The upcoming end of maintenance requiring a transition to SAP S/4 HANA was identified as the main driver for SAP S/4 HANA deployment. As per our experience, business demanding updated processes that better fit current needs and meet regulatory requirements was identified by 39% of as a top driver for deployment, followed by the pressure to reduce costs in existing systems and infrastructure and provide additional flexibility and scalability (31%) and the changed business environment demanding greater system flexibility (30%).
Even though the largest group of companies said that they were driven by the upcoming end of maintenance of SAP ERP systems in 2027, this statistic was largely driven by those who currently have no plans for SAP S/4 HANA. Over half of those who have no plans, those who have no plans but plan on reevaluating in 12 months, or those whose project is on hold said that this was their primary driver.
In addition, half of those who are in the process of re-evaluating their business case had the same primary driver. But with the shortening runway to end of maintenance, it is no surprise that the proportion of those being driven by this as a reason to move to SAP S/4 HANA is again increasing from what we saw in 2020.
While the biggest driver was that of the upcoming end of maintenance said that their business demands updated processes that better fit current needs and meet regulatory requirements. This driver was most likely to be selected by those who had already deployed SAP S/4 HANA, who are in the process of implementing, and who are evaluating the business case for the first time. This demonstrates that more of those who have already deployed or who are in the process of deploying SAP S/4 HANA are doing so to support business needs, while those who have no plans are primarily motivated by maintenance dates.
Other important drivers were the pressure to reduce costs in existing systems and infrastructure and provide additional flexibility and scalability (31%) and the changed business environment demanding greater system flexibility (30%). The pressure to reduce costs was one of the top two drivers for those who are evaluating their business case or currently running a PoC or pilot for SAP S/4 HANA, this was much less important for those who currently have no plans for SAP S/4 HANA. The changed business environment demanding greater flexibility was selected by those whose SAP S/4 HANA project is currently on hold, showing it has a major impact on their thinking, but was also selected by over a third of those who currently have no plans for SAP S/4 HANA and those who will re-evaluate their plans in 12 months.
SAP S/4 HANA Deployment Options
You’ve been hearing the hype for some time now and are finally considering moving to S/4 HANA. There are a myriad of great new features and capabilities. But there are also practical reasons since for starters, SAP announced they will not support SAP ECC post 2025. In addition, ECC is old software. And don’t take offense to that. It’s great and was used extensively in the digital transformation era.
It covers cloud, on-premise and hosted deployment options. Here are the options discussed:
- SAP S/4HANA Cloud: previously called essentials edition (ES) and Multi-Tenant Edition.
- SAP S/4HANA Cloud extended edition: previously called Single-Tenant Edition
- SAP S/4HANA Cloud, private edition (new in 2021)
- SAP S/4HANA On-Premise managed by SAP (HEC)
- SAP S/4HANA On-Premise: On-Premise or managed by cloud provider Hyperscale's
Informative content, Thank you.
Nice blog.
Thank you.
informative blog