SAP S/4HANA is a strategic choice for many companies. At the same time, SAP is increasing the pressure towards the cloud. This includes the ERP system SAP Cloud ERP Private (RISE with SAP).
New license metrics and clear schedules for the support of existing systems exist. In addition, the regular maintenance of SAP ECC will end in 2027 at the latest. This makes the topic crucial for CIOs and IT managers.
However, the reality remains hybrid. The DSAG Study 2025 (German SAP User Community) clearly shows that around three quarters of companies use cloud solutions. However, hybrid SAP system landscapes are clearly widespread. Seventy-eight percent of DSAG members combine on-premises operation and cloud.
The SAP public cloud has hardly played an operational role in the SAP core to date. Data protection, investment security and established system landscapes continue to shape decisions.
Parallel to the technical transformation, SAP is heavily changing their licensing models and therefore also compliance requirements. The switch from traditional purchase licenses to cloud subscriptions is shifting costs from one-off investments to ongoing obligations. For many companies, this means higher overall costs in the long term and a stronger commitment to SAP.
SAP Cloud ERP Private (RISE with SAP) is a particular focus. The vendor presents the model as an easy way to access the cloud. However, many CIOs see it as one thing: less control.
If you quit, you lose access to the software. Cloud exit scenarios face restrictions, and you can only control price adjustments to a limited extent. The DSAG study confirms this skepticism: around half of those surveyed see a growing risk from vendor lock-in.
A look at negotiations from 2025 shows that companies exploring alternatives get much better conditions. Those who are still hesitant to migrate will hardly be able to claim credits and will pay almost the list price.
Management and specialist departments often see SAP S/4HANA as a tool for innovation and efficiency. However, IT has a more cautious view. Just under a third of IT managers are critical of the situation. The main reasons are scarce resources, increasing complexity and additional tasks in ongoing operations.
There is a growing risk in the area of indirect access. During audits, SAP consistently verifies whether external systems, interfaces, or portals have the correct licenses.
Many companies have recently faced unexpected additional demands. Those who do not properly document and license integrations risk high additional costs. Proactive action is significantly cheaper here than subsequent clarification in an audit.
There are also challenges in master data management, data migration and the consolidation of distributed data sources. The DSAG survey also shows clear gaps in knowledge about new SAP offerings such as the SAP Business Data Cloud. A lack of clear information about roadmaps, licensing, and pricing makes it hard to make good decisions. This is especially true for long-term cloud contracts.
The DSAG study indicates that organizations plan to migrate to SAP S/4HANA and move to the SAP S/4HANA Cloud. However, it is not easy. Companies want more flexibility in operating models, transparent cost structures and real freedom of choice.
For CIOs and IT managers, this means that those who plan early are in a strong position to negotiate. In-house cloud calculations, clear rules about indirect access, and a solid migration plan create options. This also allows for negotiation. Software Asset Management helps to ensure license compliance, cost control and budget transparency during the transformation.
Conclusion: SAP S/4HANA is more than just a new ERP system. By the end of 2026, it will determine how much control companies retain over costs, operations and contract terms. A clear strategy, clean data and active SAP license management will make the difference between dependency and sustainable progress.
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