SAP ERP vs SAP HANA vs S/4HANA is a comparison that often creates confusion among businesses planning their SAP landscape. Although these terms are closely related, each represents a different part of SAP’s enterprise technology, from ERP software to database technology and the modern ERP platform.
Many teams have an SAP HANA budget when they require SAP S/4HANA. Others purchase the database and are hoping for a fresh enterprise resource management (ERP) system. There are two errors that begin with the same name. This leads to poor project planning with incorrect assumptions.
The SAP ERP vs. SAP HANA question is obvious and yet it affects the scope, the size and the licensing of the project. SAP ERP is an application suite and SAP HANA is a database. The ERP suite that runs on that database is called SAP S/4HANA.
This guide describes the differences between the three, with examples of architecture, data model and migration. Last but not least, you will get to know the way that is best for your SAP ERP Central Component (SAP ECC) system.
The older application suite is SAP ERP, typically SAP ECC 6.0, for which many databases are used for business processes. SAP HANA is an in-memory database, compared to that. The updated ERP suite, SAP S/4HANA, is the successor ERP suite that is only available on SAP HANA. Since SAP will be discontinuing the ECC 6.0 mainstream support from December 31, 2027, most customers should plan to migrate.
What’s the difference between SAP ERP and SAP HANA?
SAP ERP vs SAP HANA is a comparison between an application suite and a database that stores and processes the data. SAP ERP runs business processes such as finance and logistics. The data is stored in SAP HANA, and it is used to run queries in memory.
It is common for people to combine the two names, as both are included in SAP S/4HANA. They are part of different layers in the tech stack, though. The business logic is stored in the application layer, and the data is stored in the database layer.
What it mean to SAP ERP today?
SAP ERP typically refers to SAP ECC 6.0, which is the ERP Central Component of the SAP Business Suite 7. It uses a relational database to run finance, logistics, and production. The name is also used by many customers for any SAP ERP system (such as SAP S/4HANA).
SAP ECC is broken up into an application server and a database. The business logic is executed in the ABAP application server. The database may be Oracle, Microsoft SQL Server, IBM Db2, SAP ASE or SAP HANA.
SAP designed ECC for disk-based databases, which leads to the storage of many redundant and aggregated tables. These tables make disk read operations faster. But they bring on storage and reconciliation tasks.
What Is SAP HANA?
SAP HANA is an in-memory, column-oriented relational database that SAP introduced in 2010. Stores the working data in main memory, making queries run much faster. It also performs both transactions and analytics as part of a single system.
SAP HANA is NOT an ERP system. There are no finance, sales, or procurement processes in it. Instead, it offers spatial, graph and predictive workload processing and storage and engines.
These capabilities are called by applications, like SAP S/4HANA, via SQL and database procedures. Most tables are stored by column in SAP HANA, thus compressing the data and accelerating aggregation performance. There are certain tables for which row storage is still in use.
What is SAP S/4HANA and How is it related to SAP HANA?
In 2015, SAP introduced its ERP suite, SAP S/4HANA, as the replacement for SAP ERP. It’s only available for the SAP HANA database. SAP HANA is the engine and SAP S/4HANA is the application on top.
SAP S/4HANA comes in three forms from SAP. It can be deployed on-premise (as SAP S/4HANA Cloud Private Edition) or in the cloud (as SAP S/4HANA Cloud Public Edition). The same SAP HANA foundation is used for each form.
What is the difference in architecture?
The ABAP application server runs on top of any supported database in SAP ECC. With SAP S/4 HANA, the ABAP layer is now deployed only on SAP HANA. Data-heavy logic is now executed in the database, minimizing data transfer across layers.
ABAP Core Data Services (CDS) views are used to push calculations to the database by the developer. Such a process is known as code pushdown. Typically, the benefit is lost in classic ABAP code where the large table is traversed in a loop. Therefore, performance tuning is a key element of all conversion projects.
SAP GUI continues to function for many transactions; however, the major user interface is SAP Fiori. For extensions, SAP recommends a clean core. Maintain ERP as a standard with customized apps on SAP Business Technology Platform.
For more information on the SAP clean core strategy, see the article on clean core and extensibility.
What changes to the Data Model?
The data model is now far simpler thanks to the elimination of aggregates and redundant tables in SAP S/4HANA. Finance postings are now included in the Universal Journal (table ACDOCA). The material documents are moved to table MATDOC and the business partner will replace separate customer and vendor masters.
The inventory valuation is also mandatory for the material ledger. Older read access is compatible with older views. Then, custom code that modifies modified tables requires rework.
To identify such cases, use the ABAP Test Cockpit (ATC) checks and check the Simplification Item Catalog. This should be done early as custom code accounts for the majority of conversion effort.
What are the differences between SAP HANA, SAP S/4HANA and SAP ERP?
SAP ECC is the predecessor of SAP Business Suite 7. SAP HANA is the Database and SAP S/4HANA is the newer suite that needs the HANA database. All three are compared with regard to five technical areas in the table below.
| Aspect | SAP ERP (ECC 6.0) | SAP HANA | SAP S/4HANA |
| Type | Application suite | Database | Application suite |
| Database | However, which database do you favor?But what database is your favorite? | Is the database | SAP HANA only |
| Data model | Traditional tables of aggregates. | Not applicable | Simplified (ACDOCA, MATDOC) |
| User interface | SAP GUI | Not applicable | SAP Fiori, plus SAP GUI |
| Maintenance | Mainstream ends Dec 31, 2027 | Versioned HANA 2.0 releases | Current releases with roadmap |
Is SAP ECC compatible with running on SAP HANA Database?
It is possible to use SAP HANA database as a data source for SAP ECC 6.0 with Suite on HANA. This option only affects the database. The application is still SAP ECC, and therefore the SAP S/4HANA data model and features are not relevant.
Suite on HANA could be a stepping stone. For instance, it can be used to accelerate the reporting process prior to conversion. It does not, however, affect the maintenance dates. For any database, SAP will turn off ECC 6.0 mainstream support on December 31, 2027.
Besides SAP S/4HANA, what else does SAP HANA run?
SAP HANA is used to run SAP BW/4HANA, custom applications and SAP ECC through Suite on HANA. The database functionality is provided as a managed service on SAP Business Technology Platform in SAP HANA Cloud. So SAP HANA is not just an integral part of any given ERP.
SAP BW/4HANA and Analytics
SAP BW/4HANA is an SAP Data Warehouse designed for SAP HANA. It aggregates data from SAP and non-SAP to report. Teams that are reporting on ERP data in a warehouse can still use SAP HANA, even when they postpone the ERP move.
Preparing the system for SAP HANA Cloud and Custom Applications.
SAP HANA Cloud is a database service on SAP Business Technology Platform. It is used by developers for custom apps and analytics, which run parallel to the ERP core. This is in line with the clean core principle, as extensions remain outside of SAP S/4HANA.
What are the differences between licensing and hardware?
SAP S/4HANA typically includes a runtime license for SAP HANA, which is valid only for running SAP HANA. A full-use license may be required for custom applications on the same database. You can also find differences in terms of hardware, as you have to allocate sufficient main memory to your data for SAP HANA.
Size is more important than most teams know. For new implementations, use SAP Quick Sizer; for conversion, use SAP sizing reports. The amount of data to be stored and its compression and archiving requirements are considerations in memory requirements.
Save old data before converting to reduce memory usage. Additionally, RISE with SAP includes infrastructure as part of its subscription, and thus, how you budget has been modified. Always check the specific license requirements with your SAP account before agreeing.
As a value-added service, RISE with SAP will guide you to the RISE with SAP overview article.
How do you move from SAP ERP to SAP S/4HANA?
Migration can be done in a greenfield, brownfield, or selective data transition manner. Greenfield is used for creating a new system, brownfield for upgrading your existing SAP ECC system, and selective transition for transferring selected data. Through custom code volume and appetite for process change, the best path is determined.
Brownfield Conversion Steps
Your configuration and history are maintained during brownfield conversion. It also migrates your database to SAP HANA in the same project. Perform this step-by-step.
- Run SAP Readiness Check for SAP S/4HANA on your SAP ECC system.
- Utilize Maintenance Planner to create the desired stack and verify add-on compatibility.
- Conduct ATC and review the Simplification Item Catalogue.
- Use Software Update Manager (SUM) and Database Migration Option (DMO) to convert the system.
- Test financial, logistical, and interfaces before go-live.
To migrate SAP ECC to SAP S/4HANA, refer to the approach article in the SAP ECC to SAP S/4HANA Migration Guide.
Greenfield and Selective Data Transition.
Greenfield is ideal for businesses looking to reimagine processes and eliminate legacy custom code. The master and open transactional data is then loaded into the SAP S/4HANA Migration Cockpit. Selective data transition is right for companies that require a business unit to be separated or multiple systems to be combined.
Many companies also benchmark RISE with running SAP S/4HANA on their own. Review the host/license/service model as a team. Never choose a price as a sole criterion.
How do ECC Maintenance Dates work?
The end of the mainstream maintenance for SAP ECC 6.0 enhancement packages 6 to 8 is on December 31, 2027. Extended maintenance is offered until the end of 2030, but only for an extra two percentage points of maintenance. Eligible RISE customers can use a transition option through 2033.
Things can change; make sure to find the latest SAP Notes and SAP Help Portal before planning your timeline.
What would be the best option for your business?
In the real world, projects don’t usually match a book. How the choice plays out is depicted in these three scenarios.
Scenario 1: Manufacturer With Heavy Custom Code
A manufacturer is using SAP ECC 6.0 on Oracle and has thousands of custom reports. The team must clean the code before a brownfield conversion can be made. ATC check shows the tables that have been modified. The team then removes unused code before conversion.
After acquisitions, a group operates five SAP ECC systems. It desires one global template and a clean core. Greenfield or selective data transition works better, as the group can harmonize the processes and master data. Then, the SAP S/4HANA Migration Cockpit loads data into the new system.
