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SAP S/4 Hana: Users eye migration, but roadmap and migration path lack clarity

Matthew Finnegan | Nov. 27, 2015
SAP announced its 'next generation' suite of ERP applications in February.

"At the moment today there is Simple Finance and Simple Logistics is coming out in this quarter. But we have student lifecycle management, CRM, SRM, HR etcetera. All of this isn't ready on S/4."

"So the way we see the transition now to Suite on Hana gives us a lot of benefits in the near term, and we can leverage that benefit over the next couple of years while S/4 matures to a level that we feel we are ready to make that step."

S/4 Hana: Licence costs

Migration from Oracle or IBM databases onto Hana can be a substantial task for businesses, not to mention the investment required in new hardware such as Hana appliances.

But, aside from the upgrade process, perhaps a more pressing concern for customers is around licence cost. Earlier this year, SAP announced that S/4 Hana would be made available for free until the end of the year as a trial promotion. 

What the situation after this period will be is less certain. For example, many SAP customers typically pay large maintenance costs which supports product development, but it is not clear whether these users will have to pay again to move to S/4 Hana in future.

"All we know at the moment with S/4 Hana is that you can upgrade for your existing ERP application to S/4 Hana today without any licence costs because there is a promotion," says User Group chairman, Adams. "That promotion ends on the 31st of December 2015 and yet we don't know what happens on the 1st January."

"That could be a barrier. So as well as the roadmap and where it is going, what about the licence?"

 

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