SAP ERP transition approaches as maintenance for older platforms ends

As mainstream maintenance for SAP’s older ECC platform is scheduled to end in 2027, companies are accelerating transitions to the next-generation S/4HANA system. Gartner reports that by the end of 2024, only approximately 39% of the 35,000 companies using the older ECC platform had purchased licenses to migrate. Experts warn that failing to transition could lead to significant costs for extended support, with some companies expected to remain on legacy systems through 2030.

Successful migration requires strategic planning to manage rising costs. Key challenges include business process changes and customization, which are major barriers to adoption. To mitigate expenses, organizations are focusing on data optimization—distinguishing between essential and archival data to reduce storage needs—and refining user permissions to avoid overpaying for licenses under subscription models like ‘RISE with SAP’.

Additionally, the ‘clean core’ strategy is gaining traction, where companies maintain a standard ERP core and move custom functionalities to platforms like the SAP Business Technology Platform (BTP). This approach aims to reduce system complexity and long-term maintenance burdens.