Lead Your SAP S/4HANA Transformation
Insights from Gartner, Support from Infobelt
Introduction
The transition to SAP S/4HANA is a transformative moment for organizations leveraging SAP’s ERP solutions. As the successor to SAP ECC, S/4HANA offers advanced capabilities that align with modern business needs. However, Gartner’s latest research highlights adoption trends and challenges that SAP industry professionals must consider.
This blog distills these insights, offering actionable guidance for leaders navigating this transformation. We also incorporate Infobelt’s perspective, drawn from our vast experience providing practical insights in data management and SAP solutions. The data presented is sourced from Gartner research, with clear citations to ensure accountability and transparency.
Current SAP S/4HANA Adoption Landscape
Adoption Rates and Transition Trends
According to Gartner’s 4Q24 estimates:
- 39% of SAP ECC customers (out of a global base of 35,000) have purchased or subscribed to licenses for transitioning to SAP S/4HANA.
- 26,900 customers have adopted SAP S/4HANA, with 62% of these being net-new customers.
- Despite these numbers, 61% of ECC customers have not yet licensed S/4HANA, reflecting hesitation due to perceived complexity and resource requirements.
Key Drivers for Adoption
SAP’s go-to-market strategies—RISE with SAP and GROW with SAP—are central to its adoption push:
AI-Driven Metadata Enrichment
AI-driven metadata enrichment automates the classification and tagging of unstructured data, reducing manual efforts and enhancing retrieval efficiency. By leveraging NLP and ML, organizations can:
- RISE with SAP: Accounts for 58% of S/4HANA deals in 4Q24, primarily targeting businesses with annual revenues under $5 billion.
- GROW with SAP: Focused on the Public Cloud Edition, it contributed to 35% of sales during the same period.
Challenges in Migration: An Infobelt Perspective
Complexity, Costs, and Data Management
Many organizations perceive the migration to S/4HANA as a complex project requiring significant planning and investment. Gartner highlights this complexity, and at Infobelt, we understand that a key component of this challenge is managing the vast amounts of data involved. This is where our expertise in data archiving and application retirement becomes invaluable.
For those unable to meet the 2027 deadline for mainstream ECC end of support, extended maintenance options are available until 2030 but come with a 2% premium on software support fees, potentially increasing costs by 10% annually.
Support Limitations and Infobelt’s Role
Customers using older ECC versions (EHP5 or earlier) face mainstream support cessation by the end of 2025. For others, SAP has announced a new offering—SAP ERP Private Edition Transition Option—to extend support beyond 2030 under specific conditions. Details on this offering will emerge in the second half of 2025.
Infobelt’s solutions can help bridge these gaps. We provide strategies for managing legacy data and streamlining the transition process, ensuring compliance and minimizing disruption.
Strategic Recommendations for Leaders: Infobelt’s Enhanced Approach
To successfully implement AI-driven archiving, organizations should:
Gartner provides actionable advice for CIOs and ERP leaders considering migration. We, at Infobelt, build upon these recommendations with our deep understanding of SAP environments:
1. Reassess Your ERP Strategy (with Data Archiving in Mind)
SAP S/4HANA is not a one-size-fits-all solution. Leaders should:
- Conduct a thorough analysis of its fit within their broader ERP strategy.
- Build a robust business case with input from external experts, internal stakeholders, and a clear data archiving strategy.
Infobelt Insight: Data archiving isn’t just an afterthought; it’s a crucial element of a successful S/4HANA migration. A well-defined archiving strategy reduces data volume, lowers migration costs, and ensures compliance while speeding up migration.
2. Evaluate All Options (Including Data Lifecycle Management)
While transitioning to S/4HANA is encouraged, organizations can consider alternatives such as:
- Partial adoption
- Third-party support
- Retaining on-premises licensing options alongside RISE or GROW offerings.
- Implementing a comprehensive data lifecycle management strategy.
Infobelt Insight: Don’t overlook the power of data lifecycle management. Infobelt’s solutions specialize in application retirement and data archiving, offering a cost-effective way to manage your data, reduce storage and license costs, and also comply with regulatory requirements.
3. Avoid Shortcuts (Plan for Data Complexity)
Migration timelines can span multiple years, particularly for complex environments. Rushing the process may lead to inefficiencies or misaligned outcomes. Leaders must prioritize comprehensive planning and resist enforced approaches based on peer pressure.
Infobelt Insight: Data complexity is a significant factor in migration timelines. Infobelt’s expertise can help you identify and address data-related bottlenecks, ensuring a smoother and more efficient migration.
Opportunities in Cloud ERP Transformation
SAP’s emphasis on cloud delivery aligns with evolving business needs:
- RISE with SAP integrates cloud hosting, technical management services, and AI-powered tools like Joule.
- GROW with SAP caters specifically to net-new customers or those adopting a two-tier ERP approach.
These programs offer flexibility but require careful evaluation of their tiers (basic, premium, premium plus) to ensure alignment with organizational goals.
Conclusion: A Strategic Path Forward, Powered by Infobelt
The journey toward SAP S/4HANA adoption is both an opportunity and a challenge for industry leaders. While Gartner’s data underscores the urgency of migration ahead of key deadlines, it also highlights the importance of strategic planning tailored to each organization’s unique needs.
At Infobelt, we understand these challenges and offer comprehensive solutions to streamline your S/4HANA migration. Our data archiving and application retirement expertise, combined with a customer-centric approach, ensures a smooth, cost-effective, and compliant transition.
We encourage you to explore Infobelt Essentials for SAP to learn how our solutions can help you navigate the complexities of S/4HANA adoption: https://infobelt.com/infobelt-essentials-for-sap/
Learn more about Infobelt and our mission to empower organizations with cutting-edge data archiving technology: https://infobelt.com/about-us/
By leveraging insights from Gartner, incorporating Infobelt’s expertise, and aligning them with your business objectives, leaders can navigate this transition effectively—ensuring their ERP systems remain competitive in an increasingly digital landscape.
Disclaimer: All data points referenced in this blog are sourced from Gartner’s research report published in March 2025.