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ERP in Transition: How SAP Solutions for Mid-Sized Companies have evolved
SAP’s current decision to discontinue the sale of SAP Business ByDesign is not an isolated event. It is the result of a development that began 28 years ago and is now consistently culminating in the cloud.
With the launch of SAP Business One in 2002, SAP specifically targeted the market of small and growing businesses. The solution was designed as a traditional on-premise software with a technical core based on integrated standard processes for SMEs. Its primary focus was on supporting day-to-day business operations in finance, reporting, sales, procurement, warehousing and simpler production processes.
In 2007, SAP introduced another new solution in the SaaS ERP segment. With SAP Business ByDesign, SAP launched its first fully cloud-based ERP solution. This new cloud approach was aimed at internationally operating mid-sized companies and provided integrated end-to-end processes “on demand” without requiring an in-house IT infrastructure. In this respect, the solution was ahead of its time and marked the beginning of SAP’s cloud transformation journey.
The Evolution of ERP at SAP, from On-Premise Systems to Public Cloud
The development of these solutions followed a clearly defined strategic direction:
From 2000 until around 2010, traditional on-premise ERP systems with a high degree of customisation and locally operated infrastructure dominated the market. During this period, cloud solutions still played only a minor role. With SAP Business ByDesign, SAP introduced one of the first integrated cloud ERP solutions during this decade, although from both a functional and architectural perspective it did not yet meet today’s cloud standards. The cloud only became a strategic priority for SAP several years later.
With the official launch of SAP S/4HANA in 2015, SAP introduced the next generation of ERP systems. Based on the in-memory database SAP HANA, the new architecture enabled real-time processing, a simplified data model and close integration between operational and analytical processes for the first time. This created the foundation for modern cloud- and AI-driven ERP solutions.
Since 2019/2020, the strategic direction has become unmistakably clear: SAP has consistently pursued a cloud-first strategy and positioned SAP S/4HANA Cloud Public Edition (also referred to as SAP Cloud ERP) as its central and future-oriented ERP platform.
Evaluation of the current development of SAP ERP solutions
SAP Business ByDesign: End of Sales for New Customers from April 2026
Against this background, the decision to discontinue the sale of SAP Business ByDesign to new customers is a logical step. The end of sales became effective on 20th April 2026. Existing customers can continue to use their systems and will still receive support and maintenance. However, active functional development had already been discontinued several years ago. So far, no official end-of-life date has been communicated.
At the same time, SAP’s innovation focus is increasingly shifting towards modern cloud platforms. For companies, this means addressing their ERP future at an early stage and establishing the right cloud ERP strategy for their business.
SAP Business One: Stable, but with Limited Long-Term Perspective
According to the current status, SAP Business One will remain part of the SAP portfolio and will continue to play a role for smaller mid-sized businesses. However, customers should verify whether their current version is approaching the end of its maintenance period.
Particularly in scenarios involving growing internationalisation or increasing process complexity, the solution reaches its limits. The key question is therefore less about its current stability and more about its long-term viability once scalability limits are reached. In addition, it is becoming increasingly apparent that innovation efforts are focused on new cloud architectures.
The New Target Platform: SAP S/4HANA Cloud Public Edition
SAP’s answer is clear: SAP S/4HANA Cloud Public Edition, or SAP Cloud ERP, is becoming the central platform for mid-sized companies.
The solution is particularly aimed at companies in manufacturing, wholesale and distribution, professional services, and consumer products industries. As such, it directly addresses the same target groups that previously relied on Business ByDesign or Business One.
Through standardised best-practice processes, rapid implementation and continuous innovation, the Public Cloud provides a future-proof foundation for growth and internationalisation. Companies benefit from a modern architecture that enables both efficiency and scalability. This also makes the solution highly attractive for holdings, subsidiaries with sales offices and start-ups looking to establish a modern SAP ERP landscape without requiring a high degree of process customisation.
Would you like to learn more about implementing S/4HANA Public Cloud? Our whitepaper on SAP S/4HANA Public Cloud will be published in June.
Deep Integration of AI Services in SAP S/4HANA Cloud Public Edition
What makes SAP’s Public Cloud particularly unique compared to traditional solutions? One key differentiator is the deep integration of AI services within SAP S/4HANA Cloud Public Edition. AI functionalities are directly embedded into business processes and support companies in analytics, planning and operational management.
Key benefits at a glance:
- Intelligent forecasting in controlling and planning
AI combines historical data, real-time information, and external factors to deliver more accurate forecasts. - Automated variance analysis
Irregularities in costs, revenue, or quantities are identified and prioritised at an early stage. - Supply chain optimisation
Demand can be predicted dynamically, enabling more flexible procurement and production planning. - Faster decision-making
AI-supported recommendations reduce manual analysis efforts and accelerate operational decisions. - Continuous innovation without implementation effort
New AI features are regularly delivered through the cloud and are immediately available within the system.
Demo Video
AI in SAP S/4HANA
In the video, we showcase additional AI applications in SAP S/4HANA that are already integrated or planned. Through concrete examples, you will see the added value they bring to your daily work.
What does this mean for Companies?
The changes within SAP’s portfolio require strategic assessment. Companies currently using SAP Business ByDesign should develop a medium-term transformation strategy.
For SAP Business One customers, system operations remain secure. However, as business requirements increase, it is worth evaluating alternative solutions at an early stage.
Companies currently assessing an SAP S/4HANA transformation have the opportunity to work together with their consulting partner to determine whether their processes can be effectively supported within a standardised cloud ERP solution. A possible first step is a Digital Discovery Assessment (DDA) to evaluate whether Cloud ERP (Public Cloud) can meet their business requirements.
Conclusion: Actively shape your ERP Future now
The end of SAP Business ByDesign sales sends a clear signal. In the future, SAP will consolidate innovation within a central cloud platform while simultaneously reducing the complexity of its portfolio.
For companies, now is the right time to review and actively shape their ERP strategy. Businesses that act early will secure long-term competitive advantages within the market.
Your next Step with PIKON
The transformation to the cloud is a strategic decision. As one of the first implementation partners for SAP S/4HANA in the industry, PIKON supports companies in defining and successfully implementing the right path forward.
Book your personal meeting
Our Customer Success Manager, Tanja Nikolaus, supports our customers in their projects in the S/4HANA Public Cloud environment and is happy to take care of your concerns.
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