SAP HANA (“High Performance Analytic Appliance”) is an in-memory technology developed by SAP in 2010. It combines OLAP and OLTP landscapes in a common in-memory database and allows data processing and analysis to be accelerated many times over. Originally conceived as an appliance (i.e. a combination of hardware and software), HANA can now also be used in virtualized form. Unlike its predecessors, the new SAP product generation is also based on HANA technology. So S/4HANA is an ERP suite, HANA the technology underneath.
For the new product generation, SAP offers several license models, from on-premises to hybrid scenarios to the public cloud “S/4HANA Cloud”. With classic on-premises use, the ERP system is completely hosted (i.e. software and hardware, systems, databases, servers) at the user company. Cloud solutions are available in different variants between private and public cloud, operated on hyperscaler platforms. In all of this, customers should keep in mind that SAP wants to become a cloud company in the long term and consequently focuses its development activities there. With the “RISE with SAP” program, the group wants to accompany its customers on their way to the cloud.
According to the current status, SAP will stop maintaining the SAP Business Suite at the end of 2027 (optional extended maintenance until the end of 2030). That is why user companies cannot avoid dealing with the transition. It is better to tackle this today than tomorrow, because the workload of qualified migration consultants is likely to increase in the coming years. Above all, however, S/4HANA is a platform from which digitization measures can be optimally started – a topic that every company should deal with today.
SAP user companies are highly individualized in the design of their ERP processes (and in terms of the degree between standardization and customer-specific adaptation). It essentially depends on how complex a migration to the new product generation will be. The amount of preparatory work that has already been done (master data cleansing, etc.) before the actual move starts is crucial. Fixed prices cannot therefore be reliably quantified for an S/4HANA project. A tailor-made design is always required – developed in a transformation project, ideally together with a specialized service provider.