For any business, migrating to a cloud environment is a big decision. Factors such as greater scalability, better performance, or increased efficiency could motivate this decision. Another reason is how the data is processed and supported, which might bring faster real-time reporting, while users get a better experience.

However, migration is a complex and challenging process involving various stakeholders and multiple phases that must be defined and planned meticulously. With SAP cloud migration, companies face many changes, and the biggest question is how they manage that process.

Is your company going to spend money on migration? In that case, the goal is to get the most out of what you can by simplifying your processes and automating everything you can to improve your day tomorrow once this project is done.

What is SAP Cloud Migration?

SAP cloud migration means migrating the existing company’s on-premises SAP applications, databases, and systems from the on-premises infrastructure to a cloud environment.

This process can involve the migration of the entire SAP environment or a part of it. Cloud migration could also be performed at different scales depending on the business goal. For example, companies can:

• Move existing SAP applications without major changes.
• Upgrade existing systems like SAP ECC to SAP S/4HANA.
• Modify the application to take advantage of cloud features.
• Move some parts to the cloud while keeping part of it on-premises.

At the heart of this migration lies the critical task of transferring vast amounts of data and configurations from the existing SAP landscape to the new cloud environment.

Significance of SAP Cloud Migration

Why do companies choose to invest in this expensive project? Migrating to the cloud empowers organizations to:

• Reduce infrastructure costs.
• Improve system performance and scalability.
• Simplify updates and overall system maintenance.
• Enhanced disaster recovery and business continuity
• Enhance data security and data recovery in case of security incidents.

However, businesses that are used to having complete control over their data and processes while using their on-promise infrastructure need a clear strategy to maintain security and compliance in the cloud.

The migration process is a complex undertaking that demands careful planning and execution to ensure a seamless transition from legacy systems. While there are usual challenges with any large transition project, there are challenges around access, how people can utilize it, and what that may result in. In fact, according to Gartner, 75% of cloud failures are associated with our ability to manage identity and privileges.

If you are on that migration journey, significant changes are coming that require specialized skillsets. Let’s explore how we should manage these changes correctly.

Common Compliance Challenges During Organizational Transitions

Companies subject to risk regulations are particularly impacted by cloud migration project success as they must maintain compliance.

Some of the common compliance challenges are:

• Evolving system landscapes and business processes change governance processes.
• Hybrid and multi-cloud app environments add complexity to maintaining risk management and compliance requirements.
• Identity and access governance become spotlighted to enable security during and after transition.
• High change visibility drives audit focus and oversight.

SAP Cloud Migration: What Are the Options?

In 2025, SAP has the following cloud offerings:

Cloud-Native Platforms

• SAP BTP (Business Technology Platform) – Platform for integration, data management, and app development.
• SAP Integration Suite – Integration platform (part of SAP BTP).
• SAP SuccessFactors – A Human Capital Management (HCM) solution.
• SAP Ariba – Procurement and supply chain collaboration platform.
• SAP Concur – Expense, travel, and invoice management solution.
• SAP Data Warehouse Cloud – Data management and analytics solution.

Partially Cloud-Native / Hybrid

• SAP S/4HANA Cloud – The Cloud Edition is built with cloud-native principles, but the Private Edition and On-Premises Edition are more traditional.

Why Focus on SAP S/4HANA and SAP BTP?

This article will focus on SAP S/4HANA and SAP BTP systems because of their critical role in SAP’s cloud transformation ecosystem. If you build your cloud-first strategy, SAP S/4HANA and SAP BTP would be foundational systems.

This article will be helpful if you plan to upgrade your legacy ERP system, such as SAP ECC, to S/4HANA or seek multi-cloud flexibility while building cloud-native applications through BTP.

SAP S/4HANA and SAP BTP: What are Differences?

SAP S/4HANA is SAP’s next-generation enterprise resource planning (ERP) suite, which can be deployed in the cloud, on-premises, or hybrid. The solution offers flexibility to adopt and scale the systems as needed.

SAP Business Technology Platform (BTP) is a cloud-native, cloud-agnostic comprehensive suite of integrated tools, services, and technologies designed as a central, business-focused, and open data, development and integration platform for the entire SAP ecosystem. It offers capabilities related to database and data management, integration, analytics, and application development.

Why Migrate to SAP Cloud Solutions?

Key Advantages of SAP Business Technology Platform (SAP BTP)

Flexibility and Independence

Organizations can have a fully managed platform-as-a-service (PaaS) in cloud and hybrid environments.

Multi-Cloud Openness

SAP BTP can be run in any hyperscale cloud environment. Organizations can choose between large-scale cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP).

