SAP recently announced a maintenance availability commitment for SAP S/4HANA until the end of 2040. At the same time, SAP extended the mainstream maintenance availability period for core applications of SAP Business Suite 7 until end of 2027, followed by optional extended maintenance until the end of 2030.
Today, SAP is announcing a change to SAP S/4HANA product conversion and SAP S/4HANA contract conversion policy that grants customers executing an SAP S/4HANA conversion dual use rights for both SAP Business Suite 7 and SAP S/4HANA until completion of their transition to SAP S/4HANA.
The old policy only granted dual usage right until end of 2025. With this change, customers will also now have more time to complete their SAP S/4HANA transition beyond the original 2025 deadline for dual use.
“We want to ensure our customers have the flexibility to migrate to SAP S/4HANA at their own pace in the most seamless manner,” said Christian Klein, Co-CEO and member of the Executive Board of SAP SE. “Having the longer flexible maintenance commitment for SAP Business Suite 7, paired with the option of dual use rights for both SAP Business Suite 7 and SAP S/4HANA until they complete their transition to SAP S/4HANA, our customers can now more easily convert to our latest software, accelerating innovation to become an intelligent enterprise.”
Picking up the Pace to SAP S/4HANA
It’s clear that SAP customers view SAP S/4HANA as an innovation engine. The majority of respondents to the most recent Americas’ SAP Users’ Group (ASUG) user group survey planned to maintain or increase their investments in SAP. Notably, those customers recognized the value and efficiencies in transitioning to SAP S/4HANA.
“This is a welcome announcement for SAP customers because it removes a potential barrier to SAP S/4HANA adoption associated with conversions and contracts,” said Geoff Scott, CEO of ASUG. “It’s essential that all customers understand their options so that they can take advantage of past investments when making the transition to SAP S/4HANA.”
Similarly, nearly half of the customers who responded to the German-Speaking SAP User Group (DSAG) report, which consists of companies in Germany, Austria, and Switzerland, expected their total budgets for IT and SAP investments to rise in 2020. Among SAP customers in those countries, investments in SAP S/4HANA now exceed investments in SAP Business Suite 7.
“The overall set of announcements is an important step, and it is the right step by SAP. It is an encouraging sign that SAP is listening to their customers and stakeholders, and demonstrates SAP’s ability to do ‘whatever it takes’ to meet customer needs for their digital transformation,” said Andreas Oczko, board member for Service and Support, DSAG. “The long-term commitments put the discussion away from timeline-based considerations to the essence: how to best capture the value opportunities that SAP S/4HANA is bringing to customers on their way to the digital future.”
Giving Customers Valuable Time
Customers who have already signed an SAP S/4HANA conversion contract can also benefit from this update. They simply need to ask their SAP account executive to have the new policy reflected in their existing conversion contracts.
With additional time, some customers might want to consider converting more products to SAP S/4HANA or convert their entire suite of licensed products to SAP S/4HANA.
“It’s greater flexibility all around as companies look ahead to the future,” said Robin Manherz, head of Global Portfolio Planning and Commercialization at SAP.
This usage rights policy enhancement is the latest step in SAP’s renewed commitment to customer-centricity and commercial transparency.
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