RISE with Support

Together with T-Systems, Deutsche Telekom has embarked on a new ERP era. As an SAP partner, the "Rise with SAP" project became a proof of concept for everyone involved: it is a success! Deutsche Telekom IT is now consolidating and orchestrating more than 500 ERP servers in the cloud based on the defined Rise with SAP roadmap. The transformation project was accompanied by T-Systems and naturally serves as proof of a sovereign cloud as an offer to existing European SAP customers.

Cloud transformation

What goals was Deutsche Telekom pursuing with the S/4 conversion and the Rise contract? Frank Scharpenberg, Vice President, Head of Global Business Practice SAP at T-Systems, explains in the E3 interview: "The main objectives were to make the SAP ERP landscape more flexible and consolidate it, to modernize and transform it in the cloud and to create a stable, flexible environment for the S/4 Hana migration. Efficiency gains were also to be achieved in central business areas such as finance, procurement and logistics."

The project comprises Deutsche Telekom's Rise adaptation, including cloud transformation, an SAP operating model and comprehensive business change - for example towards a one-finance approach. The aim is to modernize and standardize the SAP landscape on a cloud basis. According to Scharpenberg, the number of SAP ERP systems across the Group is to be halved by 2030 and on-prem installations are to be avoided. For compliance and security reasons, two thirds of SAP instances are to be operated in T-Systems' private cloud and one third in the Google Cloud Platform.

T-Systems provides a delivery model on a multi- and hybrid cloud platform (MHC) - regardless of whether SAP or non-SAP workloads, public or private cloud. In the white paper "Business Transformation with Rise with SAP", Scharpenberg emphasizes: "Rise with SAP enables agility and flexibility and supports companies in moving their business processes to the cloud and optimizing them." The DSAG Annual Congress 2024 in Leipzig highlighted the central role of SAP partners such as T-Systems in the implementation of Rise projects. Rise is an exclusive SAP offering that relieves existing customers of key ERP tasks. However, a holistic ERP architecture requires more than just software: European customers need a sovereign cloud infrastructure as well as continuous support - before, during and after the S/4 conversion.

"Rise is not a collection of products, but a transformation journey towards standardization and modernization in the cloud," explains Scharpenberg. SAP's new taxonomy underlines this understanding. Since 2024, the first large SAP instances of Deutsche Telekom in the DACH region have been converted to S/4 Hana - the first systems are already live, both in the Google Cloud and in the private cloud hosted from Germany by T-Systems. "The response has been positive," reports Scharpenberg.

Rise: Changed conditions

Are there any tips for the SAP community that Joop Jansen, CFO of Deutsche Telekom IT, can share for a Rise migration? "Overcome possible skepticism," answers Deutsche Telekom manager Jansen spontaneously in the E3 interview and he specifies: "In 2021, SAP addressed the topic of Rise with us for the first time. At that time, Rise was not yet a suitable model for us because we lacked the necessary flexibility. This included, for example, the option of operating SAP systems with sensitive data in a German private cloud. This was the only way to guarantee the high security and data protection standards. But when we reassessed the options in 2023, it was clear that the conditions had changed. Today, Rise offers us the opportunity to consolidate our central financial systems in a cloud ERP core that is close to the standard, while we can continue to run less critical but highly customized components outside of Rise."

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"Once SAP customers have opted for the Rise Journey, they should develop a clear transformation strategy."

Joop Jansen,
CFO/Senior Vice President Finance, Deutsche Telekom IT

Hybrid strategy with Rise

The option of a hybrid strategy - Rise for the core ERP system, Non-Rise for special applications - tipped the scales in favor of Rise at Deutsche Telekom. CFO Joop Jansen emphasizes: "The decisive factor was not primarily the financial or functional benefits, but the flexibility gained from sharing operational responsibility with an experienced partner like T-Systems and continuing the good cooperation."

His tip for existing SAP customers: "After deciding on Rise, a clear transformation strategy is crucial. Good preparation is essential for success - Rise is not a purely technical IT changeover, but a comprehensive business transformation that the entire company must support."

T-Systems acts as a Rise Premium Supplier within the Group. Frank Scharpenberg describes the collaboration as a win-win situation: "Telekom IT benefits from having T-Systems as a reliable partner in the same parent company. At the same time, SAP also benefits, as we pass on the lessons we have learned from practical implementations in complex corporate landscapes."

A clear IT strategy is therefore essential. Companies need to be clear about the future level of SAP usage after the transformation - this forms the basis for an efficient license transformation. Interactions between Rise and S/4 transformation, cloud migration and new operating models must also be understood. This is the only way to avoid cost traps such as double license fees, vacancy costs or unnecessary migrations.

"Our Rise experts help customers to develop a coherent overall picture. As a Rise Premium Supplier, we support the modernization of the SAP landscape based on cloud ERP reliably and professionally," continues Scharpenberg. Particularly important: the Rise partner must be familiar with topics such as compliance, data protection and security. At Deutsche Telekom, for example, data-sensitive applications are operated in T-Systems' GDPR-compliant private cloud. This holistic project approach ensures that technical and legal requirements are met in equal measure.

Features of Rise

Rise with SAP has been on the market for over three years, but only now - with the entry of large existing customers - are many of its peculiarities becoming apparent. "There is a clear learning curve for everyone involved - including SAP," says Frank Scharpenberg, T-Systems. His appeal: "Be aware of the cloud functions that Rise brings with it and share this knowledge with the technical teams - for full transparency about what is possible and what is not."

SAP's strategy is clear: the future lies in cloud-based ERP services such as Rise and Grow with SAP. In addition to the opportunity to streamline old systems, the new SAP world brings innovations such as AI, sustainability management and modern reporting tools. Scharpenberg advises: "If you plan well and choose an experienced partner, you don't have to wait any longer with Rise."
CFO Joop Jansen adds: "In December 2023, Deutsche Telekom decided to transform around 80 SAP system landscapes using the Rise model. This will give us significantly more flexibility." The number of systems is reduced, which in turn lowers infrastructure costs - funds that can be invested in new SAP products.

However, practical experience shows that many customers are unclear about what exactly is included in Rise contracts. Joop Jansen is therefore calling for more clarity from SAP. "Good preparation on the customer side and sufficient time for evaluation are essential," he concludes.

t-systems.com