Fast Time-to-Market

SAP BTP’s pre-configured services, scalability, and integration features enable faster go-live. The pay-as-you-go model reduces upfront infrastructure costs, resulting in quick implementation and a better ROI.

Extensive Partner Ecosystem

With over 15,000 partners across twenty-five industries, businesses can find partners for their unique challenges and goals.

Business Differentiation with SAP Embedded Solutions

Businesses can achieve a competitive edge with the SAP Business Technology Platform (BTP) embedded in SAP applications. SAP BPT enables organizations to connect and automate workflows across various departments, such as finance, HR, supply chain, etc.

Planning the SAP Cloud Migration Process

A well-defined migration plan is key to successfully migrating to SAP cloud solutions. While a single plan may not suit all types of organizations, the steps mentioned below can guide the creation of a migration process and the aspects to consider.

Define Migration Objectives and Business Outcomes

The first step is to understand and document the business goals behind migration, such as cost savings, agility, or innovation. Defining the goals helps set the stage for justifying resources and making a convincing case for migration as you move forward. Listing and quantifying business outcomes is also crucial, as they become parameters for proving success. Consider aligning cloud migration with the overall digital transformation strategy.

Involve and Align Key Stakeholders

Migration affects all users and, therefore, must involve all relevant stakeholders. Gain leadership buy-in early, as their backing enables access to critical users and resources across departments. Engaging with stakeholders from IT, business units, and leadership helps align the vision, promotes cooperation, and accelerates the project.

Project Planning

SAP cloud migration and identity and access management projects impact the entire organization across IT, business, and audit. Assemble a cross-functional project team including IT, business, and audit representatives to define, manage, and execute the project. Successful project management principles include:

• Defined timeline, responsibilities, and milestones: Who is responsible for what? Agree on who will own the tasks and their deadlines, and set measurable milestones.
• Impact Understanding: Assess how the transition affects various teams—whether it’s a temporary responsibility shift or a fundamental change in day-to-day operations.

Initial Planning and Assessment

Here are the essential questions to answer to evaluate the state of your systems and tools:

• Which processes or applications that align with strategic business outcomes must be prioritized?
• Which critical data sets will migrate to the cloud? Do you need to implement data cleansing measures before migration?
• What are current infrastructure components, including applications, databases, and middleware? A detailed inventory is created at this step, and the interdependencies between SAP and non-SAP systems are mapped.
• Assess current systems integrated with SAP ECC, IDM, and/or AC to determine which processes need to transition to S/4 and whether they will involve a technical migration or process re-engineering.
• Identify where SAP BTP services (e.g., Integration Suite, SAP Build) will be involved in the new architecture. Assess custom code adaptation for cloud-native functionality.
• Identify cloud application changes that may accompany the move to S/4, including solutions like Coupa, Salesforce, or BlackLine.
• List key functionalities for each connected system, such as firefighter access, risk analysis, provisioning, and user access reviews.
• Determine compliance requirements to baseline current practices and identify if adjustments are needed to meet audit expectations in the new environment.

Engage a Migration Partner or Managed Services Provider

Migrating to the cloud is a huge step. It is even more complex for organizations working only in on-premises environments. Partnering with a managed service provider who provides support through the entire migration process and post-migration enables businesses to mitigate risks and enables a smoother transition.

Build a Holistic Transformation Plan

A detailed plan provides foresight into bottlenecks and challenges that could lie ahead. This means accounting for workload priorities, timelines, milestones, funding, resources, and leadership buy-in.

Develop Implementation Roadmap

A comprehensive implementation and migration plan will be needed that outlines the organization’s end-to-end approach, including:

• Develop a detailed plan, starting from vendor selection and going through to go-live.
• Include steps, responsibilities, and deadlines across cross-functional teams.
• Set deadlines with clear deliverables assigned to internal and external teams.
• Define a data assessment process to evaluate data quality, establish remediation plans, and outline data governance practices.
• Design the solution architecture, including SAP applications, integration points, security controls, and future state analytics.
• Establish a deployment strategy that defines governance models, implementation phases, support strategies, and resource requirements.
• Set measurable success criteria to evaluate cost estimates, anticipated benefits, and post-go-live performance.

Inventory of Current Infrastructure

Assess apps, databases, and on-premises infrastructure using automated cloud migration tools. A key preparatory step is to know workload-level cost estimates and performance metrics in advance.

Cost Estimation and TCO Comparison

Estimate migration costs (licenses, cloud infrastructure, services). Calculate the total cost of ownership (TCO) and expected ROI post-migration.

