SAP ECC (ERP Central Component) has been the core enterprise resource planning solution for decades, handling essential business functions like finance, procurement, and logistics. It runs on traditional databases and has been widely adopted across industries.

SAP S/4HANA is its successor—a modern ERP suite built exclusively on SAP HANA, an in-memory, column-oriented database that delivers significantly faster processing and real-time analytics. 

Transitioning to SAP S/4HANA means organizations must not only upgrade their software but also rethink the platform it runs on. Here’s what you need to consider to make sure your transition is successful before the 2027 deadline.

SAP S/4HANA is Worth Embracing

SAP S/4HANA introduces a host of advantages over ECC. While your impetus for leaving behind SAP ECC might be its discontinued support, this is an opportunity to bring many other improvements to your organization. SAP S/4HANA offers a fundamentally more powerful and agile environment.

• Higher real-time performance through the in-memory HANA database
  
• Simpler data structures, reducing the need for custom tables and indexes
  
• Faster analytics and reporting, enabling better decision-making
  
• Modern UI and user experiences through SAP Fiori
  
• Improved automation and integration with cloud-native tools and platforms 

Pairing S/4HANA with a next-generation platform, such as IBM Power 11, organizations can further unlock these benefits. Power 11 offers improved security, zero-downtime planned maintenance, and 6x9s availability. 

Consider your organization’s current and future needs. While you are updating to S/4HANA, would it make sense to also update your infrastructure to Power 11? This may be an opportunity for you to create a new foundation of modern, secure infrastructure for your organization.

Preparing for Your Migration in 3 Steps

Successfully migrating to S/4HANA begins with thorough preparation. Here’s how to get started.

Step 1: Assess Your Current Environment

• Map your landscape: What customizations, interfaces, and third-party systems are you using?
  
• Evaluate your data: Identify what’s critical to migrate and what can be archived.
  
• Understand your licensing and support status: Know when support ends and whether you’re eligible for extensions.
  
• Review your infrastructure: Will you run on-prem, in the cloud, or in a hybrid model? Does your current hardware meet the requirements?

Step 2: Define Your Business Objectives

• Are you looking to reduce infrastructure complexity?
  
• Do you need greater agility in upgrades and scaling?
  
• Is data sovereignty and control critical for compliance?

Step 3: Engage the Right Expertise
There’s no need to hire an infrastructure specialist for this project alone, or to ask your existing them to take on work that’s outside their expertise. Experts like the ones at R2i have deep experience in SAP architecture and infrastructure, and can help you design a migration strategy tailored to your operational, regulatory, and budgetary needs.

Working with an outside expert ensures that your project is successful, with minimum disruptions.

Choosing the Right Path: How to Deploy S/4HANA

There are multiple ways to use S/4HANA. Choosing the right one depends on how much control you want, how customized your current environment is, and how quickly you need to move.

Deployment Options

• SaaS (RISE with SAP)
  • Pros: SAP now offers a SaaS version of S/4HANA. In this option, SAP handles infrastructure, patching, and upgrades, with subscription-based pricing.
    
  • Cons: You have less control over update timing, which is an issue if you rely on customization. This could also raise data sovereignty concerns for Canadian clients, unless you have chosen SAP’s Sovereign Cloud on-prem offering.
• Private Cloud or IaaS (e.g., R2i’s Edwin, a 100% Canadian private cloud)
  • Pros: Greater control, custom patching schedules, and compliance with Canadian data residency laws.
    
  • Cons: You manage the SAP application layer. (or work with an application management organization). S4/HANA licensing costs.
• On-Premises
  • Pros: Full control over infrastructure and security. This is the best option if you need to manage every detail. Retain full control.
    
  • Cons: Higher internal maintenance and resource requirements. S4/HANA licensing costs. 

Migration Options for Your S/4HANA Transition

Once you have decided how you would like your S/4HANA infrastructure to look, it’s time to migrate. There are three options to consider.

Migration Options

• Greenfield – Start fresh in your S/4HANA system without bringing anything from your previous system.
  • Ideal for: Organizations switching from a different ERP, or with outdated customizations that they want to leave behind.
    
  • Pros: Clean setup, modern best practices, streamlined processes.
    
  • Cons: Requires process redesign, data conversion, and training. 
• Brownfield – Copy over your existing SAP ECC system into S/4HANA with all your customizations.
  • Ideal for: Businesses with mature SAP ECC environments and valuable customizations.
    
  • Pros: Retains existing configuration and data.
    
  • Cons: May carry forward technical debt; complexity in adjusting older custom code. 
• Hybrid / Selective Data Transition – Combine pieces of the greenfield and brownfield strategy.
  • Ideal for: Organizations that want to bring over historical data but selectively modernize processes.
    
  • Pros: Balanced approach between fresh start and continuity.
    
  • Cons: Requires careful planning and segmentation of what’s reused vs. redesigned. 

Each of these models offers tradeoffs. What matters is aligning the strategy with your business goals, regulatory environment, and operational complexity.

Don’t Wait: Make Your SAP Transition Work for You

The move to S/4HANA is inevitable, but how you move is up to you. With the right planning, infrastructure, and guidance, you can turn a mandatory upgrade into a strategic transformation that benefits your organization in numerous ways.

Whether you’re modernizing legacy processes, improving performance, or securing your operations for the long term, a strategic migration plan that embraces the benefits of S/4HANA will pay dividends.

The best way to ensure you make the most of this transition is to work with Canadian infrastructure experts like those at R2i, who can ensure your new SAP environment delivers on performance, availability, and compliance—and sets you up for a successful future.