The Sweet Spot – Why you should move to S/4HANA now.

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The Sweet Spot – Why you should move to S/4HANA now.

The typical blogs and articles regarding moving the move to S/4HANA (S4) are centered around the five main main benefits/reasons of SAP’s new ERP offering: Performance, Cloud, Fiori, Future development and the end of Business Suite at the end of 2025.

What I don’t see discussed is how the approximately 550 Australian companies who are currently running ECC are going to move to S4 in the next five years. Now obviously not all of them will move, but we can all agree it will be a large number. My estimate is 50% will move by 2025 with another 25% moving in the following five years. 

So this boils down to around 200 to 300 migrations in five years in Australia with the best case scenario of that being a flat 50ish a year over that period. More likely there will be a ramp up with a peak from 2023 to 2025. This is a staggering number given that each of these projects will average at 6 to12 months and require SAP technical functional teams of around 10 to 20 consultants. 

SAP S/4HANA

Adding to the impending supply problem is the increasing rigourous certifications SAP impose on their Partners and consultants to perform these S4 projects.

Another thing to consider is that as the wave of these migrations occur, companies will be seeking for partners and consultants with ‘runs on the board’ adding to competition and high prices. Organisations may be forced into choosing immature Partners affecting project success and quality.

My advice is that if you intend to move to S4 in the next ten years or so, you basically have two windows, 2019 to 2021 and 2026 onwards. Out of the two, I think the sweat spot will be 2019 to 2021 as receive the benefits of experienced partners at reasonable prices.  If you find yourself migrating between 2021 and 2025 you will be faced with high cost of services, low quality (inexperience), project risk and timing dictated by Partners not by Customers.