ERP Complexity at SAP

SAP is defined by two factors: a diverse range of IT services, ERP functions, and partnerships, as well as high-priced licenses, precise control, and a respectable stock market price. These factors result in different perceptions. While SAP is a darling on the stock market and was once the most valuable company in Europe, SAP partners and customers are less satisfied with the current situation. The complexity of the SAP universe seems to be getting out of hand. The cloud is the standardized answer to every ERP problem, yet there is no coherent AI roadmap.

SAP is celebrated on the stock market for its cloud strategy and AI partnerships. In contrast, SAP customers have seen little innovation. From a user perspective, SAP is therefore far less innovative than its stock price suggests. This has a long tradition: SAP has always prioritized higher margins and profits over progress and innovation. Anyone who thinks SAP is more committed to investors and shareholders than to its customers and workforce is a fool.

ERP complexity at SAP comes at a price. SAP has adjusted the end of maintenance for ERP/ECC 6.0—also known as SAP Business Suite 7—several times: first to 2025, then to 2027 and 2028, and finally to 2030. Now, there is a transition option until 2033. What does this mean? Things are getting tight in the SAP cosmos because an inventory guarantee for the ECC successor, S/4, extends to 2040. In good old SAP tradition, an S/4 successor must be announced by 2030 at the latest.

SAP ERP, Private Edition, Transition Option 2033 is designed for larger companies with numerous ERP systems and complex IT infrastructures. These companies are tasked with migrating their extensive system landscapes to S/4 without negatively impacting ongoing business operations or causing interruptions. Transition Option 2033 provides more time and targeted support during the transformation, offering companies a flexible solution for gradually migrating their IT infrastructure to the cloud. In other words, the innovation that has been stifled is compensated for by a larger time buffer.

Only Hana is supported as a database. Further adjustments will also be necessary if support for third-party technologies, such as older Java versions, expires. This means SAP customers will have to make several preparations if they want to use the transition option from 2031. While this is a friendly concession, it is not a solution to the upcoming problems. At this year's DSAG Technology Days in Wiesbaden, an SAP exit was openly discussed. It remains to be seen whether the new SAP Business Suite, Business Technology Platform, and Business Data Cloud will be a relevant ERP roadmap for replacing the unfortunate S/4. Currently, there is no ERP innovation at SAP.