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Problem statement : Management would like to know if we could just continue on ECC5.0 without upgrading to 6.0 for the next 3-4 years. The business needs are being met with ECC5.0 and there is no real need to go for upgrade project. We use core SAP modules(SD,MM,PP,FICO) & may start using QM in 2011. Other than core SAP this small size SAP client does not need any other feature.

Impact of problem : SAP will support ECC5.0 till 2014. After that it will apply penalty in form of higher maintenance fees. This higher maintenance fees is not acceptable to the business as it increases the cost of using SAP. Our estimated cost of a technical upgrade to Ecc6.0 is 150K to 500K(max) which is tough to budget in this rough economy. 

Solution : 

As part of SAP IT, I understand that we are loosing the functionality around using Webdynpro, easy integration with external vendors and customers among other features of ECC6.0. But the small size business like ours does not need these features atleast today or in 2011.

Our estimated cost of a technical upgrade to Ecc6.0 is 150K to 500K (max) assuming we use our Super users & few consultants with a 3-4 month project upgrade time line 
So I am working on gathering the real benefits to the business by upgrading to ECC6.0 Then run those benefits against any latent business needs that may get resolved.  

The benefits of ECC6.0 as read & understood by me till date are

1. You can use switch framework to add any industry solution on Top of ECC6.0

2. Ease of using creating new Java based content using Netweaver Java etc

3. Features of using Webdynpro to integrate easily with external systems 

4. Rich Internet Applications through Flash Islands integration in Web Dynpro..( based on comment recived from one expert reader)

 So running above benefits against my business needs I conclude that

1. This small size SAP customer does not need an industry specific solution anytime soon.

2. Business would not like to invest in creating content using JAva Netweaver solutions

3. There is no need to use WEb dynpro to connect with external systems. The only external system being used is Visual factory on the floor and Solid works Vault for Engineering team. Currently they do not need integration to SAP.

4. BI needs are being met through cheap BI solutions from Microsoft.

So my overall conclusion is to avoid upgrade to ECC6.0 till 2012. Then just to a technical upgrade to ECC6.0 in 2013 to avoid the penalty fees in 2014.

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6 Comments

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  1. Guillaume GARCIA
    Hi,

    I think you can only install Enhancement Packages on ECC 6.0 and not ECC 5.0
    Staying on this older release prevent you from accessing the latest functional (EhP for ECC, see Solution Browser) and technical (EhP for Netweaver with improved productivity for developers [chained statement, UML, …], support for Rich Internet Applications through Flash Islands integration in Web Dynpro, and so on…)
    Hope this clarifies.   🙂

    Best regards,
    Guillaume

    (0) 
    1. Rammohan Shenoy Post author
      thanks Guillaume for your inputs on the benefits of ECC6.0. I do not think the business needs these features at present. One of the reasons is it would cost the business upwards of 120$/hour rates to create/ or use this content.
      Many thanks for your inputs.
      (0) 
  2. Ravishankar Ramamurthy
    Hi,

    To take a decision, it would be better to know what are all the components you are using today.  Then what is your company’s basic requirement, desired requirement etc. and then we can compare those features between ECC6 and ECC5.  To be honest a technical upgrade from ECC5 is not going to be as costly as from lesser versions.  Also it may not be necessary currently to upgrade and continue with ECC5 and defer the upgrade to a later date.  It also requires your company’s strategy for future expansion and growth plans.

    Regards,
    Ravi  

    (0) 
    1. Rammohan Shenoy Post author
      Thanks Ravi. We are using just the core SAP modules(SD,MM,PP,FICO), may start using QM in 2011. Other than core SAP this small size SAP client does not need any other feature.
      My estimate for technical upgrade to Ecc6.0 is 150K max.
      The penalties that apply will be in terms of an additional 2% Maintenance fee in 2013, additional 4% for 2014 and 2015.
      This penalty the business would like to avoid. Hence we may really look at technical upgrade in 2012 only.
      (0) 
  3. Mark Chalfen
    Not sure what point you are trying to make here?

    There are forum boards where you could ask this question and get some good answers.

    What are your thoughts?
    What work have you done to find out what the differences are between ECC5 and ERP6
    Will the increase in licence cost really make a difference to an organisation your size?
    How much would it cost to perform a technical upgrade?
    Are you running an Industry Solution?
    Have you reviewed the functionality in Enhancement Packages?
    Do you use BI?

    Plenty of questions for you there to answer.

    After considering these, and plenty of other relevant questions, it would be good to read a blog with YOUR views and YOUR opinions.

    Good luck

    (0) 
    1. Rammohan Shenoy Post author
      Thanks Mark for triggerring those questions.

      What are your thoughts?
      To do just a technical upgrade in 2012 only to avoid penalty fees (of not upgrading)
      What work have you done to find out what the differences are between ECC5 and ERP6?
      My own experience with ECC6.0 is that you can use switch framework to add any industry solution on Top. But this small size SAP customer mostly will not need an industry solution. also they do not want to invest in creating content using Netweaver & other ECC6.0 features as it will cost upwards of 120$/ hr t create or use it.  
      Will the increase in licence cost really make a difference to an organisation your size?
      Yes, any savings in IT is good in this tough economy
      How much would it cost to perform a technical upgrade?
      My estimate is 150 K
      Are you running an Industry Solution?
      No, do not expect to use in ECC6.0 as well
      Have you reviewed the functionality in Enhancement Packages? No
      Do you use BI?
      No, we use custom BI using Microsoft solutions which are very very cheap.
      We are currently using just the core SAP modules(SD,MM,PP,FICO), may start using QM in 2011.

      Our analysis is not to upgrade at all if there were no penalty fees after 2012 as ECC5.0 meets the business application need.

      (0) 

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