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In recent years, technology has changed the way businesses operate, but many organizations continue to cling to legacy infrastructure because “that’s the way it’s always been.” This attitude means that many businesses are missing out on a key component for success – a modern, robust, cost-effective cloud platform to run their core SAP workloads. We look at why now is the right time to move your on-premises SAP infrastructure to the cloud.
For most businesses, SAP has been the standard backbone for running most of their critical business processes. However, in the dynamic era, as the pace of business has accelerated, enterprises that have on-premises SAP systems must make the decision to move to the cloud as the economics of maintaining SAP systems have become expensive, and most enterprises do not have the necessary skills to maintain an on-premises SAP ecosystem.
In addition, since SAP has extended support for existing ECC systems only until 2027, businesses must decide whether to migrate to SAP S/4 HANA (on-premises) or consider moving to the cloud. Looking at the value proposition of the cloud and the time, money and effort spent on configuring on-premises SAP systems, a significant percentage of SAP customers plan to deploy SAP S/4 HANA on the cloud. It’s clear that the cloud is the future from a long-term perspective, and it makes more sense for any business to invest in a platform that gives them the ability to scale while also allowing them to take advantage of new technologies.
Key reasons to consider the cloud for SAP workloads
Looking at the value proposition of the cloud and the challenges of maintaining an on-premise SAP infrastructure, many businesses are naturally more inclined towards the cloud.
Some of the compelling reasons include:
Business Agility: Compared to an on-premises SAP solution, the biggest advantage of a cloud-based SAP system is the ability to choose between pre-configured SAP systems or SAP products and solutions that can be quickly implemented and deployed. This significantly reduces the time usually spent on customization, configuration, testing and implementation. With a cloud-based SAP system, businesses can dynamically scale up or down their platform as required. The best part of the cloud model is that SMBs can start small and grow their SAP cloud infrastructure. This gives companies unprecedented business agility and allows them to adopt the best technologies typically available to large companies
Lower TCO:When a business moves an on-premises SAP workload to the cloud, it only pays for what it uses. In addition, the company also saves on IT infrastructure maintenance costs, in addition to saving on the cost of purchasing the hardware infrastructure to host the SAP application. The pay-per-use model allows businesses to move from CAPEX to OPEX models, helping them save upfront costs. Businesses also don’t have to worry about software upgrades or implementation support, as everything is taken care of by the cloud service provider.
Take advantage of new technologies: By moving to the cloud, businesses can quickly take advantage of a number of emerging technologies such as AI, ML, RPA, IoT and blockchain. This helps businesses become more competitive as they can quickly take advantage of new technologies and experiment with them cost-effectively. As a result, the overall pace of innovation is faster.
Faster upgrade cycles: The cloud-based version can offer businesses faster upgrade cycles, resulting in better performance, as the SAP platform is constantly fine-tuned. This results in a better price-performance ratio compared to on-premises systems.
In a dynamic digital environment, businesses need to be agile to respond quickly to changing market needs. A static IT infrastructure that is inflexible to change will prevent businesses from embracing and accelerating. A cloud-based SAP system is a must-have today for businesses looking to invest in the latest technologies to future-proof their business.
Article written by Karan Kirpalani, Cloud Head, NTT Ltd. in India
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