There's more to SAP S4/HANA: Cloud-native development raises the potential

Digital transformation is at the forefront of most companies' agendas. The modernization of SAP ERP systems is also indispensable. On the one hand, this involves migration to the Linux-based SAP HANA database. But on the other hand, SAP users must also optimize their ability to innovate by leveraging a comprehensive open source ecosystem and hybrid cloud model.

Today's SAP landscapes are often characterized by fragmentation and static processes. Fragmentation means that multiple ERP instances and a lack of integration limit performance. Static processes reduce IT automation opportunities. Another challenge is historical, insufficiently updated data sources that delay decision-making processes.

According to a recent IDC survey, 53 percent of the SAP users surveyed therefore also name the consolidation of the SAP application landscape as one of the main reasons for migrating to SAP S/4HANA (1). However, this migration is only one aspect with regard to the digital transformation. Equally important is the use of new architectures, platforms, frameworks, applications, and technologies. In particular, this also involves integrated hybrid multi-cloud platforms, cloud-native applications and service-based architectures. After all, modern applications in areas such as artificial intelligence and machine learning, Industry 4.0, IoT, data analytics, RPA or virtual and augmented reality are often developed and operated cloud-natively. Cloud-native application development is therefore also an indispensable component for SAP users on the path to the intelligent, integrated enterprise.

The task is therefore clearly defined. On the one hand, it is about eliminating fragmentation and silo structures and, on the other, about using new solutions and thus also linking the SAP and non-SAP worlds. The means of choice for establishing such structures is the use of an open source ecosystem that supports future-proof agile end-to-end integrations and the automation of all IT processes. IDC also describes an integrated, open full-stack ecosystem as a "must-have". Only then can the SAP S/4HANA platform be used optimally. With regard to the desired increase in agility, IDC expects to see an increase in the introduction of cloud-native architectures. They are also an important component for the SAP environments of the future, as they allow applications to be designed and updated quickly while improving quality and reducing risks. IDC states: "The true benefits of SAP S/4HANA will only be realized with portable, containerized applications and agile cloud-native development."

IDC also sees a trend in the SAP ecosystem toward hybrid architectures. When choosing a hybrid cloud platform, SAP users should ensure that it supports unified cloud-native application development and delivery for today's and tomorrow's workloads on any infrastructure - from multi-cloud environments to on-premises deployments. This is the only way to ensure maximum flexibility, such as the ability to seamlessly migrate the SAP environment from bare metal or virtualized servers to the private, hybrid or public cloud.

In addition, an integrated hybrid architecture must meet three further criteria: It must offer end-to-end security across all layers and complete cost control, i.e., it must also be possible to map the integration of SAP and non-SAP applications in a cost-neutral manner. In addition, the "develop once - deploy anywhere" principle must be supported.

If an SAP user takes this path, they can take the Digital Transformation a decisive step forward with a consolidation of the SAP landscape, an increase in operational efficiency, increased flexibility in adapting to changing market conditions, and an improvement in the customer experience.

In any case, however, it is important that every migration and modernization project in the SAP S/4HANA ecosystem is seen in the context of a redesign and consolidation of the entire IT landscape. No new IT silos must be created that hinder the flexible and future-oriented design of the IT infrastructure. Consequently, a uniform technical basis must be selected that supports seamless, hyperscaler-independent connection of existing and new applications and services. And solutions for these diverse requirements are available with the Red Hat OpenShift enterprise Kubernetes platform and the associated open source infrastructure and software ecosystem. Many SAP users are now also taking this solution path.