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1 Side-by-Side Many SAP ERP HCM customers begin their cloud journey with a Side-by-Side scenario. This is when an organization picks certain cloud modules to supplement on-premise capabilities. Talent modules are most common as add-ons, and that is how many cloud HCM vendors got their start. SAP SuccessFactors offers a best of breed approach, which gives you the ability to choose certain modules to essentially dip your toe in the cloud space. That is not something that all competing vendors offer. Others may require you to purchase the entire suite, including core HR capabilities. 2 Core Hybrid When going with Core Hybrid, companies make the move to upgrade to a core HR system in the cloud. For SuccessFactors customers, that means replacing SAP ERP HCM with Employee Central along with all other necessary modules. What makes this hybrid is that time and attendance and payroll functions are kept on-premise through traditional SAP payroll. 3 SAP S/4HANA On-Premise SAP is offering current users of SAP ERP 6.0 the option to remain on-premise for HCM until 2030 as they migrate to SAP S/4HANA on-premise. This is ideally a relatively simple upgrade that deploys compatibility packs that enable the current on-premise HCM environment to be fully functional with SAP S/4HANA. This option only works for the on-premise version of SAP S/4HANA. SAP is currently completing requirements to enable this on-premise version with an expected release in 2022. This gives those late adopters some extra time to assess readiness for the cloud. In this scenario, much like core hybrid, payroll and time management functionality stays on-premise. 4 Full Cloud Full cloud is exactly as it sounds—all HR and payroll processes are conducted in cloud environments, including payroll with Employee Central Payroll. Here, the customer will have fully upgraded their HR suite, including Employee Central, analytics, and all modules. This is the goal for all journeys to the cloud but the pace in which organizations reach this future state will vary and the most effective partners will be able to recommend the sequence of steps that will mitigate risk for your company. / 13 © 2020 Rizing LLC or a Rizing LLC af昀椀liate company. All rights reserved.

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