SAP Enterprise Core Components Support Extended
Many SAP users will be breathing a sigh of relief with the announcement that SAP has extended ECC support by two years to 2027, premium support options further beyond, to 2030. SAP’s 2025 withdrawal of support for ECC deadline, had been looming over businesses but it can be assumed that SAP has seen the need to reassess the situation. Slower than hoped for migration from Enterprise Core Components to S/4HANA and pressure from users are almost certainly the reason for this decision.
SAP S/4HANA Innovation Commitment to 2040
SAP has also announced this month their commitment to support S/4HANA to 2040, they are clearly looking to reassure their customers starting out on their S/4HANA migration path that their investment in the technology is safe.
Michael Kleinemeier, of SAP’s Executive Board, went on the record saying:
“We know that on this important path; our customers should not have to sacrifice stability for innovation, particularly during times of accelerated change. That’s why we’ve made the commitment to deliver innovations to our flagship product, SAP S/4HANA, through updates for at least the next 20 years. Customers will have this secure backbone in place delivering continuous innovation they can count on for business value.”
Other Factors Obstructing Migration
Businesses are faced with all sorts of financial pressure so making such a large commitment to migrate their ERP system must look risky and expensive. High costs and managing such wholesale change with unclear returns on investment makes a business case difficult to build.
In addition, these organisation may also be considering the potential skills crisis due to the general shortage of technical implementation talent, recruiting for digital transformation will grow ever more challenging. Here in the United Kingdom, we have the additional spectre of off-payroll working rules, IR35 regulation and the uncertainty of the impact it will have on the industry.
What Impact Will these Announcements Have?
The majority of SAP users will have S/4HANA on the agenda and may already be on a path to transformation so not many will be thinking it’s okay to relax. SAP’s commitment to developing S/4HANA for a minimum of 20 years strengthens the business case migration where some organisations may be questioning value and ROI. These announcements may have just taken a little pressure off the situation and granted some more time to plan and budget for the best strategy for your organisation.
Building the Right Implementation Team
When it comes to implementing your S/4HANA migration the support of a dedicated resource of referenced SAP talent will be invaluable. We have the experience of many years of SAP staffing, both contract and permanent, both at home and internationally see our Nobia S/4HANA case study. Our own guidance for contractors to UK businesses regarding IR35 Regulation is available to help clarify status here. Contact our SAP Team to discuss your requirements.