Lessons Learned Migrating to S/4HANA and Azure

Having delivered more than 100 cloud projects to date, SoftwareONE has gained a lot of experience and insight into how to safely and efficiently operate SAP workloads in the cloud. Over the years, we have seen customers demand not just "lift & shift" migrations of the infrastructure, but deeper landscape modernisations including S/4HANA system conversions as part of their journey to the cloud. Many of our customers chose Azure as their cloud platform for critical SAP workloads. This provided us with the opportunity to further simplify and improve their SAP landscape through the adoption of several "made for SAP" features.

This presentation shares some of the many lessons we have learned through this work. We will cover topics across the technology stack as well as some less technical aspects which leaders should consider while planning their transition to S/4HANA and the cloud.

A recording of this talk is available on Vimeo.

Transcript

2. Introductions 3 Leon Davis Senior Cloud Solution Architect - SAP on Azure Microsoft leon.davis@microsoft.com Manfred Hertenberger SAP Practice Lead: South-East Asia SoftwareONE manfred.hertenberger@softwareone.com Sascha Wenninger Director, SAP on Azure Centre of Excellence SoftwareONE sascha.wenninger@softwareone.com
3. Why SoftwareONE? 400+ SAP & cloud dual-certified consultants with an average of 15+ years of industry experience 600+ SAP customer projects with 100+ successful SAP to cloud migrations and S/4HANA conversion engagements with strong reputation and references Focused on SAP on Cloud backed up by SAP Licensing / Commercial Advisory which allows holistic advisory led approach Unique IP recognized as worldwide leading solutions: PowerConnect for SAP and Splunk, PyraCloud for Cloud consumption analysis automated Cloud optimisation A M E R I C A S A P A C E M E A 4
4. Selected Customers 5
5. Agenda 01 SAP and Azure 02 S/4HANA Pilot Program 03 Licensing 04 Choose a Region Strategy 05 Use Cloud-Native 06 Consolidate & Simplify 07 Manage Master Data Changes 6
6. What are the drivers for SAP Cloud Adoption? 1 Gartner “The Data Center is Dead” | 2 SAP Insider Survey 80% of Customers will no longer use traditional Data Centers by 20251 Retire traditional DC by 2025 Keep using traditional DC 68% of Cloud Services today are delivered by leading cloud vendors 74% of SAP Customers are planning to deploy S/4HANA in the Cloud2 SAP Customers planning for Cloud SAP Customer planning to stay onPrem Cloud Services delivered by leading vendors Cloud Services delivered by Others 7
7. Projection S/4HANA by 2027 Source: SAP public data releases, internal modelling 8 1,620 1,670 1,550 1,560 1,980 1,295 1,140 6,198 6,198 6,198 6,198 6,198 6,198 - 10,000 20,000 30,000 40,000 50,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Projected S/4HANA adoption needed for 100% ECC conversion Annual Conversion Cumulative Annual Conversion Cumulative
8. Why run your SAP landscape on Microsoft Azure Proven cloud platform built for SAP Unmatched security and compliance Immediate insights and innovation A partnership you can trust
9. © Microsoft Corporation SAP Applications At Microsoft – Business View Shared SAP System ECC Personnel Admin, Benefits, Org Mgt, Talent Mgt, Time Mgt, Payroll, Recruiting Accounting, Controlling, Treasury, Project Systems, Financial Svcs, Real Estate, Corp Finance, In- House Cash, Rev Rec, Trade, Customs Sales and Distribution, Materials Mgt, Logistics, Logistics Execution, Demand Planning, Event Mgt, Supply Network Planning Volume Licensing Bedrock, Next Gen VL, OEM, Universal Store, Convergent Charging & Invoicing, Contract Accounting, Rating Sales and Distribution, Finances, Project Accounting S/4 Master Data Governance and Business Integrity Services MDG and BIS BW/4 + BPC Business Planning & Consolidation Supply Chain Mgmt SCM SCM Care OER Global Trade Screening GTS Services Billing CC OEM Services OER Customer Project Mgmt CPM Learning & Succession Success Factors Integrated Business Planning IBP Expense Mgmt Concur Sourcing & Dir. Network Ariba Master Data Governance MDG Solution Manager SOLMAN Business Objects BOBJ/DS Adobe Document Services ADS S/4 FPS01 HR, MDG, Business Integrity Screening, Dassian, CPM Customer Finance Mgmt CFM XI/PI Shared SAP System RMCA Hybris High Volume Invoices & Receivables Governance, Risk and Control GRC S/4 Central Finance CFin
10. © Microsoft Corporation 140K Internal Users (Mostly Indirect Access to SAP) 62K Named User Accounts 96% Non-SAPGUI users 100% in Azure since Feb 2018 High Quality Enterprise Service Offerings via SAP 24TB Highly compressed database 17M Up to Steps/Day 300K Monitored Batch Jobs/Month 5B Transactions per Year 99.998% Raw SQL/Win Uptime 0.4 Seconds user response time Enable Modern Experiences Deliver Reliant & Agile ERP Platform Provide Real Time Processes 2x System growth in past 2 years ≈900 Servers (100% Azure) >250TB Compression Storage Savings 20-30% yearly Incident Ticket Reduction 2x Transaction volume ever 18- 24 months SAP ERP By The Numbers
11. SoftwareONE’s SAP S/4HANA Pilot Program
