SAP's mainstream support for ECC ends in 2027, with extended support (at a premium) through 2030. Roughly 63% of ECC customers had not yet licensed S/4HANA by mid-2024, and full migrations take 18–36 months. This playbook covers timeline urgency, migration approaches, licensing conversion strategies, RISE with SAP evaluation, SAP incentive programmes, negotiation tactics, common pitfalls, and a governance checklist to help CIOs navigate this monumental transition.
SAP's mainstream maintenance for ECC ends in 2027, with optional extended support (at a +2% premium fee) available through 2030. SAP has recently offered select customers support until 2033 if they commit to a future cloud migration (essentially a RISE with SAP deal). It is widely believed SAP will not delay these end-of-support dates again, after already pushing the original 2025 deadline to 2027.
As the 2027 deadline nears, industry analysts warn that rushing a last-minute project in 2026 or 2027 will drive up costs and deplete resources. Demand for experienced S/4HANA consultants is expected to far outstrip supply. Prolonging ECC usage beyond 2027 without a migration plan could result in paying steep extended maintenance fees or seeking alternative support outside SAP.
SAP's conversion credit percentage typically declines as 2027 approaches. If budget allows and your S/4 project is firm, converting sooner locks in a higher credit (lower net cost). Some companies "convert early" — buying S/4HANA licences ahead of the actual go-live date — to maximise credits and then hold both ECC and S/4 licences during the transition. SAP has also indicated that customers who show commitment by signing S/4 contracts could avoid the hefty extended maintenance fees.
This timeline creates both urgency and leverage. SAP knows customers must move, so use the time you have now to negotiate from a position of choice rather than last-minute desperation. Engage your SAP account team early, get conversion credit eligibility in writing, and build a detailed migration timeline immediately.
One of the first strategic decisions is how to technically approach the move from ECC to S/4HANA. The classic options are Greenfield, Brownfield, and a newer Hybrid/Bluefield approach.
| Approach | Description | Pros | Cons | Best For |
|---|---|---|---|---|
| Greenfield | Brand-new S/4HANA implementation from scratch. System built fresh, data migrated over. Full process redesign. | Maximum freedom to leverage S/4HANA capabilities. Standardise/simplify processes. "Clean core" with no custom code baggage. | Resembles a full ERP implementation (12–24+ months). Steep change management. Complex data migration. | Heavily customised ECC; fragmented/multi-instance ECC; business seeking transformation. |
| Brownfield | In-place technical conversion of existing ECC to S/4HANA. Preserves processes, custom code, and historical data. | Faster, less disruptive. Preserves investments in configurations and integrations. Less retraining needed. | Carries forward inefficient processes. Less opportunity to re-engineer. Custom code remediation still required. | Relatively "vanilla" ECC; tight timeline; working processes worth preserving. |
| Bluefield (Hybrid) | Middle path — new S/4HANA instance with selective migration of configurations and data from ECC. | Phased migration by business unit/module. Preserve what works, reengineer what doesn't. Reduced risk vs. Big Bang. | Complex to plan. Requires specialised data migration tools. Costs between brownfield and greenfield. | Large enterprises wanting phased approach; mixed process quality across ECC. |
SAP does not automatically carry over your ECC licences to S/4HANA. S/4HANA is a new product line, so new licences are required. Enterprises must acquire S/4HANA licences through SAP's conversion programmes or by purchasing outright.
In S/4HANA, SAP streamlined licence definitions. Common S/4 types are Professional Use, Functional Use, and Productivity Use — roughly corresponding to the older Professional, Limited Professional, and Employee categories. It's critical during migration to map old licence types to the new model correctly. For example, an "Enterprise Functional User" in S/4HANA provides similar rights as a Limited Professional did in ECC.
Many SAP customers only utilise around 70–75% of their existing licence entitlements on ECC, meaning 25–30% are unused but still incur maintenance costs. In negotiations, SAP has been willing to let customers terminate that shelfware as part of the conversion, which lowers the ongoing maintenance base. Use the migration as a chance to right-size — there's no sense converting and paying maintenance on 1,000 licences if you only need 700 in S/4HANA.
