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SAP Human Capital Management for SAP S/4HANA, on-premise edition – Updates: Available in 2022 with a technical co-deployment in SAP S/4HANA

Update February 2020 due to announced Maintenance Commitments (below)

 

SAP has recently announced some changes to our 2018 announcement (here) of SAP Human Capital Management for SAP S/4HANA, on-premise edition (SAP HCM for SAP S/4HANA) where we committed to mainstream maintenance support for our SAP ERP HCM customers beyond 2025. Both changes are the result of working with customers extensively and taking their feedback.

However, our overall strategy for HR solutions remains unchanged. Our investment strategy follows the market demand, with the majority of the planned innovations for our portfolio focussing on SAP SuccessFactors solutions as our go-forward offering.

The 2018 announcement indicated a planned delivery date of the solution in early 2023 with a commercial requirement to carve out to run HCM in a separate instance, connected with  SAP S/4HANA. Over the last 18 month my colleagues and I had numerous conversations with SAP ERP HCM customers and often got the feedback that this carve out would be a larger project than we initially anticipated, and would increase their costs.

What changed?

We took this feedback and discussed several options to serve the needs of our customers. This has resulted in a decision to allow customers to technically co-deploy (SAP HCM for SAP S/4HANA) in an SAP S/4HANA environment (single instance). This will allow customers to move to the new solution in an upgrade-like conversion. We are convinced that this will reduce time and effort for all customers who wish to keep their HCM implementations on-premise and/or not able to transition to our SAP SuccessFactors solutions entirely. Additionally, in order to provide customers with more time to do the conversion, we also plan to make SAP HCM for SAP S/4HANA available sooner, in third quarter 2022.

About the solution

Let me also give you some insights into our plans for SAP HCM for SAP S/4HANA on-premise.  As previously communicated, the solution scope matches the SAP S/4HANA compatibility pack and the key functionality of SAP ERP HCM (EhP 8) except SAP e-Recruiting.  There are no changes to our overall investment strategy.  SAP SuccessFactors remains the primary focus of our HCM innovation at SAP and we have no plans for major additional functional additions or re-architectures in SAP HCM for SAP S/4HANA. So, for example,  RPTime will stay and the Infotypes will still be around. Please see a detailed view below. The solution will be successively optimized for operation with SAP S/4HANA.

 

In multiple customer meetings I get questions about a comparison between SAP ERP HCM and SAP SuccessFactors. My colleague Imran Sajid recently wrote a great blog in which he describes “A Dozen Improvements in SAP SuccessFactors from SAP HCM.“ If you are interested in those innovations you can find them here:

https://www.linkedin.com/pulse/dozen-improvements-sap-successfactors-from-hcm-imran-sajid/

Technical migration

As mentioned above, customers will be able to run HCM embedded or on a separate SAP S/4HANA on-premise instance based on their current deployment model and go-forward preference. We offer migration tools and services to facilitate a non-disruptive migration from SAP ERP HCM or SAP S/4HANA compatibility pack. One common question I got is “what can we do to prepare? Do we need to upgrade to EhP8 upfront.” The answer is no, there is no need to upgrade before you convert to SAP Human Capital Management for SAP S/4HANA, on-premise edition. But please keep in mind that after 2025, SAP will provide support for the latest three Enhancement Packages only. Please find more details here.

Details on pricing and commercialization are being worked on and will be communicated soon, but not yet available. We plan to offer license conversion consistent with the existing SAP S/4HANA conversion policy. I will come back to you with more details on this and technical topics in the next few months once they are available.

Let me close with a quote from Thomas Saueressig, President, SAP Product Engineering, SAP SE: “We see the future of HR solutions in the cloud. With SAP Human Capital Management (HCM) for SAP S/4HANA, we offer those customers who cannot switch to SAP SuccessFactors by 2025 a reliable transitional solution. The embedded operation of this interim solution in SAP S/4HANA should make migration easy for our customers.”

