Migrating SAP systems to the cloud is a pressing challenge for many organizations today, especially with SAP’s decision to stop supporting legacy ERP applications by 2027. This has accelerated the move to SAP S/4HANA, and this shift is a critical juncture for organizations, opening doors to innovation and growth.

Nevertheless, the journey to a successful SAP cloud migration is intricate, demanding a well-thought-out strategy for IT talent acquisition.

Moving SAP workloads to the cloud is more than just a simple transfer. Ettienne Wilson, Director of SAP Cloud and Virtualization at Big Concepts, notes that the hurdles can be substantial, depending on the SAP ERP system’s current state.

It’s vital to grasp your current workload, growth expectations, source system levels, and custom code extent for a successful migration. There is also the need to weigh server utilization, direct versus indirect costs, and the shift from capital to operating expenses when evaluating cloud migration benefits.

The advantages of moving SAP to the cloud go beyond mere cost savings. Migrating SAP to AWS or other cloud platforms brings agility, quicker market entry, scalability, streamlined system lifecycle management, and enhanced development operations. Ensuring data security and compliance is also a top priority. Organizations need to consider data encryption, insider threats, privilege escalation, and user connectivity during the migration.

Key Takeaways:

• SAP’s end of support for legacy ERP applications by 2027 is driving organizations to migrate to SAP S/4HANA in the cloud, as well as acquire top SAP talent.
• Migrating SAP workloads to the cloud is a complex process that requires a strategic approach to resource planning and IT talent acquisition.
• Understanding existing workloads, growth projections, source system levels, and custom code involvement is crucial for a successful migration.
• The cloud offers benefits beyond cost savings, such as agility, scalability, and improved development operations.
• Addressing data security and compliance concerns is essential during the SAP cloud migration process.

Understanding the Challenges of SAP Cloud Migration

SAP landscapes are intricate, with multiple systems and customizations. This complexity is a major hurdle during migration. Companies must assess their SAP environment and identify dependencies for a smooth transition. A detailed SAP cloud migration strategy is crucial to manage these complexities and reduce risks.

Customization and Code Adaptation

Many organizations today face challenges due to high customization requirements in SAP migration. Adapting custom code for SAP S/4HANA often requires significant changes or redevelopment. This process involves thorough assessment, planning, testing, and change management strategies.

Organizations must evaluate each customization’s necessity and find the most efficient way to adapt them for the cloud.

Data Security and Compliance Concerns

Data security and compliance are vital when moving SAP systems to the cloud. Ensuring data protection during and after the transition is essential. Key security aspects include:

• Connectivity between end users and virtual systems.
• Data encryption both at rest and in transit.
• Protection against insider threats and privilege escalation.
• Compliance with industry-specific regulations and standards.

Organizations should partner with an experienced IT staffing firm to hire talent capable of meeting robust security demands and compliance. A hybrid cloud for SAP offers flexibility and control over data security. It also allows organizations to keep sensitive data on-premises while using cloud capabilities for other SAP aspects.

Addressing these challenges requires a well-defined strategy, expertise, and trusted partners. With careful planning and execution, organizations can benefit from cloud computing while minimizing risks and ensuring a smooth migration.

Benefits of Migrating SAP to the Cloud

Migrating SAP systems to the cloud brings numerous advantages, transforming businesses and driving growth. By embracing cloud transformation for SAP, organizations unlock benefits like improved scalability, cost optimization, and enhanced agility. Organizations transitioning to SAP S/4HANA see better on-demand processing speed and enhanced functionalities for complex business processes. Employee efficiency also increases.

Improved Scalability and Flexibility

One major SAP cloud migration benefit is the ability to scale resources on-demand. Cloud-based infrastructure allows businesses to adjust computing power and storage as needs evolve. This SAP cloud scalability ensures peak workloads are handled without significant upfront hardware investments. Cloud platforms like Microsoft Azure offer flexibility, allowing businesses to choose between IaaS or PaaS for SAP workloads.

Cost Optimization and Reduced IT Overhead

SAP cloud cost optimization is a compelling reason to migrate. Moving SAP systems to the cloud reduces costs associated with resources and manpower. On-premises servers often operate at less than 20% capacity, leading to cost savings. Cloud migration shifts from CapEx to OpEx, allowing for better financial planning and reducing infrastructure maintenance costs. Tools like the Total Cost of Ownership (TCO) Calculator help evaluate potential cost savings.

Enhanced Business Agility and Innovation

SAP cloud agility and SAP cloud innovation drive migration. The cloud’s agility offers benefits like faster time-to-market and efficient system lifecycle management. S/4HANA increases business intelligence and simplifies the IT environment, improving ROI. Real-time analytics and a state-of-the-art user experience enable informed decision-making and drive innovation. Cloud migration experts handle server management, freeing companies to focus on core competencies.

To ensure a successful SAP cloud migration, planning is key. A proactive approach prevents rushed or double moves due to hardware or hosting renewals. Assessing the current SAP environment, defining a clear migration roadmap, and leveraging experienced IT talent are crucial. This way, businesses can overcome challenges and benefit from migrating SAP to the cloud.

Assessing Your Current SAP Environment

The initial step in a successful SAP cloud migration is a comprehensive assessment of your current SAP landscape. This involves analyzing your SAP infrastructure, identifying challenges, and determining the best migration approach. A detailed SAP migration assessment helps you understand the project’s scope, resource needs, and realistic completion timeline.

Defining a Clear Migration Roadmap

With a clear understanding of your current SAP environment, the next step is to create a detailed migration roadmap. This roadmap outlines the migration process steps, including data migration, application modernization, and testing. It also identifies key milestones, dependencies, and risks. A well-defined SAP migration roadmap ensures all stakeholders are aligned and the project stays on track.

Leveraging Experienced IT Talent

Migrating SAP to the cloud is a complex task that requires specialized skills and expertise. To ensure success, it’s crucial to leverage experienced IT talent with deep SAP cloud infrastructure knowledge. This may involve a blended team approach, combining internal teams, SAP vendor experts, global consulting firms, independent consultants, and co-managed teams. Partnering with the right IT talent accelerates your migration, minimizes risks, and achieves your business goals.

How Procom Can Help

Data integrity and security are paramount in any SAP cloud migration. As a leading staffing partner in North America, Procom has specialized in staffing some of the top IT experts for the past 45 years, with specializations in SAP, cloud, cybersecurity and more. If you’re looking for help sourcing expert talent while performing SAP migration, fill out the form below and a recruitment expert will be in touch.