On 4 February, SAP announced a new offering designed to assist customers navigating the largest, most complex deployments. This initiative aims to support organizations transitioning from on-premise SAP ERP systems to modern, cloud-based solutions while optimizing business processes and enhancing agility. For Human Capital Management (HCM) and Payroll customers, this transformation specifically involves migrating from on-premise SAP ECC HCM and Payroll to SAP SuccessFactors Employee Central and Employee Central Payroll in the cloud.
On 4 February, SAP announced a new offering designed to assist customers navigating the largest, most complex deployments. This initiative aims to support organizations transitioning from on-premise SAP ERP systems to modern, cloud-based solutions while optimizing business processes and enhancing agility.
For Human Capital Management (HCM) and Payroll customers, this transformation specifically involves migrating from on-premise SAP ECC HCM and Payroll to SAP SuccessFactors Employee Central and Employee Central Payroll in the cloud. Since SAP first introduced its migration strategy, many customers have proactively embraced innovation and accelerated their journey to the cloud. The urgency surrounding this shift is further outlined in SAP’s blog on the SAP Business Suite 7 extension and its implications for HCM clients.
SAP SuccessFactors has remained committed to its existing customer base by offering extended timelines and flexible options to ensure organizations maximize their return on investment. This commitment is detailed in SAP’s discussion on bridge options for SAP SuccessFactors clients, including insights into SAP HCM for S/4HANA On-Premise as an interim solution.
While the introduction of this new transition option provides additional flexibility, it is unlikely to significantly alter most HCM customers' cloud migration strategies. The ultimate destination remains SAP SuccessFactors Employee Central Payroll, with this offering serving as a specialized solution for organizations with particularly complex requirements.
SAP is introducing a new cloud subscription offering intended only for large-scale and complex systems centered around SAP ECC, accompanied by a suite of dedicated services designed to support the transition to SAP cloud ERP. This solution will also ensure business continuity by providing security, legal, and software patches. Customers will be able to purchase the offering starting in 2028, with availability for use between 2031 and 2033.
SAP is announcing this in advance to accommodate customers with complex IT landscapes, ensuring they have ample time to plan accordingly.
This offering is entirely optional. Customers who complete their transition to SAP cloud ERP by the end of 2030 will not require it. The SAP ERP, Private edition, Transition option, is specifically designed for those who need additional time and assistance in their journey.
Key details include:
Further details will be disclosed as the 2028 purchase availability date approaches. The recommended path following this offering will be a full transition to SAP cloud ERP.
It is important to note that this is not an extension of SAP ERP maintenance, and there are no changes to the roadmap for on-premise SAP ERP systems beyond 2030.
The SAP ERP, Private edition, Transition option will be available at a higher cost in 2031-2033 compared to an equivalent ERP cloud subscription before 2031. Additional details will be shared during the broader launch in Q2 2025 and as the contractual availability date in 2028 approaches.
This table (originally published in my What are your 2023 SAP SuccessFactors Payroll Options? blog in 2023) now includes the newly introduced transition option.
This expanded framework presents a range of choices for HCM and Payroll customers, spanning from minimal innovation to full-scale transformation leveraging AI. The revised table offers greater clarity on the available pathways, ensuring organizations can make informed decisions based on their specific business needs and timelines.
| Option | Payroll | Description | Learn more | How EPI-USE Labs can support you |
|---|---|---|---|---|
| 1 |
SAP ERP HCM Payroll On-Premise |
Business As Usual (BAU) SAP SuccessFactors has given a commitment to their approximately 9,000 on-premise SAP Payroll customers that they will not experience an interruption in their continuous world-class support, guaranteed until calendar year-end 2025. |
SAP Business Suite 7 Extension: What This Means for SAP ERP Human Capital Management Customers |
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| 2 |
SAP ERP HCM Payroll On-Premise with extended support |
Business As Usual (BAU) with an extended support date SAP announced an extended maintenance for SAP Business Suite 7 by two additional years for mainstream maintenance until 2027. Customers who want to continue to use the SAP ERP HCM beyond 2027 will have an extended maintenance option, available beginning in 2028, until the end of 2030 for a premium of two percent above existing maintenance prices. |
SAP Business Suite 7 Extension: What This Means for SAP ERP Human Capital Management Customers |
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| 3 |
SAP HCM for S/4HANA On-Premise (H4S4) |
Extend on-premise with an S/4HANA upgrade An offering for customers who wish to extend their current investment in SAP ERP HCM. This offering synced with the SAP S/4HANA release and can be deployed either within the SAP S/4HANA environment or run standalone. H4S4 will allow continued use of the on-premise SAP® talent solutions, including learning and recruiting (subject to licensing). This offering is not available for net new clients. |
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| 4 |
SAP ERP, Private Edition Transition option |
Designed for complex customers with special needs Available starting in 2028 and will be active for usage from 2031-2033. It is an additional and non-mandatory offering. Customers who are planning to complete their transformation journey by the end of 2030 will not need it. |
New Offering to Help Navigate Complex RISE with SAP Transformations |
PRISM for HCM Private Edition Transition option |
| 5 |
SAP S/4HANA Private Cloud Edition (PCE) |
Non-disruptive pathway to digital transformation This offering, aligned with the program, is part of SAP’s ongoing commitment to helping customers continue to get ROI from their on-premise SAP investment, while creating a bridge to the cloud and the future. This is a non-disruptive way to keep your HR, Payroll, Time, and/or Benefits via a cost-effective pathway to the cloud, while retaining the functional richness of your existing systems. This option involves migrating to an SAP S/4HANA Private Cloud Edition (S/4 PCE) subscription, moving your environment to SAP’s own data center or to a hyperscaler (Azure, GCP, AWS). A conversion from on-premise SAP ERP HCM licenses to PCE cloud subscriptions is also required. |
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| 6 |
SAP SuccessFactors Employee Central Payroll |
Innovation The current focus of innovation with approximately 1800+ customers and 52 local versions. And this option is SAP SuccessFactors |
PRISM for HCM Employee Central Payroll SAP also allows Partners to build their own with partner localizations. |
In 2019, EPI-USE Labs launched the PRISM Assessment that allows SAP customers to get a detailed understanding of their current as-is state easily, and to help them to make decisions about their best path forward. Learn more about how this free assessment works and how it’s been instrumental in helping our clients to make the best decisions for their organization.
With over 25 years in SAP Human Capital Management, Danielle is a recognized leader in HR technology. She holds the distinguished roles of SAP Mentor and SuccessFactors Confidant, and serves as HCM Chairperson for ASUG (America's SAP User Group). Danielle is a sought-after speaker at international conferences, sharing insights on HR tech trends. She has authored four best-selling books on SAP and holds certifications in both SAP and SuccessFactors technologies.