Will SAP Offer an Extended Maintenance Alternative?

Ever since SAP S/4HANA was announced, SAP ERP customers have faced a deadline. While the deadline was not initially specified, it soon became clear that SAP ECC or SAP Business Suite users had until 2025 to transition to SAP S/4HANA. Although SAP later extended this to the end of 2027, those running SAP ECC 6.0 Enhancement Package 6-8 had the option for customer specific maintenance until the end of 2030.

For the past two years, SAP CEO Christian Klein has firmly maintained that the deadline would remain unchanged. Now, it seems that SAP’s stance has shifted — a shift likely influenced by the challenges faced by its customers.

And data has consistently supported this. SAPinsider research has reflected that the majority of SAP’s existing ERP customers will be unable to complete a move to SAP S/4HANA by the end of 2027 or even 2030. While SAP S/4HANA adoption has been steady, there have been no signs of that adoption accelerating. In addition, Klein has stated that only a quarter of existing ERP customers have licensed SAP S/4HANA to date, which potentially leaves over 30,000 customers without a definitive transition plan.

SAP has looked to address this challenge through RISE with SAP using a carrot and stick approach. The carrot has been that those signing RISE with SAP contracts will be able to access generative AI capabilities in SAP S/4HANA and other solutions, while the stick has been the stance that end of maintenance dates will not be extended. However, RISE with SAP adoption has been sluggish with significant customer reservations about the significant costs involved in using the offering. Although SAP still has no plans to extend the end of maintenance deadline for customers that do not plan to move to RISE with SAP, it now appears that there may be an extended maintenance alternative for those willing to commit to RISE with SAP.

Although not officially announced by SAP, media outlets recently reported that SAP will launch a new RISE with SAP option called “SAP ERP, private edition, transition option”. Customers buying this option will receive an extension of mainstream maintenance to 2033. However, they will have to commit to deploy SAP S/4HANA. This commitment to move to SAP S/4HANA differs little from the one which customers licensing RISE with SAP today must make, which involves financial penalties if the move is not completed by the date specified. The key difference is in the extended maintenance period for customers licensing the offering.

If true, this seems to provide a maintenance extension for customers that may not have plans or a timeline for moving to SAP S/4HANA by the end of 2030. Since a significant proportion of those responding to SAPinsider research still only report that they will switch after 2027, this is likely to be attractive to customers that may not want to move to customer specific maintenance. However, it appears that the option will only be available to those that are willing to sign a RISE with SAP contract, something that will keep them connected to SAP moving forward.

Although still unconfirmed, the naming is similar to the recently announced “SAP ERP, private edition, option for Microsoft SQL” which provided a way for customers to lift and shift their existing SAP ECC systems to SAP cloud infrastructure on Microsoft Azure. While that offering did not alter the end of maintenance timeline, it provides a stepping stone for customers moving to RISE with SAP and switching them to subscription-based licensing. It is also similar to the older “SAP ERP, private edition” which provided SAP cloud infrastructure on a hyperscaler for those running an ERP system with an SAP HANA back end.

What this means for SAPinsiders

All this information is yet to be confirmed by SAP who have stated to Handelsblatt that more details will be available during the first half of the year. It is possible that SAP is planning to announce this change in conjunction with an earnings call or a major event like Sapphire, but with the importance of the date change, it is highly likely that customers and partners will be clamoring for additional details and SAP may need to announce sooner. However, there are some definitive conclusions that can be drawn.

The end of maintenance date will not change for customers not purchasing this option. Indications are that purchasing this option will be the only way to use extended maintenance beyond 2030. For those that do not sign a RISE with SAP contract and use the SAP ERP, private edition, transition option extended maintenance will still end in 2030. This makes it vital for customers to understand how this potential offering will impact their future plans.

Understanding ROI for RISE with SAP is vital. We do not know when this option might be available, or how much it will cost. SAP has only told Handelsblatt that more details will be available during the first half of the year. This makes it crucial for customers who are conflicted about moving to RISE with SAP to thoroughly evaluate the cost of doing so and whether an offering like this might change that scenario. Three quarters of respondents to SAPinsider research say that they are concerned about the cost of RISE with SAP. This offering will not alleviate this concern. It will only provide an alternative to paying customer specific maintenance beyond the end of 2030 for those who have not already moved to SAP S/4HANA.

Dedicate time to finalizing future ERP plans now. The end of mainstream maintenance is less than three years away. Extended maintenance, for those running a recent enough enhancement package of SAP ECC and who have potentially made a commitment to move to SAP S/4HANA, will start after the end of 2027. Customer specific maintenance begins in 2030. While offerings like this can change the timeline for customer specific maintenance, customers must have plans in place for their future ERP needs. This offering will not be for everyone, especially those that may be ready to move to SAP S/4HANA before the end of 2030 or those unwilling to make additional investments. This is why dedicating time to ERP planning must be done as soon as possible.