Gone is the “wait and see” era for digital transformation; as we usher in 2026, the countdown to SAP’s 2027 end-of-mainstream-maintenance for legacy ECC systems is no longer a distant warning but a boardroom priority.

A joint ASUG/Precisely study in late 2025 indicated that currently, 64% of companies are expected to be fully live or in the process of migrating to SAP S/4HANA by the end of this year. But for those still running on legacy ERP, the move to SAP S/4HANA isn’t just a technical “version jump.” It is a fundamental shift from a system of record to a system of intelligence.

However, moving to the SAP cloud involves navigating a complex landscape of real-world hurdles and high-stakes ROI expectations. Let’s break down what B2B leaders actually face during this transition.

The Reality Check: Real Challenges in ERP Migration

Migrating from a heavily customized legacy system to a “clean core” cloud environment is rarely a straight line. Organizations today are encountering three primary friction points:

1. The “Clean Core” vs. Customization Debt

Legacy systems are often a patchwork of 20 years of custom ABAP code. The challenge is moving toward a “Clean Core” strategy~ where you use standard SAP processes and build extensions on the SAP Business Technology Platform (BTP) rather than modifying the core software. This ensures your system stays “upgrade-ready” for future AI and automation releases.

2. Data Quality: The “Garbage In, Garbage Out” Risk

Moving to the high-speed, in-memory processing of SAP HANA requires pristine data. You cannot run real-time analytics on duplicate or incomplete records. According to SAPinsider, 2025, 76% of successful migrators list “cleansed and harmonized operational data” as a top requirement for project success. Without a rigorous data-cleansing phase, you risk bringing old inefficiencies into a modern, expensive engine.

3. Organizational Resistance and the UI Gap

S/4HANA introduces the SAP Fiori user experience~ a massive departure from the old-school SAP GUI. While Fiori doubles user productivity (from 9% to 18% in full adoption year-over-year), 37% of companies still struggle with organizational resistance to these cultural and interface changes.

Transitioning to the cloud requires more than just technical execution; it requires a strategic partner who understands the “Clean Core” philosophy. Avally Co., Ltd. specializes in these high-stakes migrations. They not only move your data, but also help you rationalize your customizations and prepare your workforce for the modern SAP Fiori environment, ensuring your SAP upgrade doesn’t just go “live”, but goes “thrive.”

The Reward: ROI Expectations in 2025 and Beyond

If the challenges are significant, the returns are transformative. When executed correctly, the ROI of an ERP migration to S/4HANA is no longer theoretical.

The shift to a cloud-native model isn’t just about saving money on servers; it’s about working capital. Organizations using predictive planning for demand and inventory can see significant gains in liquidity by reducing stock-outs and optimizing cash flow in real-time.

Beyond the Go-Live: The 2026 Strategy

To capture these gains, 2026 requires a more disciplined ERP strategy than ever before:

• Prioritize Explainable AI: By 2026, 70% of organizations will adopt “Composite AI,” blending generative and predictive models (IDC). Your migration should focus on how these models provide auditable and trustworthy business recommendations.
• Utilize Professional Readiness Checks: In 2026, it is estimated that 60% of enterprises will require professional services specifically for “Health Checks” before they can even begin the technical migration.
• Focus on the User, Not Just the System: User productivity remains the ultimate KPI. Modern ERPs in 2026 are moving toward “Mobile-First” and “Agent-Mediated” interfaces, where employees interact with the ERP via intelligent assistants rather than complex menus.

With the 2027 deadline looming, 2026 is the year to act. Avally Co., Ltd. helps B2B leaders cut through the noise of migration. Equipped with expert consultants, they use SAP Business Technology Platform (BTP) to extend your core processes, keeping your “Clean Core” intact while delivering the custom innovation your business needs to lead in 2026.

Conclusion: The 2026 Mandate

The time for “experimentation” has passed. In 2026, the mandate is clear: stop accumulating tools and start architecting outcomes. Delaying your move to SAP S/4HANA Cloud now carries a double penalty: the rising cost of maintaining obsolete legacy ERP and the lost opportunity cost of not having AI-driven agility in a volatile market. The transition is the bridge to your autonomous future.