Moving SAP ERP HCM to the SuccessFactors Cloud: The Cost of Doing Nothing

Perhaps the most pressing topic in the overall SAP landscape is the need for organizations to make the move to the cloud. For customers with on-premise solutions, the Customer Evolution Program for HCM (formerly known as HXM Move) is designed to assist customers in transitioning to the SuccessFactors cloud solution before the 2027 end-of-maintenance deadline for SAP ERP HCM. While that may seem a long way off for most organizations, doing nothing and waiting until the last minute may likely be an expensive, high-risk strategy. Instead, it would be better for companies to make their transition plans sooner rather than later.

SAPinsider’s recent Deployment Approaches to SAP S/4HANA 2024 benchmark research report found that roughly one-third of SAP organizations have already upgraded their SAP deployments, while an additional 24% plan to have it done by the end of 2025. This leaves more than 40% of all SAP organizations scrambling to compete for the implementation partners and resources needed to successfully complete this digital transformation in just two short years. Rushing to complete these important projects can lead to rushed or even botched implementations at a greater cost.

Leading SAP companies are at least in the planning stages of their move from on-prem solutions to the cloud as they come to realize the significant ROI cloud solutions provide, in addition to the increased costs for limited, in-demand resources. The rest may have to rush their deployments or lose out on the resources they need to ensure that all aspects of their implementations are successful.

First Steps

An important part of moving SAP SuccessFactors to the cloud is understanding what capabilities an organization needs to be more successful. Every company wants to reduce the total cost of ownership and boost ROI, but many are bogged down by simply comparing the features and functions of the old solution to the new one.

As a first step, organizations should find an experienced partner that can help them understand the best strategies for their digital transformation. To help companies make the most of this move, HRIZONS has partnered with SAP to offer customers the SAP Customer Evolution Kit for HCM, to help customers just starting to explore their move to the cloud and seeking guidance from seasoned experts.

This is a series delivered in 3 workshop-like sessions that include a Readiness Check to helps companies understand the complexity of their current On-Prem environment, saving months in preparation work. It also helps organizations understand the benefits of moving to the SAP SuccessFactors cloud-based solutions – developing roadmaps, architecting, planning migrations, and other essential pieces of the puzzle that can be overlooked.

What could your organization be saving by moving to the cloud? Take 60 seconds to find out with the ROI Calculator. You may be surprised.

Understanding the Long-term

Many companies are delaying their digital migrations due to the perceived immediate cost. However, it is important for these organizations to understand, that for qualified SAP customers, there are no upfront costs for the Customer Evolution Kit for HCM. While the long-term ROI is significant and continuous.

By making the move to SAP SuccessFactors, companies can improve revenue, save on localization costs, and boost employee productivity. Furthermore, SuccessFactors holds the promise of lower HR IT costs through reductions in hardware and infrastructure investments, implementation fees, and other support. Here are the Top 10 Reasons why moving to the cloud with SuccessFactors is so critical for SAP customers.

What This Means for SAPinsiders

While the end of SAP HCM maintenance is not until 2027, it’s crucial to start planning for digital migration well in advance, considering the average migration time for most organizations is 18 to 24 months. Companies that do nothing and delay the move to SAP SuccessFactors risk missing out on crucial resources that can make the move smoother, more successful, and cost-effective.

Many SAP companies looking to better understand what their first steps should be are turning to trusted partners like HRIZONS. These SAP SuccessFactors experts offer significant experience in helping companies move HR operations to the cloud, enabling them to maximize ROI and optimize vital HCM functions. Contact HRIZONS to learn how you can initiate your transition today.