Latest SAP Trends 2026: Technology Insights from SAP TechEd

SAP transformation is no longer optional for businesses in 2026.

With mainstream support for SAP ECC ending in 2027, companies face urgent decisions. The question isn’t whether to modernize. It’s how to do it quickly and effectively.

SAP has evolved from traditional ERP to cloud-based platforms with AI and sustainability features. Recent SAP TechEd events reveal clear trends that will shape enterprise technology.

This guide covers the latest SAP trends for 2026 and practical steps to prepare your business.

Quick Overview: Top SAP Trends 2026

Trend	Impact Level	Implementation Timeline
Agentic AI with SAP Joule	High	6-12 months
Clean Core Architecture	Critical	Immediate
Bluefield Migration	High	12-18 months
Sustainability Tracking	Medium	3-6 months
SAP Cloud ALM	Medium	6-9 months

Why 2026 is Critical for SAP Modernization

The 2027 deadline for SAP ECC support creates urgency. But smart companies see this as an opportunity, not just a deadline.

Key facts:

• SAP ECC mainstream support ends December 2027
• Extended support available until 2030 (at higher cost)
• S/4HANA Cloud becomes the default platform
• Migration complexity increases as deadline approaches

Companies waiting until 2027 face rushed implementations and limited resources. Starting now provides breathing room for proper planning.

Understanding SAP’s Strategic Direction

SAP’s vision centers on three pillars:

1. Cloud-First Strategy All new features launch on cloud platforms first. On-premise solutions receive limited updates.

2. AI-Powered Operations AI moves from optional features to core functionality. Every process gains intelligent automation.

3. Sustainable Business Environmental impact tracking becomes standard. Financial and sustainability data merge.

This direction affects every SAP modernization decision in 2026.

Trend 1: Agentic AI Transforms SAP Operations

What is Agentic AI?

Agentic AI goes beyond chatbots and recommendations. It completes full business processes without human intervention.

Traditional AI vs Agentic AI:

Feature	Traditional AI	Agentic AI
Function	Suggests actions	Executes actions
Scope	Single task	Full workflow
Human Input	Constant	Minimal
Decision Making	Limited	Advanced
Learning	Reactive	Proactive

SAP Joule: The AI Agent

SAP Joule is SAP’s agentic AI platform. It integrates directly with SAP systems and business logic.

What SAP Joule Does:

• Resolves payment disputes automatically
• Handles financial reconciliation
• Manages hiring workflows
• Performs compliance checks
• Processes procurement requests
• Generates financial reports

Real Business Impact

Companies using agentic AI report significant improvements:

Workload Reduction:

• 60-75% less manual processing
• Faster transaction completion
• Fewer errors and exceptions

Process Improvements:

• Consistent outcomes across workflows
• Real-time compliance monitoring
• Automatic exception handling

Implementing Agentic AI

Step 1: Identify Use Cases (Week 1-2) Find repetitive, rule-based processes:

• Invoice processing
• Expense approvals
• Vendor onboarding
• Compliance reporting

Step 2: Data Preparation (Week 3-6) Clean and organize process data:

• Document current workflows
• Map decision points
• Identify exceptions
• Set success metrics

Step 3: Pilot Testing (Week 7-12) Start with low-risk processes:

• Test in controlled environment
• Monitor results closely
• Adjust AI parameters
• Gather user feedback

Step 4: Scale Deployment (Month 4-6) Expand to more processes:

• Roll out gradually
• Train team members
• Monitor performance
• Optimize continuously

Agentic AI Best Practices

Do:

• Start with high-volume, low-complexity tasks
• Set clear success metrics
• Monitor AI decisions initially
• Keep humans in the loop for critical decisions

Don’t:

• Deploy without testing
• Skip data quality checks
• Ignore user feedback
• Automate everything at once

Trend 2: Clean Core Architecture Becomes Mandatory

What is Clean Core?

Clean Core keeps S/4HANA standard and moves customizations to SAP Business Technology Platform (BTP).

