Move to the Cloud with “RISE with SAP”: 5 Tips for Automotive Companies

Decide quickly, be adaptable and proactive: These are the requirements for modern automotive companies in the transformation process. The cloud can provide valuable support. Under RISE with SAP, the software company SAP has bundled hyperscaler services and modern SAP cloud software to lay the foundation for rapid adaptations. Some important tips for a successful transition.

Introducing innovations faster, transparent and digitalized processes, company-wide automation and quickly adaptable strategies: These are some of the measures that the automotive industry can take to master the current challenges. As the 2024 IT Trends study by Capgemini showed, innovative topics such as generative artificial intelligence (AI), more protection through AI solutions and multi-cloud approaches will become increasingly important for the automotive industry in the future. By switching to RISE with SAP, companies not only gain access to hyperscalers such as Amazon, Google or Microsoft, but also to technologies such as machine learning, artificial intelligence and real-time analyses, all efficiently via one contractual partner, SAP. According to SAP, over 6,000 companies across various industries are already using this bundle, first introduced in early 2021, often starting with just a few functionalities. By 2027, the cloud-based core solution SAP S/4HANA will essentially become mandatory for depicting business processes, as support for older software versions (SAP ECC) will be phased out. Regardless of whether companies operate their cloud in a “private” (i.e., customer-specific, single-tenant) or “public” (i.e., standardized for all customers, multi-tenant) hyperscaler environment, here are some tips for your transition.

1. Clean up data and processes

There are framework conditions that companies must adhere to in the cloud and within the RISE with SAP concept. For example, it’s no longer possible to simply connect hard drives, link data to the cloud, and move it randomly from A to B. All data must first be uploaded to a server, scanned for viruses, and validated before being moved to the cloud. This best practice has been recommended by SAP for years but isn’t always followed in daily operations. With RISE with SAP, these best practices become mandatory. As a result, companies need to clean up their systems. This means reviewing how data is used, understanding how long data needs to be retained, and ensuring that system communication complies with SAP standards. Documentation should clearly indicate which interfaces are used for what purpose. “Add-ons” or “Add-Ins” that no longer receive updates can no longer be used under RISE with SAP. It’s also important to note that the software design is fixed, and no one can modify it. Even FTP server access to hyperscalers, which in the past allowed for customizations, is no longer possible.

2. Develop a long-term IT architecture concept

RISE with SAP operates on a modular principle, meaning costs depend on how many components are used. Companies can often work with a smaller scope of services than initially thought. In an IT architecture strategy, the IT strategy, in coordination with the specialist departments, determines which functions are required and which can be introduced this quarter, next year and in the long term. This gives companies the opportunity to start small and expand step by step. Most of the modules are cross-industry. In the automotive industry, however, it is important to consider how suppliers and car manufacturers interact, and which data needs to be tracked right from the strategy stage. Regarding the traceability of components used, for example, the supply chain must be traceable down to small suppliers for ten years in some cases, particularly due to legal and regulatory requirements.

3. Keep an eye on the big picture

Until now, companies had two options: Either a “preferred partner” takes care of all or part of the cloud and SAP landscape on defined terms, or an in-house IT department does it itself. Now, companies should have a senior corporate architect in-house to pull the strings. To a certain extent, this person embodies the big picture that reflects the company’s vision and is familiar with the operation of SAP and databases, concepts for IT infrastructure and security as well as auditing – and also with the peculiarities and pitfalls of in-house systems. With RISE with SAP, the customer gets everything from a single source. However, it can be helpful to carry out your own regular system checks. These include backup restore and high-availability checks, monthly health checks and early-watch reports that identify resource bottlenecks, misconfigurations or security problems. Furthermore, with cloud systems it also makes sense to keep an eye on the data traffic that occurs between external databases and the cloud system. This can quickly result in costs that exceed the expenses for SAP software licenses.

4. Take audits and compliance seriously

Though it should be a standard practice, compliance is not always taken seriously. Depending on the regulations, data may not be allowed to be transferred, for example, outside of Germany or the EU. In the event of a disaster, there must be a backup available at least 200 kilometers away. Auditors also require backup and restore tests for the utilized data center, as well as high-availability and disaster recovery plans. In this example, it applies to RISE with SAP data centers in Walldorf and Frankfurt, where SAP’s and hyperscalers’ data centers are located.

5. Pay attention to the new ticketing system

Moving to the cloud means standardization and therefore often having to give up established processes. This means that subsequent adjustments are necessary and should still be possible. Since SAP no longer outsources “SAP Application Basis Support,” SAP now has its own ticketing system. This system covers software, licensing, technical evaluation, and operations with hyperscalers. IT service providers and companies will now need to have SAP make changes to dynamic parameters. The advantage for SAP customers is that the ticketing system covers not only SAP cloud systems but also the systems of the utilized hyperscalers — everything managed from a single source.

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