Risk Management and Mitigation Strategies

While migrating to the cloud offers scale and flexibility, it does come with risks such as data security, application performance, business continuity, vendor lock-in, and cost management. However, a smooth and successful migration can be achieved by securing data with encryption, optimizing the infrastructure through testing, and maintaining backups and recovery plans.

SAP Cloud Migration Phases and Activities

The migration process can be broadly divided into six phases that span from assessment to deployment:

1. Pre-Migration Assessment
2. Preparation Phase
3. Development Phase
4. Migration Phase
5. Testing and Validation
6. Deployment Phase

Pre-Migration Assessment

A successful migration starts with thorough planning to assess your current system architecture, identify potential challenges, and develop a clear migration strategy. While each migration is unique, the core planning tasks remain consistent across scenarios.

Review Current Systems and Dependencies

Evaluate your existing and future solution requirements to determine necessary adaptations, modifications, or enhancements for a seamless migration.

Defining Requirements

• Create a detailed list of business, technical, and compliance requirements:
• Classify required and nice-to-have features.
• Consider the entire application landscape, including future cloud or hybrid environments.
• Engage cross-functional stakeholders to align on transition goals and requirements.
• Example questions to address:
  • Is your landscape SAP-only or does it include Line of Business (LoB) applications?
  • Is your environment on-prem, cloud, or hybrid?
  • What are your identity governance requirements (e.g., automated provisioning and de-provisioning)?
  • How will you manage access risk governance (e.g., separation of duties checks, user access reviews)?
  • Do you need advanced security capabilities like data masking, vulnerability management, or threat detection?

Evaluate and Select Vendors

The list of requirements helps evaluate potential vendors:

• Define the criteria for system scalability, capabilities for integration with other systems, and user experience.
• Rank requirements from must-have to nice-to-have. Define the minimum threshold for vendor eligibility.
• Identify vendors that meet your use case and evaluate them through RFPs, product demos, or customer public reviews.
• Understand your procurement process timeline, including legal reviews, approvals, and vendor onboarding, to factor into your project timeline.

Identify Feature Incompatibilities

Analyze incompatibilities and feature differences. Use the Self-Service Migration tool to detect and address potential issues.

Preparation Phase

A successful SAP cloud migration strategy starts with thorough preparation. This phase involves budgeting resources, setting up SAP BTP global accounts and subaccounts, and provisioning development, test, and production environments. Proper planning ensures a seamless transition and optimal cloud performance.

Budget Allocation

Start this phase by distributing resources and allocating a budget for migration to ensure smooth execution. Try to be as comprehensive as possible, including all requirements. It is always better to overbudget and underspend.

Identify the overall budget, including cloud infrastructure, licenses, implementation services, and ongoing operational costs. Review SAP S/4HANA and SAP BTP subscription options (e.g., pay-as-you-go vs. long-term contracts). Consider possible hidden costs such as account for data transfer fees, third-party integrations, training, and post-migration optimization. Justify budget decisions by estimating operational savings and business outcomes post-migration.

Set Up SAP BTP Global Accounts and Subaccounts

Register SAP BTP Global Accounts to manage cloud resources across multiple environments. Design subaccounts to represent different environments (Development, Test, Production). Assign appropriate user permissions for each subaccount based on responsibilities. Use the SAP Integration Suite to configure secure connections between SAP BTP, SAP S/4HANA, and third-party systems.

Provision Development, Test, and Production Environments

Define landscape architecture, including separate system development, testing, and production environments. Use SAP BTP tools to deploy cloud services and databases automatically. Apply security configurations, including data encryption and access controls, and implement network isolation.

Development Phase

Address application and system incompatibility during development to ensure seamless migration from on-premises SAP systems to SAP S/4HANA and SAP BTP cloud environments. This phase involves preparing applications, custom code, and content to be fully compatible with cloud-native services.

Resolve Application Incompatibilities

Use SAP Readiness Check and ABAP Test Cockpit (ATC) to identify incompatible custom code and dependencies. Adjust ABAP custom code to align with SAP S/4HANA architecture and cloud deployment standards. Validate API integrations with SAP Integration Suite to ensure seamless connectivity between SAP S/4HANA and cloud applications. Identify and resolve compatibility issues with connected applications like Salesforce or Coupa.

Convert Legacy Content to Cloud-Compatible Formats

Refactor ABAP custom code to comply with SAP S/4HANA data models and cloud-based services. Adapt legacy database queries to align with SAP S/4HANA CDS Views and Core Data Services (CDS) architecture. Redesign legacy workflows to leverage cloud-native services on SAP BTP, such as SAP Workflow Service or SAP Process Automation. Convert traditional SAP GUI interfaces to SAP Fiori apps optimized for web and mobile use. Modify interfaces to work with SAP BTP Integration Suite for seamless cross-platform communication.

