Enterprise guide to SAP S/4HANA upgrade and migration

The approaching end of mainstream maintenance for SAP ECC and SAP Business Suite 7 on December 31, 2027, with optional extended maintenance (subject to additional fees) until 2030, makes migration to SAP S/4HANA a critical strategic decision for enterprises. Organizations that remain on ECC risk increased costs, limited innovation, and reduced vendor support beyond this timeline.

For large enterprises, the scale of historical data, extensive custom code, and deeply integrated business processes can make system conversions complex and time-intensive. When planning is delayed, organizations risk narrowing their execution window, leaving insufficient time for proper testing, validation, and change management—ultimately increasing the likelihood of errors, and potentially disrupting core operations.

For CIOs, IT leaders, and SAP teams, the challenge is no longer whether to migrate, but how to design a structured, risk-aware SAP S/4HANA upgrade and migration strategy that protects business continuity, maintains compliance, and positions the enterprise for long-term value creation.

This enterprise guide outlines the strategic considerations, deployment options, migration approaches, business case elements, and risk factors organizations must evaluate to prepare for SAP S/4HANA before 2027.

What is SAP S/4HANA?

SAP S/4HANA is SAP’s next-generation enterprise resource planning (ERP) suite, built natively on the SAP HANA in-memory database to deliver real-time processing, simplified data models, and an improved user experience through SAP Fiori. It is designed to support end-to-end business processes across finance, supply chain, sales, manufacturing, procurement, and service, while enabling advanced analytics, embedded AI, and automation capabilities critical to digital transformation.

To meet different business needs and deployment preferences, SAP offers multiple versions and operating models of S/4HANA. Each has its own trade-offs in terms of control, flexibility, upgrade cadence, customizability, and total cost of ownership.

SAP S/4HANA Deployment Options

Selecting the right SAP S/4HANA deployment model is a foundational decision that influences cost structure, customization flexibility, upgrade cadence, and long-term operational control. Enterprises can select from four primary deployment options, each providing a distinct balance of control, flexibility, and operational responsibility.

SAP S/4HANA On-premise

The on-premise edition is the traditional deployment model in which the ERP system runs on infrastructure managed by the enterprise or its chosen hosting provider.

This option provides the highest level of control over system configuration, custom developments, integrations, security policies, and upgrade timing. Organizations determine when to apply enhancement packs, feature updates, and support packages, allowing alignment with internal governance and release cycles.

On-premise deployment is typically selected by enterprises with complex system landscapes, heavy customization requirements, strict regulatory constraints, or established internal SAP operations teams.

SAP S/4HANA Cloud Public Edition

SAP S/4HANA Cloud Public Edition is a multi-tenant Software-as-a-Service (SaaS) ERP solution hosted and operated entirely by SAP.

SAP manages infrastructure, technical operations, security patches, and upgrades. The solution follows a standardized “fit-to-standard” model based on SAP best practices, with automatic updates delivered on a quarterly release cycle.

Because SAP controls the upgrade cadence, organizations benefit from rapid innovation and lower infrastructure responsibility. However, customization flexibility is limited, and enterprises must adapt to SAP’s predefined processes and release timelines.

Public Edition is best suited for organizations prioritizing standardization, speed of deployment, and reduced operational overhead.

SAP S/4HANA Cloud Private Edition

SAP S/4HANA Cloud Private Edition is a single-tenant cloud deployment model that delivers the full functional scope of the traditional on-premise edition within a subscription-based commercial framework.

It is typically deployed in hyperscaler environments (such as Azure, AWS, or Google Cloud) or SAP-managed infrastructure under the RISE with SAP commercial model.

Compared to the Public Edition, Private Edition provides significantly greater customization flexibility, broader industry functionality, and more control over upgrade scheduling. While updates still follow SAP’s release strategy, enterprises can plan upgrade cycles with more flexibility than in the multi-tenant model.

Although infrastructure management shifts to SAP and hyperscaler providers, organizations remain responsible for:

• Application-level governance
• Custom code remediation
• Testing and validation cycles
• Transport and change management
• Business process continuity

Private Edition is commonly selected by large enterprises seeking cloud operating benefits while preserving complex processes and customization requirements.

What are the migration options for SAP S/4HANA?

Choosing the right migration approach is one of the most important strategic decisions in an SAP S/4HANA upgrade. The selected path determines project complexity, cost, timeline, risk exposure, and the level of business transformation achieved.

SAP defines three primary migration approaches: Brownfield, Greenfield, and Selective Data Transition (SDT).

Each option serves a different enterprise objective.

Brownfield (System Conversion)

Brownfield is a technical system conversion that transforms an existing SAP ECC system into SAP S/4HANA while preserving historical data, configurations, and business processes.

