If you are currently running SAP applications on local servers, transitioning to a cloud platform such as SAP Business Technology Platform (BTP) has the potential to address several on-premise software limitations. After all, it has an open platform that allows a choice in how to build and extend systems for business processes in 25 key industries. 

Despite the elevated interest rates on equity capital investments and hiring in the US economy, cloud platforms continue to grow due to their value and adoption of new and emerging technologies such as Artificial Intelligence (AI). Research from MIT Sloan found that in the last decade, organizations that adopted cloud technology experienced revenue growth rates 2.3% to 6.9 % higher than organizations that did not. The study also highlighted several benefits for these organizations, including improved productivity, increased revenue, and the ability to advance initiatives such as AI and remote work capabilities. For organizations looking to move to a cloud platform, here’s what you need to know before getting started with SAP BTP. 

Why Organizations Move to the Cloud 

Transitioning to a cloud solution can solve several problems, including: 

• High Maintenance Costs – Local servers need regular hardware upgrades, software updates, and troubleshooting. 
• Scalability Issues – It can be expensive and time-consuming to upscale local servers. 
• Downtime and Reliability – Hardware failures, power outages, and natural disasters make local servers prone to downtime. 
• Security Concerns – It can be complex and resource intensive to manage security on local servers. 
• Limited Accessibility – Remote workers may face challenges accessing data and applications on local servers. 
• Data Backup and Recovery – Strong backup solutions are necessary to prevent data loss on local servers. 
• Energy Consumption – Running and cooling local servers consumes significant energy.  

Understanding SAP BTP 

Research by the Americas’ SAP Users’ Group (ASUG) in 2023 shows that the top three features of SAP BTP valued by organizations are integration, analytics, and application development. Interestingly enough, SAP Cloud Platform was rebranded in 2017 to SAP BTP to further highlight its expanded capabilities in these areas, as well as in automation and AI. The International Data Corporation (IDC) reported significant benefits for organizations using SAP BTP for integration, extension, and innovation during and after SAP S/4HANA integration, including a three-year ROI of 514%, an 87% increase in productivity, and an eight-month payback period. 

Below are some SAP BTP features that provide significant value: 

• Seamless integration with a unified environment capable of integrating SAP and non-SAP applications to simplify management and streamline business processes 
• Advanced analytics and insights using real-time data processing to reveal deeper insights and enable more informed decision-making 
• Accelerated innovation and a shorter time-to-market for fresh solutions through rapid application development with pro-code, SAP Build Code, and low/no-code solutions 
• Improved operational efficiency via automated processes and workflows that reduce manual effort and errors 
• Platform agility to scale resources based on demand to ensure best performance 
• Reduced total cost of ownership (TCO) 
• Data protection with robust security measures that follow industry standards and regulatory requirements 

When to Get Started with SAP BTP 

SAP BTP is specifically designed to use and extend SAP data and processes. If your organization currently uses SAP applications, SAP BTP will integrate well. It offers specialized tools for many industries and may require less customization than alternative platforms with its low/no-code options. Here are a couple of scenarios where it can be applied: 

1. On-Premise SAP Software 

Current customers with SAP applications installed locally on their computers and servers (also known as on-premise) have the most to gain from transitioning to SAP BTP. In this scenario, SAP becomes responsible for the operation of the entire infrastructure and technical operations as well as the SAP HANA database platform. The services offered include hardware configuration management, backup and recovery, storage management, security management, and self-service updates for the SAP HANA data center. This reduces the need for extensive on-premise infrastructure and IT support, resulting in a lower total cost of ownership (TCO) as the organization handles the development and operation of applications deployed on SAP BTP. For mid-sized businesses, GROW with SAP is a pre-configured program that uses SAP S/4HANA Cloud public edition connected with SAP BTP that makes it easier to integrate cloud-based solutions for data transfer and process automation with currently installed on-premise SAP systems. Predictive analytics, AI, and machine learning (ML) are examples of cutting-edge technologies that are available embedded within SAP BTP. 

2. Using a Third-Party Platform to Run SAP 

Organizations can optimize their existing cloud investments by using third-party platforms like AWS, Microsoft Azure, Google Cloud, and Alibaba Cloud to run SAP applications. These platforms provide the necessary infrastructure for SAP BTP, allowing organizations to use SAP BTP services through the hyperscaler. By using the current infrastructure of these cloud providers, companies can avoid further investments in new hardware or services. SAP BTP can easily integrate with cloud platform services, enabling the creation of custom applications and extensions with tools like SAP Business Application Studio. The combination of third-party cloud platforms and SAP BTP offers a strong, flexible, and cost-effective environment for running and improving SAP applications, maximizing the value of existing cloud investments. 

3. New to SAP 

Organizations new to SAP can create a system that supports their digital transformation efforts by using SAP BTP. It’s a practical option for those considering a cloud platform to integrate multiple systems, automate business processes, or incorporate newer technologies such as IoT, predictive analytics, or machine learning into their business processes. SAP BTP features tools and services for developing custom applications and extensions, enabling organizations to create solutions tailored to their needs and making it an ideal choice for businesses looking to modernize their IT systems and improve digital capabilities. 

Looking Ahead 

Cloud platforms like SAP BTP enable the integration of business applications, manage data, and apply analytics and AI capabilities in a single, unified environment, and the result is improved decision-making and competitiveness in rapidly evolving business landscapes.  

The key to effectively use any cloud platform to drive innovation and success is a strategic, gradual approach to deployment with a focus on essential functionalities. Contact us and learn how Clarkston’s SAP experts partner with clients to implement SAP process and technology solutions across the life sciences, consumer products, and retail industries.