Finding common ground: Evaluating a potential approach to bridge the SAP "Case for Cloud" and the Sovereign Cloud

In the current business landscape, there is a growing demand for a transformative strategy that utilizes Cloud technology. In its various forms such as IaaS, PaaS, and SaaS, all stakeholders are actively showcasing and implementing the advantages of a modular and scalable cloud architecture, which is crucial for driving competitiveness, adaptability, and innovation. Given the maturity of the cloud, companies now have a strong path for transformation, with SAP leading the way through its SAP "Case for Cloud" business approach. SAP S/4HANA, available in Private Cloud, Public Cloud, and Hybrid ERP (2-Tier) modes, serves as the key driver for these transformations, while Capgemini offers support and guidance based on their extensive experience in this field. As we work alongside our clients on these transformation journeys, we utilize various architectural principles and delve into both functional and non-functional requirements using our LTP method (https://www.capgemini.com/news/events/large-sap-s4hana-transformation-program-ltp-method-webinars/). This presents an ideal opportunity for businesses and IT to address the company's long-term, medium-term, and short-term goals and needs. With the help of solutions like SAP Signavio and LeanIX EAM, we outline how processes should be modeled and how the Enterprise architecture will support the entire transformation program.

One of the key drivers behind the "Cloud mindset" is the widely recognized "Clean Core." This is not simply a way to avoid customization layers within the SAP monolith, but rather a comprehensive implementation approach designed to establish governance and guidelines that lay the groundwork for a flexible and future-ready ERP. This includes the development of stable, upgrade-safe, and transparent functionality extensions, making it easier to deploy software and adopt SAP innovations and regulatory changes. The "Clean Core" offers a new approach to meeting business needs while avoiding technical debt. and preparing organizations to reap maximum strategic benefits while minimizing transformation costs. This approach is achievable today thanks to the availability of cloud platforms such as SAP BTP, Microsoft Cloud, AWS, GCP, and others, where SAP and Hyperscalers set the developmental trends and roadmaps.

Utilizing Capgemini's Best Practice, we can represent this approach with our famous "Multi Pillar SAP Architecture."

How is all this achievable with the requirements of a Sovereign Cloud?

The term "Sovereign Cloud" refers to a cloud platform managed and controlled by a sovereign entity, such as a government or a national organization, within the borders of a specific country. The main purpose of a Sovereign Cloud is to guarantee control and security of sensitive data, as well as compliance with local laws and regulations. This approach is commonly adopted to address concerns regarding national security, data privacy, and regulatory compliance. By utilizing a Sovereign Cloud, a country can decrease reliance on foreign cloud providers and ensure that crucial data is stored within its borders. Sovereign Cloud can be implemented through private, public, or hybrid cloud infrastructures, depending on the specific requirements and policies of the country. It should be noted that the concept of Sovereign Cloud may differ from one country to another, and the actual implementations are determined by the laws, policies, and specific needs of each national context.

How does the "Case for Cloud" model support this option?

It appears to be a situation where a completely achievable approach may not yet exist, as certain components are still missing to fully address the scenario. If a client were to inquire today about how to approach a "Case for Cloud" solution in accordance with the pure Sovereign Cloud concept, for various reasons (such as industry-specific, such as defense, sensitive data, etc.), how can a Clean Core method be put into practice? Although "Case for Cloud" may not seem compatible with the Sovereign Cloud concept, there is a potential approach that could be evaluated on a case-by-case basis.

The "Customer Data Center" option (CDC) as a new deployment option available from "RISE with SAP", can be utilized for Pillar-1. This choice allows customers to run their S/4HANA instance in a traditional or private data center, with both SAP and the customer sharing responsibility. The infrastructure must also meet SAP's certification requirements.

However, Pillar-2 presents challenges as SAP BTP currently cannot be deployed in an on-premises mode. All services are only available in PaaS mode, using infrastructure provided by the Hyperscalers.

The same situation applies to Pillar-3. The only known way to use few SAP BTP services on-premises is through the "Hybrid Integrations with Edge Integration Cell" option, which was introduced at the SAP TechEd 2023 event in Bangalore. While it is possible to establish secure connections between the pillars using MPLS, ExpressRoute, AWS Direct Connect, or SAP Private Link, there is still a concern about sensitive data being transmitted over the internet between S/4HANA and SAP BTP.

Stay tuned for part-2 of this blog for more details.

Enjoy ;)