Key characteristics:

• Retains historical data and system landscape
• Limited process redesign
• Lower change management impact
• Typically shorter implementation timeframe

Best suited for:

• Enterprises with stable processes
• Organizations seeking lower business disruption
• Companies aiming for a faster transition

Brownfield is often selected when the goal is modernization with minimal operational disruption.

Greenfield (New Implementation)

Greenfield involves implementing SAP S/4HANA as a new system from scratch, allowing organizations to redesign business processes using SAP best practices.

Key characteristics:

• Clean system design
• Opportunity to eliminate legacy customizations
• Higher transformation potential
• Longer implementation timeline

Best suited for:

• Organizations undergoing major transformation
• Organizations looking to simplify or standardize processes
• Enterprises with heavily customized ECC environments, aiming for a clean core strategy

Greenfield is often selected when business transformation, process standardization, and long-term innovation are top strategic priorities.

Selective Data Transition (SDT)

SDT combines elements of brownfield and greenfield approaches.

Key characteristics:

• Selective data migration
• Controlled process redesign
• Flexible project scope
• Balanced risk profile

Best suited for:

• Complex global enterprises
• Organizations requiring phased migration
• Businesses balancing speed and innovation

The optimal approach depends on system complexity, customization levels, regulatory requirements, and business objectives.

SDT is often selected by enterprises seeking to balance risk mitigation with selective transformation, preserving valuable historical data while modernizing targeted business processes.

How to build the business case for SAP S/4HANA

For large enterprises, SAP S/4HANA migration is rarely driven by technical justification alone. Executive stakeholders require a clear, measurable business case that justifies investment, outlines risk exposure, and defines long-term value.

A compelling business case for SAP S/4HANA migration typically includes five key considerations:

1. Risk avoidance and compliance exposure

With mainstream maintenance for SAP ECC ending in 2027, organizations that remain on legacy systems face rising extended maintenance costs, increased security and compliance exposure, reduced access to innovation from SAP, and growing challenges in sourcing skilled resources to support legacy systems. Clearly quantifying the financial and operational impact of delaying migration helps executive leadership understand not only the investment required to move forward, but also the escalating cost and risk of inaction.

2. Operational efficiency and process optimization

SAP S/4HANA’s simplified data model and embedded analytics enable faster financial close cycles, improved inventory visibility, real-time reporting and forecasting, and reduced data redundancy across business functions. When building the business case, enterprises should quantify expected productivity gains, reductions in manual effort, and improvements in decision-making speed to demonstrate measurable operational impact and return on investment.

3. IT cost structure and infrastructure strategy

Migration provides an opportunity to reassess infrastructure and operating models, including decisions between on-premise, cloud, or RISE with SAP deployments, as well as the shift from capital expenditure (CapEx) to operational expenditure (OpEx). It also allows organizations to reduce legacy system maintenance burdens and consolidate fragmented system landscapes. A structured total cost of ownership (TCO) analysis over a five- to ten-year horizon often reveals long-term financial efficiencies that extend well beyond the initial implementation investment.

4. Innovation enablement and competitive positioning

SAP S/4HANA serves as a foundation for embedded AI and automation, advanced analytics and predictive insights, seamless integration with modern cloud ecosystems, and continuous innovation through regular feature updates. When building the business case, enterprises should look beyond cost reduction and consider how S/4HANA can enable revenue growth, improve customer experience, and strengthen long-term competitive differentiation.

5. Transformation alignment

For enterprises already advancing digital transformation, supply chain modernization, or global process standardization initiatives, SAP S/4HANA migration can serve as the foundational platform that unifies and accelerates these efforts. Positioning the ERP transition as a strategic enabler—rather than a standalone IT project—strengthens executive sponsorship, secures cross-functional alignment, and increases organizational commitment to long-term transformation outcomes.

How to plan SAP S/4HANA upgrade and migration before 2027

The duration of an enterprise SAP S/4HANA upgrade and migration depends on system complexity, customization levels, data quality, and transformation scope.

In general:

• Mid-sized enterprises typically require 9–18 months
• Large, highly customized SAP landscapes may take 18–36+ months
• Multi-entity global rollouts can extend beyond three years

However, timelines are rarely driven by technical conversion alone. The most significant variables include:

• Volume of custom code requiring remediation
• Data cleansing and harmonization requirements
• Integration dependencies across third-party systems
• Infrastructure or cloud transition decisions
• Organizational readiness and change management maturity

Many enterprises underestimate the planning effort required before execution even begins. Delays often occur not during the conversion itself, but during preparation, governance alignment, and cross-functional coordination.

With the 2027 maintenance deadline approaching, organizations that start early gain flexibility in sequencing activities, reducing downtime exposure, and avoiding compressed project timelines.

A structured, phased roadmap is necessary to accurately estimate duration, allocate resources, and manage risk across the entire migration lifecycle.

Download the SAP S/4HANA Upgrade & Migration Roadmap to access a detailed planning framework and executive roadmap designed to help enterprises navigate the transition before 2027.

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