How to plan for SAP's S/4 HANA

Constellation Research recommends an upgrade and contract negotiations strategy for the latest iteration of HANA.

Launch Of SAP S/4 Provides Catalyst For Organizations To Update Their Next Gen Apps Strategy

Constellation Research

The February 3rd, 2015 New York City SAP S/4 launch event brought a positive closure for customers seeking the next generation apps strategy from SAP. At a high level, SAP S/4 HANA offers:

  • a new suite of applications built only on top of SAP's in memory database technology, also known as the SAP HANA platform
  • a user experience built from the SAP Fiori technology that also starts with a mobile first paradigm
  • delivery in the cloud, on-premises, and hybrid

At launch date, the first set of public SaaS offerings will include Simple Finance (SFIN), project delivery, and sales cloud for customer. Constellation estimates that the refactoring process of 400 million lines of code will take between 4 to 6 years. Constellation estimates that the functional parity on the vertical and micro vertical industries will take even longer.

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The Bottom Line: Now Is The Time To Rethink Your Apps Strategy With SAP

While determining where to go in the future, Constellation recommends the following strategies in determining a go forward strategy with not only SAP, but also legacy ERP vendors on the journey to digital business and digital transformation. (see Figure 2).

  • Ask for all copies of previous order docs and price lists
  • Itemize every unit of software and cost per unit
  • Use third party maintenance as a lever
  • Battle indirect licensing
  • Understand your license usage
  • Never, ever, bundle your contracts
  • Focus on designing SOA Principles
  • Stabilize the core, invest in cloud
  • Remember you are the boss of the relationship

Figure 2. Four Paths Of Modernizing Your Legacy Apps

Constellation Research