An Overview of SAP S/4HANA Private Cloud edition

An Overview of SAP S/4HANA Private Cloud edition

Customers moving to SAP S/4HANA come from a variety of backgrounds, and have different business objectives. Companies with many complex systems running on premise expect more flexibility to adapt and innovate, while reducing the overall total cost of ownership. RISE with SAP is designed to address unique customer scenarios. It’s the concierge service to the cloud and SAP S/4HANA and brings together everything you need to transform your business in the way that works best for you – regardless of your point of departure.

The solution is tailored to each customer without high upfront investments and with a reduced TCO.

I have written this article as many SAP ERP customers are very interested in moving to the Cloud Private edition through System Conversion (Brownfield) and would like to maintain existing business processes, and custom code and optimise over a period of time while gaining cloud benefits. RISE with SAP simplifies moving to the cloud and delivers continuous innovation throughout their business transformation journey.

Cloud deployment options:

Public Cloud Deployment: Customer can re-imagine their business processes and take advantage of standardised best practices. There is low landscape complexity. The fastest path to innovation and lowest TCO.

Private Cloud Deployment: Preferably for customers who want to do conversion (Brownfield) of their existing SAP ERP System to Cloud-based architecture. Customers will be able to choose their infrastructure provider.
Customers are not required to purchase hardware or have in-house experts to maintain it when hosting their solution in a third-party infrastructure.

The deployment option decision is based on degree of standardisation versus the degree of flexibility a company needs in their implementation.

Public Cloud

This solution is more standardised than a private cloud solution on a multi-tenant server. Implementations must lead with activating SAP Best Practice business processes. Customisation to the individual processes are limited to those that will keep the system lifecycle stable over time and through release upgrades.

Private Cloud & On Premise

Private Cloud is almost similar to the On Premise option. The customer has “Customization possibilities” as a private cloud solution lives on a single-tenant server. The customer “owns” that entire server and is the only tenant. It would be ideal to avoid high and complex customisations and coding as it becomes difficult for upgrading the system.

On Premise systems can also be hosted by a third-party infrastructure. For example: HANA Enterprise Cloud, so customers don’t need to maintain the infrastructure. SAP S/4HANA Cloud, Private edition is delivered with RISE with SAP Services. It has full functional scope of SAP S/4HANA on premise solution.

In February 2020 SAP announced mainstream maintenance for SAP Business suite 7 core applications until the end of 2027.

Generally, Customers have their business objectives and challenges when considering their move to SAP S/4HANA.

The Private Cloud deployment is a very good solution for a customer who wants to retain the investments they’ve already made in their existing SAP ECC system and wants to move to the cloud. The RISE with SAP program brings together the comprehensive RISE with SAP S/4HANA Cloud, private edition solution, technical services, and resources together under one contract with the  flexibility to continue their transformation at their own pace.

Planning tools to move to SAP S/4HANA Cloud, private edition solution

Process Discovery for SAP S/4HANA Transformation

This free Analysis tool replaced SAP Business Scenario Recommendations on Spotlight. This helps to get started. We get two types of reports:
1. Process Discovery summary: A PDF document
2. Process Discovery solution: The cloud-based analysis that experts can use to dive into more information

Customers can request their own Process Discovery By applying SAP Note 2758146 and SAP Note 2745851 on their productive system.

This generates a zip file containing the data we need to generate the analysis. The analysis in the online solution will be delivered to you automatically along with the PDF summary. The personalised access and instructions on how to invite additional users will be in the delivery email.

RISE with SAP includes embedded SAP tools and services to support the transition from a customer’s current ERP environment SAP S/4HANA.

Custom Code Migration app to analyse the custom code Custom Code Migration app

It is essential to analyse the custom code in the existing SAP ECC system before we start the SAP S/4HANA Conversion. The Custom Code Migration app is an SAP Fiori app that must be configured and added to your existing SAP ERP system.

Alternatively, the classic SAP GUI can be used to run the SAP S/4HANA checks based on the ABAP Test Cockpit (ATC). As there are architectural changes, simplifications in the applications and many new capabilities have been invented. The Custom Code Migration app relies on the Simplification Database, which is a file that can be downloaded and imported to your evaluation system, to identify customer objects that refer to SAP objects that have been changed in the target SAP S/4HANA System.

This analyses custom codes in the current SAP ECC system and will verify compatibility with SAP S/4HANA. It also identifies unused custom code based on your collected usage data. It helps customers to remove the unused custom code. This also verifies if your system is ready for the SAP Business Technology Platform ABAP Environment.

This app extracts:
• Usage of SAP objects in your custom code
• Extensions, such as enhancements or database table appends, made to SAP objects
• Modifications made to SAP objects.

Please refer to the below SAP note. This SAP Note summarises recommended SAP Notes for these scenarios.

SAP provides quick fixes for the SAP S/4HANA custom code checks. This Note describes which kind of quick fixes are offered.

In an average SAP ERP system, 30% to 60% of custom code is never used. Deleting it can significantly reduce the effort for code adaptation. Deletion is now part of the conversion with Software Update Manager.

Step 1: Keep collecting the data with UPL or activate the call monitor in ABAP development tools with aggregation today.
Step 2: Use the new custom code migration SAP Fiori app once your sandbox is converted to SAP S/4HANA.

