own can be hefty.
Without mainstream maintenance, SAP ECC customers will either have to run unsupported software—risking costly outages and security problems—or pay a high price for extended maintenance services, which will include a 2% increase in fees, according to SAP. All extensions for maintenance support will end by 2030.
These extended maintenance costs can be very high, especially compared to the benefits of switching to a fully supported, modern ERP system like SAP S/4HANA.
What Do Businesses That Don’t Migrate Early Stand to Lose?
Beyond the end of mainstream maintenance and increased financial burden, here are several risks of delaying S/4HANA migration:
Falling Behind Competitors
Business is a race, and staying ahead often means making smart investments at the right time. S/4HANA provides tools that give businesses a competitive edge—whether through better data management, improved customer insights, or more efficient operations. If you’re not using these tools, your competitors likely are.
Delaying migration to SAP S/4HANA means potentially falling behind competitors who have already made the switch and are leveraging the platform’s advanced capabilities, such as improved data quality, streamlined operations, improved customer experiences, and enhanced innovation.
Operational Inefficiencies
Every day your business operates on ECC, you’re potentially wasting resources. SAP HANA’s in-memory database, S/4HANA, allows for faster data processing and more efficient execution of complex tasks. It’s built to handle the demands of modern business with a simplified data model that reduces redundancy and complexity.
Sticking with ECC means encountering inefficiencies like slower processing times and complicated data management. Over time, these issues will lead to higher operational costs and missed chances for improvement. The actual price isn’t just financial—it’s also a drag on your business’s ability to perform at its best.
Innovation on Hold
Innovation isn’t a luxury anymore; it’s a necessity. The market is evolving at breakneck speed, and businesses that aren’t pushing boundaries risk becoming irrelevant. S/4HANA isn’t just a new ERP system—it’s a platform built for the future. With its advanced analytics, machine learning, and IoT capabilities, it’s designed to help companies innovate and adapt.
Think about what you’ll miss out on by sticking with an older system. S/4HANA allows for real-time data processing, which means you can make decisions faster and more accurately. It’s not just about keeping up with the competition—it’s about leading the charge. Companies that delay in SAP migration are closing the door to opportunities to leverage cutting-edge technology that could transform their business.
Increased Complexity Over Time
The longer you wait to migrate, the more complex the process becomes. As time passes, businesses add more customizations, third-party integrations, and legacy data, making it more challenging to switch to S/4HANA.
Waiting too long can also lead to problems, especially if you need to rush the migration. Risks include data loss, extended downtime, and operational chaos—issues no business wants. Starting the migration process early helps ensure a smoother and less risky transition.
Compliance and Regulatory Risks
Data security and regulatory compliance are non-negotiable in today’s business environment. With regulations like GDPR and the growing threat of cyber-attacks, your systems need to be more secure and compliant than ever. S/4HANA is built with these challenges in mind, offering advanced security features and compliance tools.
On the other hand, businesses that continue using ECC after mainstream maintenance ends might struggle to keep up with new regulations. Without updates, they risk falling out of compliance, which could lead to legal issues.
Meeting Customer and Partner Expectations
As more companies transition to S/4HANA, customer and partner expectations will evolve. They will expect businesses to leverage the platform’s full capabilities to deliver better services and experiences. Companies that delay data migration may find it challenging to meet these expectations, leading to dissatisfied customers and strained relationships with partners.
Additionally, as the SAP ecosystem increasingly revolves around S/4HANA, finding compatible solutions and services for ECC may become more complex. This could further limit a company’s ability to innovate and meet market demands.
Aligning with Long-Term Growth Strategies
Ultimately, the decision to migrate to S/4HANA is about aligning your business with its long-term growth strategy. S/4HANA is designed to support digital transformation, enabling business processes to become more agile, data-driven, and customer-focused. It provides the foundation for this adaptability, offering the flexibility and scalability needed to grow in a rapidly changing environment. Delaying migration risks leaving your business unable to leverage the digital age’s opportunities fully.
Data Migration Challenges to Expect
Transitioning to SAP S/4HANA will not always smooth sailing.
A survey of 116 SAP user organizations found that 61% of organizations faced or expected data management issues that could slow down their automation during the move from ECC to S/4HANA.⁴ Additionally, 66% of respondents said that data change management is a significant challenge when transitioning from SAP ECC 6.0 to SAP S/4HANA, according to a UK and Ireland SAP User Group (UKISUG) study.
SAP suggests that migration typically takes about one to one and a half years for small organizations using a big-bang approach. For larger companies, it can take 2 to 3 years.
With the 2027 deadline approaching, now is the best time to start. To help you with the transition, we’ve created a comprehensive guide that includes a step-by-step migration strategy and readiness assessment workbook for a smoother experience. You can access the resource by simply clicking this link.
DON’T KNOW WHERE TO START WITH MIGRATING TO S/4HANA? RASO360 CAN HELP!
Raso360 is a leading expert in cloud solutions. This is not just something we say about ourselves—others agree, too. In 2018 and 2019, The 360 Companies was named one of the nation’s fastest-growing companies. We specialize in cloud solutions that drive growth and efficiency, including SAP, Microsoft Dynamics, and Oracle.
If you’re using SAP ECC 6.0 and considering upgrading to SAP S/4HANA, we can help you manage the transition with ease. Download our complete SAP S/4HANA migration guide to learn the essential first steps for a smooth upgrade.
Raso360 offers expert support whenever you need it. Schedule a consultation to explore your ERP requirements, and we’ll tailor a solution that perfectly aligns with your business needs.
References
- “SAP: A 50-year history of success” SAP, 31 Aug 2024, www.sap.com/africa/about/company/history.html#:~:text=What%20is%20SAP%20and%20its,use%20business%20insight%20more%20effectively..
- Baltazar, Blake. “The State of SAP S/4HANA Adoption: Trends, Successes, and Challenges” ASUG, 28 July 2024, www.asug.com/insights/the-state-of-sap-s-4hana-adoption-trends-successes-and-challenges.
- Stenzig, Martin. “The impact of 2027 on SAP customers” SAP Community, 25 Sept. 2022, community.sap.com/t5/enterprise-resource-planning-blogs-by-members/the-impact-of-2027-on-sap-customers/ba-p/13525401.
- Gendreau, Paul. “SAP S/4HANA Data Migration Success” SAP Community, 4 April 2022, community.sap.com/t5/enterprise-resource-planning-blogs-by-sap/sap-s-4hana-data-migration-success/ba-p/13546662.
