For years, the healthcare sector has been under dual pressure: On the one hand, the need for digitalization to make processes more efficient and transparent is growing. On the other hand, these changes must not jeopardize ongoing operations, as patient care has top priority. With the discontinuation of SAP IS-H by 2030, hospitals using SAP must also focus on transitioning to successor solutions for patient management and billing. With the announcement of a cloud subscription service, which aims to support the transition to the cloud while simultaneously extending the end of maintenance to 2033, SAP customers can breathe a sigh of relief. This refers to the Transition Option.
Discontinuation of the SAP IS-H Industry Solution
For decades, many hospitals have relied on SAP ERP, particularly the SAP Patient Management module (known as SAP IS-H). However, with the extended maintenance for SAP Business Suite expiring in 2030, these institutions face an enormous challenge: The complete transformation to a modern cloud solution such as SAP S/4HANA Cloud Private or Public Edition requires time, resources, and planning certainty.
To address this situation, SAP has developed the so-called Transition Option for SAP ERP, Private Edition. It enables healthcare organizations to operate their existing system landscape for an additional three years until 2033, while simultaneously preparing for the migration to SAP Cloud ERP in a structured process. This provides SAP with a reliable framework to make the transition plannable, secure, and with the lowest possible risk. This accommodating step is welcome, but it is also subject to conditions.
How the Transition Option Positively Affects
For many hospitals, digital transformation is not merely a technical project but a central strategic task. SAP addresses this by ensuring the Transition Option initially creates the necessary continuity. Existing systems, including SAP Patient Management, can be operated until 2033. This significantly extends the 2030 deadline, which was often perceived as too short.
In addition to providing temporal relief, the Transition Option offers the advantage of calmly reviewing and optimizing adaptations, interfaces, and custom developments. Especially in healthcare, many systems are highly integrated – from clinical information systems to laboratory and billing solutions. These interconnections cannot be transferred to a cloud architecture overnight. The extended deadline gives organizations the opportunity to modernize their IT landscape step by step without jeopardizing the stability of ongoing operations.
Another aspect is regulatory security. The Transition Option ensures compliance with data protection and compliance requirements by operating systems in a managed cloud environment. For healthcare institutions working with highly sensitive patient data, this is a crucial factor.
Relevance for Healthcare
The Transition Option thus offers hospitals:
Continuity and Flexibility
- Extended support for SAP ERP and SAP IS-H until 2033
- Time savings for adaptations and optimization of integrations
Regulatory Security
- Operation in a managed cloud environment
- Compliance with data protection and compliance requirements
Scope for adaptations
- Opportunity to review and adapt custom developments
- Integration of existing partner solutions into the future system landscape
Strengthening partner integration
- Close collaboration between SAP and implementation partners
- Ensuring innovation, compatibility, and investment protection
This combination of planning certainty and regulatory stability is of particular importance for the healthcare sector, as uninterrupted operation and the security of sensitive data are top priorities.
Objective, Offering, and Timeline of the Transition Option
The Transition Option is primarily aimed at organizations with complex ERP landscapes that cannot fully complete their RISE with SAP transformation by 2030. It serves as a strategic interim solution that ensures operational continuity while simultaneously laying the groundwork for the move to the cloud.
The offering includes a cloud subscription based on the SAP HANA database. It is supplemented by additional services provided as part of the Max Success Plan. These services support organizations in building, optimizing, and gradually adapting a new system landscape to the requirements of SAP Cloud ERP. It is important that during this period, not only technical support is provided, but also legal changes, security patches, and bug fixes are taken into account, ensuring secure operation.
The Transition Option is clearly limited in time. It can be used from January 1, 2031, and is available until December 31, 2033, at the latest. This clearly defines the timeframe within which organizations must prepare their cloud migration.
What requirements must be met?
However, certain prerequisites must be met for you to utilize the Transition Option. The most important condition is that the corresponding systems must have been migrated to SAP ERP, Private Edition on SAP HANA by the end of 2030 at the latest. Furthermore, SAP mandates the use of the HANA database. Technical requirements such as a minimum system size of two terabytes, operation on Linux x86, and current ABAP kernel and enhancement packages must also be met.
Furthermore, the use of the Max Success Plan is mandatory. This service agreement ensures that organizations receive not only continuous support during the 2031-2033 period but also have access to strategic consulting and technical expertise to advance their cloud transformation.
Pricing and Conditions Framework
SAP has designed the Transition Option as an additional subscription, whose price will be above the regular subscription price of SAP ERP, Private Edition at the end of 2030. However, there is a special regulation for so-called early adopters, i.e., customers who decide on SAP ERP, Private Edition by the end of 2025. They can use the Transition Option in 2031 under the same commercial conditions that apply to their existing subscription.
Starting in 2026, surcharges will apply, beginning at 20% for those joining in 2026. For later years, the surcharges have not yet been definitively set. The exact prices are to be announced by 2028. The Transition Option will be priced above the regular Private Edition subscriptions at the end of 2030. However, SAP offers tiered conditions.
Outlook for Healthcare Organizations
The Transition Option presents a clear mandate for hospitals and other healthcare facilities. To fully exploit the opportunities of the Transition Option, it is crucial to act early. First, the existing IT landscape should be carefully analyzed to identify dependencies, data flows, and integrations. In particular, interfaces to third-party systems, in-house developments, and data architectures must be reviewed for their future viability. Based on this analysis, a strategic migration plan should be developed that outlines the transition to SAP ERP, Private Edition by 2030 at the latest. Only those who take this step in good time can take advantage of the Transition Option and thus secure extended support until 2033. In parallel, it is recommended to use the Max Success Plan in order to benefit from strategic and technical support at an early stage.
Conclusion
The Transition Option for SAP ERP, Private Edition offers healthcare organizations a valuable opportunity to shape their digital transformation within a plannable and secure framework. It creates the necessary temporal flexibility to modernize complex IT landscapes step by step without jeopardizing regulatory requirements or security of supply. However, time alone does not solve problems. The crucial factor is to use the flexibility gained in a targeted manner to critically examine existing structures and develop future-proof architectures. This is precisely where adesso’s role comes in.
adesso as a partner for a secure transformation
As an experienced IT service provider and long-standing SAP partner with in-depth industry knowledge in the healthcare sector, adesso supports organizations in comprehensively analyzing their IT landscape, developing a realistic migration plan and integrating individual adjustments into the new system landscape.
This gives hospitals not only the certainty of implementing the Transition Option technically and organizationally correctly, but also the security of driving their digital transformation forward in a sustainable and future-oriented manner.