Recent changes

On February 4th we announced an ‘Innovation Commitment for SAP S/4HANA – Clarity and Choice for SAP Business Suite 7’ (see full press release). The extension of the maintenance for SAP Business Suite 7 core applications until the end of 2027 (with extended maintenance till 2030, see more details here) does not change any strategic direction for our HR offering. SAP SuccessFactors remains our only go-forward medium to long-term solution, this just gives those organizations, who are as yet not ready to transition, some more time.

The availability and planned scope for SAP Human Capital Management for SAP S/4HANA, on-premise edition stays the same. Customers should know that we have listened to them and that as a result, they have a longer transition window to move to SAP SuccessFactors.

11 Comments
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  • Thank you – this will make our modernization strategy much more in line with previous efforts (our SAP solution suite is over 20 years old); and we all know that change can be risky – especially in HR and Payroll solutions. This will allow us to explore the immediate improvements in Finance and Logistics offered in S/HANA – while allowing us to more gradually perform HR transformation in a more reasonable fashion.

    Regards, Paul Waite

  • As this replaces the side-car option, will the maintenance support be also until 2030 only? I noticed from the slide that 2030 is already omitted.  Does this mean that there are no definite plans yet for end of maintenance for this new option?

  • Hi Ralf,

    In your slide on the scope of SAP HCM for S/4HANA, you list Public Sector but list PY-DE-PS explicitly (Germany Public Sector)… would other country specific public sector solutions be covered, eg. PY-GB-PS for Great Britain?

     

    Thanks in advance,

    Stephen

     

  • As for “Personnel Cost Planning” the very old component PA-CM-CP is mentioned as being supported. Am I right that this is a mistake? The current solution “Personnel Cost Planning and Simulation” would be PA-CP.

  • Hi Ralf,

    in all the slides this solution is clearly only available for S/4HANA on premise. My question: what about S/4HANA STE (That is in fact a S/4HANA on premise running at a hyperscaler)? Technically this shoudln’d be an issue….

     

    Thanks in advance,

     

    Michael

     

    • I believe that if you use the HCM/PY compatibility packs support ends in 2025. The yet to be revealed S4 HCM/PY solution would then have to be deployed/implemented to be covered to 2040.

  • Hi Ralf,

    We currently have our FI & HCM in a single ERP instance  & FI would like to move to S/4 HANA Cloud.

    Is the following cloud option available? i.e. co-deploy (SAP HCM for SAP S/4HANA / Cloud) in an SAP S/4 HANA Cloud environment (single instance)?

    ~Suresh

  • Greg, in response to your post last week, our understanding, based on Ralf’s slide above and on the associated OSS note (2881788) is as follows (and it would be great if someone from SAP could confirm/review this understanding):

    1. The Do Nothing approach- If you are a current customer on one of the release levels listed below you are supported until 2027 with all Core components including HCM, extended maintenance available until 2030.
    2. Upgrade to S/4 HANA including the new SAP HCM for SAP S/4HANA,after 3rd quarter 2022 but before 2027 – you are supported until 2027 with all Core components including HCM, extended maintenance available until 2040.
    3. Upgrade to S/4 HANA before 3rd quarter 2022 – For HCM you can use the Compatibility packs until 2025 and then if you convert tto he new SAP HCM for S/4 HANA you are supported until 2027 with all Core components including HCM, extended maintenance available until 2040.

    From OSS note 2881788:

    This note reflects the current status of planning and may be updated at short notice.

    (**) After 2025, SAP will provide mainstream maintenance for the following SAP Business Suite 7 Enhancement Packages until December 31, 2027 and provide optional extended maintenance from January 1, 2028 until December 31, 2030:

    • EHP6 FOR SAP ERP 6.0 (release level: 6.06) – support non-unicode and unicode deployments
    • EHP7 FOR SAP ERP 6.0 (release level: 6.17) – support non-unicode and unicode deployments
    • EHP8 FOR SAP ERP 6.0 (release level: 6.18) – support unicode deployments