Traditional Approach:

• Heavy customization in core system
• Difficult upgrades
• System instability
• High maintenance costs

Clean Core Approach:

• Minimal core modifications
• Extensions on BTP
• Easy quarterly updates
• Lower maintenance burden

Why Clean Core Matters Now

Companies with heavy customization face serious challenges:

Problems with Custom Code:

• Blocks system updates
• Creates security vulnerabilities
• Increases technical debt
• Extends migration timelines

Benefits of Clean Core:

• Smooth quarterly updates
• Better system stability
• Reduced upgrade costs
• Future-proof architecture

Clean Core Implementation Strategy

Phase	Action	Timeline
Assessment	Audit current customizations	2-4 weeks
Classification	Identify which to keep/move/retire	4-6 weeks
Migration	Move extensions to BTP	3-6 months
Testing	Validate functionality	4-8 weeks
Optimization	Refine and improve	Ongoing

SAP Business Technology Platform (BTP)

BTP serves as the extension layer for Clean Core:

BTP Components:

• Integration Suite for connections
• Extension Suite for custom apps
• Data and Analytics for insights
• AI and Machine Learning tools
• Mobile Services for apps

How BTP Works:

1. Core S/4HANA stays standard
2. Custom logic runs on BTP
3. BTP connects via APIs
4. Updates happen independently

Clean Core Migration Process

Step 1: Custom Code Analysis Identify all customizations:

• Custom programs
• Modified standard code
• User exits
• Custom tables
• Enhancements

Step 2: Impact Assessment Rate each customization:

• Business criticality (1-5)
• Technical complexity (1-5)
• Usage frequency (high/medium/low)
• Migration effort (hours)

Step 3: Migration Planning Decide for each item:

• Keep as-is (only if essential)
• Move to BTP (preferred)
• Retire (if no longer needed)
• Replace with standard (if available)

Step 4: BTP Development Build extensions on BTP:

• Use modern development tools
• Follow SAP best practices
• Implement API-first design
• Add proper documentation

Step 5: Testing and Validation Verify everything works:

• Unit testing
• Integration testing
• User acceptance testing
• Performance testing

Clean Core Success Metrics

Track these KPIs:

Technical Metrics:

• Custom code lines reduced
• Standard functionality adoption rate
• Update deployment time
• System downtime incidents

Business Metrics:

• Time to implement changes
• Maintenance cost reduction
• User productivity gains
• Innovation velocity increase

Trend 3: Bluefield Migration Gains Momentum

Understanding Migration Approaches

Three main SAP S/4HANA migration strategies exist:

Approach	Description	Best For
Greenfield	New implementation	Complete transformation needed
Brownfield	System conversion	Minimal business change
Bluefield	Selective data transfer	Balance of both

Why Bluefield is Preferred in 2026

Bluefield combines the best of both worlds:

Advantages:

• Migrate only relevant data
• Redesign processes during migration
• Faster than Greenfield
• Cleaner than Brownfield
• Reduced technical debt

When to Choose Bluefield:

• Approaching 2027 deadline quickly
• Need business transformation
• Want clean system architecture
• Have historical data to preserve
• Require process modernization

Bluefield Migration Framework

Phase 1: Discovery (4-6 weeks) Understand current state:

• Document existing processes
• Identify pain points
• List critical data
• Map integration points
• Define success criteria

Phase 2: Design (8-12 weeks) Plan target state:

• Design new processes
• Select data to migrate
• Choose BTP extensions
• Plan integration strategy
• Create testing approach

Phase 3: Build (12-20 weeks) Configure new system:

• Set up S/4HANA Cloud
• Develop BTP extensions
• Build data migration tools
• Create integration points
• Prepare training materials

Phase 4: Migrate (8-12 weeks) Transfer selected data:

• Extract from legacy system
• Transform to new format
• Load into S/4HANA
• Validate accuracy
• Reconcile differences

Phase 5: Deploy (4-6 weeks) Go live with new system:

• Execute cutover plan
• Monitor system performance
• Support users actively
• Address issues quickly
• Optimize configurations

Bluefield Data Selection

Choose which data to migrate carefully:

