SAP provides software products that are powerful tools for companies to manage their financials, logistics, human resources, and other business areas. A lot of firms have them as the base for their downstream systems. Recent announcements from SAP, although around core applications, will have a big impact on companies’ roadmaps & their B2B and B2C ecosystems.
But what is this announcement about & how will it affect the existing customers?
What has SAP announced?
SAP announced in Feb’20 that it will be providing mainstream maintenance for core applications of SAP Business Suite 7 software until the end of 2027, instead of 2025 as earlier planned, with an optional extended maintenance until end of 2030. SAP also announced a maintenance commitment for SAP S/4HANA until the end of 2040.
With about 13,800 customers already signed up for SAP S/4HANA & many joining in, what is in it for an organization to move to SAP S/4HANA and what are the possible downsides?
What is SAP S/4HANA?
SAP’s website defines SAP S/4HANA as the next-generation intelligent suite, enabling the move to a digital intelligent enterprise based on next-generation best practices and artificial intelligence–enabled automation. It essentially is SAP’s ERP for large enterprises which is optimized for SAP’s inbuilt memory database SAP HANA. It is the successor to SAP R/3 & SAP ERP systems. With S/4HANA as the core of the “intelligent enterprise”, SAP is developing other relevant applications around it. Boasting of built-in intelligent technologies, including AI, machine learning & advanced analytics, SAP wants its customers to leverage the unique capabilities of SAP S/4HANA for driving their business goals & transition into a truly intelligent enterprise. By committing to provide maintenance support till 2040, SAP wants its customers to be confident & plan their future with SAP S/4HANA.
What is next for SAP Business Suite 7 users?
SAP Business Suite 7, released in May 2009, consists of a set of fully integrated applications that enable enterprises to run their core business operations efficiently. The core applications of this software include:
- SAP Enterprise Resource Planning (ERP) 6.0 application
- SAP Customer Relationship Management (CRM) 7.0 application
- SAP Supply Chain Management (SCM) 7.0 application
- SAP Suppler Relationship Management (SRM) 7.0 applications
- SAP Business Suite powered by SAP HANA
SAP wants its customers to adopt SAP S/4HANA going forward & it is providing the required assistance & resources to aid with the transition/migration. As a customer of SAP Business Suite 7, one now has the following options:
- Migrate existing systems to SAP S/4HANA.
- Implement altogether new systems with SAP S/4HANA.
- Stick to existing SAP Business Suite 7.
For options 1 and 2, SAP is providing the requisite assistance & support to aid the implementation/migration. To ensure business continuity during this phase, SAP is providing maintenance support for SAP Business Suite 7 until 2027 with provision for optional maintenance till 2030, by which time SAP is expecting its customers to be onboarded to SAP S/4HANA. For customers wishing to go with option 3, post 2027, the software will be put on customer-specific maintenance models.
Stay tuned as we look into the direct & implied benefits and downside of moving to SAP S/4HANA for your organization in our next blogs.
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