History
The SAP HANA platform has been available since 2010, and SAP applications like SAP ERP and the SAP Business Suite are able to run on the SAP HANA database and/or other supported database systems. [4]
The new suite, SAP S/4HANA, [5] launched on 3 February 2015 at the New York Stock Exchange. The event introduced cloud and on premises editions, with the on-premises edition becoming available on the same day. The cloud edition went live at SAPPHIRE NOW (SAP’s annual customer conference) on 6 May 2015 in Orlando, Florida. [6]
SAP S/4HANA was called SAP's biggest update to its ERP strategy and platform in over two decades. [7] Post-launch, Gartner analysts noted that SAP S/4HANA represented a "transformational shift," but raised questions about functionality, availability, pricing and migration issues surrounding S/4HANA. [8]
By 21 April 2015, 370 customers had purchased S/4HANA. After the first half of 2015, positive growth was confirmed for SAP. During the third quarter earning calls that took place in October 2015, SAP confirmed that S/4HANA had more than 1,300 customers. [9] [10] [11] [12] [13] By the end of Q4 2016, SAP announced that 5,400 customers had implemented SAP S/4HANA, growing to 8,900 customers by 30 June 2018. [14]
Since its initial release, SAP S/4HANA has continued to evolve through successive versions, each extending the platform’s capabilities in automation, analytics, and cloud integration. Later releases introduced embedded artificial intelligence, predictive insights, and tighter connectivity with the SAP Business Technology Platform (BTP). The roadmap through 2025 emphasizes modular, cloud-native architecture and generative AI integration [15] .
In recent releases, SAP introduced a wide range of application innovations in SAP S/4HANA Cloud Private Edition across all lines of business [16] .
SAP History Table
Stage
Focus
Transformation Theme
R/3 → ECC
Process Automation
Standardization & Integration
ECC → S/4HANA
Real-Time Data
Simplification & Speed
S/4HANA 2023 → 2025
Intelligence
AI, Cloud, and Continuous Innovation
2025 Updates
In 2025, SAP extended the SAP S/4HANA product line with a renewed focus on modularity, automation, and AI-driven operations. The January 2025 Cloud Public Edition (release 2502) introduced embedded generative AI through SAP Joule, enhanced integration with SAP Business Technology Platform, and deeper analytics within the financial core. [17] .
2025 release marked a technical and structural realignment of the suite. It consolidated core ERP, finance, and logistics modules under the new SAP Cloud ERP model. This transition moved legacy ECC users closer to a unified, cloud-ready environment without custom extensions that block upgrades. [18] .
S/4HANA 2025 introduced a standardized governance layer, improved dependency management, and simplified landscape deployment. The update also improved cross-module traceability, allowing audit and change tracking across distributed systems. [19] .
Industry data published by ITAA noted that most ECC systems would reach end of mainstream maintenance by late 2025, accelerating migration projects. At the same time, SAP clarified lifecycle plans extending S/4HANA support until 2040. [20] .
The 2025 release cycle also marked a shift in how enterprises approached S/4HANA adoption. Instead of full-scale migrations, many organizations opted for selective data transitions and hybrid deployments to preserve existing investments. SAP introduced refined migration tools and readiness checks, helping teams assess compatibility at the namespace, table, and process level before moving workloads. The shift reflected a practical recognition that most companies operate in mixed environments, combining on-premise systems with cloud extensions and partner-hosted solutions. This approach reduced downtime, lowered project risk, and allowed staged modernization aligned with business cycles rather than forced cutovers.
Editions and deployment
SAP S/4HANA can be deployed on-premises, in the cloud, or through a hybrid model. [21] The S/4HANA product offering consists of various editions: SAP S/4HANA Cloud: previously called essentials edition (ES) and Multi-Tenant Edition, SAP S/4HANA Cloud extended edition: previously called Single-Tenant Edition, SAP S/4HANA Cloud, private edition, SAP S/4HANA On-Premise. [22]
SAP S/4HANA On-Premise is similar in terms of coverage, functionality, industry-specific support, and localization to the current SAP Business Suite (in 39 languages, 64 country versions).
SAP also offers SAP S/4HANA Cloud (in 18 languages, 33 country versions). [23] SAP has emphasized the product as pivotal to its cloud shift. [24]
Both editions consist of functionality for finance, accounting, controlling, procurement, sales, manufacturing, plant maintenance, project system, and product lifecycle management, plus integration with SAP SuccessFactors, SAP Ariba, SAP Hybris, SAP Fieldglass and SAP Concur.
Product lifecycle
Both SAP S/4HANA on-premises and the SAP S/4HANA cloud editions have release strategies. The cloud editions are released semi-annually. The on-premises edition has one new release per year and receives additional functionality and corrections in the form of Feature Pack Stacks (FPS) or Service Pack Stacks (SPS) each quarter. [43]
On-premises: Each year, SAP traditionally shipped a new product version of its on-premises SAP S/4HANA product (e.g., SAP S/4HANA 1610), followed by three successive Feature Pack Stacks (FPS) on a quarterly basis. Subsequently, the previous product version received Service Pack Stacks (SPS) quarterly until the end of mainstream maintenance. However, with the release in October 2023, SAP introduced a significant shift in its release and maintenance strategy for SAP S/4HANA. The product now follows a two-year release cycle, providing a longer seven-year mainstream maintenance period per release. This change aims to offer customers greater opportunities for continuous innovation and a flexible path to cloud readiness. Additionally, more easily adoptable feature packs will be introduced every six months during the first two years of a release, reducing the need for disruptive upgrades and lowering total implementation costs. [44]