Must Migrate:

• Active master data (customers, vendors, materials)
• Open transactions (orders, invoices)
• Legal documents (contracts, agreements)
• Compliance records (audits, certifications)

Consider Migrating:

• Recent historical transactions (1-3 years)
• Reference data for analytics
• Workflow configurations
• User preferences

Archive Instead:

• Old closed transactions
• Inactive master records
• Obsolete configurations
• Deprecated customizations

Bluefield Success Factors

Critical Success Factors:

1. Strong executive sponsorship
2. Clear business objectives
3. Experienced migration team
4. Proper testing strategy
5. User change management
6. Realistic timeline
7. Adequate budget

Common Pitfalls to Avoid:

• Migrating too much data
• Skipping process redesign
• Underestimating complexity
• Poor data quality
• Inadequate testing
• Weak change management

Trend 4: Sustainability Becomes Measurable

SAP Green Ledger Explained

SAP Green Ledger tracks environmental impact at the transaction level.

How It Works: Every financial transaction records:

• Carbon emissions
• Energy consumption
• Water usage
• Waste generation

This data sits alongside financial data in the same system.

Sustainability Control Tower

The Sustainability Control Tower provides visibility across operations:

Features:

• Real-time carbon tracking
• Supply chain emissions mapping
• Product lifecycle analysis
• Regulatory compliance monitoring
• ESG reporting automation

CSRD Compliance Requirements

Corporate Sustainability Reporting Directive (CSRD) affects thousands of companies:

Who Must Comply:

• Large EU companies
• Listed SMEs
• Non-EU companies with EU operations

Reporting Requirements:

• Scope 1, 2, and 3 emissions
• Social impact metrics
• Governance practices
• Climate risk assessment

Deadlines:

• 2025: Large companies start reporting
• 2026: More companies added
• 2027: Full implementation

SAP’s sustainability tools help meet these requirements.

Implementing Sustainability Tracking

Step 1: Baseline Assessment (Month 1) Measure current state:

• Calculate carbon footprint
• Identify emission sources
• Review existing data
• Set reduction targets

Step 2: System Configuration (Month 2-3) Set up SAP tools:

• Enable Green Ledger
• Configure emission factors
• Connect data sources
• Define calculation methods

Step 3: Data Integration (Month 3-4) Connect all systems:

• Link procurement data
• Integrate logistics systems
• Connect manufacturing
• Add supplier data

Step 4: Reporting Setup (Month 4-5) Build dashboards:

• Create executive reports
• Design operational metrics
• Set up alerts
• Enable drill-down analysis

Step 5: Continuous Improvement (Ongoing) Optimize and refine:

• Monitor trends
• Identify reduction opportunities
• Adjust processes
• Track progress

Sustainability Metrics to Track

Metric	Description	Target
Carbon Intensity	Emissions per revenue	20% reduction by 2027
Renewable Energy	Clean energy percentage	80% by 2026
Supplier Emissions	Scope 3 carbon	30% reduction by 2028
Waste Reduction	Circular economy metrics	50% reduction by 2027
Water Usage	Consumption per unit	25% reduction by 2026

Business Benefits Beyond Compliance

Sustainability tracking provides competitive advantages:

Financial Benefits:

• Lower energy costs
• Reduced waste expenses
• Better investment ratings
• Access to green financing

Operational Benefits:

• Process optimization
• Supply chain visibility
• Risk reduction
• Innovation opportunities

Market Benefits:

• Customer preference
• Brand reputation
• Regulatory readiness
• Competitive differentiation

Trend 5: SAP Cloud ALM Replaces Solution Manager

What is SAP Cloud ALM?

SAP Cloud ALM is the new application lifecycle management tool.

