Update: SAP Neo to be sunset by December 31, 2028

SAP has officially announced that the Neo cloud environment will be sunset on December 31, 2028. This confirms SAP’s strategic move toward a multi-cloud foundation for SAP Business Technology Platform, offering improved scalability, flexibility, and long-term performance.

Customers currently running integrations on Neo can continue operations until the end of 2028. However, SAP strongly encourages organizations to start planning their migration from SAP NEO to Cloud Foundry now to avoid future disruption, technical debt, and rushed decisions.

For organizations with business-critical integrations, migration is not just a technical exercise — it is an opportunity to modernize integration architecture, improve resilience, and reduce long-term risk.

*This article has been updated to reflect the new 2028 deadline and what it means for your integration strategy.

Understanding SAP NEO and Cloud Foundry

SAP NEO, a proprietary runtime environment developed by SAP, has long been the foundation for various applications. It supports a limited scope of runtime environments and programming languages, which include Java, SAP HANA XS, and HTML5. However, its fixed scope and hosting limitations in SAP data centers can sometimes hinder the flexibility needed to adapt to dynamic business requirements.

On the other hand, Cloud Foundry represents a paradigm shift. It's an open-source runtime environment overseen by the Cloud Foundry Foundation, offering a broader spectrum of runtime environments and programming languages, such as Java, Node.js, Python, and Go. One of Cloud Foundry's standout features is its ability to be hosted on various infrastructure-as-a-service (IaaS) providers, including AWS, Azure, and Google Cloud Platform. This flexibility opens doors to innovation by enabling the creation of microservices-based applications, IoT solutions, and machine-learning scenarios.

1. SAP's Recommendation and Future-Proofing

SAP recognizes the benefits of Cloud Foundry and actively recommends migrating from NEO. This strategic endorsement is further solidified by SAP's commitment to exclusively providing new enhancements and services for multi-cloud environments. This shift aligns with the industry's trajectory towards more open and versatile platforms.

2. Impending End-of-Life for SAP NEO

An essential consideration is the announcement that SAP will cease supporting NEO after December 31, 2028. This decision means users will no longer receive security updates or bug fixes for the NEO environment beyond that date. This impending end-of-life reality underscores the urgency of migration; highlighting the need to ensure ongoing security and operational stability.

3. Enhanced Agility, Scalability, and Cost Efficiency

A move to Cloud Foundry unlocks a host of operational benefits that can enhance a company's competitive edge. The elastic scaling of Cloud Foundry allows resources to be dynamically adjusted to accommodate varying demands; ensuring optimal performance during peak usage periods. Coupled with agile development practices like continuous integration and deployment, this responsiveness enables quicker feature delivery and rapid adaptation to market changes.

Additionally, the cost efficiency inherent in Cloud Foundry's pay-as-you-go model is a compelling reason for migration. Organizations can eliminate upfront hardware expenses, aligning costs with actual resource consumption. This approach, combined with optimized resource usage and reduced maintenance efforts, translates to significant financial savings.

4. Innovation and Future Technologies

Embracing Cloud Foundry opens avenues to embrace emerging technologies, microservices architecture, and containerization. This flexibility fosters innovation and adaptability, positioning organizations to rapidly integrate new tools and methodologies into their workflows.

5. Vendor Flexibility and Improved Security

The ability to choose from multiple cloud providers for Cloud Foundry deployments provides vendor flexibility, reducing the risk of vendor lock-in. Moreover, Cloud Foundry's robust security features, including encryption and role-based access controls, enhance data protection efforts and compliance with regulatory standards.

6. Reduced Management Overhead

The abstraction of infrastructure management in Cloud Foundry allows IT teams to concentrate on application development and strategic initiatives. This streamlined focus boosts efficiency by reducing the operational burdens associated with infrastructure management.

Migration Strategy: Steps to a Successful Transition

A well-executed migration from SAP NEO to Cloud Foundry necessitates a systematic approach to ensure a smooth transition. Here's an outline of the key steps involved:

1. Assessment

Understand the current SAP NEO landscape, including integration components, adapters, and dependencies. Create a comprehensive migration plan that outlines tasks, timelines, and responsibilities.

2. Cloud Foundry Environment Setup

Select a Cloud Foundry provider based on your organization's preferences and requirements. Set up the Cloud Foundry environment, including spaces, organizations, and necessary services. Configure networking, security, and access controls to ensure a secure and compliant environment.

3. Integration and API Migration

Identify APIs and integrations used in SAP NEO applications. Modify or reconfigure integration artifacts to align seamlessly with Cloud Foundry services, such as messaging queues or API gateways. Update authentication and authorization mechanisms to adhere to Cloud Foundry's security standards.

What Organizations Should Focus on in 2025–2026

• Map all existing Neo-based integrations

• Assess complexity, custom logic, and business criticality

• Decide on Cloud Foundry vs. alternative integration patterns

• Build a phased migration roadmap — not a big-bang move

Why Work with Effective People?

Migrating from SAP NEO to SAP Cloud Foundry requires a combination of technical skills, project management capabilities, and a deep understanding of both platforms. Effective People has SAP Cloud Foundry knowledge and experience, including an understanding of the platform's architecture, features, and capabilities. We can help you every step of the way.