S/4HANA introduces the Digital Access licensing model for indirect/automated usage. New S/4HANA contracts default to Digital Access for indirect use, meaning most customers will manage a hybrid model of named users for direct access and digital documents for indirect. If indirect access is a significant concern (many interfaces to S/4), consider negotiating a conversion to the document model with SAP — they often offered substantial discounts to encourage adoption.
SAP offers conversion programmes to "trade in" your existing ECC licences for S/4 licences. SAP assigns a credit value to your current licences (often equal to what you originally paid, if you move early). That credit can offset the cost of the new S/4HANA licences.
| Aspect | Product Conversion (Legacy) | Contract Conversion (Current) |
|---|---|---|
| Approach | Direct swap of certain ECC licences for S/4HANA equivalents. Maintains original contract terms. | Replace the entire contract. Sign a new S/4HANA licence contract with credit for licences previously owned. |
| Status | Largely retired / phased out. SAP removed this from its price list in mid-2023. | The primary method today. Available for perpetual on-prem and RISE/subscription. |
| Dual-Use Rights | Explicitly permitted — run ECC and S/4HANA in parallel during transition without duplicate costs. | Must be negotiated — typically 6–12 months of ECC read-only usage after S/4 go-live. |
| Shelfware | Doesn't reduce licence footprint. Shelfware remains, and you continue paying maintenance on unused licences. | Opportunity to eliminate shelfware — SAP willing to let customers terminate unused licences as part of conversion. |
| Discounts | Preserves original negotiated discounts. | Credit value typically decreases the longer you wait. Early movers get higher credits (up to 100% of original cost). |
Most enterprises will run ECC and S/4HANA in parallel for data migration, testing, and user training. Standard SAP contracts don't automatically allow productive use of both systems for extended periods. Negotiate a "dual use" clause — typically 6–12 months of ECC remaining operational (often read-only) after S/4 go-live. Clearly define the capacity, duration, and whether it's production or read-only to avoid compliance issues or double payment.
Need expert guidance on your SAP ECC to S/4HANA migration licensing strategy?
SAP Advisory Services →RISE with SAP is SAP's flagship subscription bundle designed to simplify the move to S/4HANA in the cloud. Introduced in 2021, it consolidates several components into a single contract: S/4HANA Cloud (public or private edition), cloud infrastructure (via AWS, Azure, GCP, or SAP data centres), and business transformation tools.
| Aspect | RISE Public Cloud | RISE Private Cloud |
|---|---|---|
| Model | Multi-tenant SaaS. Standardised processes. Quarterly updates automatically applied. | Single-tenant managed instance. Customisation supported. Updates applied on customer's schedule. |
| Customisation | Limited — must use standard SAP best practices. Extensions via BTP only. | Extensive — can bring existing ECC custom code and ABAP modifications. Gradual simplification possible. |
| Best For | Organisations with standardised processes. Willing to adopt SAP best practices. Cloud-native mindset. | Heavily customised ECC systems. Complex integrations. Need to migrate "as-is" first, then optimise. |
| Migration Path | Greenfield only. Complete process redesign. | Brownfield or Hybrid. Preserves existing configurations and data. |
Instead of purchasing specific named user licences for each role, RISE uses Full User Equivalents (FUE) to measure usage. Different user types are weighted differently — an "Advanced" user counts as 1.0 FUE, a "Core" user as a fraction, etc. This provides flexibility as you migrate from on-premises to cloud, but requires careful modelling to avoid overcommitting.
RISE shifts costs from CapEx to OpEx — eliminating upfront licence costs but introducing ongoing subscription fees. SAP's initial RISE proposals often come in at roughly 3× the customer's current annual maintenance spend. CIOs should never accept the first quote — treat it as an opening offer with significant room to negotiate.
If speed, simplicity, and shifting to OpEx are priorities, RISE can make sense — but negotiate hard on price and terms. Many large SAP customers use the threat of staying on perpetual licences (or even third-party support for ECC) as leverage to get a better RISE deal. If you prefer on-prem, use the threat of RISE as leverage — SAP is keen on cloud conversions, so they might offer discounts on perpetual licences if you show hesitance.
SAP understands that moving its vast ECC customer base to S/4HANA is a monumental challenge, and has rolled out incentive programmes to sweeten the deal.
