Hybrid SAP BTP

SAP BTP is more than just an S/4 platform

The terminology employed by SAP suggests that BTP is a supplementary component for S/4, in order to continue implementing modifications, add-ons, Abap programming, and AI. This is misconceptions, as BTP has a much broader scope than that. The clean core concept is situated somewhere between S/4 and BTP. Changes have always been existed and will continue to do so—modifications and ERP add-ons have been available to SAP customers since R/2 and the SAP programming language Abap has undergone significant development in recent years, to name a few examples. Abap programs have consistently been designed for on-prem systems, but now the advent of cloud computing based on the BTP heralds the imminent arrival of a new paradigm shift. It is not currently feasible to use existing modifications and add-ons for a target system; however, there are Abap language extensions and there is SAP BTP, which enable the operation of cloud systems.

The results of a survey conducted by the DSAG (German-speaking SAP User Group) in the financial department indicate that 47 percent of respondents continue to use the ERP Central Component (SAP ECC), while 42 percent employ S/4 on-prem (Classic Edition). In contrast, the use of S/4 cloud offerings is relatively limited, with a share of eight percent for the private edition and three percent for the public edition. The results of the survey align with the findings of the DSAG Investment Report 2024. It is therefore crucial for SAP to prioritize the needs of on-prem customers and continue developing innovations for on-prem solutions, in addition to focusing on innovation in the cloud.

No contradictions between BTP, ECC and SAP on-prem

The survey results from the DSAG department's on-prem users made it abundantly clear that on-prem will remain their preferred choice in the S/4 world. Thirty-nine percent of respondents indicated a preference for the S/4 on-prem (Classic Edition) target architecture, while 24 percent intend to migrate to the S/4 Cloud Private Edition with RISE with SAP. Five percent of respondents indicated a preference for the S/4 Cloud Public Edition, which is part of the GROW with SAP offering. It is noteworthy that nearly a quarter of ECC users who participated in the survey remain undecided about their future plans. This is noteworthy in light of the forthcoming end of maintenance in 2027 or 2030 with Extended Maintenance. The licensing structure is not entirely transparent, and there is a lack of investment security. This is a pivotal point, as it is essential to have clarity on SAP's innovation strategy from an application standpoint.

In addition to numerous other factors, a RISE contract typically comprises two main elements: the conversion phase, which encompasses the transition to the cloud, and the cloud subscription, which represents the rental agreement for the cloud. This is a significant consideration, as it means that SAP customers will be required to pay at least two SAP invoices.

RISE Change Management with SAP

The DSAG Annual Congress 2024 in Leipzig demonstrated that some current SAP customers will opt for RISE. However, the degree of difficulty involved in implementing RISE depends on the quality of the SAP team provided. SAP employees undergo a distinct training program and possess varying degrees of expertise in S/4. Some SAP customers may be assigned a RISE team from SAP that is less experienced. This can result in the company being unable to progress further with their RISE journey. In accordance with the terms of the RISE contract, the user is still required to pay the cloud subscription fee, even in the event that the project is terminated. It is imperative that the terms of the cloud rental agreement are adhered to! Alternatively, you can opt to stay in the tried-and-tested ECC world with BTP.

The Integration Suite and applications such as SAP Document Reporting Compliance (DRC), Cloud Edition, allow BTP to provide specific solutions for extending the core of the ERP system in a targeted manner. The BTP Guidance Framework and the Discovery Center are invaluable resources for leveraging the full potential of the solution. The user association inquired as to which areas companies envision BTP as a multifunctional interface. The four most frequently mentioned answers were as follows: as an interface to standardized third-party solutions, to special in-house developments or third-party solutions, to SAP public cloud solutions, or to industry-specific solutions, for example, for financial services or real estate management. As might be expected, the majority of DSAG members are primarily focused on connectivity to third-party systems.

SAP clean core as a BTP accelerator

BTP endorses the clean core strategy, which provides supplementary services and solutions pertaining to the modernization and flexibility of SAP landscapes. The objective of the clean core strategy is to maintain the ERP core, specifically the S/4 solution modules, in their original state. Previously, SAP customers have undertaken significant individual developments and adaptations—i.e., customizing with Abap— to address business-specific requirements, particularly those related to value flows. It is therefore understandable that there is still a need for clarification regarding the future of the ERP process and solution architecture.

From SAP's perspective, it is encouraging that more than half of the participating ECC users view BTP as a crucial component for future applications or have already adopted it. However, 44 percent of all DSAG respondents, including those who have already switched to S/4, stated that they have not yet determined whether they will use BTP as a cloud platform with the corresponding solutions and services or whether they will pursue other options.

Despite BTP being identified as the preferred platform in multiple DSAG surveys, there remains a lack of clarity regarding the level of support that will be provided by services and applications on BTP. It seems reasonable to conclude that the information available is not yet sufficient. In this context, it may be helpful to note that the SAP community will be discussing the platform topic at the Steampunk and BTP Summit 2025 in Heidelberg on March 5 and 6. Registration is available here. One week later, partners will also meet in Heidelberg at the invitation of SAP for a BTP discussion.