Migration Execution Phase

This is when the transition from on-premises SAP systems to SAP S/4HANA and SAP BTP cloud environments occurs. This phase focuses on executing data and application migrations.

Execute Migration Using SAP Tools

• Use the SAP Migration Cockpit to transfer master and transactional data from legacy systems to SAP S/4HANA with pre-configured templates.
• Use the SAP BTP Integration Suite to set up secure data integration between SAP S/4HANA and cloud-based applications or third-party systems.
• Leverage SAP Data Intelligence or SAP Cloud Integration to automate data transformation and migration tasks.
• Use ABAP Test Cockpit (ATC) to validate custom code compatibility before execution.

Monitor for Data Integrity and Compatibility

Generate reports using SAP Migration Cockpit to verify the completeness and accuracy of migrated data. Use SAP Data Services or SAP Information Steward to detect and resolve data inconsistencies during migration. Track system performance using SAP Solution Manager and SAP Cloud ALM during and after migration. Implement pre-configured error-handling workflows to log and fix migration issues automatically.

Testing and Validation

By completing migration, validate your applications and data to ensure they work as expected and meet performance expectations.

Functional and Performance Testing

Ensure that core business processes are functioning correctly in the new environment. Engage business users to verify that the migrated applications support daily operations and meet business requirements. Assess system performance during peak workloads and confirm the cloud infrastructure meets response time and scalability expectations. The SAP BTP Integration Suite validates integration points between SAP S/4HANA, SAP BTP services, and third-party applications.

Data and System Validation

To ensure that all data has been accurately migrated without loss or corruption, compare the pre-migration and post-migration data. When detecting inconsistencies between source and target systems, consider using tools such as SAP Data Intelligence. It’s essential to pay attention to the proper configuration of access controls and data encryption, as these are often part of strict compliance requirements like SOX, GDPR, and SOC 2. Utilizing SAP Cloud ALM and SAP Solution Manager during testing to monitor system performance and audit error logs.

Deployment Phase

The deployment phase focuses on establishing the SAP cloud environment to facilitate a smooth migration. Key activities during this phase include provisioning cloud resources, installing SAP applications, configuring network connectivity, and aligning migration tasks with business requirements. This phase lays the groundwork for a successful transition.

Production System Setup

Deploy SAP S/4HANA and SAP BTP services in the production environment following the architecture outlined in earlier phases. Complete the final data load and reconciliation to ensure that all systems are up to date. The SAP BTP Integration Suite establishes integrations between SAP systems, third-party applications, and cloud services. Before going live, validate disaster recovery configurations and ensure high-availability setups are in place.

Security Configuration

Configure SAP Cloud Identity Services to implement role-based access controls (RBAC) and multi-factor authentication (MFA). Ensure data is encrypted at rest and in transit across SAP Business Technology Platform (BTP) and SAP S/4HANA environments. Limit and monitor access to administrative accounts, keeping in mind that 75% of cloud security failures are due to inadequate identity, access, and privilege management. Utilize SAP Cloud Identity Access Governance to ensure security configurations align with regulatory requirements, such as GDPR and SOC 2.

Go-Live and Post-Migration Monitoring

During the go-live phase, operations are transitioned to the SAP cloud with minimal disruption. A cutover plan ensures system continuity. Post-migration monitoring focuses on performance, data integrity, and system health. Automated alerts and dashboards support ongoing optimization.

Post go-live, it is critical to have a defined plan for the transition from the implementation team to the day-to-day users and administrators. This plan should include:

• Cutover Process: Establish a well-communicated cutover process to minimize disruption during the transition.
• Training and Adoption: Build robust training programs and materials to help users adapt to the new system quickly and effectively.
• Standard Operating Procedures (SOPs): Define SOPs to ensure consistent processes and long-term system success.
• Support Structures: Set up support channels, including help desks and knowledge bases, to provide ongoing assistance.
• Performance and Compliance Monitoring: Implement ongoing monitoring to monitor system performance, measure benefits, and ensure sustained compliance.
• Continuous Improvement: Create feedback loops for users and stakeholders to gather input for system enhancements and optimizations.

Tools and Resources for SAP Cloud Migration

SAP Migration Cockpit Overview

The SAP Data Migration Cockpit (DMC) is an extensive tool designed to streamline and automate data transfer from legacy systems into SAP environments, specifically SAP S/4HANA and SAP S/4HANA Cloud. It provides a user-friendly interface that facilitates data extraction, transformation, and loading (ETL), ensuring accuracy and consistency throughout migration.

