Do I have to move off my on-premise SAP Payroll?

March 27, 2024
Written by Danielle Larocca

Senior Vice-President of HCM Solutions Danielle Larocca has worked in the SAP HCM space for over 20 years. An SAP Mentor and featured speaker at numerous conferences, Danielle has authored four best-selling books on SAP, is the Technical Editor for the SAP Professional Journal, and often the Voice of the Expert on SAPInsider’s Ask the Expert series for HR.

Globally, the majority of SAP HCM customers are still on an on-premise deployment, often with an SAP Payroll, and the knowledge about their options of how long they can keep it varies in each market. SAP HCM on-premise customers have several options that allow them to either invest in innovation, or extend their on-premise investment with SAP S/4HANA.

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I had such a wonderful experience at the SAP SuccessFactors HR Connect Dubai event this month. I find spending time with our existing and potential clients around the world very rewarding.

 

Regardless of whether I am at an SAP or SAP SuccessFactors event in the Americas, Australia, Europe or the Middle East, there is still a consistent theme when I speak to customers:

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We understand that we have to ‘do something’ with our SAP Payroll, but we aren’t clear on our options and the urgency associated with each. We need guidance to make and defend our business decisions, and deploy them with confidence, while operating in a continuously evolving market.

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Globally, the majority of SAP HCM customers are still on an on-premise deployment, often with an SAP Payroll, and the knowledge about their options of how long they can keep it varies in each market. The SAP SuccessFactors directive on this subject has not changed; their strategy has always been that a movement to the cloud is where innovation can be found. However, the dates that customers can extend their on-premise investments have changed a bit over the years – from 2020, 2025, 2027, 2030, through to 2040. This is testament to SAP continuing to support their large customer base, while giving them an opportunity to innovate with the cloud.

 

As defined in the table below, SAP HCM on-premise customers have several options that allow them to either invest in innovation, or extend their on-premise investment with SAP S/4HANA.

 

So the conversations I have focus around this thinking:

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Each business is unique, and you want your path to digital transformation and the cloud to be in line with your specific requirements and goals. At EPI-USE Labs, we have the tools to help you determine which path is best for you. We leverage an assessment that helps you to evaluate what you have now, so you can design where you need to go, and when, in the best way for your business.

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Our unique value proposition in this space extends beyond that assessment; we are the most experienced Payroll consultants with a global presence, and we use SAP-certified solutions. We invented the PRISM assessment to allow SAP customers to have all the facts to make an informed decision about their path forward, without risk.

 

We'd love to talk to you about your requirements, so please don't hesitate to reach out.

 

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Option Description How we help
Do nothing Business as usual. SAP extended its mainstream maintenance on its Business Suite (and Business Suite on HANA) applications from 2020 until 2025, responding to customer requests for stronger commitment to on-premise applications and more time to move to the cloud. We offer solutions to support clients at every stage of their digital transformation: EPI-USE Labs solutions
Extend maintenance for On-Premise SAP announced an extended maintenance for SAP Business Suite 7 by two additional years for mainstream maintenance until 2027. Customers who want to continue to use the SAP ERP HCM beyond 2027 will have an extended maintenance option, available beginning in 2028, until the end of 2030 for a premium of two percent above existing maintenance prices We offer solutions to support clients at every stage of their digital transformation: EPI-USE Labs solutions
Upgrade to H4S4 SAP HCM for SAP S/4HANA On-Premise (more familiarly known as ‘H4S4’) is another variation, similar to the SAP S/4HANA Private Cloud Edition (PCE) offering, for customers who wish to extend their current investment in SAP ERP HCM. Explore our solution: PRISM for H4S4
Upgrade to SAP S/4HANA Private Cloud Edition (PCE) for HCM Non-disruptive pathway to digital transformation. This offering, aligned with the HXM Move program, is part of SAP’s continued commitment to helping customers continue to get ROI from their on-premise SAP investment, while creating a bridge to the cloud and the future. Explore our solution: PRISM for PCE
Upgrade to SuccessFactors Employee Central (and/or Employee Central Payroll) The current focus of innovation. A hosted cloud version of the on-premise SAP Payroll solution. Explore our solution: PRISM for ECP

 

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