SAP offers credits that can offset migration costs. Customers moving ECC to S/4HANA Cloud via RISE could get credits equal to 45% of their current annual contract value. Those moving an existing on-prem S/4HANA to cloud could get 60%, with some smaller customers even 100% for one year. These credits can also purchase BTP services or LoB solutions.
Customers who show commitment by signing S/4 contracts could avoid the +2% extended maintenance fee for 2028–2030. SAP account executives have latitude to waive this fee or provide support through 2030 free of charge if a firm migration project is in place. Ask explicitly: "If we move forward with S/4HANA licensing now, can SAP guarantee support on ECC until our go-live without extra charge?"
SAP offers free assessment tools (Readiness Check, Business Scenario Recommendations) that can highlight inefficiencies in ECC that S/4 can solve, helping justify the project cost. BTP trial credits allow you to prototype and demonstrate value before committing.
Hyperscalers (AWS, Azure, GCP) and systems integrators often offer funding programmes to co-sponsor migrations — cloud credits, professional services funding, or fixed-fee packages. Large SIs may reduce rates to capture market share as 2027 approaches. Orchestrate these: get cloud credits from an IaaS provider, SAP licence discounts, and SI fixed fees to reduce total migration cost.
Make it clear you are evaluating other paths: staying on ECC with extended support, third-party maintenance, or migrating to S/4HANA using a BYOL (bring your own licence) private cloud approach. Some enterprises use the possibility of deferring the S/4HANA move altogether as a bargaining chip. Compare proposals from hyperscalers to show you could run S/4HANA without RISE.
Conversion credit percentages decline as 2027 approaches. If budget allows and your project is firm, converting sooner locks in higher credits. Some companies buy S/4HANA licences ahead of go-live to maximise credits, accepting overlapping maintenance for a short period.
Ensure you can run ECC and S/4HANA in parallel during transition (typically 6–12 months) without duplicate costs. Define clearly: duration, capacity (production vs. read-only), and whether additional licences are needed. Get this in writing as a contractual provision.
In cloud contracts, negotiate a cap on price increases for renewals (e.g., no more than 3% per year). For perpetual licences, agree on a fixed price for future purchases. Include a "right-size" clause allowing you to reclassify or swap licence types as needs evolve.
Ensure contracts address what happens if you leave RISE — do you regain on-prem licence rights? Negotiate provisions for scaling usage up and down. Clarify pricing for future growth. Build safeguards against unexpected price hikes to keep costs predictable.
Use the migration as an opportunity to right-size. SAP has been willing to let customers terminate unused licences as part of conversion. If you only need 700 of 1,000 licences in S/4HANA, ensure you receive credit for the rest and stop paying maintenance on the surplus immediately.
SAP may bundle or discount consulting, training credits, or migration tools as part of an overall migration package. If SAP's desire to secure a RISE contract is strong, they may offer significant value-added services at no additional cost.
Treating RISE as a turnkey solution and then struggling with data and process changes. Fix: Plan for 18–36 months. Run a phased or pilot migration before Big Bang. Test with a smaller division first to uncover issues before full-scale rollout.
Buying more users or services than needed, leading to wasted spend. Fix: Conduct thorough licence inventory and usage analysis before committing. Use SAP's LAW tool to measure actual usage. Only convert what you need — right-size the 25–30% average shelfware.
Getting a nasty shock at renewal when costs jump due to auto-renewal clauses or escalators (e.g., 5% annual price increase after initial term). Fix: Negotiate caps on renewal increases. Review all "fine print" around renewal terms, pricing escalators, and flexibility constraints before signing.
Discovering later that some features (advanced analytics, extra environments, email integration) need separate licences under S/4HANA. Fix: Map every ECC capability to its S/4HANA equivalent. Verify what's included in core S/4HANA vs. what requires add-on licences. Get clarity on BTP, analytics, and embedded features.
Once in a long RISE contract, SAP knows you're dependent — any additional needs come at a premium. Fix: Build flexibility into the initial contract. Include provisions for scaling, swapping, and exiting. Negotiate all future growth scenarios upfront.
Being exposed to double payment risk during the transition period when both ECC and S/4HANA are running. Fix: Negotiate explicit dual-use clauses allowing 6–12 months of parallel operation. Define capacity and mode (production vs. read-only) in the contract.
