Why SAP is Pushing S/4HANA Transformations: The Key Reasons Explained

Table of contents

• The Big Picture
• Integration
• Data
• Extensibility
• Applications
• The Challenges of Fiori Adoption
• Why the Push Toward Standardization and Cloud?
• Final Thoughts

Have you ever thought SAP product managers look like this crazy meme guy? This happens when they talk excitedly about GROW, RISE, AI and their many cloud products. It’s too much at once, like they are solving the puzzle of business software or telling a story about why "ECC is bad". If this is how you feel when you think about an S/4HANA transformation, don't worry - many people feel the same.

Let’s talk honestly about why SAP is so invested in S/4HANA. Imagine sitting down with your SAP rep over a beer, and instead of marketing fluff, they give you the real story. This isn’t about what S/4HANA is or how to implement it. It’s about why SAP is driving this shift so hard, and what it means for your business.

 

The Big Picture

Many customers still think of S/4HANA as just a refreshed version of ECC - something that simplifies a few processes while adding complexity elsewhere. That perspective misses the bigger story. SAP isn’t just upgrading an old product; it’s repositioning its entire technology landscape.

Look at the big picture! S/4 is just a tiny fraction of their business solutions set. [1]

 

 

S/4HANA is part of a larger ecosystem that includes the modern Fiori front-ends, SAP Analytics Cloud for real-time insights, the Business Technology Platform (BTP) with its integration and data services, and a growing library of standard APIs. The message is clear: SAP understands that end users want fast, reliable software that works from the browser without the burden of local installations. Delivering on that expectation requires a modern architecture built on APIs, microservices, and event-driven communication.

In that context, S/4HANA plays the role of anchor, enabling four key areas of SAP’s cloud strategy: integration, data, extensibility, and applications.

 

Integration

In the old world, point-to-point connections like RFCs and IDocs kept systems talking to each other. In the new world, those links won’t be enough. [2] SAP wants you to adopt modern integration practices using BTP’s Integration Suite or data exchanges in the Datasphere. These approaches build scalable, durable links that are future-ready.

 

Data

Data is no longer about diving into standard tables with SQL. Instead, it revolves around models like the Virtual Data Model (VDM) or Core Data Services (CDS) Views. This shift creates consistency and stability. Nearly all OData APIs and every SAP data product are built on CDS Views. [3] SAP handles the standard data products such as purchase orders, customers’ orders, business partners, etc, while customers remain responsible for their custom models.

 

Extensibility

For decades, SAP allowed deep customizations that often became brittle during upgrades and expensive to maintain. With S/4HANA, the approach changes. Extensions should now be built using defined enhancement points such as BADIs, rather than invasive changes to the core. The Clean Core principle enforces this discipline, ensuring systems remain upgradeable and stable. [4]

 

Applications

On the application side, the focus is on SaaS-ready solutions. Customers are encouraged to use standard Fiori apps or SAP GUI for HTML + SAP Screen Personas where possible, and to extend those apps and their APIs rather than rewriting functionality. When custom apps are needed, SAP recommends starting with Fiori Elements on RAP before moving to more flexible programming models. For those wanting even more agility, side-by-side extensions exists. Those are UI5 freestyle possibilities, Java and other coding languages. Low-code tools such as SAP Build Apps provide additional options.

SAP’s commitment to this strategy shows in the numbers. In 2019, there were 740 Fiori Elements apps. By 2023, that number had nearly doubled to 1,466, with most built using RAP. The trend is clear: SAP is investing heavily in modern app development.

SAP’s progress [5]:

 

The Challenges of Fiori Adoption

Of course, not everything has gone smoothly. Many experienced ABAP developers dismiss SAPUI5 as outdated, and some customers hesitate to adopt the Fiori Launchpad when their users are still comfortable with the classic SAP GUI. For those customers, Fiori should only be introduced where it delivers clear value. At the same time, it’s important to recognize that SAP’s new toolset accelerates custom app development. With RAP, developers can stick to ABAP while still creating Fiori apps, avoiding the need to dive into JavaScript.

The truth is that learning and adopting the cloud-based tools pays off quickly. SAP Build, for example, keeps evolving and allows developers to create apps faster than ever before. Companies that make the shift sooner benefit from these efficiencies earlier.

 

Why the Push Toward Standardization and Cloud?

There’s also a strategic reason behind SAP’s aggressive push. Beginning with the S/4HANA Public Cloud release 2508, SAP will maintain separate code lines for Public Cloud and for Private Cloud/on-premise deployments. That means apps and APIs will evolve differently across the two environments. However, SAP has promised that the ABAP back end will remain consistent across all S/4HANA versions. See the screenshot

 

The most important innovations - new Fiori apps, new APIs, and even AI features such as SAP Joule - arrive in the public cloud first. On-premise customers either wait or need to request backports. SAP's reasoning is as follows: The sooner you adopt a cloud-first strategy, the sooner you will benefit from lower costs and faster access to innovation. The rule of thumb should be: Your business should be able to upgrade to the latest S/4HANA releases quickly.  For your business, a cloud-first approach means that new operating models are required, and existing infrastructure must be phased out. Think ahead! It is advisable to plan accordingly, as reliance on traditional software operating models may restrict access to SAP's newest innovations.

It’s worth remembering that S/4HANA also ties customers directly to the HANA database. Older products like ECC had to support multiple database vendors, which limited SAP’s flexibility. [6] By designing a new product, SAP could drop that requirement, focusing all innovation on its own database platform. By focusing on S/4HANA, especially the public cloud, and reducing complexity, SAP can make product support and development more streamlined.

 

Final Thoughts

At its core, SAP’s S/4HANA transformation is about reducing complexity, driving standardization, and preparing customers for a cloud-first future. The change is not just technical; it touches data models, integration strategies, development practices, and ultimately the way organizations structure their teams.

For companies still holding on to legacy systems, the question isn’t whether to move, but when. Delaying might feel comfortable, but it also means higher costs and slower access to innovation. SAP has made its direction clear: the future is cloud, and S/4HANA is the path to get there.

 

Source:
[1] SAP Big Picture Architecture Look for “On premises” here you see “S/4”
[2] Extend SAP S/4HANA in the cloud and on premise with ABAP based extensions (Chapter 4.4.4 Connectivity)
[3] Data Product | Data Products | SAP Business Accelerator Hub > Click into one data product, look below on Output Ports – API’s, or Business Objects
ODATA V2 | SAP S/4HANA | SAP Business Accelerator Hub > Click into one API, see Documents > SAP Help, in most cases a CDS View can be found directly in here.
[4] Clean core extensibility for SAP S/4HANA Cloud, I can recommend to skim through the document
[5] SAP Fiori Apps Reference Library Filter on UI Technology – every Fiori Elements option, and by Product Version
[6] Difference Between SAP ECC, HANA, R/3, and S/4HANA | LeanIX