A few years back SAP acquired Callidus Software Inc., transforming CallidusCloud to SAP Commissions. The platform, based on Oracle, Informatica, and Unix, was an ICm workhorse at that time, but as part of the acquisition SAP has decided to rewrite the old code one-to-one in SAP’s environment. While this initial step did the job, it wasn’t precisely optimized.
It became clear that direct rewriting was not the best approach as customers were grappling with stability and performance issues. Not only that—the old Oracle-based version of the platform is still present, if not dominant, across the customer base, leading SAP to embark on another architectural overhaul. This time SAP has rewritten the code into microservices, moved the data integration layer into the datasphere, and adopted native SAP cloud reporting. In product terms, SAP Commissions was moved to SuccessFactors Incentive Management on HANA.
Introducing the new architecture SAP announced that the oldest architecture would be operational but would no longer be supported by September 2026. This leaves customers with a tough decision: migrate to SuccessFactors Incentive Management on HANA or consider alternative vendors.
Migrating to the new SAP platform isn’t a simple one-to-one switch. While organizations can migrate repositories and compensation rules, everything else—data integration, reporting, approval workflows—requires manual rewriting.
The lack of a Landing Pad, an intermediate data processing stage, makes migrating data integration and reporting to SAP HANA particularly difficult. Since there’s no Landing Pad in the new architecture, organizations relying heavily on this Oracle/Informatica/Unix service must find a new way to process the data.
On the other hand, SAP may offer an appealing financial package for a specific group of enterprise customers. Moving to SuccessFactors Incentive Management on HANA makes perfect sense if an organization has excellent internal skills to operate that system and doesn’t have significant data integration components to migrate.
Some businesses might find that exploring other options makes more financial sense, considering the total ROI. The old Callidus software, while powerful, has a steep learning curve. Though perhaps not as powerful, modern solutions offer enough functionality with quicker, easier operations. Experienced integrators, like Sands Partners, can make that migration a much more streamlined process and in the end provide a cost effective and easy to operate solution.
When evaluating migration options, it’s essential to consider several key factors to ensure a smooth and successful transition.
Assessing Current and Future Requirements
Budget and Cost Analysis
Skillset and Training Needs
System Audit and Workflow Optimization
Testing and Implementation Strategy
Look into modern ICM solutions like Captivate IQ, Varicent, Xactly and others
These platforms may not match SAP’s power in some aspects. but offer significant advantages in ease of use and implementation speed. Modern systems can process calculations in near real-time, a stark contrast to Callidus’s batch processing.
To properly evaluate alternatives, initiate a Request for Proposal (RFP) process. This helps to compare functionalities of different software packages in your specific scenario, ensuring you choose a solution that best fits your needs.
Consider the importance of data integration and reporting in your decision process. If your current system relies heavily on these components, migrating to SAP’s new platform could be more challenging. In such cases, an alternative solution might be more practical. In case when your solution relies mostly on SAP’s calculation engine and your team is proficient in the good old Callidus rule writing, it makes perfect sense to stay with SAP.
Think about your future business plans. Do you aim for self-sufficiency, or are you comfortable relying on external vendors? Are you planning to implement aggressive compensation strategies that require frequent changes? Your answers will guide your decision.
Migrating from SAP Commissions to SuccessFactors Incentive Management on HANA or considering alternative ICM solutions is a significant decision with far-reaching implications. You can navigate this transition smoothly by thoroughly evaluating your needs, assessing costs, and planning meticulously. Whether you stick with SAP or explore new vendors, ensure your choice aligns with your strategic objectives and operational requirements.
If you’re unsure what the next step should be, consider auditing your existing infrastructure with Sands Partners. We can help you make the right choice and are fully capable of migrating to SAP HANA and other ICM vendors.