Custom code migration” SAP Fiori app
• Consumes runtime code usage statistics from the call monitor in ABAP development tools
• Prepares a deletion transport
• Provides analytics for remaining required custom code adjustments

Preparing the transition with Readiness Check

The SAP Readiness Check is a component of the RISE for a system conversion to RISE with SAP S/4HANA Cloud, private edition.

An assessment of existing SAP ECC system is needed to prepare for a system conversion. There might be a need for change in customisations. S/4HANA has simplified data model and restructured/simplified. This check provides insight into mandatory application changes and also determines software conversion prerequisites, such as compatibility of installed add-ons and activated business functions etc.

It is critical to understand both the technical and functional considerations that can influence the project scope and duration of SAP S/4HANA Conversion Project. SAP Readiness Check for SAP S/4HANA provides customers with the analysis tools and an interactive dashboard to evaluate an existing SAP ERP system in preparation for the transition to SAP S/4HANA. It gives guidance on moving SAP S/4HANA and is a tool that helps the customer to gain knowledge of:

• Infrastructure requirements
• Functional implications for the new solution
• Custom code adaptation
• Software prerequisites
• Business process analysis
• Data volume management
• Add-on compatibility
• Recommended SAP Fiori apps

Readiness Check Supports two Scenarios

1. SAP S/4HANA Conversion
2. SAP S/4HANA Upgrade

SAP S/4HANA Conversion
SAP Readiness Check for SAP S/4HANA provides customers with a comprehensive overview of the conversion compatibility and necessary preparation steps for converting an SAP ERP 6.0 system to SAP S/4HANA. For detailed guidance on the implementation and execution of SAP Readiness Check for SAP S/4HANA, see SAP Note 2913617.

SAP S/4HANA Upgrade
SAP Readiness Check for SAP S/4HANA upgrades provide SAP S/4HANA customers with an overview of the compatibility of the existing system with the updated applications provided by the target release and the preparation steps that will be required. For detailed guidance on the implementation and execution of SAP Readiness Check for SAP S/4HANA upgrades, see SAP Note 3059197.
You may refer to the URL.

Some of the RISE with SAP S/4HANA Cloud, private edition Benefits:

• Full scope of SAP S/4HANA
• System conversions and new implementation into the cloud
• Single contract with RISE with SAP services & SAP S/4HANA Cloud, private edition solution
• You can retain custom code after converting the system
• Access to S/4HANA Extensibility Framework
• Code enhancement & code modifications
• Configuration can be done by customer using IMG

Process steps to prepare for the Readiness Check:
Refer & Implement SAP Note 2913617.

Select the target SAP S/4HANA version and checks of interest, schedule the analysis collector jobs, monitor the progress of the analysis jobs, transfer Analysis Data Download once collectors are complete.

Review.

Visit the SAP Readiness Check launch page

Create a new analysis and upload analysis archive and explore results.

Select an “available” analysis from the SAP Readiness Check launch page

Review high-level results presented on the tiles or open a tile for more detail. If you want, you can generate a downloadable document, as an offline record.

For a system conversion, the technical conversion activities are completed through Maintenance Planner. Readiness Check helps to identify custom code.

Conversion sequence – SAP S/4HANA Cloud, private edition.
1. Existing SBX will be converted to RISE with SAP S/4HANA Cloud, private edition.
2. Existing DEV will be converted to RISE with SAP S/4HANA Cloud, private edition after validating SBX system after conversion
3. Existing QAS will be converted to RISE with SAP S/4HANA Cloud, private edition, after validating DEV
4. Existing PRD system will be converted to RISE with SAP S/4HANA Cloud, private edition, after validating QAS systems meticulously.

How can I handle RISE with SAP S/4HANA Cloud, private edition Release Upgrades?

The RISE with SAP S/4HANA Cloud, private edition solution is directly aligned with the SAP S/4HANA On Premise release cycle. SAP S/4HANA On Premise has one base release upgrade per year, falling out of mainstream maintenance after 5 years. The customer is completely responsible for implementing all aspects of the upgrade with SAP S/4HANA On Premise.

RISE with SAP S/4HANA Cloud, private edition follows the annual base release of SAP S/4HANA On Premise, however there is a requirement to install at least one upgrade every five years to stay within mainstream maintenance. As part of the RISE with SAP Services, customers may request one upgrade per year from SAP.

There are two components to an upgrade:

Technical
SAP executes the technical upgrade

Customers may request one technical upgrade per year

Non-technical
Functional support, custom code maintenance, planning & preparation for upgrade, business process testing.

Can be requested from a partner.

Customers can request SAP to implement an upgrade once per year. SAP completely takes care of the technical side of the upgrade. If a customer requires additional non-technical support planning, preparation, testing, etc customers can contact any of the SAP partners.

About the author:
Dr. Ravi Surya Subrahmanyam is a technical and Financials writer with a background in SAP Financial Accounting, Funds Management, Group Reporting, Financial Supply Chain Management, Cash Management & in-house cash, SAP S/4 HANA Finance. He has been working as a Director for the SAP Practice for The Hackett group India Ltd, (Answerthink Company). He completed Master’s degree in Finance from Central University, Master of Commerce from Osmania University, Master of Commerce from Andhra University, and Ph.D.in Finance from one of the best universities in India. His research Papers have been published in National and International magazines. He has been a Visiting Instructor for SAP India Education and SAP Indonesia – Education. He has been working on Conversion and Upgradation projects. He is a Certified Solution Architect for SAP S/4 HANA and an SAP S/4 HANA Certified Professional. He can be reached at sravi@answerthink.com or fico_rss@yahoo.com

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