A Journey Through ECC Versioning History and Beyond

SAP’s licensing landscape has undergone significant shifts, particularly regarding SAP ECC (ERP Central Component), first introduced in 2004. While mainstream maintenance for ECC is available until 2027, SAP offers an extended maintenance option until 2030 at an additional 2% cost on top of standard maintenance fees.

To support enterprises in their transition to SAP S/4HANA, SAP has launched a new SAP ERP Private Edition, Transition Option under RISE with SAP. Despite these efforts, adoption rates remain slow—only 30% of ECC users have migrated, with an estimated 57% expected to complete their transition by 2027.

Why Are Companies Hesitant to Migrate to S/4HANA?

1. Long-Standing Relationship with ECC
   • ECC has been a trusted ERP solution for nearly 23 years.
   • On-premise environments offer greater customization compared to cloud-based solutions.
2. Database Transition Challenges
   • ECC supports third-party databases like Oracle DB and IBM DB, while S/4HANA requires HANA DB.
   • SAP introduced HANA DB in 2011 to compete in the database market, leading to increased costs for migration.
3. High Cost and Complexity of Migration
   • Small and mid-sized enterprises find transition costs prohibitive.
   • Large enterprises require years of planning and execution for migration.
   • SAP ERP Private Edition, Transition Option aims to ease this process, but delaying until 2033 leaves only seven years until S/4HANA’s End of Maintenance.
4. Declining Incentives for RISE
   • In 2021, SAP offered 90% maintenance credit for RISE investments, but this reduced to 70% in 2024.
   • This credit is expected to drop by 10% each year until 2027, reducing incentives for early migration.

How Long Can You Stay on ECC?

Companies have multiple strategies to extend ECC usage:

1. Stay on ECC until 2030 – Requires an additional 2% cost on maintenance.
2. Shift to third-party maintenance – Avoid SAP’s increased fees by switching before or after 2030.

Before deciding, companies should assess technical feasibility and business impact, ensuring continuity without major system updates.

Who’s Eligible to Stay on ECC Until 2033?

SAP has announced an extended maintenance option for select large enterprises needing additional time for migration. Pricing details are expected between 2027-2028.

What’s the Future of S/4HANA?

By 2033, ECC will be nearly 30 years old, while S/4HANA will have just seven years left until its End of Life. SAP is likely to announce updates to S/4HANA’s lifecycle to maintain customer confidence in its long-term viability.

What’s Next?

At 2Data, we help businesses navigate SAP licensing, from internal audits to migration planning and cost analysis. Whether you’re considering a transition to S/4HANA or extending ECC usage, our expert advisory services ensure you make informed, strategic decisions.

👉 Contact us today to explore your SAP ERP roadmap!

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