With SAP ECC support ending in 2027, businesses are deciding whether to upgrade to S/4HANA or look at other options. While many are embracing S/4HANA, others are holding back. Here’s why some companies aren’t rushing into it.
High Costs
The move to S/4HANA isn’t cheap. From licensing to consulting fees and training, the costs can quickly add up, making it a tough choice for smaller businesses or those with tight budgets.
Time and Resource Demands
Migrating to S/4HANA takes time, planning, and dedicated resources. For companies already running lean, this can be a deal-breaker, especially with the risk of disruptions to daily operations.
Legacy System Complexity
Many companies have heavily customised SAP ECC systems, making the transition more challenging. Migrating legacy code and ensuring compatibility with other non-SAP systems can increase complexity and costs, deterring some from moving forward.
Cloud Readiness Concerns
S/4HANA encourages cloud adoption, but not every company is ready. Highly regulated industries, in particular, may struggle with data compliance and security in a cloud setup, and some have already invested heavily in on-premise systems they’re not ready to abandon.
No Urgent Need for New Features
Some companies are content with ECC, as it meets their current needs. Without a pressing need for real-time data or advanced analytics, they’d rather focus resources on other projects or improvements that offer more immediate value.
What Are the Alternatives?
For those holding off on S/4HANA, there are other paths:
Hybrid Solutions: Combining cloud and on-premise systems allows gradual transition at a comfortable pace.
Third-Party Extensions: Adding third-party tools to ECC can extend its capabilities and bridge functional gaps.
Other ERP Options: Platforms like Oracle Cloud or Microsoft Dynamics 365 may be a better fit for companies needing a fresh solution that’s less complex to implement.
While S/4HANA has plenty of advantages, it’s not for everyone. Companies are weighing the costs, timing, and their unique needs to make the best choice. For some, sticking with ECC or exploring hybrid solutions and other ERPs could be the better path for now, with the flexibility to reconsider S/4HANA down the line.