The DMC supports various migration scenarios, including in-place system conversions and the “Greenfield approach,” which involves implementing a new SAP system and migrating data from existing systems.

Key features of the DMC include preconfigured migration objects for customer and material data, automated mapping between source and target structures, and real-time monitoring capabilities. These functionalities collectively simplify the data migration journey, reduce potential errors, and enhance overall efficiency.

Self-Service Migration Tool Capabilities

SAP’s Self-Service Migration Tool simplifies and speeds up the transition to the cloud by automating key parts of the migration process. It streamlines system setup, data transfer, and configuration using pre-configured templates and automated procedures, reducing manual effort and minimizing errors. The tool also ensures data consistency through automated validation checks and allows for testing in sandbox environments to mitigate risks before going live.

The tool provides flexibility and visibility throughout migration with real-time progress monitoring and support for hybrid, public, or private cloud deployments. Its seamless integration with SAP systems and automated testing features helps businesses ensure a smooth transition while optimizing system performance in the cloud.

Post-Migration Optimization

Fine-Tuning Cloud Environment for Performance

Optimizing your cloud environment is critical when migrating a system from on-premises to the cloud. This process involves configuring the cloud infrastructure to support the SAP environment fully, ensuring it delivers the required performance, scalability, and reliability. When fine-tuning is done right, it minimizes disruptions and lays the foundation for long-term operational success.

Ongoing Monitoring and Improvement

No migrating can be perfect. Reviewing and refining the system’s configuration and architecture using performance metrics and user feedback enhances performance and user experience. Proactive monitoring also helps adapt the business to evolving market needs while maintaining peak performance.

SAP Cloud Platforms and Providers

Overview of Leading Providers

Choosing a platform for SAP migration is more straightforward, and many reliable options are available. Each platform has unique strengths, so select the one that fits your project needs. Below is a comparison of top providers.

Microsoft Azure

Azure offers SaaS, PaaS, and IaaS solutions and supports various languages, tools, and frameworks. SAP migration to Azure ensures cost savings, uptime, and agility. It offers two possible strategies:

• Horizontal strategy: Move low-risk environments first.
• Vertical strategy: Migrate the entire system starting with lower-risk resources.

Amazon Web Services (AWS)

AWS provides robust database and migration tools, including AWS Server Migration Service (SMS) for fast, agentless workload migration. Trusted by startups and enterprises, AWS supports computing, storage, networking, and security with certified enterprise software partners.

Google Cloud Platform (GCP)

GCP offers secure, global infrastructure with innovative features like per-minute billing and sustained discounts. Its layered security model and third-party audits (ISO, PCI, HIPAA) make it a strong choice for SAP migrations.

IBM Cloud

IBM Cloud provides flexibility with over 50 global data centers and customizable delivery models. It supports hybrid setups, connecting on-premise systems with cloud applications while offering secure, compliant solutions.

SAP Cloud Platform

SAP’s PaaS focuses on digital transformation with services like Fiori for app development and identity management. It reduces development time by up to 75% but lacks other major providers’ extensive tools and services.

Future Trends in SAP Cloud Migration

Leveraging emerging technologies can enhance optimization efforts and enable businesses to be future-ready.

Containerization and Serverless Computing

Containerizing SAP applications can help organizations reduce infrastructure costs, improve scalability, and hasten the deployment of new applications. Serverless computing enables organizations to run applications without worrying about supporting infrastructure. This simplifies deploying and managing SAP applications in the cloud, reducing costs.

Leveraging AI and Machine Learning in Cloud Operations

AI and ML capabilities can be used in the cloud for more excellent optimizations. They enhance automation and provide predictive analytics that enable the automation of tasks like patching and software updates and predicting future demands.

Multi-Cloud and Hybrid Cloud Strategies

A multi-cloud strategy is key to avoiding vendor lock-ins. It also helps improve availability and scalability. A hybrid or multi-cloud strategy is crucial for enhancing resilience and reducing the risk of downtime.

Conclusion and Next Steps

Building a Future-Ready Cloud Strategy

Develop a technology adoption plan prioritizing emerging technologies like containerization, AI/ML, and serverless computing. Design cloud architectures that support dynamic scaling and flexible workload distribution. Use SAP BTP Innovation Services to experiment with new technologies and rapidly prototype solutions. Align cloud strategies with green IT practices by leveraging energy-efficient cloud infrastructure.

Leveraging Expert Guidance and Partnerships

Migrating SAP to the cloud is complex and requires specialized expertise. A holistic team of internal resources, SAP experts, consultants, and IT partners can ensure smooth migration, reduce risks, and align the migration process with your business goals.