What is the difference between V1 and V2 in SAP?

Can you elaborate on the distinction between V1 and V2 in the context of SAP? Are they referring to different versions or iterations of the software? If so, what are the key features or enhancements that distinguish V2 from its predecessor, V1? Additionally, are there any compatibility or migration considerations that users should be aware of when upgrading from V1 to V2? Understanding these nuances will help me make an informed decision about the best version for my organization.