When it comes to looking for infrastructure for SAP ERP software in the cloud, choosing cloud service providers carefully is crucial. Making an inappropriate selection can lead to facing unwanted risks and unforeseen costs in the long term. According to a report by Gartner, SAP customers often struggle to distinguish between SAP-certified IaaS providers and the general shared cloud that offers hosting for SAP workloads.
Risks and Unexpected Costs
Price usually is the most important criterion for customers when choosing a cloud infrastructure provider, which can increase their exposure to risk and result in a higher total cost of ownership in the long run. SAP certifies major public cloud providers such as AWS, Microsoft Azure, Google Cloud, IBM Cloud, Oracle Cloud, Alibaba Cloud, OasixCloud, and Huawei Cloud to run their workloads. However, to develop a fully SAP-certified performance environment, it is necessary to use specific virtual machines and configurations, which minimizes potential issues.
But there are also numerous options for private cloud for SAP where infrastructures can be certified by hardware manufacturers or by SAP integrators themselves. Some private cloud providers with SAP support include Stackscale.
Uncertified Cloud Providers
There are other cloud providers that can host SAP on shared infrastructure without official SAP support, which can lead to problems and hidden costs. Some managed services providers specialized in cloud offer shared, managed, or unmanaged infrastructure to run SAP-based software. Although they use SAP-certified hardware and software, not all of them can offer the same level of service in all components.
Deployment Models
SAP does not support a shared deployment model similar to public cloud. However, this model may be an option for companies that need to maintain historical application data for compliance reasons, where performance is not an issue, or for small businesses with limited budgets. However, customers who opt for these providers are often surprised when SAP does not offer support when issues arise.
SAP Strategy: RISE with SAP
Since early 2021, SAP has been promoting the migration of its customers to the cloud, upgrading ERP applications to the S/4HANA system. RISE with SAP, a managed service provider, offers a single relationship with SAP, managing relationships with cloud providers, consultants, and system integrators involved in the customer’s project. Although RISE simplifies complexities, customers must fully understand the contract terms before signing, as it may be inflexible regarding choice options.
Recommendations for Businesses
To reduce risks and improve operability, it is advisable to work with a managed service provider who specializes in SAP in the public cloud and is prepared to switch providers if necessary. Companies should understand the implications of all available models for SAP: the community model, RISE, and cloud providers, and make informed and cautious decisions to choose the best option for their specific needs.
Choosing cloud infrastructure for SAP is a critical decision that must be made carefully and knowledgeably. Understanding the differences between deployment models and selecting certified providers can reduce long-term risks and costs, ensuring efficient and smooth operability.