What are my CPQ choices?
There are literally thousands of SAP customers using the LO-VC or Variant Configurator and many use other SAP configurator solutions to extend the Variant Configurator ("VC") such as the IPC. However the IPC is no longer recommended by SAP and not available in S4/HANA. So, what does a SAP VC customer do? Of course, companies can remain with the SAP CPQ track. The VC knowledge base is uploaded or translated to the SAP CPQ and loaded to SAP's hybris along with customer and non configurable products. This newer application requires the modeler to be conversent in Eclipse and that is a language used globallly.
What are the better practices for a CPQ solution for VC users?
First, you are not likely to retire or get rid of the VC. It likely has served your company very well over the years. It has its limitations and was built to be contained within ECC or R/3 not for sales offering. IPC (Internet, Pricing and Configurator) was developed for the sales capability and nearly a thousand SAP customers use it today. In nearly 20 years of working with hundreds of SAP VC customers, we have only encountered one (1), yes, just one customer that did not continue with the SAP VC. Virtually all SAP VC user companies have way too much invested in treasure and time to start over again. Besides that, the VC works. Look for additional capability when the Advanced version is readily available.
Yes, the current version of the VC may be difficult to maintain but again, thousands of large, medium and small companies use the VC to define their products for manufacturing, engineering, purchasing, forecasting, etc. If you don't like the classic UI of the VC, then try using SAP's Fiori, it is a superior UI and so is the PMEVC (Product Modeling Environment for VC).
There are an untold number of VC profesionals that build, maintain and support the VC and IPC for these companies and are in demand globally. Most of these professionals work for the SAP VC user company and a select few SAP partner companies have the expertise in SAP's VC, IPC, and CPQ. To find these partners (eSpline is one of them) do a "search" or ask your SAP account executive. But, in any case, retirement is not going to happen for the VC any time soon.
Check out what SAP has to offer
Second, try the SAP CPQ solution (formerly the SAP SSC) to see if it fits your scenario. If you need configuration for Guided Selling, contracts, warranty, complex products, or product bundles; it may fit your situation. This CPQ solution leverages your investment in VC or IPC.
Ask a CPQ analyst
Third, there are several analysts like the Gartner Group, Forrester Research, Ovum, Aberdeen Group and others that follow CPQ solutions and rank CPQ companies and their solutions according to their individual guidelines. Some are more thorough than others. These analysts listen to the CPQ solution provider, watch demonstrations and most importantly, talk to customers that use the application. If you are a member of one or more of these analyst companies, call them.
One issue at least for now, there are only a few CPQ solution providers that can offer a reference for SAP VC to a 3rd party CPQ solution, therefore a new application may not be well known to the analyst and most of the analysts have little detail information on the three or four CPQ solution providers that do offer the capability. There are a few SAP customers using the extract, translate and load capability. SAP also only has a few.
SFDC and the cloud
Fourth, if your company uses Salesforce.com and your company is desiring to use cloud solutions now or in the near term, your company will likely have to look at other CPQ applications other than SAP to fit your requirements. Longer term, SAP will be there, too.