SAP ECC is one of the most widely used ERP systems in history. As a result, recent news about ECC 6.0 end-of-life has caused quite a stir. Major enterprises and mid-market businesses have long relied on ECC, so the flag has been raised: what’s next for SAP ECC 6.0 customers?
The ERP juggernaut, System Analysis and Program Development (SAP) was founded in the 1970s by a group of former IBM employees. Intending to set the new standard for business application software, they created RF, a financial accounting system that acted as the foundation for what would become SAP R/1, offering full integration to an expanding suite of SAP modules. SAP exploded in the international market throughout the 1970s, creating new modules and business divisions, and ending the decade with the release of R/2.
Throughout the 1980s, SAP invested heavily in its offerings, partnerships, and services. By 1992, SAP was able to release SAP R/3, a revolutionary new product delivering a transformative new user interface. Momentum was building and by 2004, SAP brought its latest product to market, SAP ERP Central Component (ECC), more commonly known as SAP ECC 5.0, which would soon receive an update to become SAP ECC 6.0.
Back in 2018, SAP announced SAP ECC would reach end-of-support in 2025 but quickly backtracked two years later with an extension of the deadline to 2027. Alongside these announcements, SAP has heavily pushed its legacy base to migrate to SAP S/4HANA and stated the extensions are to support customers in their transition to the product.
Unfortunately, these announcements are a bit more complicated than they appear. ECC has multiple “enhanced” versions falling under different support cycles. Here is a quick guide to version support:
While exploring your options, it is also vital to understand the announcements around SAP S/4HANA, SAP’s go-forward product that was released in 2015. SAP S/4HANA is offered on-premises and in the cloud. SAP has committed to support the on-premises version of SAP S/4HANA through 2040. This is good news for current S/4HANA customers and an important consideration for those exploring their options to move from SAP ECC 6.0.
Businesses currently on SAP ECC 6.0 can either follow the upgrade path onto SAP S/4HANA or branch out to consider other options available on the market. To some, the choice is clear, but for others there are several factors that can impact their path forward, including their size and industry.
Large enterprises who have long been SAP customers will likely remain on the platform and migrate onto S/4HANA, either on-prem or in the cloud. All-in-one, Tier 1 ERPs are scarce, with only a couple of vendors providing these massive solutions. SAP has earned its ERP “stripes”, so it is no surprise customers who value its robust functionality will plan to stay put. Customers taking this path are encouraged to make the move to the cloud instead of the on-premises version of S/4HANA to save themselves another potential migration later down the line.
Alternatively, mid-sized businesses can evaluate all their options among the mid-market ERPs. S/4HANA may offer excessive functionality for mid-market businesses, making it hard to commit to the next generation of SAP. Some companies deployed ECC6 many years ago before smaller mid-market ERPs were prominent and affordable. Other companies’ business models may have changed since SAP’s original implementation. If you are unsure, you can start by conducting a Needs Assessment to determine your business’s exact requirements. From there, you can comb the market for viable solutions and confront an ERP software selection.
While this process can be intimidating, you don’t have to do it alone! ERP Advisors Group will provide your business with an unbiased review of the options available on the market. With our help, you can tackle ERP selection with confidence. Schedule a free consultation today!