Brazilian oil recycling company Lwart Environmental Solutions has chosen to extend the life of its SAP ECC 6 environment rather than pursue ERP modernization while it expands its production capacity.
The decision, reported by Diginomica on June 4, reflects a stability strategy by Jefferson Andriotti, Lwart’s Head of IT and Procurement. Lwart began expanding its recycling factory in 2024 to increase capacity by 50%, making a simultaneous ERP modernization program too much operational change for the business to absorb.
“For us, it was not possible to do another ERP modernization,” Andriotti told Diginomica.
Lwart recycles used vehicle oil and returns it to market as Group II base oil. The company processes 240 million liters of oil per year, collected from more than half of Brazil’s municipal regions through 21 collection centers and a fleet of approximately 650 heavy-duty vehicles.
SAP ECC Sits at the Center of Operations
SAP ECC 6 is the core system supporting Lwart’s factory, back-office functions, and mobile workforce. The company has 1,100 employees, including 540 mobile workers who depend on ERP processes to complete daily work across the collection network.
“If SAP stops working, the whole oil collection process around the country comes to a halt,” Andriotti said.
Lwart standardized its technology operations on SAP in 2016, two years after Andriotti took over technology leadership. His position is the ERP environment remains stable and aligned with current business needs. “Our processes are totally calm and this situation is very, very important,” he said.
The business case for staying on SAP ECC is therefore not framed as resistance to modernization, but as a sequencing decision: protect the operational platform while the company invests in physical capacity expansion.
Analysis
What this means: Business sequencing should drive ERP modernization timing. Lwart’s decision shows how a major physical expansion can change the risk profile of an ERP migration, even when modernization remains a long-term consideration. For ERP vendors, system integrators, and transformation leaders, the case reinforces the need to assess business capacity for change before positioning migration as the default next step.
Third-Party Support Reduces Cost Pressure
Lwart began working with Rimini Street in 2021 to reduce costs and maintain stability around SAP ECC 6. Andriotti said ERP support costs have fallen by 50%, allowing the IT team to preserve a stable core environment while focusing resources elsewhere.
The relationship later expanded to VMware support after Broadcom’s acquisition of VMware and subsequent pricing changes. Andriotti said the prospect of a tripling in VMware costs created a major budget issue.
Lwart considered other options, including Nutanix and Citrix, but expanded its Rimini Street relationship to include VMware support. Andriotti said having one supplier across SAP and VMware reduced vendor management overhead and gave his team more room to focus on business priorities.
Analysis
What this means: Third-party support reshapes legacy ERP extension economics. Lwart’s reported 50% reduction in ERP support costs turned SAP ECC stability into a more viable operating choice while the company invested elsewhere. For ERP program owners and partner strategists, the takeaway is support economics can materially affect when organizations modernize, how long they maintain existing platforms, and where they direct transformation budget.
Innovation Continues Around the Core
Lwart’s decision to extend SAP ECC has not stopped the company from developing new operational tools. The IT team has built an application for oil collection drivers that supports vehicle refueling and removes the need for drivers to carry large amounts of cash.
That shows how targeted innovation can continue around a stable ERP core. Lwart is not freezing its technology estate. It is directing modernization effort toward business-specific operational improvements while deferring a larger ERP transformation.
The company’s approach also shows how modernization timing depends on business context. For Lwart, the priority is factory expansion, continuity in nationwide oil collection, and cost control across core technology platforms. ERP modernization remains a strategic option, but not the immediate operating priority.
Analysis
What this means: Core stability can coexist with targeted operational innovation. Lwart’s driver refueling application shows that companies can still build practical digital capabilities around a stable legacy ERP foundation. Modernization roadmaps should distinguish between core replacement and edge innovation, especially when the current ERP platform remains operationally reliable.
