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4 clusters · 13 sources · 29 days · First seen · Last updated

Enterprise SAP S/4HANA migration challenges

Overview

Enterprises transitioning to SAP S/4HANA are navigating strategic, technical, and operational hurdles. A survey by the German-speaking SAP User Group (DSAG) indicates a significant reluctance toward full public cloud migration; while approximately 70 percent of surveyed companies are undergoing or have completed their transition, 55 percent continue to run core systems on their own servers, with only four percent utilizing a pure public cloud model. Concerns regarding vendor lock-in, data protection, and pricing transparency have led to an increased focus on digital sovereignty and private cloud solutions.

As the 2027 deadline for mainstream SAP ECC maintenance approaches, companies are accelerating transitions to S/4HANA. However, Gartner reports that by the end of 2024, only about 39 percent of the 35,000 companies using the older ECC platform had purchased migration licenses. Experts warn that failing to transition could result in high costs for extended support through 2030.

To manage these transitions, businesses are evaluating deployment models: On-Premise offers maximum individualization, Private Cloud Edition provides a middle ground with upgrade flexibility, and Public Cloud Edition allows SAP to manage operations. To mitigate costs and complexity, organizations are adopting ‘clean core’ strategies—moving custom functionalities to the SAP Business Technology Platform (BTP)—and focusing on data optimization to reduce storage needs. Additionally, refining user permissions is becoming essential to avoid overpaying for licenses under subscription models like ‘RISE with SAP’.

Entities

SAP · Oracle · Gartner · SAP S/4HANA · DSAG

Timeline

  1. [BUSINESS] 3 sources
    SAP ERP transition approaches as maintenance for older platforms ends

    With SAP ECC maintenance ending in 2027, companies are migrating to S/4HANA, focusing on data optimization and 'clean core' strategies to manage high transition and licensing costs.

  2. [TECHNOLOGY] 4 sources
    SAP S/4HANA deployment models and ERP transformation strategies

    Companies transitioning from SAP ECC to S/4HANA are choosing between On-Premise, Private Cloud, and Public Cloud models to balance customization with maintenance and innovation.

  3. [BUSINESS] 2 sources
    SAP S/4HANA migration and architectural changes

    Transitioning from Oracle Forms to SAP S/4HANA involves risks like undocumented business logic and data mapping issues. The platform also introduces the Universal Journal and Fiori interface for users.

  4. [BUSINESS] 4 sources
    SAP users show reluctance toward full cloud migration

    A DSAG survey shows 55% of SAP users still run S/4HANA on local servers, citing concerns over vendor lock-in, data privacy, and pricing transparency despite ongoing digital transformations.

Sources

ad-hoc-news.de · e3mag.com · it-daily.net · itiko.de · lausitzer-allgemeine-zeitung.org · martech.zone · mittelstandcafe.de · newsonline24.net · openpr.de · optisolbusiness.com · overlapmaps.com · techtarget.itmedia.co.jp · zdnet.co.kr

This summary has been updated 2 times: see revision history