If your company uses SAP’s enterprise resource planning (ERP) system, it is about time to start thinking about the future.
SAP has announced that it will end support and maintenance of its current ERP system at the end of 2025. Many companies will be facing an update or migration to a new system.
New System Enables Streamlining of IT Architecture
Before changing to a new system, it is important to map out your company’s current and future needs. System updates are a business-critical change for many companies, but when done right, they can open to door to significant cost savings.
Migrating to a new system also gives companies the opportunity to take a look at the company's operations and re-evaluate the need for customisation. Migrating to a new platform can also help to simplify IT architecture and adopt cloud services.
It is often the case that by altering its own operations, a company can adopt standard solutions, which make operations more efficient and create savings.
SAP Offering SAP S/4HANA as Replacement
As its new ERP system, SAP is offering the SAP S/4HANA system, which uses SAP’s own HANA database. SAP’s previous software solutions have used, e.g. Oracle’s and other suppliers’ databases. This being the case, the system change will also require migrating databases into the new S/4HANA ERP system.
This system migration will require a great deal of work and planning from companies. The migration requires the adoption of the new system as well as conversions and data transfers. Given that the common SAP ECC version and S/4HANA have completely different system architectures, updating and conversion could prove to be surprisingly work intensive. This is more than just a version update, it is the adoption of a genuinely new system.
New System, New Contracts
Migrating to a new system will also require contract negotiations with SAP covering terms of use, prices and potentially support and maintenance. Negotiations always take time and resources.
The customer also needs to understand both its own ambitions with respect to its existing systems as well as the transformation process.
Don’t be Caught Shorthanded at Crunch Time
There is no overabundance of SAP experts in Finland. If many companies leave this migration to the last minute, they are going to find themselves shorthanded. This could increase costs and the risk of failure. The demand for skilled experts will grow as more customers decide to update their systems.
Time to Get Started
Even though 2025 still seems a long way off, it would be wise to start planning and preparing now. There is certain to be more room for negotiations with SAP now than closer to the end of support and maintenance for the current system.
The key to success is good preparation and planning. You will need to engage in negotiations on two fronts, as in addition to the system project, you will also need a partner to handle the system implementation, conversion and data migrations.
The road may be long and rocky, and it is wise to pick partners who will help carry the load to reach the best result.
FAQs
SAP has announced that it will end support and maintenance of its current ERP system at the end of 2025. Many companies will be facing an update or migration to a new system. Before changing to a new system, it is important to map out your company's current and future needs.
What will happen to SAP after 2025? ›
SAP Business Suite, which also includes SAP ECC and SAP S/4HANA, extended the deadline from 2025 to 2027 for the robust on-prem ERP system! This news can be hard-hitting for users who have spent years of expertise and bandwidth on SAP ECC.
Is SAP support deadline extended yet again to 2027? ›
Enterprise and software giant SAP has set a 2027 deadline after which its systems will be built to run on just one single database. The year 2025 was originally the S/4HANA deadline. However, it was way too optimistic as a timescale for the SAP Business Suite 7 user base to move onto the new platform.
Will SAP be replaced? ›
Will SAP be replaced? According to SAP, the company will be folding its ERP products into the HANA platform in 2025. Current customers will need to come up with a strategy to deal with these upcoming changes, including whether they want to continue using SAP's ERP solution.
Why is 2027 a concern for SAP customers? ›
Many current customers are concerned about business disruption, potential data losses, and the support that SAP is going to provide both during and after the migration. These fears have led to a number of companies either refusing to make the switch or delaying their migration efforts while they wait for more clarity.
What is the SAP 2025 strategy? ›
By 2025, SAP now expects: Non-IFRS cloud gross profit of approximately €16.2 billion, now including share-based compensation expenses of approximately €0.1 billion (previously: approximately €16.3 billion, excluding share-based compensation expenses)
What is the SAP Roadmap 2025? ›
2025: H: SAP Business Network Asset Collaboration: Enablement of digital twin handover with procurement Details. H: SAP S/4HANA Cloud for Projects: Digital twin based visualization of time and financial information of projects Details. SAP Field Service Management: Ability to manage tools in crew management Details.
What happens to SAP ECC after 2027? ›
The good news – you have options for ECC Support
Let's take the pressure off. While SAP is ending mainstream support for Business Suite 7 and ECC 6. 0 support in 2027, Rimini Street will continue to support those products for at least 15 years.
Is SAP being phased out? ›
In 2027, SAP ECC 6.0 will reach the end of its life cycle—terminating mainstream SAP support and leaving many organizations questioning their legacy SAP ERP system. While it may be inconvenient, don't fret. There's still plenty of time to find new and innovative solutions to replace ECC.
What is the deadline for SAP s4hana migration? ›
Most SAP customers will remember that SAP initially had a 2025 deadline to migrate from SAP ECC to SAP S/4HANA. However, backlash caused this date to slip to 2027. With that deadline now fast approaching, the task of migrating to SAP S/4HANA still remains as difficult.
Initially, 100 companies were identified, and in the 2021 fourth quarter earnings call1, the total number of companies that replaced SAP with Oracle has grown to more than hundreds.
Why Oracle is replacing SAP? ›
With Oracle, financial management and reporting are made more reliable and governance, risk management and compliance (GRC) requirements are incorporated. Oracle is proud of its risk management solutions, which help to enforce enterprise-wide compliance and automate some industry-specific compliance requirements.
What is SAP biggest competitor? ›
Microsoft is a significant competitor to SAP, particularly in the enterprise software market. Both companies offer a range of business solutions, including ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) software. Microsoft Dynamics competes against SAP in the ERP and CRM software market.
Does SAP have a future? ›
SAP's future scope extends into blockchain, Internet of Things (IoT), and augmented reality, positioning it as a holistic business technology partner.
How long will SAP software last? ›
A spokesperson for SAP would not comment on the figures, but said: "SAP has been transparent with our customers, and in February 2020 we announced that we will provide mainstream maintenance for core applications of [ECC] SAP Business Suite 7 software until the end of 2027, followed by optional extended maintenance ...
Why is SAP losing? ›
SAP, one of the largest software companies in the world, has been losing market share in recent years. This is due to several factors, including increased competition, changing customer needs, and a lack of innovation.
What is the future of SAP in 2030? ›
Reducing emissions from the use of SAP software will be the primary area for reductions, followed by purchased goods and services. The SAP net zero by 2030 approach includes: Accelerating the transformation of on-premise customers to the cloud through our market-leading RISE with SAP and GROW with SAP offerings.
What is the future of SAP in 2024? ›
In 2024, SAP will further increase its focus on key strategic growth areas, in particular Business AI. It also intends to transform its operational setup to capture organizational synergies, AI-driven efficiencies and to prepare the company for highly scalable future revenue growth.
