Richard Taylor

31 Mar 2025

Why More Mid Market Companies Are Replacing Legacy ERP with Cloud ERP Public

Here’s why more mid-market companies are choosing SAP Cloud ERP Public (S/4HANA)

Legacy ERP systems have served many mid market businesses well over the years. But times change. Strategies evolve. And the platforms that once supported growth now too often stand in its way.

High maintenance costs, end of life concerns and the shift to cloud first thinking have created a common pain point for many: it’s time to replace your legacy ERP system.

If that’s where you are, you’re not alone and you’re not without options.

Why mid-market businesses are making the switch

Let’s get straight to the point. The mid-market space is full of businesses stuck with outdated ERP platforms like Microsoft Dynamics NAV, NetSuite, Infor or heavily customised financial force instances. Over a decade (or more) of workarounds and bolt-ons have left many systems rigid, expensive to maintain and difficult to scale.

Sound familiar?

Whether it’s the cost of keeping the lights on, the looming loss of vendor support or the broader shift towards more agile, cloud native solutions mid sized companies are under pressure to modernise. And the most forward thinking ones are doing just that.

The SAP Cloud ERP Public (S/4HANA) difference

There’s a perception out there that SAP is “too big” or “too complex” for mid-sized organisations. That perception is wrong.

SAP Cloud ERP Public (S/4HANA) offers out of the box functionality that’s not only comprehensive but also modular meaning you can scale your solution at your own pace. You start where you need to start and expand when it makes sense.

Unlike competitors that rely on third-party add-ons to deliver core features, SAP delivers a fully integrated, end-to-end system straight out of the gate. That’s a big deal because every workaround you don’t need is one less integration to manage, one less vendor to chase and one less risk to your business.

Lower total cost of ownership

Let’s talk numbers. SAP has made significant changes to its pricing model. Once seen as the “premium” option, Cloud ERP Public (S/4HANA) now often comes out cheaper when you factor in the cost of add-ons and workarounds required by other platforms.

You’re not just paying for software. You’re investing in a platform that reduces complexity, enables scale and fits your business not the other way around.

Addressing the elephant in the room: “Is SAP too much for us?”

It’s a fair question. But here’s the truth: with its modular approach and fit-to-standard methodology, SAP Cloud ERP Public (S/4HANA) is built for businesses like yours. Implementations don’t need to be long, painful journeys and they shouldn’t be.

SAP Activate, the implementation methodology behind Cloud ERP Public (S/4HANA), ensures a streamlined, standardised deployment that delivers faster time to value. Add SAP’s Cloud ALM tool into the mix with built in project tracking, testing and real-time monitoring and the benefits only multiply.

In other words, it’s not “too big.” It’s just the right size, done the right way.

Building confidence through digital discovery

No one wants to buy blind. That’s why the Digital Discovery Assessment (DDA) is so powerful. It allows businesses to see exactly how SAP Cloud ERP Public (S/4HANA) fits their world before making a commitment.

This structured process demystifies the implementation journey and helps teams understand what the solution will look like for them. That clarity up front leads to better decisions and, more importantly, better outcomes.

Integration that actually works

Let’s not sugarcoat it integrations are often the Achilles’ heel of any ERP project. But with SAP’s Integration Suite, that narrative shifts.

Recognised by Gartner and designed for both SAP and non-SAP environments, Integration Suite makes connecting your systems simpler, faster and more reliable. It’s also surprisingly user friendly and yes, even for non developers.

Compared to older tech stacks (looking at you, PI/PO), it’s a breath of fresh air.

Why outcomes matter more than features

When it comes to replacing a legacy ERP system, it’s easy to get lost in feature comparisons. But what really matters is outcomes. Can the platform help you grow? Can it simplify operations, reduce cost and support your next five years, not just the next five months?

SAP Cloud ERP Public (S/4HANA) is designed with outcomes in mind. It’s not about customising every corner of the platform. It’s about adopting best practices, simplifying your IT landscape and setting your business up for what’s next.

Thinking about replacing your legacy ERP system?

Let’s have a real conversation. No fluff. No forced acronyms. Just experienced insight and straight-talking guidance on what ERP transformation should look like in 2025.
Because when your technology evolves, your business does too.

Ready to go deeper?

We’ve put together a complete guide to replacing a legacy ERP system, covering everything from spotting the warning signs to executing a successful migration. Whether you’re in IT, finance or operations, this guide was made for you.

Our guide breaks down what it really takes to move on from a legacy ERP system, what to look out for, how to plan and where to start.

Read the legacy ERP replacement guide here.

Find out more about Cloud ERP Public (S/4HANA)

Find out more about Cloud ERP Private (S/4HANA)

FAQs

Question #1: Why are mid market companies replacing legacy ERP systems?
Ans: Mid-market companies are replacing legacy ERP systems because they require modern, scalable cloud-based solutions like SAP Cloud ERP Public (S/4HANA) that deliver real time analytics, lower total cost of ownership (TCO), and faster deployment. The shift is driven by business agility needs, digital transformation goals and the limitations of old on premises ERP.

Question #2: What benefits does SAP S/4HANA Public Cloud offer over traditional legacy ERP?
Ans: SAP Cloud ERP Public (S/4HANA) offers benefits such as automatic updates, built-in best practice business processes, scalable infrastructure, real time insights and a subscription based model. For companies moving away from legacy ERP, this means reduced maintenance overhead, faster time to value and stronger support for growth and innovation.

Question #3: What are the key challenges mid market companies face with legacy ERP that prompt migration?
Ans: Common challenges include outdated user interfaces, siloed data, high cost of upgrades, limited scalability and inability to support digital first business models. These issues cause mid market firms to seek a proven, future-ready platform like SAP Cloud ERP Public (S/4HANA).

Question #4: What best practices should companies follow when replacing legacy ERP with SAP Cloud ERP Public (S/4HANA)?
Ans: Best practices include defining a clear business case, engaging stakeholders early, selecting an experienced SAP cloud implementation partner, prioritising standardisation and best-practice processes, planning data migration carefully, and setting up ongoing support and continuous improvement post-go-live.

Question #5: How should a mid-market company evaluate readiness for migrating to SAP S/4HANA Public Cloud?
Ans: A mid-market company should evaluate readiness by assessing current business processes, data quality, IT infrastructure, change management capability and cloud readiness. Choosing a trusted SAP partner for cloud ERP migration is also critical to ensure the move from legacy ERP is smooth and value driven.

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