Turning Point for S/4 Migrations

2026 will mark a significant shift in the adoption of SAP S/4 Hana. PAC surveys show: Over half of companies will have largely or almost completed the changeover by the end of this year. Consequently, the demand for qualified consultants is decreasing as new technologies accelerate the migration process. AI-supported migration tools and the growing popularity of the public cloud edition of S/4 Hana are reducing effort and costs, particularly for small and medium-sized enterprises (SMEs). SMEs account for the majority of upcoming migration projects and typically start with smaller project volumes.

Time pressure remains, but conditions are improving

This is good news for companies that are about to migrate or have just started. There are less than two years remaining until the end of standard maintenance for SAP ECC. Although the time pressure is high, the falling demand for consultants is reducing bottlenecks and costs. At the same time, intelligent, AI-based tools are accelerating the transition. Companies that have already made the switch also benefit, as more available expertise facilitates downstream adjustments and innovative enhancements.

For traditional SAP service partners, however, this development means growing pressure. Many have expanded their teams significantly in recent years to meet the demand for migrations. However, simple conversion projects will no longer be enough to ensure capacity utilisation in future. Consultants need to reposition themselves towards SAP line-of-business solutions, AI-driven use cases, and innovation projects. Success will depend on their ability to deliver forward-looking, customer-specific solutions that offer high business value and a fast ROI, supported by their own IP modules, such as industry-specific use cases or functional SAP S/4 Hana extensions.

What CIOs should consider now

New opportunities are opening up for user organisations. They should ensure that their service providers have their own AI-based migration tools and tried-and-tested templates, using these to streamline and accelerate migrations.

This, in turn, creates more scope for price negotiations in certain segments of a migration or integration project. AI is already widely used, particularly in software development, analysing customer-specific legacy system code, and testing. Providers with strong skills in integrating AI into project work are often willing to offer fixed-price projects. This requires an in-depth understanding of the project scope on both sides, as well as a stable partnership.

At the same time, there is an increasing need for experienced consultants with a deep understanding of specific customer concerns and industry-specific requirements. Their daily rates will tend to increase.

Overall, this change offers the opportunity to enhance the target environment with innovative features after migration. The benefits of a new S/4 Hana environment should extend beyond mere efficiency gains. It's about future-proofing the SAP landscape. This also involves preparing the organisation for innovation through effective change management. This is usually a greater challenge in the long term than the technical migration itself.

This article is part of the PAC contributions that venture an outlook for 2026 and beyond. All PAC forecasts for 2026 can be found at: rb.gy/eoy33o

Continue to the partner entry: