SAP 2026 Update Explained: S/4HANA Compatibility Packs Deadline Extended

SAP has announced a final extension to the usage deadline for Compatibility Packs in SAP S/4HANA on-premises environments. The deadline has shifted from December 31, 2025, to the end of May 2026, giving customers a limited additional window to address remaining legacy dependencies. While any extension may seem like good news, SAP’s message is clear: this is the last one. Organizations relying on Compatibility Packs are now operating on borrowed time. For many, this update should serve less as relief and more as a call to action.

S/4HANA Compatibility Pack Analysis and Market Perspective

From a market perspective, this extension reflects a reality SAP has seen repeatedly over the past several years. Many organizations have struggled to fully remediate legacy functionality after moving to S/4HANA. Complex system landscapes, custom developments, competing priorities, and limited internal visibility have slowed progress. This mirrors other vendor-driven shifts in the enterprise software market, such as Microsoft retiring legacy SharePoint add-ins and workflows in favor of modern cloud frameworks, where temporary transition mechanisms ultimately give way to firm deadlines. In each case, customers are given time to adapt, but the long-term direction remains unchanged. At the same time, SAP remains firm in its strategic roadmap. S/4HANA is designed to move customers away from older ERP constructs toward simplified data models, modernized processes, and increased alignment with cloud-based innovation. Compatibility Packs were never meant to undermine that strategy; they were created to ease the transition. By labeling this extension as final, SAP is signaling that customers must now complete the journey rather than continue to delay it.

Key Risk: Hidden Compatibility Pack Usage

A critical risk in today’s landscape is that many organizations may still use Compatibility Pack functionality without realizing it. Because these functions often support familiar, long-standing processes, they can fade into the background after an S/4HANA conversion. This creates a dangerous blind spot. Organizations may assume they are fully compliant with SAP’s S/4HANA requirements, even as restricted functionality continues to operate quietly in the system, potentially exposing them to compliance, audit, or operational risks once the deadline passes.

What Are SAP Compatibility Packs?

Compatibility Packs are SAP-delivered usage rights that let customers temporarily continue using certain legacy ERP functions within an S/4HANA system. These functions are typically linked to older SAP ECC processes that do not align with S/4HANA’s simplified data model. SAP’s expectation has always been that customers would:

• Transition to native S/4HANA functionality
• Adopt SAP cloud solutions such as Ariba, SuccessFactors, or IBP
• Implement third-party alternatives where appropriate

Why Customers Often Don’t Realize They’re Using Them

One of the biggest challenges with Compatibility Packs is their lack of visibility. They are not separate products that customers consciously enable or license. Instead, they are embedded in processes that business users may have relied on for years. As a result:

• Business teams continue familiar workflows
• IT teams assume functionality is standard S/4HANA
• License and compliance teams lack detailed usage insight

Without proactive analysis, Compatibility Pack usage can remain hidden until it becomes an urgent issue.

SAP’s Position and the Final Extension

SAP has been explicit: May 2026 marks the end of the road for Compatibility Pack usage in S/4HANA on-premises systems. After this date, continued use of restricted functionality will no longer be permitted, regardless of prior extensions. For organizations that have delayed remediation, this extension should not be seen as extra time to wait. Instead, it should be viewed as a final opportunity to act deliberately rather than reactively.

Organizational Impact and Opportunities for Customers

This extension creates a narrow but critical opportunity. Organizations that act now can:

• Validate whether Compatibility Packs are in use
• Understand which business processes are affected
• Prioritize remediation based on risk and business value
• Avoid rushed, high-cost decisions later

Those that do not face accelerated projects, unplanned spending, or unfavorable commercial positions as the deadline nears.

Anglepoint’s Advisory Advantage

Anglepoint helps organizations cut through uncertainty with independent, data-driven insight into SAP usage, compliance exposure, and risk remediation options. Rather than relying solely on assumptions or standard SAP reporting, Anglepoint enables you to understand what is truly happening in your environment. With clear visibility, you can make informed decisions, whether that means process redesign, functional replacement, or strategic alignment with SAP’s roadmap.