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SAP S/4HANA Migration: Why Businesses Must Act Before 2027

In the modern world, there is increasing pressure on businesses to modernize their operations and adopt new technologies. SAP S/4HANA migration has become a priority in the software development business world. One of the most noticeable changes in the near future will be the switch from standard SAP solutions to SAP S/4HANA. Since SAP has stipulated that support for these older systems will end in 2027, the switch must now be a firm priority. Failing to make this move risks operational inefficiencies and dulls the company’s competitive edge in an increasingly digital marketplace.

SAP has announced that its legacy operations will no longer be supported after 2027. Furthermore, to encourage the complete utilization of SAP HANA and SAP S/4HANA, the company has stated that support for other databases, including Oracle and Microsoft SQL, will also be removed.

Who needs to consider SAP S/4HANA Migration?

If organizations are contemplating moving to SAP S/4HANA, they must decide whether to migrate directly to SAP HANA or SAP S/4HANA. SAP HANA is a data-rich structure designed to improve data organization and provide supplementary analytical assistance, while SAP S/4HANA is the complete ERP suite that utilizes the HANA database for real-time analytics and streamlined business processes. Organizations using older versions like SAP ECC should transition to SAP S/4HANA to take full advantage of its advanced features, including improved user experience and operational efficiency.

The Urgency of SAP S/4HANA Migration

SAP S/4HANA represents a leap forward in enterprise resource planning (ERP) capabilities, offering enhanced performance, streamlined processes, and real-time data insights. According to a report by UiPath, about 75% of SAP customers plan to migrate within the next five years, driven by the need for improved functionality and reduced operational costs. The cloud-based architecture of SAP S/4HANA allows for regular updates and innovations, ensuring that businesses remain agile and responsive to market changes.

At a Gartner “IT Infrastructure, Operations & Cloud Strategies” conference in London, TechRepublic says the analyst firm predicted that any enterprise aiming to stay competitive by 2028 must have migrated to cloud solutions. The urgency is apparent: companies must act swiftly to avoid falling behind as their competitors embrace these advancements.

Challenges of Migration

However, migrating to SAP S/4HANA is not an easy task and comes with challenges. Business organizations must deal with complicated data architectures, customizations, and integration issues that may arise during the changeover. As highlighted in a SoftCo blog, automating accounts payable processes can significantly reduce IT complexity and enhance agility during this migration phase. Automated change management solutions can help mitigate risks associated with manual processes during migration. These tools ensure every change is documented and tracked, providing transparency and stability throughout the transition.

A team of experts is always best in this situation to help your business navigate the hurdles.

The Path Forward

To maintain the pace of technological changes, organizations need to migrate and, therefore, have to adopt the right migration technology. By leveraging automation tools and expert consultancy services, businesses can simplify their migration journey and unlock the full potential of SAP S/4HANA.

Berg Software provides end-to-end migration services for business activities with pinpoint accuracy, customized separately for each company. The experts at their company help customers with the entire migration process —from assessment and data migration to application transition and implementation— ensuring a smooth transition to a modern cloud-based environment. With Berg Software’s support, companies can confidently navigate their migration journey and position themselves for future success in a rapidly changing digital landscape. Contact them today.