SAP’s decision to end support for its legacy systems and push organizations to migrate to S/4HANA by 2027 is leading many organizations to explore alternatives. For middle market companies that have long relied on SAP, now might be the perfect time to consider new ERP options over a costly upgrade.
For many years, SAP has been a go-to ERP solution for larger enterprises and middle-market companies that needed robust, all-encompassing systems. SAP’s legacy systems became industry standards, partly because the ERP landscape was narrower and fewer alternatives existed. Now, a growing number of more affordable, flexible, and user-friendly ERP solutions are available. Companies are beginning to question whether SAP’s high costs and complex requirements still make sense for them.
The upgrade to SAP S/4HANA is more than just a version change. It’s a comprehensive overhaul that impacts nearly every aspect of a company’s existing ERP environment. Many businesses have spent years customizing SAP to fit their specific needs. Transitioning to S/4HANA by SAP's 2027 deadline would likely mean re-engineering processes, cleaning up data, and completely rewriting custom code that has become essential to daily operations. For companies already familiar with SAP’s complexity, this is no small undertaking from a time or financial perspective.
This is especially relevant as other ERP providers introduce cost-effective, specialized alternatives designed to meet the needs of specific industries.
For companies in service, project-based, or manufacturing sectors, the timing couldn’t be better to explore other options. Today, ERP providers like Acumatica, NetSuite, Infor CSI, and Microsoft offer systems tailored to industry-specific needs without the extensive customization and maintenance. Many of these solutions are easier to implement and maintain and provide streamlined functionality that can reduce operational overhead.
Service-oriented or project-oriented companies may find that solutions like Acumatica or NetSuite better align with operational needs. These platforms are designed to handle flexible billing, project management, and resource planning with ease, all at a fraction of SAP’s costs.
For manufacturing-based businesses, solutions like Infor CSI, NetSuite, and Microsoft can provide the core functionalities required—such as inventory management, production planning, and supply chain management—at a lower cost. Additionally, these platforms allow for simpler configurations, leading to a more agile ERP environment that supports growth without excessive maintenance demands.
For companies considering a switch, the transition from SAP to another ERP system is a chance to not only cut costs but also optimize operations. A challenge with SAP is its inherent complexity, which has led many businesses to build layers of customization and intricate workflows to meet specific requirements. Moving to a different ERP platform can help organizations streamline and re-engineer their processes. Companies can clean up data and design a more manageable system with leaner, more effective workflows. Additionally, many ERP systems come with built-in best practices that align with industry standards, reducing the need for customizations and ensuring operations stay efficient.
One common misconception is that moving to S/4HANA is simply an upgrade of a company’s existing SAP system. In reality, it’s a transformation that often requires revamping core configurations, migrating large amounts of data, and redeveloping custom applications. Many SAP customers have environments that are deeply customized, which makes the transition to S/4HANA a highly involved process.
For companies already struggling with SAP’s complexity, switching to an ERP system with a less demanding maintenance and upgrade cycle could garner significant long-term benefits. By reducing the need for extensive customization, companies can refocus IT resources on growth-oriented projects rather than just keeping the ERP running.
SAP’s push to S/4HANA has created a critical moment for its customers, particularly for middle-market companies. With the high cost and complexity of the upgrade looming, it’s no surprise many of SAP’s clients are considering other options. Now is the time to look at the growing ERP landscape and evaluate whether a more industry-focused, cost-effective solution would better serve organization needs. Companies now have choices that simply weren’t available a decade ago. There’s more opportunity to build a leaner ERP environment that aligns with business goals without a great financial or operational burden.
At Trenegy, we help organizations select and implement fit-for-purpose ERP solutions to meet business needs. For more information about our non-traditional ERP approach, email info@trenegy.com.
Check out our State of the ERP Guide for unbiased ERP system reviews and comparisons.
