Kyndryl has introduced a set of services designed to help companies move their data to SAP’s S/4HANA Cloud.

SAP is the world’s largest provider of ERP software. Companies use the software to manage their suppliers, perform accounting tasks and power other internal processes. Some of those customers run SAP’s ERP on-premise, while others use a cloud-based version of the product called S/4HANA Cloud.

If a company decides to switch from the on-premise version to S/4HANA Cloud, it has to do more than just teach employees to use the latter product. The IT team must also bring over the business datasets that were previously stored in the on-premise ERP. That’s the task Kyndryl’s new lineup of data transformation services is designed to ease. “By applying the automation delivered through the Kyndryl Data Transformation Suite, customers can minimize their risk of potential data loss or corruption, achieve cost savings and accelerate their migration to SAP S/4HANA Cloud,” Michael Bradshaw, Kyndryl’s Global Applications, Data and AI Practice Leader, told Boardroom Insight. 

The core set of software modules that powers SAP’s on-premise ERP is known as ECC. Bradshaw detailed that while Kyndryl’s new services suite is “primarily focused on project-based work, e.g. migrating from SAP ECC into SAP S/4HANA, or even non-SAP systems into S/4HANA, it also provides capabilities to support the ongoing lifecycle management, or steady-state operations within production landscapes.”

The reason many firms require a consultancy’s help to load their data into a new ERP environment is that it’s a time-consuming, complicated task. Much of this complexity stems from the need to prevent errors from finding their way into the data while it’s being moved to the new system. That’s easier said than done for a company moving upwards of terabytes’ worth of files. 

To lower the risk of errors, the data transfer process is usually preceded by an extensive planning phase. Kyndryl goes about the task by “profiling the data (metadata, characteristics, values) and mapping the transformation steps, which can include data cleansing, rationalization, exclusion, etc,” Bradshaw said. The result is a “blueprint for the data transformation, just as a blueprint for a house or building shows the layout and specifications to guide the ‘build’ process,” he explained. 

Once a new S/4HANA Cloud environment is up and running with all the needed data inside, engineers must run tests to ensure that the data was moved over in an error-free manner. Kyndryl says its new services suite helps with that task as well.

“Data profiling, migration blueprinting and analysis – as well as data transformation, testing, validation, loading and test scrambling – are all key components of the full migration lifecycle,” Bradshaw said. “As customers prepare to migrate and modernize their ERP systems, it’s critical that their data is also prepared for the transformation, whether reference or transactional data.”

Kyndryl’s new services suite builds on a partnership it launched with SAP shortly after spinning out of IBM in 2021. Last year, it expanded the collaboration by becoming a delivery partner within the software maker’s RISE with SAP program. The program helps companies replace on-premise ERP environments with S/4HANA Cloud.

Boardroom Insight reached out to SAP for more details on why companies are moving to its cloud-based ERP. Generally, one of the main reasons enterprises shift workloads off-premise is that it reduces infrastructure maintenance requirements, which can lower costs. A SAP spokesperson said that’s a factor behind S/4HANA adoption, but explained it’s not the only driver.

“The scalability and flexibility of the cloud allow businesses to adjust resources based on their needs, supporting growth without infrastructure constraints,” the spokesperson explained. “Integration is another key motivator. S/4HANA Cloud seamlessly connects with other SAP solutions and third-party applications, ensuring smooth business processes and uninterrupted data flow. Furthermore, S/4HANA Cloud utilizes SAP Business AI to provide advanced analytics and insights, driving smarter decision-making and automation of various ERP functions.”

Cybersecurity is a factor as well. Many of SAP’s customers operate in regulated industries such as the banking sector, where keeping records secure and in compliance with data protection rules is a particularly heavy lift.

“Data security and regulatory compliance are critical concerns that S/4HANA Cloud addresses with robust security measures and comprehensive compliance capabilities,” the SAP spokesperson said. “This helps businesses meet various industry and regulatory standards confidently.”

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