SAP ECC End-of-Life and Support Date: Now What?

SAP ECC End of Support: The System End of Life Date

Initially, SAP announced that the end of SAP ECC support would occur in 2025. However, in 2020, the company extended the deadline to 2027 to give users more time to migrate to SAP S/4HANA.

This postponement is partly due to the fact that many companies had not yet completed their migration. According to a study by ASUG (Americas' SAP Users' Group), in 2021 only 33% of U.S. companies using SAP ECC had completed their migration. Although the number has grown since then, a considerable number of companies have not yet completed the transition. It is estimated that approximately 70% of Fortune 500 companies use SAP systems, which raises two important reflections:

• Migrating now can give you a significant competitive advantage over large corporations that have not yet completed the process.
• The high demand for consultants and the shortage of talent in the market could make it difficult to hire qualified teams to carry out the migration, which, added to this shortage, could skyrocket the costs of migration services as the end date of SAP ECC support approaches.

In addition to these specific considerations, below, we address the consequences of not migrating before the SAP ECC End of Life date arrives.

Consequences of not migrating after the end of support

With SAP ECC's End-of-Life date looming, it's critical for businesses to understand the implications of not migrating to SAP S/4HANA. The end of support means a lack of updates, security patches, and functional improvements, which could put business continuity at risk. Companies that do not migrate in time could face higher operating costs, technical difficulties, and, eventually, lose competitiveness in the market.

Impede the digital transformation of companies

SAP S/4HANA is not just an upgrade from SAP ECC. It has been designed to be an adaptable and scalable tool for companies in their digital transformation process, becoming the core of the intelligent enterprise. Even if the end of support did not come, not migrating means giving up access to cutting-edge technologies that are revolutionizing business processes, such as embedded analytics, artificial intelligence, machine learning, or the Internet of Things.

Loss of competitiveness and efficiency due to technological obsolescence

The direct consequence of not incorporating these technologies into business processes is the limitation of a less agile system, with slower and more limited data analytics compared to SAP S/4HANA. The latter allows real-time analysis and embedded reporting, which helps companies to better respond to changes, problems, opportunities and to manage daily operations more efficiently.

Companies that have successfully migrated have reported significant improvements in productivity, more agile and accurate accounting closings, a notable reduction in low-value-added manual tasks, and better decision-making, to name a few examples. In addition, SAP ECC does not offer access to the more than 600 new functionalities of SAP S/4HANA.

Increased security risks

One of the most serious consequences of the end of support is that the company will stop deploying regular security updates and patches, except for those who acquire additional support. This can leave businesses vulnerable to cyberattacks. In an environment where cyberattacks are becoming more sophisticated, especially with the rise of artificial intelligence, SAP S/4HANA provides continuous protection through updates and constant monitoring.

Violations of rules and regulations

The SAP ECC End of Life date also means that updates related to global and local regulations will no longer be implemented, which could result in risks of regulatory non-compliance. This can lead to problems such as financial penalties and loss of reputation.

Higher costs in the long term

The end of support not only entails the extra cost of extended support, as mentioned above, but can also lead to other additional expenses. Some examples are:

• Costs for penalties and fines due to regulatory non-compliance.
• Expenses derived from the increasingly complex integration with new technologies and their maintenance.
• Increased operating costs by relying on a system with less efficient processes.

Migrate Now, Transform at your own pace with SEIDOR

With over 40 years of experience and a global presence in 45 countries, SEIDOR brings unparalleled expertise to your SAP migration project. Our team is dedicated to delivering award-winning implementations, ensuring a smooth transition to your new SAP system.

At SEIDOR, as a trusted SAP Platinum partner, we provide the ultimate solution your company needs to seamlessly initiate the migration process before the SAP ECC end-of-life deadline. We adapt the plan to your needs, allowing you to migrate now to S/4HANA and transform at your own pace, minimizing interruptions in your operations. We guarantee you a successful project, within the agreed time and budget.