ERP & Industry Software

Migrating from SAP to a Custom AI-Powered ERP: A Guide for Mumbai Mid-Sized Companies

A guide for Mumbai's mid-sized companies weighing a move off SAP: total cost of ownership, the S/4HANA decision, risks and a staged migration plan.

Purushottam Kumar Suman
Purushottam Kumar Suman
Founder & CEO, Drema AI
6 min read
Engineers planning a system migration

Companies that implemented SAP ECC years ago face a decision as mainstream support for older versions winds down: pay for a move to S/4HANA, with new licences and a fresh implementation, or reconsider the platform. For a mid-sized firm, that is the natural moment to compare.

01

The decision in front of you

Stay and upgradeNew licences or subscription, migration project, ongoing maintenance
Third-party supportLower fees on the old version, no new features
Another packaged ERPDifferent vendor, same commercial model
Custom ERPOne-time build around your process, owned by you
02

Total cost over seven years

Add licences or subscription, annual maintenance, infrastructure, implementation partner, internal SAP team, and change requests. Compare with a one-time development cost plus modest support. For companies using a narrow slice of SAP, the gap is large.

You pay for the whole of SAP. Most mid-sized companies use a fifth of it.

03

When not to leave

If you are a subsidiary reporting into a global SAP landscape, in a heavily audited sector that expects it, or genuinely use its breadth, stay. We will tell you that.

04

Staged migration

1. Process inventoryTransactions actually used, with volumes
2. Peripheral modules firstSales operations, logistics, field force
3. Core operationsInventory, purchase and production
4. FinanceAt year-end, with auditors involved
5. ArchiveHistorical data retained for statutory periods
05

What you get

AI document processingNatural-language reportingMobile approvalsNo user licencesSource code ownership
One-time
Development cost, agreed before work starts
1 year
Of AMC included free after go-live
Yours
Source code and data, with no per-user fee
Purushottam Kumar Suman
Written by
Purushottam Kumar Suman
Founder & CEO, Drema AI

Founder and CEO of Drema AI. Builds AI systems, SaaS platforms and industry software — and writes about what actually survives production.

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