What is the Cost of Migrating to SAP S/4HANA?

Initial Considerations: Factors That Impact Migration Costs

It’s important to note that there is no “one-size-fits-all” answer to the question of migration costs. The total cost depends on several factors, including:

• Project Scope and Complexity: The complexity of your current SAP setup, the number of business processes, and your unique requirements will directly impact the migration cost.
• Choice of SAP Partner: Different SAP partners offer varying pricing models, approaches, and services. The cost structure can vary significantly depending on the partner you choose and the level of support required.

At SEIDOR, we recognize that migrating to SAP S/4HANA is a transformative project that affects a company’s resources, priorities, and timelines. To address this, we've developed a flexible migration proposal in partnership with MIGNOW. Our model is designed to allow businesses to migrate at their own pace, ensuring minimal disruption while fully leveraging the benefits of SAP S/4HANA.

How SEIDOR and MIGNOW Can Help

We understand that a clear, predictable cost structure is essential for businesses planning their migration. That’s why we’ve developed a transparent, category-based cost model to help you better estimate and manage the total cost of implementation.

Our approach minimizes unexpected expenses and ensures that deadlines are met without surprises. With this model, you’ll gain visibility into every stage of your migration, from initial planning to full implementation, making it easier to control your budget throughout the project.
For more information about how this approach works and how we can support your migration to SAP S/4HANA, click here.

Key concepts to understand the cost structure of migration to SAP S/4HANA

Before detailing the SAP S/4HANA migration costs for each offering, it's important to understand some key technical concepts about this process:

Custom Codes

One of the main features of SAP S/4HANA is its customizability. Because every business has its own particularities, and sometimes the standard version of ERP is not fully tailored to the specific needs of the company, SAP developers create additional code to cover specific functions, such as developing custom reports or integrating external software.

In the SAP S/4HANA migration cost, it is essential to detail the number of custom codes included in the offer if you want to be transparent with the customer. Each custom code represents a small customization, such as automating a calculation, modifying the layout of a report, or creating a specific process.

• Less than 1,000 custom codes: Basic customizations such as adding new fields, simple automations, or simple integrations.
• Between 1,000 and 2,000 custom codes: More complex customizations, such as integrations with machinery or design of specific workflows.
• Between 2,000 and 5,000 custom codes: More advanced projects, including multiple integrations or custom applications.

Fiori Apps

The SAP S/4HANA migration costs specify the number of Fiori Apps covered, both from the SAP Fiori catalog and those developed or configured specifically for the customer.

SAP Fiori applications are designed under one fundamental principle: to improve the user experience. These applications, developed by SAP, offer a more accessible and intuitive interface, with a reduced learning curve. Its main purpose is to facilitate specific tasks, such as:

• Generate purchase orders with certain actions.
• Analyze real-time data on a particular aspect of the business.
• Provide easy access to key user information.

AMS (Application Management Services)

Any software requires time and resources to troubleshoot, prevent incidents, apply configurations or updates, and perform constant monitoring to ensure its optimal operation. This is where the AMS (Application Management Services) service comes in, which provides preventive maintenance and strategic advice to maximize the functionalities of the ERP.

In the case of SAP S/4HANA, each category includes 20 hours of AMS per month, guaranteed within the migration cost. This service can be extended if the customer needs it to carry out specific actions, always ensuring the availability of a dedicated expert team.

What is the SAP S/4HANA migration cost?

SAP S/4HANA Migration Costs with Finance Category (FI, CO)

This first category has the lowest costs, as it includes only the basic financial modules: FI (Finance) and CO (Cost Control).

Pricing according to the volume of custom codes:

• Small (less than 1,000 custom codes): $13,000
• Medium (1,000-2,000 custom codes): $15,000
• Large (2,000-5,000 custom codes): $21,000

Characteristics:

• Up to 20 Fiori applications (modern and simplified interfaces).
• Estimated duration of implementation: 10 weeks.
• Includes 20 hours of application management services (AMS) per month.

Migration costs to SAP S/4HANA with the Extended Finance Category (FI, CO + 2 additional modules)

This category represents a slight increase in costs, as it includes two additional modules to the basic FI and CO, selected according to the specific needs of the customer.

Pricing according to the volume of custom codes:

• Small (less than 1,000 custom codes): $17,000
• Medium (1,000-2,000 custom codes): $19,000
• Large (2,000-5,000 custom codes): $25,000

Characteristics:

• Up to 30 Fiori applications.
• Estimated duration of implementation: 12-14 weeks.
• Includes 20 hours of application management services (AMS) per month.

SAP S/4HANA migration costs with Enterprise Category (FI, CO + 4 add-on modules)

This category includes, in addition to the core financial modules, four additional modules to cover broader business needs.

Pricing according to the volume of custom codes:

• Small (less than 1,000 custom codes): $19,500
• Medium (1,000-2,000 custom codes): $21,500
• Large (2,000-5,000 custom codes): $27,000

Characteristics:

• Up to 40 Fiori applications.
• Estimated duration of implementation: 14-16 weeks.
• Includes 20 hours of application management services (AMS) per month.

Migration costs to SAP S/4HANA with the Extended Enterprise Category (FI, CO + 6 additional modules)

Designed for organizations with complete business needs, this category includes the core modules along with six additional modules.

Pricing according to the volume of custom codes:

• Small (less than 1,000 custom codes): $22,500
• Medium (1,000-2,000 custom codes): $24,500
• Large (2,000-5,000 custom codes): $30,500

Characteristics:

• Up to 50 Fiori applications.
• Estimated duration of implementation: 16-20 weeks.
• Includes 20 hours of application management services (AMS) per month.

Optimize SAP S/4HANA migration costs with SEIDOR and MIGNOW

As you may have noticed, especially when compared to offerings from other SAP partners, our "Migrate now, transform at your own pace" approach presents significant cost savings and greater efficiency in the process. We achieve this thanks to the fact that 80% of the migration process is automated, allowing us to execute the implementation up to 5 times faster and with greater precision.

In addition to optimizing time and costs, this approach allows companies to enjoy the key benefits of SAP S/4HANA while postponing broader transformations to a later stage.

Our methodology ensures a smooth transition and lays the foundation for continuous business transformation, avoiding overloading internal resources and ensuring that operations are not disrupted.