SAP Extends Legacy Software Support – But Only for Select Customers

On its recent earnings call – SAP has officially confirmed that it will extend support for its legacy ERP systems beyond previously announced deadlines—but only for customers who commit to a cloud migration strategy. This move marks a significant shift in SAP’s approach, albeit with strict conditions attached.

A Conditional Extension, Not a U-Turn

Back in 2020, SAP extended mainstream support for SAP ECC 6.0 from 2025 to 2027, with extended support available at a premium until 2030. Until now, SAP has firmly maintained that the deadline would not change. However, on the recent earnings call Christien Klein said that customers may be able to stretch their legacy system support until 2033.

According to SAP, organisations that have large, complex IT landscapes and require additional time for their RISE with SAP migration may qualify for an SAP ERP, private edition, transition option. This package includes a cloud subscription model along with services aimed at facilitating the transition while maintaining business continuity.

Why the Extension?

Despite SAP’s push for customers to migrate to S/4HANA, adoption rates remain sluggish. A Gartner report from last year indicated that only 37% of ECC customers had licensed S/4HANA, with migrations progressing at an insufficient pace to meet SAP’s 2027 deadline. The complexity, cost, and time required for migration remain major barriers.

SAP CEO Christian Klein recently addressed concerns, stating:
“We will stick to the 2027 deadline. However, for a few large customers managing ERP and business processes across over 100 countries, transformation is not easy. This new transition option is not an extension of on-premise maintenance but a structured pathway to the cloud.”

Read the call transcript with this link – https://seekingalpha.com/article/4752487-sap-se-sap-q4-2024-earnings-call-transcript

Industry Reaction: Cloud Strategy or Customer Pressure?

SAP’s decision has sparked mixed reactions. The German-speaking SAP User Group (DSAG) welcomed the delay but criticised SAP’s broader push toward cloud adoption, arguing that on-premises customers should not be forced into cloud solutions. Jens Hungershausen, DSAG’s chairman, recently commented:

“While this move benefits companies still in the middle of conversion projects, it is clearly intended to drive RISE with SAP adoption. On-premises customers need more flexibility and transparency in their transition choices.”

What’s Next?

SAP plans to release further details on the SAP ERP, private edition, transition option in the first half of 2025, including pricing and qualification criteria. While the core 2027 deadline remains unchanged, this new option could provide relief for enterprises struggling with their migration timelines—if they are willing to commit to SAP’s cloud roadmap.

The clock is still ticking for SAP customers. Companies yet to begin their migration journey may need to reassess their strategy and consider whether SAP’s new offering aligns with their long-term IT roadmap.

Stay tuned for more updates as SAP reveals further details on this evolving situation.

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SAP SE (SAP) Q4 2024 Earnings Call Transcript Jan. 28, 2025 6:34 AM ET

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