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4 Urgent Reasons Why Your Business Needs SAP S/4HANA Migration Now

paul-bracht By: Paul Bracht

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The clock is ticking and your SAP system is at risk. Mainstream maintenance for SAP S/4HANA 1511 expired on December 31st, 2020, remaining plateaued since its expiration. Companies using that particular version of the software had to upgrade to the newest version or consider alternative solutions which could be more costly. Lack of support can leave a system vulnerable to security threats and compatibility issues with other software.

Another deadline looms and this leaves thousands of customers in a tough predicament.

According to a Gartner report, “over 70% of existing SAP S/4HANA clients will see the end of mainstream maintenance by the end of 2025, forcing the need to migrate to a newer version or take on increased maintenance costs”. Additionally, the report estimates “that at the end of 2023, there were over 22,000 clients that still had to buy SAP S/4HANA to replace their legacy SAP Business Suite” (Gartner, Competitive Landscape: SAP S/4HANA Application Service Providers, 16 April 2024).

SAP Business Suite

Businesses that leverage and value the tool must take the steps to begin their migration to the most up-to-date version. Migrating to the newest version ensures that functionality remains smooth and that maintenance will run continuously, as well as a slew of improved features.

Here are 4 urgent reasons why your business needs to act on SAP S/4HANA migration and support NOW:

Security Gaps

When the time for mainstream maintenance runs out, you’re left vulnerable with an outdated system that’s an easy target for cyber threats. Don’t be a victim to security breaches that could significantly hinder your operations and affect your revenue and your reputation.

Escalating Costs

Waiting until it’s too late to make the move could cost you serious money. You’ll be facing increased maintenance costs or costly fines for using an unsupported version. Invest in the future of your business now, rather than suffering financial consequences down the road.

Competitive Edge

Being stuck with an unsupported version of SAP S/4HANA could dull your competitive edge and have your competitors move right past you as they have embraced the latest SAP software solutions and benefit from the platform’s full potential for efficiency.

Degradation of Functionalities

When you lack ongoing maintenance, you may have the unfortunate experience of watching the functionalities of your SAP system degrade over time. This can lead to operational disruptions and kill your productivity. By starting the migration process now, you can ensure that your system has smooth functionality and uninterrupted support and operations.

Degradation of Functionalities

Act Now And Ensure Operational Continuity

There are glaringly apparent improvements from older versions of SAP Business suite compared to the newer ones on the market. There are significant improvements in data management, security, UI/UX, Database features, integration features, and automation possibilities with AI/ML.

While migrating could cost some money, the investment in your business’s future is essential; it also counteracts any maintenance fees that would’ve occurred if there had been no migration.

Customers who have completed migration confirm that upgrading is relatively smooth. As of January 2023, statistics show that the technical upgrades to higher releases of SAP S/4HANA take an average of 1.5 months to 4 months, as reported by the SAP S/4HANA customer care program, with more customers able to perform upgrades in a shorter timeframe.

To initiate this migration process, organizations can access resources available on the SAP support portal or SAP One Support Launchpad for guidance.

Chetu is an SAP partner that provides custom development and support services, including implementation, migration & updates, configurations, and maintenance. Our SAP experts can leverage advanced technologies such as SAP Intelligent Robotic Process Automation and business process intelligence (BPI) for optimized operations and enhanced business insights for organizations.

Disclaimer:

Chetu does not affect the opinion of this article. Any mention of a specific software, company or individual does not constitute an endorsement from either party unless otherwise specified. This blog should not be construed as legal advice.

Founded in 2000, Chetu is a global provider of offshore software development services, solutions and support services. Chetu's specialized technology and industry experts serve startups, SMBs, and Fortune 500 companies with an unparalleled software delivery model suited to the needs of the client. Chetu's one-stop-shop model spans the entire software technology spectrum. Headquartered in Sunrise, Florida, Chetu has fourteen locations throughout the U.S. and abroad.

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