In recent SAP user group events, various attendees approached me asking about the role of SAP Master Data Governance in the context of SAP S/4HANA. To put it more precisely, people asked me, for instance, whether they’d go or stay with an SAP MDG on a non-HANA database, run SAP MDG on SAP HANA, or aim at SAP MDG on SAP S/4HANA.

I made the following statements from a product management perspective:

  • The role of SAP Master Data Governance as a master data hub for the enterprise does not change when you add an S/4HANA system to the landscape: The MDG hub replicating master data across the system landscape can be either based on SAP ERP or on SAP S/4HANA. And of course, an SAP ERP-based MDG can replicate data to SAP S/4HANA systems in the landscape.

  • There is continued support for SAP MDG on SAP ERP and on non-HANA databases, which means that users are not forced to change the database on which MDG is running.
  • However, running SAP MDG on SAP HANA has benefits compared to any other database. These benefits include, for instance, the use/consumption of:
    • Advanced search and duplicate-detection provided by SAP HANA fuzzy search
    • SAP HANA information management services for standardization and matching for high-speed master-data consolidation
    • SAP HANA-based analytics providing real-time “insight to action” through reliable MDG process analysis (SLA compliance in change request processing)
  • According to SAP’s overall strategy of delivering the digital core with SAP S/4HANA, it is a no brainer that SAP MDG is on board. Consistent master data is a prerequisite to fully benefit from S/4HANA’s efficient business processes and powerful analytics. Equivalent to the deployment options in an SAP ERP context, SAP MDG can be co-deployed with an SAP S/4HANA system, or can be a hub just technically running on S/4HANA as its basis.
  • Following SAP’s overall strategy, the primary focus of upcoming MDG innovations is on SAP S/4HANA. As of now, the functional scope of the SAP ERP-based MDG 9.0 release is comparable with SAP MDG on SAP S/4HANA 1610. The only difference is that SAP MDG on SAP S/4HANA additionally provides a product-data quality remediation capability which the SAP ERP-based SAP MDG doesn’t. The functional gap is still small, but we expect it to get wider in the future.

For a quick answer; I’d use the following symbol from sports competitions:


In a nutshell, I’d say that in order to be on the competitive edge in the digital age, SAP MDG on SAP S/4HANA is clearly the way to go for new installations, while for existing implementations there is no rush for conversion.


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  1. Monika Patel

    Request you to please confirm if “Embedded MDG in S/41610 has capability to connect to multiple systems as shown in above diagram.




    1. Markus Ganser Post author

      Hi Monika,

      SAP MDG on SAP S/4HANA can be deployed as a dedicated master data hub or co-deployed on an operative SAP S/4HANA system. Replication techniques and capabilities are the same in both cases.



  2. Holger Reimer

    Hi Monika,

    we are running already projects with SAP MDG deployed on a SAP S/4HANA system. It works fine and we connect SAP and Non-Systems.



  3. Binoy Thomas

    Thanks for the blog . If we are migrating from MDG 6.1 ( Co Deployed ) to MDG 9.0 ( HUB approach) , Does MDG 9.0 version  as HUb installation can be on EHP 7 ? Our ECC Operational HANA box is on EHP 7 (EHP7 for SAP ERP 6.0)

    1. Markus Ganser Post author

      Hi Binoy,


      according to the Product Availablitiy Matrix MDG 9.0 requires SAP enhancement package 8 for SAP ERP 6.0.


      Kind regards,



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