With most organisations still running ECC, the countdown to 2027 is accelerating and SAP Cloud ERP has emerged as a critical decision point. This blog explores your options and the licensing implications of them.
Despite years of warnings, most SAP customers are still running ECC. According to Gartner and CIO research at the end of 2024, only around 39% of ECC customers had licensed S/4HANA. As we approach the end of 2025, across our customer base, we're seeing roughly 50% have moved or are moving off ECC. That means an estimate of half are still on legacy systems, and many haven’t finalised their migration plans.
The 31 December 2027 deadline is looming ever closer, particularly considering the size and complexity of most SAP estates. Migrations take 18–36 months on average, and by late 2026, demand for SAP talent, hyperscaler capacity, and migration partners will surge. Those who wait risk rushed projects, inflated costs, and reduced leverage with SAP.
Earlier this year, SAP did announce a slight lifeline with a new offering—SAP ERP, private edition, transition option—for some of the world's biggest organisations, who understandably face the most complex migrations. This is expected to be active from 2031 to 2033.
But for the rest, the deadline is real and decisions must be made.
Many organisations are choosing to migrate to S/4HANA, SAP’s next-generation ERP that delivers real-time analytics, embedded AI, and modernised workflows. This route suits businesses that:
Need deep customisation or industry-specific modules.
Want to remain in full control of hosting and infrastructure.
Are already heavily invested in on-prem or private cloud environments.
However, migrations can be complex and costly, especially when dealing with custom code, historical data, or outdated licensing structures.
SAP has begun rebranding its RISE with SAP programme under the broader SAP Cloud ERP umbrella. The RISE Premium Edition is now called SAP Cloud ERP Private Edition, and the familiar “RISE” branding is being phased out.
While the concept remains the same—a subscription model combining S/4HANA, infrastructure, and support—the details have shifted. AI and data tools such as SAP Datasphere are now unbundled, sold as optional add-ons, and contract terms have been restructured.
It’s SAP’s preferred model because it accelerates the shift to recurring revenue, but it also offers advantages for customers seeking a simplified commercial and technical model.
Why consider SAP Cloud ERP:
Moves licensing from CapEx to OpEx, aligning with cloud-first strategies.
Reduces operational burden by including infrastructure and maintenance.
Enables faster access to innovation (AI, automation, data tools).
Watch out for:
Reduced flexibility. The contract is managed on SAP’s terms.
Limited visibility and transparancy into underlying cost structures
Potential unbundling of AI and data services (like SAP Datasphere) that were previously included resulting in higher costs
For many customers, the real question isn’t “Should we move to S/4HANA?” but “Should we move with SAP Cloud ERP, or migrate independently?”
If you can’t migrate before 2027, SAP offers Extended Maintenance through 2030 at a premium. You’ll continue receiving security patches and support but no new features or innovations.
This can be a tactical move to buy time, but it’s not a long-term solution. Extended support costs more, and it’s clear SAP’s strategic focus is firmly on its cloud future.
Third-party support providers can help organisations extend ECC’s lifespan while saving significantly on maintenance fees. This option is attractive for companies with stable systems or parallel transformation projects, but you’ll lose access to SAP updates and innovations.
Any migration, whether to SAP Cloud ERP or standalone S/4HANA, comes with licensing implications:
The introduction of Full Use Equivalents (FUEs) changes how user access is counted and priced.
Digital Access introduces document-based charging for integrations.
AI and analytics features are now add-ons, not automatically bundled.
Without clear analysis, it’s easy to overpay or miscalculate requirements. Licensing should be a central part of your migration planning, not an afterthought.
Assess Your Current ECC Estate: Audit licenses, users, integrations, and dependencies.
Evaluate Future Scenarios: Model costs for S/4HANA, Cloud ERP, and extended maintenance.
Engage Stakeholders Early: Align IT, procurement, and finance around business goals.
Benchmark and Negotiate: Use independent data to challenge SAP’s proposals.
Plan for the Long Term: Ensure contracts align with your digital transformation roadmap, not just SAP’s deadlines.
Our experience shows that many SAP customers are still at the evaluation or early planning stage. The complexity of licensing, contract structures, and hybrid architectures is slowing progress.
Livingstone’s SAP experts help organisations navigate this transition strategically, combining independent commercial advice with technical insight. We can provide a complete picture of your current entitlements, usage, and future requirements so you can make informed decisions and negotiate from a position of strength.
As shown in our work with a major European retailer, this approach can deliver double-digit savings and multi-year flexibility, even in complex S/4HANA negotiations.
The ECC end-of-life clock is still ticking and many organisations haven’t finished planning their move. Whichever path you choose, the key is to start now.
Early action secures the best commercial terms, avoids skill shortages, and gives you time to build a licensing and migration plan that fits your strategy, not SAP’s sales cycle.
Get in touch.
We can help you weigh up the best options if you don't yet have an ECC support/migration plan. Contact us and one of our experts will be happy to chat.
Lucy Shillito, Senior Consultant at Livingstone Technology