12. SoftwareONE’s SAP S/4HANA Pilot Program Technical Assessment • Together with experts from Microsoft, we review base requirement and readiness for S/4HANA conversion • Prerequisite implementation to make ECC system S/4HANA ready • Decide on migration approach, timeline • Understand licensing and commercial impact Value Delivered Timeline • Fast • Low risk • Low cost and manageable impact • Low risk • Moderate cost & duration • Gain essential insights for future conversion • High risk • Business improvement • Discover, prepare and get more value SAP S/4HANA Pilot Program Technical Conversion to S/4HANA • Actual Conversion of a Prod copy to S/4HANA • Database migration to SAP HANA • Implement mandatory changes to data model and functionality • Apply code remediation to work with S/4HANA • Controlled scope to limit testing impact • Implement agreed Fiori apps 13 S/4HANA Full Landscape Migration • Implement a new S/4HANA landscape • Standardize the business on SAP best practices • Migrate master data • Use accelerators to implement new functionality • Consider parallel run of SAP systems and complexity of legacy system integration • Fiori UI enablement • Landscape consolidation/Simplification Azure
13. SAP S/4HANA Pilot Program SAP ECC on AnyDB SAP ECC on AnyDB SAP S/4HANA Copy Convert to S/4HANA VPN access • SAP Migration Tools • Mandatory Code Remediation • Data Conversion (e.g. CVI) • SoftwareONE Proven Expertise • Infrastructure Automation using Terraform and Ansible • PyraCloud and MonitorSimple for operations 14
14. 15 Deliverables ERP System Assessment Assessment of your ERP system on ECC, NW, DB & OS version to determine the right conversion path SAP Readiness Check Report End to end analysis report of your business function, add-on compatibility, Industry solutions & recommended Fiori apps ABAP Code Remediation Report Complete list of ABAP code that needs to be adapted to SAP S/4HANA standard simplifications Migration Approach Recommendation on optimal migration of your SAP landscape to SAP S/4HANA based on best practices Simplification Item Check Report Complete list of simplification items grouped by functional area that requires modification during the conversion process Azure Platform Provisioning and deployment of Azure landing zone for S/4HANA pilot program License Advisory Best Practices Introduction to our SAP License Advisory Services, including risks and opportunities associated with an S/4 HANA migration Project timelines & Required downtime High level estimate of your conversion project timeline and downtime required for PRD conversion Fiori Experience Experience how your ERP system runs with S/4HANA. Business Case Best Practices A SoftwareONE expert will introduce available business case building tools and share best practices Business Scenario Recommendation Report Get tailored SAP recommendation report in the respective LOB that can be simplified or improved based on industry standards SAP Monitor Simple & PyraCloud Monitor and manage your Cloud consumption in real time and incident preventive monitoring system. Business I T
15. Timeline 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 *depends on amount of code and data remediation required 16 Clone source ECC in Azure Build target S/4HANA system in Azure S/4HANA Readiness Assessment Code Remediation* System Conversion to S/4HANA* Handover to customer, or Managed Services “lite”
16. Lessons Learned
17. Consider Licensing 01 18
18. S/4HANA is a new product in SAP’s price book. It is not an automatic upgrade from ECC. Licensing Impacts
19. Licensing Impacts S/4HANA is a new product in SAP’s price book, not an automatic upgrade. This affects many other items in SAP’s portfolio, e.g.: 20 Traditional Product S/4HANA version 7011491 SAP Enterprise Master Data Governance 7018852 SAP Enterprise Master Data Governance for SAP S/4HANA 7011620 SAP Access Control 7018703 SAP Access Control for SAP S/4HANA 7017273 SAP Portfolio and Project Management 7018997 SAP Portfolio and Project Management for SAP S/4HANA 7017278 SAP Commercial Project Management 7018669 SAP S/4HANA for Commercial Project Management 7009903 SAP Extended Enterprise Content Management by OpenText 7018891 SAP Extended Enterprise Content Management by OpenText for SAP S/4HANA
20. S/4HANA Conversion Options 21 Product Conversion Contract Conversion • Retain existing contract • Retain user licenses • Convert relevant ‘Engine’ licenses to S/4HANA replacements • Greater ability to mix & match • Replaces existing contract with new • Named User licenses are replaced by new Professional/Functional/Productivity blended user licenses. • Run “original” licenses in parallel until 2027 • More flexibility, but also more uncertainty HANA Licensing Cloud Extension Policy
21. HANA Enterprise vs. HANA Runtime? Options for Shelfware? Don’t forget Linux licenses for HANA Check compatibility of all Add-Ons Licensing Impacts
22. Licensing Impacts Don’t forget to plan (and budget!) for Licenses! We have seen 3-9 months of duration, $10m+ cost impact.
23. Plan your Region Strategy 02 24
24. Plan your Region Strategy • Where are your Users? • Legal & Privacy • Regulatory Topics • IaaS Feature Availability • Cost of Compute, Network, Storage • Disaster Recovery Case Study: Global Resources Company 25
