SAP ECC Roadmap - Options Beyond 2027

First, this is not another article pressuring you to migrate to SAP S/4HANA just because SAP ECC support ends in 2027.

We will explore available options, depending on where you are in your SAP journey. Whether you are already in the process of moving to SAP S/4HANA or still considering your choices, there is something here to guide you in your next steps.

 If you use SAP ECC in your organisation, you probably fall into one of the categories below.

1. You have a defined business case for SAP S/4hana and are currently in progress with the migration - Blue/Green/Brown or a mix of these migration types - that suits your business strategy and roadmap.
2. Your vision is to move out of ECC  and migrate into S/4. You are working towards the business case for S/4hana.
3. You have no plans to move out of ECC shortly. This could be due to your business priorities or simply because you are happy with the functionalities provided by ECC and plan to innovate on its edges.
4. You are still considering your options, Waiting and Watching!

 Where does your organisation Stand?

If your organisation belongs to Category 1,

Congratulations! You have found a strong business case that aligns with your organisation's goals and crossed the first bridge.

However, keep these steps in mind to ensure that the migration delivers the promised value:

• Strong Business Case: Ensure your business case is built bottom-up and robust enough to withstand the extended implementation period these projects go through.
• Right Resources: Ensure your SI brings the right resources to the project. Many implementations fail to deliver value when teams try to apply ECC methods to S/4HANA.
• Design Assurance: Validate your design with a trusted advisor and possibly SAP to ensure all customisations comply with the 'clean core' strategy. Understand that clean core does not mean 'No customisations', but the modifications need to be controlled as specified by SAP to ensure that your upgrades are easier (that is the whole selling point for Clean core). Do not rush this step. You have only one shot at this.
• Quality Assurance: Ensure you perform quality assurance at scheduled intervals to gain a comprehensive view of the project, identify potential issues early on, and ensure the migration delivers the promised value and functionality.
• Change Management: Remember to consider the importance of change management. A perfectly implemented system will not deliver the benefits if you do not get buy-in from the end users. Engage them early and take them through the journey.

If your organisation belongs to Category 2,

Great job working on the business case. It is a long and arduous path to ensure you have a strong one. Ensure the business case is built bottom-up and robust enough to withstand the extended implementation period these projects go through.

Here are your options 

1. If your ECC version is EHP 5 or below, mainstream support will cease by the end of 2025. You either have to  Upgrade to a more recent EhP to receive maintenance. Use Third-Party maintenance from companies like Rimini Street(see more details below) at least until you migrate to SAP S/4HANA.
2. If your ECC EHP version is above EHP5, You have over three years to get the buy-in and migrate to S/4HANA. Depending on the size of your organisation, this is still achievable. Make sure that you have a trusted partner for the journey. All the considerations mentioned under Category 1 apply during your implementation journey. If you don't think three years is long enough, you have the option to purchase the licenses for S/4 by 2027 to get the ECC maintenance extended until 2030 at a 2% extra cost. This option comes with a hefty price tag but will ultimately get you to your vision.

If your organisation belongs to Category 3,

You know what you don't want—migrating to SAP S/4HANA. You are happy with ECC and do not see the need to migrate in the near future. You plan to innovate on the edges of your ERP system, which is not a bad idea either. No organisation, regardless of size, should be forced to migrate to S/4HANA based only on technical drivers. 

You do not have the option of extended maintenance from SAP since you are not in one of the conversion phases to SAP S/4HANA.

 Here are your options.

• After 2027, you will automatically be considered for customer-specific maintenance with SAP. However, note that SAP has not provided any pricing for this option. There is no scope of what will be supported and when. This service will not come cheap and is very risky.
• You can opt for Third Party maintenance and use the support services provided by companies like Rimini street to take over your SAP support. They provide support for ECC, including customisations. They guarantee responsive service at a substantial savings compared to SAP Annual Support and Maintenance. But this option takes you back decades in that your ECC system becomes a home-grown legacy system with huge maintenance overhead. Remember, you will have to move out of ECC at some point. Choose this option with your eyes open.

Finally, If your organisation belongs to Category 4,

You are waiting and watching what others are doing. Your thoughts are along the lines of

• SAP has already extended the deadline once; they may do it again.
• More than 60% have yet to decide, so there must be an easy way out.

While it is tempting to wait and watch, it is not an ideal Strategy. If you do not make an informed decision NOW, even if it does not involve migrating to SAP S/4HANA, the choice will made for you. You might be forced into an expensive upgrade to keep your business running.

Final Thoughts

Remember, there is no one-size-fits-all solution here. You must consider all the options, their benefits, costs, and considerations, and make an informed decision.

No matter where you are in the journey,  if you need an independent partner and a critical friend for your ERP upgrade/non-upgrade journey, reach out to us—the SAP Advisory team at Baringa .

#SAPECC #SAPS4 #S4options #Baringa