SAP S/4HANA vs. Legacy ERP: The Cost of Delaying Migration

Apr 23, 2025
  • operations
  • IT
  • discrete manufacturing
  • SAP

If your organization is still running on a legacy ERP system, you’re not alone. Many manufacturers, distributors, and mid-sized enterprises have relied on the same ERP backbone for a decade or more. But with the rapid pace of technological change, and SAP’s planned phase-out of ECC support by 2027, the window for transition is closing fast.

More importantly, the cost of staying with a legacy ERP may be higher than the cost of migrating.

What’s at Stake with Legacy ERP?

Legacy systems are often perceived as “stable” - but that stability can come at a steep price:


High Maintenance & Customization Costs

  • Older ERPs often require custom workarounds, third-party integrations, and manual patches to stay functional

  • Over time, these layers of complexity increase your IT costs and make it harder to adapt to new business needs


Lack of Real-Time Visibility

  • Most legacy systems operate in batch mode, meaning data is outdated by the time it reaches decision-makers
  • This slows down operations, forecasting, and responsiveness to market changes


Limited Innovation Capability

  • AI, automation, advanced analytics, and cloud-native apps are difficult, if not impossible, to integrate into older ERPs
  • Meanwhile, competitors adopting modern platforms gain faster insights, lower costs, and better customer service


Security & Compliance Risks

  • Older systems may not be fully compliant with evolving regulations (like ESG disclosures or cybersecurity frameworks)
  • They also pose increased risk of data breaches due to outdated infrastructure


Why SAP S/4HANA Is the Future-Ready Alternative

SAP S/4HANA is SAP’s next-generation ERP, designed to support real-time, data-driven decision-making and end-to-end business transformation.

Here’s how it stacks up:


Feature

Legacy ERP

SAP S/4HANA

Data Processing
Batch-based, siloedReal-time, unified
CustomizationCostly, rigidBuilt-in flexibility + low-code via SAP BTP
UpgradesComplex and manualSeamless cloud updates (SaaS model)
User ExperienceOutdated interfacesModern SAP Fiori UX
IntegrationLimited API supportNative integration across SAP and non-SAP
Innovation ReadinessLowEmbedded AI, analytics, RPA-ready

The Hidden Cost of Delaying Migration

Postponing the shift to SAP S/4HANA may seem cost-saving in the short term, but in reality it can lead to:

  • Missed revenue opportunities due to inefficient processes
  • Higher support costs for outdated hardware and software
  • Increased risk of business disruption during last-minute transitions
  • Talent attrition - younger IT professionals prefer modern platforms

As the 2027 ECC support deadline approaches, demand for skilled SAP consultants will rise, making last-minute migrations costlier and riskier.

Time to Act: Plan Today, Lead Tomorrow

Migrating to SAP S/4HANA isn’t just a tech project - it’s a business transformation opportunity. Companies that move early gain the advantage of:

  • Spreading costs and risks over time
  • Running pilots and hybrid models
  • Training staff gradually
  • Building innovation readiness into their DNA


The question is no longer if you’ll move to SAP S/4HANA - it’s when, and how much it will cost you to wait.

Delaying migration can hinder innovation, inflate costs, and leave your business behind. With SAP S/4HANA, you gain the speed, flexibility, and intelligence needed to compete in a rapidly evolving landscape.

Ready to future-proof your business?

get in touch