25. Leverage Native Cloud Capabilities 03 26
26. Azure Backup 3rd Party Backup Solution Leverage Cloud-Native: Backups • Potential cost savings; simpler architecture • Native platform features: deletion protection, ransomware protection, geo-replication, WORM • Third-party tools usually do not support all of the IaaS features • Trade-off: not all database workloads are supported Case Study: Global Manufacturing Company 27 Geo-Replication Off-Site Tape Storage
27. Leverage Cloud-Native: Reverse Proxy Case Study: Global Manufacturing Company 28 3rd-Party Product • Replaced 3rd-party Reverse Proxy with Azure AD Application Proxy • Azure PaaS service; nothing to maintain • Included in most Enterprise-class Microsoft365 licenses (e.g. E3, E5) • Secure: integrated into Azure AD: MFA, WAF features, etc.
28. Reduce the Cost of Disaster Recovery Case Study: Biotech Company in Singapore 29 DB Replication Storage Replication HANA System Replication Azure Site Recovery • Azure Site Recovery for cross-region replication of application servers • Async replication of disks attached to the VM. • RPO of ~10 minutes sufficient for application servers • No compute charges in DR region • HANA System Replication without preload to smaller-sized HANA DR system. • DR system can be much smaller than primary • RPO of <1 minute achievable
29. Reduce the Cost of Disaster Recovery Case Study: Biotech Company in Singapore, Global Manufacturing company 30 HANA System Replication Azure Site Recovery Trigger ASR recovery plan Resize & Start DB *) actual RTO depends on many external factors, e.g. DNS propagation, recovery of Domain Controllers for SSO, etc. • Azure Site Recovery can recover systems semi-automatically from replicated disks • VM-based HANA system is resized and started • RTO of 2-4 hours achievable* • HANA system for DR can be much smaller (cheaper) than primary • We have seen DR of < 1 TB for 5.7 TB primary
30. Consolidate & Simplify 04 31
31. Greater Visibility Across Technology Silos 32 • Azure provides a true ‘single pane of glass’ across the stack • Replaces disparate specialist tools with single, integrated Azure Portal • Role-Based Access Control enables wide read-only access • “All bugs are shallow given enough eyeballs” – Lower coordination overhead è More agility, higher employee empowerment Network Storage Backup Servers Firewall SAP
32. Consider Consolidation on HANA • Potential for landscape simplification • Reduction in complexity and thus support cost • Performance and robustness improvements • e.g. use HA/DR setup for S/4HANA for other systems as well • Feasibility impacted by HANA licenses Case Study: Biotech Company in Singapore 33 SAP ERP SAP BW SAP GW SAP GTS Oracle HANA MaxDB Oracle SAP S/4HANA SAP BW SAP GW SAP GTS HANA Multi-Tenant System HANA
33. Start Early with Code Remediation for HANA 34 • Analyse code for HANA DB Readiness • Resolve basic HANA compatibility & performance issues early • Leverage automated tooling for simple code fixes • Consider code usage in Production to focus effort, deprecate unused code à Much can be done before moving to HANA Case Study: Energy company in North America
34. Start Early with Code Remediation for S/4HANA Case Study: Healthcare services company in Asia 35 Use automated tooling to scan your ECC system for impact from S/4HANA Simplification Notes • Has functionality been removed by SAP? • Has support ended? • Does the underlying data model change? • Is your code using standard functions that have been changed by SAP? • Is the code even used in production? Impacts can occur to third-party systems that are integrated to SAP.
35. Master Data Changes 05 36
36. Business Partner Conversion • Business Partner is a key master data object in S/4HANA • The CVI process converts Customer and Vendor objects to BP before S/4HANA migration 37 ECC S/4HANA
37. Business Partner Conversion 38 ECC S/4HANA Watch out for: - Data quality - Configuration inconsistencies - Interfaces with other systems - High data volumes Goal: De-risk the system conversion
38. Archive Obsolete Customers & Vendors Case Study: Healthcare services company in Asia 39 0 200,000 400,000 600,000 800,000 1,000,000 ECC S/4HANA Customer Records 0 20,000 40,000 60,000 80,000 ECC S/4HANA Vendor Records • Significant reduction through analysis and archiving • Executed in parallel to CVI synchronization and data enrichment • Reduces effort for data cleansing and enrichment • Pilot Conversion provided visibility of underlying problems
39. Summary Consider licensing Use a proven platform Consciously choose regions Leverage native cloud capabilities Update practices for the cloud Data cleansing: Look out for Master Data Plan, prepare, pilot – start today! 40
40. Learn More https://azure.microsoft.com/en-us/resources/ lessons-learned-migrating-sap-to-the-cloud 41
41. Close and Q&A 42 Please complete the form on the website to request a discovery call. We will be in touch to discuss how you can benefit from our experience in migrating SAP to Azure. Scan the QR code for more info on the funded S/4HANA Pilot Program