Key Difference:

• Solution Manager: On-premise, complex
• Cloud ALM: Cloud-native, simple

Cloud ALM Core Features

System Monitoring:

• Health checks
• Performance tracking
• Error detection
• Usage analytics

Process Management:

• Business process modeling
• Change impact analysis
• Process optimization
• Documentation

Testing Automation:

• Test case management
• Automated execution
• Regression testing
• Integration testing

Operations:

• Incident management
• Problem resolution
• Change control
• Release management

Cloud ALM vs Solution Manager

Feature	Solution Manager	SAP Cloud ALM
Deployment	On-premise	Cloud
Setup Time	Weeks	Days
Maintenance	High effort	Automatic
Updates	Manual	Automatic
Integration	Complex	Built-in
User Experience	Traditional	Modern
Cost	High TCO	Lower TCO

When to Migrate to Cloud ALM

Migrate Now If:

• Using RISE with SAP
• Running S/4HANA Cloud
• Starting new implementation
• Solution Manager nearing end of life

Plan Migration If:

• Still on older SAP versions
• Heavy Solution Manager customization
• Complex landscape
• Limited resources

Cloud ALM Implementation

Phase 1: Assessment (2-3 weeks)

• Review current ALM processes
• Identify gaps
• Plan migration approach
• Set timeline

Phase 2: Setup (1-2 weeks)

• Activate Cloud ALM
• Configure connections
• Set permissions
• Import landscape data

Phase 3: Migration (4-8 weeks)

• Transfer process documentation
• Move test cases
• Configure monitoring
• Set up integrations

Phase 4: Optimization (Ongoing)

• Refine processes
• Add automation
• Train users
• Measure improvements

Cloud ALM Best Practices

Setup Recommendations:

• Start with core features
• Add advanced capabilities gradually
• Involve all stakeholders
• Document processes clearly

Operational Tips:

• Monitor system health daily
• Review process compliance weekly
• Update documentation regularly
• Leverage automation features

SAP Trends Implementation Roadmap

Your 2026 Action Plan

Q1 2026 (January-March):

• Assess current SAP landscape
• Identify customization debt
• Define Clean Core strategy
• Start Agentic AI pilots

Q2 2026 (April-June):

• Begin BTP migration
• Implement Green Ledger
• Plan S/4HANA migration approach
• Deploy Cloud ALM basics

Q3 2026 (July-September):

• Execute Bluefield migration
• Scale AI implementations
• Complete BTP extensions
• Enhance sustainability tracking

Q4 2026 (October-December):

• Finalize S/4HANA migration
• Optimize all systems
• Prepare for 2027 deadline
• Plan 2027 enhancements

Resource Requirements

Team Structure:

• Project manager (1 FTE)
• SAP architects (2-3 FTE)
• Developers (3-5 FTE)
• Business analysts (2-3 FTE)
• Change management (1-2 FTE)

Budget Considerations:

• Software licenses
• Implementation services
• Training programs
• Change management
• Contingency (20%)

Risk Mitigation

Common Risks:

Risk	Impact	Mitigation
Timeline Delays	High	Add buffer, parallel workstreams
Budget Overruns	High	Track costs weekly, prioritize features
Resource Shortage	Medium	Engage partners early, cross-train team
Data Quality	High	Start cleansing now, automate checks
User Resistance	Medium	Strong change management, early involvement

Industry-Specific SAP Trends

Manufacturing

Key Focus:

• IoT integration with SAP
• Predictive maintenance
• Supply chain resilience
• Sustainability tracking

Recommended Actions:

• Connect machines to SAP
• Implement quality AI
• Track carbon per product
• Optimize production schedules

Retail

Key Focus:

• Omnichannel commerce
• Real-time inventory
• Customer experience
• Demand forecasting AI

Recommended Actions:

• Integrate all sales channels
• Enable unified commerce
• Deploy recommendation AI
• Track customer sustainability preferences

Financial Services

Key Focus:

• Regulatory compliance
• Risk management AI
• Customer analytics
• ESG reporting

Recommended Actions:

• Automate compliance checks
• Deploy fraud detection AI
• Integrate risk systems
• Enable sustainability reporting

Healthcare

Key Focus:

• Patient data security
• Operational efficiency
• Supply chain visibility
• Research collaboration

Recommended Actions:

• Strengthen data protection
• Automate administrative tasks
• Track medical supply chains
• Enable research data sharing

Common SAP Modernization Challenges

Challenge 1: Legacy System Complexity

Problem: Years of customization create tangled systems.

