Simplifying Complex Transitions in the SAP Cloud Landscape
There is a lot for SAP customers to do based on the activity in the market over the last year or so. Keeping up with SAP’s plans to end support for a host of applications that have been replaced in SAP’s move to the Cloud has been complex. Businesses have also been addressing questions such as when should they move to SAP S/4HANA, how to move to the Cloud most cost-effectively, and how to manage Cloud costs, among others.
Robert Holland, Vice President and Research Director at SAPinsider recently met with Eamonn O’Neill, Co-Founder and CTO, Lemongrass to discuss key industry issues in a webinar now available on-demand. This article summarizes their conversation.
The SAP Cloud Environment
For SAP customers, the SAP Cloud environment looks extremely complicated. SAP offers several options for running SAP ECC and SAP S/4HANA. New versions of the SAP Business Technology Platform (BTP) are being introduced along with other new capabilities that a customer must research and understand. Then, they must determine how these changes affect their goals for moving to the Cloud and decide when and how to make the move.
One of the most important concepts O’Neill described is that it’s not necessary for a company to migrate everything at the same time. For most customers, their ERP system is the most critical. Customers need to identify the implications if they aren’t running SAP S/4HANA and identify the next steps if they are running SAP S/4HANA.
For SAP ECC Users: SAP customers running SAP ECC need to know that if they aren’t on Enhancement Pack 6 or higher, their support will end at the end of 2025. Customers running Version 6 or higher will have support until 2027.
Company leaders need to decide if they want to, or need to, put forth the effort to upgrade to Version 6 or higher to give themselves more time to make the move to the Cloud. In addition, if ECC customers wait until after 2027 to complete their migration, the costs for extended maintenance will be a burden. O’Neill advises that now is the time for decision-makers to create a road map for the future because time-sensitive decisions need to be made about the best path to follow.
For Customers Planning a Move to the Cloud: Customers planning to move to the Cloud as soon as possible need to step back and plan out their options. O’Neill sees customers moving to SAP S/4HANA as part of the move to RISE with SAP, while others are choosing a Cloud-native deployment of SAP S/4HANA. Each is a valid option, and O’Neill stressed that having options is why taking the time to make the right choice is vital.
Building a Cloud Roadmap
Part of the planning process should include building a Cloud roadmap that is tailored to each business. Consider the various factors that will lead to the right decisions:
- If you aren’t yet on SAP S/4HANA assess whether the new capabilities available there will help you drive a business case for making the move.
- As a long-time SAP customer, you’re undoubtedly familiar with SAP NetWeaver, although SAP Business Technology Platform (BTP) is the newest tool. Consider when to make the move from SAP Process Orchestration to SAP Integration Suite. Look at the broad picture for your organization and its architecture to make that decision.
- You’ll need a broad approach to the topic of AI and how it fits into the SAP space. Consider your architecture, operating model, and then the technical details. Understand the implications of running in the Cloud and leveraging Cloud capabilities.
- Focus on defining the target operating model you’ll establish after moving to the Cloud.
Defining the Move to the Cloud
Define the goals you want to achieve when you move to the Cloud. Today’s goals need to focus on increased security, reduced downtime, improved management, and cost optimization. Investing in the Cloud makes sense because it generates value, but you need to consider these issues:
- Include Financial Operations (FinOps) to help manage the costs in the Cloud. FinOps needs to be an ongoing activity that includes everyone who is provisioning and procuring Cloud services when new systems are initiated. Don’t leave it all up to a centralized team.
- Cybersecurity is another key issue, and businesses are becoming more sophisticated in the use of DevSecOps, which refers to a consolidated effort that includes developers, security staff and operations staff. As with FinOps, security is a critical issue that requires participation from everyone who can have an impact on security readiness.
- Reducing downtime is a typical goal for Cloud migration. Use immutability concepts to allow for making changes without disruption.
O’Neill suggests expanding your view of moving to the Cloud as more than changing data centers or replacing on-premises systems.
Making the Most of Cloud Environments
Organizations that adopted new capabilities early in their Cloud journey had the most successful transitions, according to O’Neill. He also suggests:
- Start with educating teams, ensuring that they understand their roles and how to fulfill them in an automated environment.
- Set up FinOps and SecOps teams at the start of the project to effectively manage outcomes in those areas.
Using automation, FinOps, and SecOps at the start of the project will allow you to achieve the outcomes you want much more quickly. In addition, it will be possible for you to avoid pitfalls that the lack of those capabilities often present. The most important enablers for getting the most out of a Cloud investment include:
- A well-defined operating model
- Complete teams of trained people in place with clearly defined roles
- Processes and tools in place to support the teams
O’Neill also recommends that starting with transitioning less critical workloads is an important step to success. This approach will give internal teams an opportunity to ramp up and expand their competence with Cloud operations and capabilities.
The sooner your organization becomes familiar with the Cloud, whether through a proof of concept or some other evaluation, the quicker you will realize the benefits.
For more information, hear directly from Eamonn O’Neill, Co-Founder and CTO, Lemongrass and Robert Holland, Vice President and Research Director, SAPinsider as they discuss “Facing Today’s ERP and Cloud Challenges,” a webinar that is currently available on demand.
If you are a SAP customer migrating to SAP Cloud and have questions about the challenges related to ERP and SAP Cloud solutions, feel free to contact the experts at Lemongrass for the answers.
