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Deadline 2025: For whom and what?

The countdown is on because SAP has terminated the contracts with the database providers. The S/4 transformation is the same as a new ERP implementation, one of many reasons why DSAG e. V. is promoting an alternative release concept. Who still wants S/4 Hana?
Peter M. Färbinger, E3 Magazine
February 27, 2020
Content:
Editorial
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This text has been automatically translated from German to English.

SAP has celebrated its successes with early adopters. There are numerous S/4 Hana reference installations. Spectacular Green, Blue and Brownfield projects have proven the feasibility of an S/4 transformation and the subsequent added value.

SAP could be satisfied if there were not one major flaw in this picture: The successes achieved do not scale! The S/4 innovators are not followed by early adopters or an early majority, see diffusion theory and distribution of innovations.

The economy of scale pales in the overall S/4 picture! Only 173 S/4 systems went live in North America in 2019 - according to a mid-January SAP Fkom presentation in Las Vegas.

At the moment, Hana and S/4 are not suitable for the masses and thus the end date becomes a disaster. There are countless success stories and positive proof-of-concepts for Hana and S/4, BW/4 and C/4 - technically, organizationally and in part also in terms of licensing law, but not in terms of business management! Why?

The answer is very simple: Hana and S/4 require the resources of a new ERP implementation. Despite all the tools, partnerships and programs, the transformation to S/4 is a huge step and not a simple release upgrade.

Everything stays better is an ambivalent promise: S/4 Finance shines with simplicity and new possibilities. So far, almost every CFO has been thrilled with the result - but the road ahead is still too arduous, too uncertain and too expensive for many existing SAP customers.

"The forces were small. The goal was in the great distance, it was clearly visible, although hardly reachable for me".wrote Bertolt Brecht (1898 to 1956) in his famous poem "To those born after".

There is a deadline of 2025 - but for whom does it apply? SAP has terminated the database contracts with Microsoft, Oracle and IBM. The status of the Sybase databases ASE, IQ and SQL Anywhere is unresolved.

Hana thus seems to be the only chance for existing SAP customers, but the user association DSAG wants to fight against this. During a DSAG meeting, board member Andreas Oczko said that not only the 2025 end date for ERP/ECC 6.0 and SAP Business Suite 7 is up for discussion, but also the unique selling proposition of Hana.

As unrealistic as these thoughts may seem at SAP headquarters in Walldorf, they just as stringently reflect the reality in the SAP community.

DSAG board member Andreas Oczko is right to demand an alternative to the S/4 Hana deadline of 2025 on behalf of his members. The demand is not based on the product quality or functionality of Hana and S/4; nor is it based on the still unfulfilled promises of SAP's co-CEOs Jennifer Morgan and Christian Klein to finish the missing integration of SAP's cloud acquisitions, but the demand reflects exclusively the state of the SAP community. The DSAG user association is very close to SAP's existing customers and therefore knows best about their sensitivities.

On a sober note, Jennifer Morgan and Christian Klein have to correct the 2025 deadline - to the advantage and benefit of existing customers and possibly to the disadvantage of certain SAP partners.

In purely mathematical terms, sticking to the 2025 deadline would lead to a massacre because there are too few experts and consultants for an orderly S/4 version change, which is ultimately - whether Green, Blue or Brown - a new ERP implementation and could therefore make some SAP partners a lot of money.

In the remaining years, the daily rates of external consultants would rise steadily. The thousands of medium-sized companies in the SAP community in particular would be overwhelmed by this financial commitment.

Hardly anyone doubts the right path, the right direction of SAP. The DSAG association also sees Hana and S/4 as a right answer to the upcoming digital transformation.

But because SAP itself has not yet done its own homework in many areas, the current pace of development is far too fast. In the Spiegel interview, SAP Co-CEO Christian Klein said:

"I see us on a good path and am confident. If we do the homework assigned to us and successfully accompany our customers into digitization, this will also be reflected positively in the share price." (Source: Der Spiegel, No. 2, January 4, 2020, page 61)

SAP's existing customers should be able to rely on the successful work of DSAG board member Andreas Oczko and calmly go about their planning for a new ERP S/4 implementation. SAP can leave ERP/ECC 6.0 in maintenance for a few more years without any problems.

The challenge with SQL databases from Microsoft, Oracle and IBM alone still awaits a stable and affordable solution - but Jennifer Morgan and Christian Klein still have five years for this solution, don't they?

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Peter M. Färbinger, E3 Magazine

Peter M. Färbinger, Publisher and Editor-in-Chief E3 Magazine DE, US and ES (e3mag.com), B4Bmedia.net AG, Freilassing (DE), E-Mail: pmf@b4bmedia.net and Tel. +49(0)8654/77130-21


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Work on SAP Basis is crucial for successful S/4 conversion. This gives the so-called Competence Center strategic importance among SAP's existing customers. Regardless of the operating model of an S/4 Hana, topics such as automation, monitoring, security, application lifecycle management, and data management are the basis for the operative S/4 operation. For the second time already, E3 Magazine is hosting a summit in Salzburg for the SAP community to get comprehensive information on all aspects of S/4 Hana groundwork. With an exhibition, expert presentations, and plenty to talk about, we again expect numerous existing customers, partners, and experts in Salzburg. E3 Magazine invites you to Salzburg for learning and exchange of ideas on June 5 and 6, 2024.

Venue

Event Room, FourSide Hotel Salzburg,
At the exhibition center 2,
A-5020 Salzburg

Event date

June 5 and 6, 2024

Tickets

Early Bird Ticket - Available until 29.03.2024
EUR 440 excl. VAT
Regular ticket
EUR 590 excl. VAT

Secure your Early Bird ticket now!

Venue

Event Room, Hotel Hilton Heidelberg,
Kurfürstenanlage 1,
69115 Heidelberg

Event date

28 and 29 February 2024

Tickets

Regular ticket
EUR 590 excl. VAT
The organizer is the E3 magazine of the publishing house B4Bmedia.net AG. The presentations will be accompanied by an exhibition of selected SAP partners. The ticket price includes the attendance of all lectures of the Steampunk and BTP Summit 2024, the visit of the exhibition area, the participation in the evening event as well as the catering during the official program. The lecture program and the list of exhibitors and sponsors (SAP partners) will be published on this website in due time.