Solution:

• Conduct thorough code analysis
• Use automated tools
• Prioritize ruthlessly
• Migrate incrementally

Challenge 2: Budget Constraints

Problem: SAP projects often exceed budgets.

Solution:

• Start with clear scope
• Use phased approach
• Leverage cloud economics
• Track costs rigorously

Challenge 3: Skill Gaps

Problem: New SAP technologies require new skills.

Solution:

• Invest in training
• Hire strategically
• Partner with experts
• Build centers of excellence

Challenge 4: Change Resistance

Problem: Users resist new ways of working.

Solution:

• Communicate benefits clearly
• Involve users early
• Provide adequate training
• Celebrate quick wins

Challenge 5: Data Quality

Problem: Poor data undermines AI and analytics.

Solution:

• Start data cleansing now
• Implement governance
• Use automated tools
• Make quality everyone’s job

SAP Partner Ecosystem in 2026

Types of SAP Partners

Implementation Partners:

• End-to-end project delivery
• Industry expertise
• Change management
• Support services

Technology Partners:

• Complementary solutions
• Integration tools
• Industry add-ons
• Specialized capabilities

Cloud Infrastructure:

• AWS for SAP
• Microsoft Azure
• Google Cloud Platform
• Hosting and management

Selecting the Right Partner

Evaluation Criteria:

• SAP certification level
• Industry experience
• Project track record
• Team expertise
• Geographic coverage
• Cultural fit

Questions to Ask:

• How many similar projects completed?
• What’s your approach to Clean Core?
• How do you handle change management?
• What’s your AI implementation experience?
• How do you manage risks?
• What post-go-live support provided?

Future SAP Trends Beyond 2026

Emerging Technologies

Quantum Computing:

• Complex optimization problems
• Advanced simulation
• Cryptography enhancement
• Research applications

Extended Reality (XR):

• Training simulations
• Remote assistance
• Digital twins
• Immersive analytics

Blockchain:

• Supply chain tracking
• Smart contracts
• Digital identity
• Transparent transactions

Edge Computing:

• Real-time processing
• IoT integration
• Reduced latency
• Local data processing

SAP’s Long-Term Vision

2027-2030 Roadmap:

• Full cloud transition
• AI in every process
• Carbon-neutral operations
• Autonomous business processes
• Quantum-ready algorithms

Frequently Asked Questions

General SAP Trends Questions

What are the most important SAP trends in 2026?

The top five trends are Agentic AI with SAP Joule, Clean Core architecture, Bluefield migration, sustainability tracking through Green Ledger, and SAP Cloud ALM adoption.

Why is 2026 critical for SAP modernization?

SAP ECC mainstream support ends in December 2027. Companies need time for proper planning and implementation, making 2026 the last year for comfortable migration.

How much does SAP S/4HANA migration cost?

Costs vary widely based on company size and complexity. Small implementations start at $500k, mid-size range from $2-5M, and large enterprises can spend $10M+.

Can small companies benefit from these SAP trends?

Yes. Cloud-based SAP solutions make enterprise features accessible to smaller companies. Start with core features and scale gradually.

Agentic AI Questions

What is the difference between AI and Agentic AI?

Traditional AI suggests actions. Agentic AI executes complete workflows independently, making decisions and taking actions without constant human input.

Is SAP Joule available for all SAP products?

SAP Joule is rolling out across products. S/4HANA Cloud users get priority access. On-premise versions receive features on a delayed schedule.

How safe is Agentic AI for critical business processes?

Very safe when implemented properly. Start with low-risk processes, monitor closely, and maintain human oversight for critical decisions.

What ROI can I expect from Agentic AI?

Companies report 60-75% reduction in manual workload for automated processes. ROI typically achieved within 6-12 months.

Clean Core Questions

What happens if I don’t adopt Clean Core?

You’ll face difficult quarterly updates, system instability, higher costs, and migration challenges. Clean Core becomes mandatory for sustainable SAP operations.

