New SAP versions often open up new possibilities to run your business more efficient either by adding new functionality or by integrating existing systems. Time to time each company will reach the point where in terms of a cost/benefit point of view will favor for upgrade.
When a SAP product reaches end of life the product, version or release will not be supported by SAP based on standard way but support can be more expensive. Many companies chose to upgrade to the newest version without adding new functionality, so called technical upgrade.
The upgrade path is following a thorough SAP specific methodology to help minimize the risks and impact on the running business operations.
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