SAP customers on brink of ERPocalypse as 2025 support cliff looms for ECC Half of SAP clients relying on ECC – used by the majority of ERP customers – will fail to qualify for extended support beyond 2025, according to the German vendor's own figures. Released in a slide session during a German-speaking user group conference last month, the data shows that 50 percent of ECC systems will not be in …
“ He said most ECC customers were not convinced by SAP's arguments that to innovate and transform their business, they need to be on S/4HANA, preferably in the cloud.”
A statement I suggest you could replace SAP and S/4HANA with practically any cloud vendor and their subscription cloud offering Eg. Microsoft and 365, and for it to be true.
I do think many oil IT have forgotten, their customers businesses are about selling their products and services, spending money and time on migrating to the latest IT fashion, is a long way down the list of priorities.
>” CAPEX to OPEX is a significant prize”
For those who are selling subscription services, not so much for businesses making the investment and purchasing services.
>” the opportunity to Simplify”
Nice sound bite, but much depends on what is actually meant by “simplify” and thus who’s version of “simplify” is being implemented.
Based on previous experience, I suspect SAP don’t have the tools to support a direct migration from EHP5 to S/4HANA, they assumed customers would upgrade via EHP6, as this means more service revenues for SAP and its partners…
I bet the competition have tool sets that will support migration off SAP on their ERP platforms…
I think in most cases, customers will do a two-step upgrade. EhP 0/1/2/3/4/5 -> EhP7/8, then migration to S/4HANA. This can be done in one technical downtime window, if your timeline allows it. That way you only have to test once.
Really I don't think any of this is a big deal. Customers are well aware of their support window ending for hardware, operating system, database and application. This is something they have been on top of for 15 years. It's not surprising that a lot of customers are still below EhP7, because they may have plans for a major upgrade anyhow to S/4HANA. They are delaying so they don't have to do two upgrades.
With most local authorities in England facing HUGE budget shortfalls any IT spending will be at the very bottom of the pile.
For example, Hampshire is facing at least £124 million of cuts in FY2025/26. Something has to give. Unless SAP and Oracle can come up with a way of reducing their customers costs AND RISKS, then they have no chance of selling even a used bog roll.
But with Brexit and CoViD I expect many businesses have had 3+ years of lacklustre trading and increased costs, so they can be excused for sweating their assets for longer.
In the past I suspect SAP would have simply extended support. However, now they want the cloud subscriptions which customers have to pay regardless of the health of their business creating the revenues needed to pay for the cloud subscriptions…
The Register 
Biting the hand that feeds IT
Copyright. All rights reserved © 1998–2024