Can I migrate existing customizations to BTP?

Yes. Most customizations can move to BTP with proper analysis and refactoring. Some may need complete rebuilding.

How long does Clean Core implementation take?

Timelines vary by customization volume. Simple landscapes: 3-6 months. Complex environments: 6-12 months or more.

Does Clean Core work for highly regulated industries?

Absolutely. Clean Core actually improves compliance by separating standard functionality from extensions, making audits easier.

Migration Questions

What is Bluefield migration?

Bluefield combines Greenfield and Brownfield approaches. You migrate only relevant data while redesigning business processes, avoiding complete system rebuild.

Should we choose Greenfield or Bluefield?

Bluefield is preferred for most 2026 migrations. It balances speed, transformation, and data preservation better than pure Greenfield.

How long does S/4HANA migration take?

Typical timelines: Brownfield 6-12 months, Bluefield 9-15 months, Greenfield 12-24 months. Complex landscapes may need longer.

Can we delay migration until after 2027?

Yes, but extended support costs more and you’ll miss quarterly innovations. Delaying increases risk and complexity.

Sustainability Questions

Is sustainability tracking mandatory?

For companies subject to CSRD (Corporate Sustainability Reporting Directive), yes. For others, it’s increasingly expected by investors and customers.

How accurate is SAP’s carbon tracking?

Very accurate when properly configured. Uses industry-standard emission factors and can integrate actual measurement data for higher precision.

Does Green Ledger work with existing financial systems?

Yes. Green Ledger integrates with SAP S/4HANA Finance, running parallel to financial accounting while using the same transaction data.

What’s the cost of implementing sustainability tracking?

Implementation costs range from $100k-500k depending on complexity. Ongoing costs are minimal as it’s built into S/4HANA.

Cloud ALM Questions

When should we move from Solution Manager to Cloud ALM?

If you’re on RISE with SAP or S/4HANA Cloud, migrate now. For on-premise systems, plan migration within the next 12 months.

Does Cloud ALM cost extra?

Cloud ALM is included with RISE with SAP and S/4HANA Cloud subscriptions. No additional license fee for these customers.

Can Cloud ALM manage on-premise systems?

Yes. Cloud ALM supports hybrid landscapes, managing both cloud and on-premise SAP systems from a single platform.

What happens to Solution Manager?

Solution Manager enters maintenance mode. SAP focuses all innovation on Cloud ALM. Plan your migration accordingly.

Conclusion: Your 2026 SAP Strategy

SAP modernization in 2026 requires decisive action. The 2027 deadline approaches quickly.

Successful organizations focus on five priorities:

1. Assess Clean Core Readiness Understand your customization debt. Plan BTP migration. Set clear timelines.

2. Identify AI Opportunities Find processes for Agentic AI. Start with high-impact areas. Scale successes.

3. Choose Migration Approach Bluefield works for most companies. Balance speed with transformation. Preserve critical data.

4. Enable Sustainability Tracking Configure Green Ledger. Integrate data sources. Meet compliance requirements.

5. Deploy Cloud ALM Move from Solution Manager. Automate operations. Reduce management effort.

Your Next Steps

This Week:

• Schedule executive alignment meeting
• Review current SAP landscape
• Identify quick wins
• Set preliminary budget

This Month:

• Conduct detailed assessment
• Define success criteria
• Select implementation partner
• Create project charter

This Quarter:

• Launch initial projects
• Begin team training
• Set governance structure
• Track early progress

This Year:

• Complete priority migrations
• Scale successful pilots
• Optimize configurations
• Prepare for 2027

Final Thoughts

SAP modernization is a business transformation, not just a technical upgrade.

Companies that succeed treat it strategically. They align technology changes with business goals. They invest in people, not just systems.

The 2027 deadline creates urgency. But urgency without strategy leads to failure.

Start now. Plan carefully. Execute decisively. Your business depends on it.

The future of SAP is cloud-based, AI-powered, and sustainability-focused. Make 2026 the year you position your organization for success.