Cloud, onPrem and Hybrid options has been available for some years, but what to choose. This pulse will set some guidelines for you to be able to take strategic decisions.
SAP maintenance map for HCM
In February 2020 SAP announced the new migration map. There has been several of these maps the last years, and this map seems to be the first map that set out valid options for most customers. There are options for customers that prioritize the onPrem versions, there are options for hybrid versions and for full cloud. But the right path for your company can only be defined by you.
The map now looks like this (February 2020):
It becomes very clear that the new migration map nudge customers to transition for other systems than the onPrem version of SAP ERP HCM if they will not pay to stay.
Maintenance 2040 information:
The maintenance map and the 2040 information together set the full picture and here are the most important parts.
High lights for SAP HCM onPrem
- Mainstream Maintenance for SAP ERP HCM has been prolonged for 31.12.2027
- Extended Maintenance period available 01.01.2028 to 31.12.2030 but comes with an extra 2% maintenance fee on top of your maintenance fee paid today
- Maintenance after 2030 is possible for a customer specific price
- The new "HCM for S/4" will be available earlier, now in September 2022, with a transition window September 2022 until 31.12.2027 (or later if you will pay for extended or customer specific support for SAP ERP HCM after 2027)
- HR Compability Packs for HCM in SAP S/4HANA will be obsolete 31.12.2025 and the new "HCM for S/4" will be the successor
SAP has listened and set new guidelines
Customers has for years been telling SAP to prolong the onPrem versions and now SAP has listened. There are no longer systems that will be out of maintenance and therefor no burning platform. The burning platform has changed into nudging as the new prolonging options comes with extra payment. The stick has changed into a carrot for moving HCM out of SAP ERP.
Nudging: You can stay and pay
or you can move out of SAP ERP HCM
It must be obvious to most people that SAP still recommend to go full cloud in SAP SuccessFactors, but the new maintenance periods described leaves room for companies to take the decision on their own instead of being forced into a move by SAP. It might not change the overall roadmap for customers, but the importance of taken these choices yourselves instead of being forced into a change should not be negligee. Change Management is so much easier when changes are planned for a reason instead of being forced into the change by externals.
HCM in S/4HANA
Companies are already moving HCM for SAP S/4HANA onPrem with Compability Packs instead of cloud transition for SAP SuccessFactors. There can be many reasons for this move instead of SAP SuccessFactors. The new "HCM for S/4" that will be available September 2022 are warm welcomed by these companies as it secures support and Mainstream Maintenance for 2040.
The "HCM for S/4" comes with modules that we all have known for years. The interesting parts are Payroll, CATS and Time evaluation that will be included and can continue as onPrem versions until 2040.
The full module list can be found here:
HCM in SAP S/4HANA works with Compability Packs. As the Compability Packs will be obsolete in 2025 there is a requirements for an extra transition for the new "HCM for S/4" that must be executed before 2025. There are not much information of this transition but it is assumed that it will be a more technical than functional transition.
4 scenarios for the HCM move
The maintenance map gives companies multiple scenarios and here are the 4 most common scenarios.
- The Do Nothing approach - Continue using SAP ERP HCM onPrem and be supported until 2027 - or later for extra payment
- Move to SAP S/4HANA before 3rd quarter 2022 and be supported until 2025. Then migrate to “HCM for S/4"
- Move to "HCM for S/4" after 3rd quarter 2022 and be supported until 2040
- Implement SAP SuccessFactors before 2027
Hybrid scenarios with some HR processes in SAP SuccessFactors and other HR processes in onPrem versions are the reality for many companies. But it is still the 4 main scenarios listed above that are applicable for the onPrem systems.
1:1 or clean-up when moving out of SAP ERP HCM?
The move out of SAP ECC HCM always comes with the big question: Should we do a simple one-to-one migration or should we clean-up and only migrate the configuration, objects and coding that are used today? It might look more simple on paper to decide for the simple 1:1 migration - but you will then have old configuration, objects and coding in your new HCM system.
Support and maintenance in a system that only contains configuration, objects and coding that are in use will be so much easier and more efficient. You will save the extra hours used for the clean-up many times in the years to come.
As you might have guessed I always recommend to do a clean-up when migrating to a new system. You can challenge this statement, but experience tells me that the statement is valid for most companies.
Conclusions
HR processes in onPrem systems are supported to 2040 if you follow the migration paths outlined in the new Maintenance map published by SAP in February 2020 instead of transition for SAP SuccessFactors. This goes for both Core HR, Payroll, CATS, Time evaluation and more.
The approach of changing the stick into a carrot to make it a company decision to move HCM out of SAP ERP HCM seems to be the right approach. No one likes to be forced into a change.