Scenario 3: Finance Team With a “Now” Reporting Need
A finance team has to wait hours for reports on SAP ECC. The performance of queries can be optimized without a complete ECC-to-SAP HANA conversion using Suite on HANA. This does not supersede the 2027 deadline, however. Please use it as a stepping stone, not a destination.
What are the errors teams make when contrasting these products?
Teams most often confuse a database with an application. They also view Suite on HANA as a complete migration and begin code cleanup of custom code at a late stage. These mistakes overestimate budgets and delay go-live by months.
- Purchase SAP HANA licenses and anticipating new ERP functions.
- It is not a migration to SAP S/4HANA; it is a Suite on HANA.
- Waiting to implement special code until the end of the project.
- Correctly sizing memory without executing the SAP sizing reports.
Conclusion:
Ultimately, the SAP ERP vs HANA distinction comes down to understanding the difference between an ERP solution and its underlying database technology. SAP ERP is the application, SAP HANA is the database (engine), and SAP S/4HANA is the application suite that has been designed for SAP HANA. Understanding SAP ERP vs SAP HANA is more straightforward when you start to distinguish the software that executes business processes from the database that holds and handles the data. When assessing your existing architecture, licensing, infrastructure, custom development, and migration needs, that distinction is important.
This distinction is also the reason for the difference in the name of the solution, one that reflects the fact that the migration to SAP S/4HANA is not a simple database replacement. The application architecture, data model, and business processes available with SAP S/4HANA have changed. This means that any existing custom code, interfaces, reports, and integrations might need to be analyzed before migration. A company that considers the project to be just a technical database change may not be aware of application-level dependencies that impact the scope and time.
The next step should be based on your current SAP landscape. Before running SAP ECC with a supported database, determine the amount of custom code, integration logic, legacy functionality, and business-process variation in the system. Next, determine what components are eligible for movement, can be moved, or need to be remediated, and what components should be redesigned or retired. This assessment will enable better decisions to be made for system conversion, new implementation, or a selective transition strategy.
This roadmap now has a direction of new development and modernization toward SAP S/4HANA and SAP Business Technology Platform. SAP has ended mainstream support for ECC 6.0 on December 31, 2027. While it seems the deadline is important to prepare, the proper migration plan will vary based on your environment.
Frequently Asked Questions
What is the difference between SAP HANA and SAP ERP?
No, SAP HANA is a database; SAP ERP is an application suite. In the SAP ERP vs SAP HANA comparison, the ERP system performs the business processes while the data is stored in the database. SAP S/4HANA is an ERP suite that is deployed only on SAP HANA, which connects both.
What is the difference between SAP HANA and SAP S/4HANA?
SAP HANA is the in-memory database, and SAP S/4HANA is the ERP Suite on that. So SAP HANA vs S/4HANA is the comparison of a platform with an application. SAP HANA can be used without SAP S/4HANA, but SAP S/4HANA can not be installed without SAP HANA.
Is it possible to use the SAP HANA database with SAP ECC?
Yes, Suite on HANA enables SAP ECC 6.0 to be deployed on the SAP HANA database. This option will only modify the database. The application is still SAP ECC, so the SAP S/4HANA data model and attributes do not apply. Maintenance dates for SAP ECC also stay the same.
In what ways does SAP HANA help to run SAP S/4HANA?
Yes, SAP S/4HANA is only available on SAP HANA database. It is usually provided by SAP with a runtime license but the terms are dependent on the contract. You can run SAP HANA on-premise, on a private cloud, or use RISE with SAP. Before sizing hardware, review your license agreement.
What is the difference between SAP ERP and SAP ECC?
In general, yes, as the reference to SAP ERP is typically SAP ECC 6.0. SAP ERP Central Component is known as SAP ECC. However, some use the term “SAP ERP” when referring to any SAP ERP system, even SAP S/4HANA. Make sure to define the term in project documents to prevent confusion.
Does SAP S/4HANA take the place of SAP ECC?
Yes, SAP S/4HANA is the planned replacement to SAP ECC. SAP ECC 6.0 Mainstream Maintenance will come to an end on 31st December 2027. There are extended maintenance runs to 2030 at an increased cost. So it’s best that most SAP ERP customers make plans for a conversion or new implementation.
Which of the following can be used as a replacement for S/4 in SAP S/4HANA?
The numbers ‘S’ and ‘4’ indicate Suite/Simple and the fourth generation, respectively. SAP S/4HANA is the 4th generation of the core business software of SAP following SAP R/2 and SAP R/3. It is released by SAP since 2015 for the SAP HANA database. This is why the name is a combination of the product line and their database.
Is it possible to run SAP HANA without SAP S/4HANA?
Yes, SAP HANA can be used without SAP S/4HANA. The teams are deployed on the database, on an SAP BW/4HANA application, on a custom application or on an SAP ECC application. The database is also available as a managed service in SAP Business Technology Platform (BTP) as SAP HANA Cloud. Therefore, SAP HANA vs S/4HANA is not an either-or scenario.
