BTP: Driving Digital Innovation in SAP
The digital era has driven technological innovation, reshaping industries and business models as companies adapt to client needs and market shifts with AI-led services and other emerging technologies. At the heart of this change is cloud computing — not just infrastructure but a strategic enabler that simplifies and accelerates the adoption of innovation. It empowers businesses to scale efficiently, integrate new technologies cost-effectively, and maintain competitiveness in a fast-moving market.
Cloud and SAP Integration
Like many other companies, SAP also transitioned its ERP to the cloud with S/4HANA Cloud, which began its journey in 2016. Initially launched as the SAP HANA Cloud Platform (HCP), it was later rebranded to SAP Cloud Platform (SCP) and eventually became SAP BTP, or SAP Business Technology Platform. This transition raises the important question: Should the SAP S/4 HANA implementations move away from on-premise landscapes?
Catalysts for Cloud Migration
While many customers remain satisfied with their on-premise S/4HANA installations (and some are even holding onto R/3 😋), the question still stands: why transition to the Cloud — and not just any generic cloud solution or platform? Why specifically opt for SAP BTP? Let’s delve into the reasons:
Facilitator of Various Digital Technologies
The Cloud platform(s) work not only as a landscape for develop, deploy and consume, but also as an enabler for multiple other technologies, like AI for example. Many in the industry (including those with SAP implementation) admit that the level of AI adoption that they now have achieved would not have been possible without a reliable and easy to utilize cloud platform.
Consider, for instance, the task of developing an AI solution for customer use. Recently, we worked on creating a predictive assistance application using Python for a specific group of users.
This raises several immediate questions: How should we approach development? What skill sets and technologies are required? Which tools are necessary, and where should we deploy the application to ensure it’s easily accessible to users with minimal authentication?
Without the option to move to the cloud, you would need to set up a virtual environment, define all dependencies, and deploy the application to a server that supports it while also managing user provisioning. For instance, when we initially tried running this on VS Code, we encountered numerous issues — such as “path not found”, virtual environment misconfigurations, and missing dependencies. These challenges highlight the complexity of managing such setups manually.
With just a few attempts, we were able to run the Python code with minimal configuration using the SAP Business Application Studio, which is an integral part of the SAP BTP cloud offering.
For a developer aiming to quickly prototype a solution, using a cloud service can be a huge relief. It eliminates the need to manage numerous ancillary tasks such as configuring paths, setting up environments, handling dependencies, or ensuring the correct package versions — allowing developers to focus on building and demonstrating their solution faster.
While the example above focuses on the development side, there are other considerations as well — such as flexibility in choosing the technology stack (explored in another post) and adapting user stores, among others. The key takeaway is that a cloud platform, along with its extensive suite of associated services, allows you to concentrate on what truly matters: delivering value to the business. It removes the need to stress over mundane, operational tasks that rarely find a place in budgets but are essential for execution.
Time-to-Market Efficiency
Consider for example, you are small player trying to enter the market and is in search of a fast to produce IT infrastructure (in our case SAP specific use cases only). Now comes the power of SAP BTP, which is optimized for SAP applications, not just any cloud, but the cloud of those running SAP by SAP.
In many cases, setting up an on-premise system from scratch isn’t practical, especially when considering the complexities of scaling — typically by adding multiple on-premise systems. And what happens if your idea doesn’t succeed, the startup fails, or you don’t reach the expected user volume? This is where a cloud-native approach proves advantageous. It allows you to scale flexibly, pivot gracefully, and exit with minimal financial loss and risk if needed.
Hybrid: Achieving the Right Balance
In many cases, a hybrid approach offers the best of both worlds. Business-critical applications can continue running on-premise, while newly developed and externally facing applications can leverage the benefits of the cloud. This strategy allows for a balanced, phased transition toward cloud adoption, with SAP BTP as a central platform.
Not all applications with cloud versions may be ideal due to factors like compliance requirements, regional regulations, or agreements related to private or confidential data with multiple vendors. Additionally, with the increasing frequency of cyber-attacks, security remains a significant concern for cloud-native applications. While SAP BTP provides built-in authentication mechanisms based on Identity Providers (IdP), such as SAP Cloud Identity Authentication Service or others supporting SAML 2.0 or OAuth 2.0, businesses must evaluate security strategies carefully to address these risks.
Thank you for reading! Your comments are always welcome.
