How Cloud Infrastructure is Redefining SAP Operations
The digital transformation journey for Indian enterprises is increasingly centred around integrating cloud infrastructure with SAP systems, marking a paradigm shift that is both operational and financial in nature. As businesses continue to embrace cloud-based solutions, the traditional on-premise SAP model is being replaced by more adaptable and cost-efficient alternatives. This transformation brings with it both challenges and opportunities, forcing organisations to rethink how they structure their IT landscapes, manage operational costs, and meet compliance requirements.
SAP’s cloud journey is now primarily driven by hyperscalers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, which have become indispensable in supporting businesses’ cloud ambitions. Hyperscalers play a key role in enabling SAP systems to run on high-performance computing instances, optimising SAP HANA databases, and offering AI-driven insights. For Indian companies, this shift is more than just a technical upgrade; it is a strategic move to achieve flexibility, scalability, and reduced infrastructure costs. The arrival of RISE with SAP, a subscription-based model that combines infrastructure, software, and managed services, highlights the industry’s need to simplify and integrate cloud adoption, removing traditional licensing barriers. This shift allows businesses to focus on process optimisation rather than dealing with the complexities of maintaining physical hardware.
The shift to cloud, however, is not without its challenges. Indian companies face a steep learning curve when migrating from traditional, on-premise solutions to cloud-based infrastructures. Migrating SAP systems involves crucial decisions on the approach to take—whether to adopt a greenfield strategy that requires significant business process redesign, a brownfield approach that keeps legacy systems intact, or a hybrid strategy that offers selective cloud adoption. Each strategy requires meticulous planning to ensure a smooth transition and minimal business disruption. Security remains a priority, with organisations needing to adapt their existing IT policies to a cloud-first environment. With numerous third-party applications interacting with SAP systems, managing API-driven connectivity and data integration is an additional layer of complexity.
Sustainability has also emerged as a driving force in SAP cloud migration, adding a new dimension to business IT strategies. As organisations increasingly face pressure to reduce their carbon footprints, the need for greener, more energy-efficient data management solutions has become paramount. Cloud providers, such as AWS and Google Cloud, are leading the charge by offering renewable-energy-powered data centres, while also providing tools that track the environmental impact of workloads. This is particularly relevant for Indian companies, as rising awareness around environmental, social, and governance (ESG) goals pushes them to opt for data storage and processing solutions that align with sustainability objectives. Notably, businesses now have the opportunity to factor in the environmental cost of their cloud deployments, selecting data centres not just for performance and cost but for their energy efficiency and overall sustainability.
Looking ahead, the adoption of cloud-based SAP systems is set to accelerate in India as more companies embrace digital transformation to stay competitive. With increasing reliance on automation, artificial intelligence (AI), and edge computing, Indian enterprises are positioned to drive real-time decision-making, enhance operational efficiencies, and reduce costs. The role of consultants in this evolving landscape is vital—they must now navigate not just technical integrations but also cost optimisation, regulatory compliance, and sustainability challenges. For Indian businesses, this cloud migration offers a wealth of opportunities to innovate while keeping an eye on the bottom line, sustainability goals, and compliance standards.
