In my last blog post entitled SAP S/4HANA: Deep impact or progressive innovations?, I gave a short overview on the frequently encountered misnomers clients deal with around SAP S/4HANA® . In this blog, I share my views on why and how customers and prospects are working to innovate infrastructure on the cloud, dismissing traditional datacenters.
Infrastructure-as-a-Service (IaaS) proposed a new cloud approach to innovate in enterprise architecture, giving CIOs a choice of different new business cases and resulting in cost savings and flexibility in infrastructure management. The same happened with Software-as-a-Service (SaaS). The proposal showed a new cloud approach to simplify and innovate in ERP. However, several customers and prospects were initially apprehensive to take this new leap. They understood the values and the potential, but they preferred to remain on premises. So, what changed over time, what is currently changing and what does the future look like?
SAP S/4HANA® Cloud, in the single and multi-tenant edition, is the “intelligent” solution powered by SAP to provide ERP-as-a-Service. A glaring difference between the traditional on-premises ERP approach and the ERP-as-a-Service approach is based on standardization versus custom modifications. That translates into: SAP-led governance versus customer-led governance.
While that is a huge positive, it means that, to move from on premises to the cloud, Customers must manage their stratifications of custom codes developed starting (most likely) from the R/3 implementation days and still being used today.
As you can imagine, this is a significative impact. How can Customers depurate their SAP ERP solutions starting with a “back-to-the-standard approach” to prepare for a cloud journey that is inevitable? The answer is – SAP Cloud Platform (SCP) – a Platform-as-a-Service (PaaS) provided by SAP SE, where the new methodology and best practices suggest moving or creating ABAP and non-ABAP customizations directly connected with the standard SAP S/4HANA solution. Thanks to the new SAP Cloud Readiness Check it is easy to understand how to manage your custom code transformation.
A significant announcement from SAPPHIRE 2018 was that the ABAP environment has become available on SCP as a container. It is now possible to have, up and running, an ABAP application on the cloud:
Are you looking for a new SAP S/4HANA® on-premises implementation as a greenfield? Beware that close to 100% of RICEFW (report, interface, conversion, enhancement form, workflow) not covered by standard SAP should be developed on a cloud platform using ABAP or other containers available – directly connected with the S/4HANA solution – to simplify your future S/4HANA Cloud journey.
Are you looking to move your ERP or SAP S/4HANA® on premises to the SAP S/4HANA® Cloud? You can start with depurating ABAP custom codes, moving used custom functionalities in the cloud and eventually using ABAP or other containers available to simplify future S/4HANA Cloud journey.
As Capgemini, my team and I have developed specific methodologies and accelerators to support your journey – starting from the preparation phase, understanding how to depurate or how to implement new custom ABAP solutions in a Platform-as-a-Service model. I firmly believe this is where customizations in the cloud era should take place, and there’s no better partner than Capgemini to help you along the journey! To learn more about our PoCs, quick assessments or our new Digital Core workshops please contact me directly.