A rushed, last-minute migration drives up costs, depletes consultant availability, and leaves no room for strategic negotiation. Fix: Start now. Even if full migration by 2027 isn't feasible, secure interim support (extended maintenance or third-party) and use that time wisely to execute your roadmap.
Learning from these pitfalls, successful enterprises enter S/4HANA deals well-informed, benchmarked, and with a solid negotiation plan — often with expert assistance. Treat the licensing workstream equally to the technical migration: CIOs/CTOs should regularly review the licence transition plan to ensure it aligns with budget expectations and strategic goals.
Use this checklist to ensure your SAP ECC-to-S/4HANA migration covers all critical bases — technical, licensing, financial, and organisational.
Create a detailed timeline from now until 2027 (or 2030 with extended support). Map milestones for decision-making, licence conversion, technical migration, testing, training, and go-live. Work backwards from the deadline.
Gather all existing SAP contracts, purchase orders, and order forms. Understand exactly what licences you own (user types, engine metrics, third-party apps) and what you pay in annual maintenance. Note any special clauses (swap rights, termination rights).
Use SAP's Licence Administration Workbench (LAW) or audit tools to measure how many users actually use the system. Identify peak usage of package/engine licences. This data is essential for preventing SAP from selling you capacity you don't need.
Determine the 25–30% of unused licences typical in ECC environments. Calculate the annual maintenance cost of shelfware. Plan to eliminate this surplus during conversion — SAP has been willing to terminate unused licences as part of the deal.
Work with your SAP account rep or an independent licensing adviser to map your ECC products to S/4HANA products. Understand which user licence types translate to which S/4HANA equivalents (Professional → Professional Use, Limited Professional → Functional Use).
Assess whether Greenfield, Brownfield, or Hybrid/Bluefield is right for your organisation. Run SAP Readiness Check to identify custom code remediation needs. Consider your ECC version (EHP 6+ needed for brownfield) and data quality.
Model TCO for each path: RISE subscription, on-prem perpetual with conversion, or hybrid. Include infrastructure, support, consulting, and opportunity costs. Consider BYOL cloud approach as an alternative to RISE.
Contact your SAP account team to understand conversion credit percentages and deadlines. Get all promises in writing. Compare product conversion vs. contract conversion options and timing implications.
Inquire about RISE Migration Credits, extended maintenance waivers, BTP trial credits, and any time-limited incentive programmes. Also explore hyperscaler cloud credits and SI co-funding opportunities.
Secure contractual provisions for 6–12 months of parallel ECC/S/4HANA operation during transition. Define capacity, duration, and mode (production vs. read-only) explicitly in the contract.
Negotiate caps on annual price increases (ideally ≤3%). Review auto-renewal clauses. Secure pricing guarantees for future licence additions. Include right-to-reclassify and right-to-exit provisions.
Assess whether to adopt the Digital Access document model or continue with pure named-user licensing. Measure and plan for API/integration usage that may trigger indirect access charges under S/4HANA.
Moving to S/4HANA is not just a technical migration — prepare IT teams and end-users for new SaaS features, quarterly update cadences, and Fiori UX changes. Invest in change management to adopt standard S/4HANA practices.
Wherever possible, do a phased or pilot migration (one region, one subsidiary) before Big Bang. Learn from a smaller deployment to uncover licensing and performance issues, then adjust for the wider rollout.
Consider independent SAP licensing advisers for contract review, negotiation support, and benchmarking. An outside perspective can identify pitfalls and saving opportunities that internal teams may miss.
Once on S/4HANA, regularly review usage and costs. Quarterly governance meetings ensure you're using what you pay for and flag overages early. Monitor SAP's product roadmap and stay engaged with user groups (ASUG, DSAG).
The move from SAP ECC to S/4HANA is both a technical migration and a commercial transformation. With diligent planning, strategic negotiation, and proper timing, many organisations have significantly reduced their SAP licensing costs — or achieved far greater value. Early movers have the strongest negotiating position; the later you wait, the fewer options and incentives remain. Start now.
Whether you're evaluating RISE, negotiating licence conversions, or building a migration strategy — Redress Compliance provides expert, independent SAP advisory to protect your investment.