A Strategic Guide to SAP Modernization: Clean Core, Cloud, & Applied AI

Three crucial initiatives are essential for forward-thinking organizations that use SAP: executing a clean core strategy, migrating to the cloud, and leveraging artificial intelligence (AI). In this article, we outline a pragmatic roadmap and illustrate where Neptune Software fits.  

The Dual-Deployment Advantage  

A primary challenge in any SAP modernization project is managing innovation without disrupting the stability of the core ERP system. Neptune’s strategy directly addresses this with a dual-deployment model. This architecture provides flexibility to build applications and extend processes in two ways: 

• In-stack: Directly within the organization’s existing SAP ECC or SAP S/4HANA environment. 

• Side-by-side: As cloud-native applications that run alongside the organization’s core system. 

This model is an essential enabler for a clean core strategy. It allows businesses to preserve their core system as a standard, stable foundation while developing modern applications and interfaces. For companies using RISE with SAP or GROW with SAP, this means extensions built today can be seamlessly transitioned to the cloud without being rewritten, significantly reducing risk and rework.

For example, Fonterra, the world’s fifth‑largest dairy exporter, launched a mobile maintenance suite in just 12 weeks and saved $3.08 million—without touching core transactions—using Neptune’s low‑code dual‑deployment model. 

 A Pragmatic Framework for Enterprise AI 

While AI presents significant opportunities, its practical and secure application within an enterprise setting remains a key challenge. Neptune is focusing on Applied Enterprise AI, a framework for embedding AI into business processes with the necessary governance. 

Helder Gonçalves, Chief Product Officer at Neptune Software, outlined the company’s vision: “Our mission remains the same: empower enterprises to build solutions with greater speed and control. But how we do that is evolving.”  

He added: “In the AI era, our role is to help companies adopt, evolve, and own AI—on their terms. With guardrails and freedom of choice, we’re giving customers the foundation to future-proof their business for SAP and beyond.” 

This approach involves creating goal-oriented AI assistants powered by real enterprise data, using technologies like retrieval-augmented generation (RAG) to automate complex queries, and ensuring security through role-based access and full auditability. 

Unifying Development with a Digital Core 

To combat application sprawl and technical debt, the third pillar of Neptune’s strategy centers on its Digital Core, a unified platform designed to bring B2B and B2C applications onto a shared foundation. This approach provides enterprise-grade backend authentication, workflow, and analytics services while supporting modern front-end frameworks like React and Angular. The objective is to enable development teams to build an application once and deploy it across multiple devices and channels, whether on-premise or in the cloud. This simplifies the architecture and ensures a consistent experience for all users. 

What This Means for SAPinsiders 

Clean Core is a strategic imperative. Market trends show a decisive shift from viewing the SAP S/4HANA migration as a purely technical upgrade to a strategic business transformation. SAPinsider’s SAP S/4HANA Migration 2025 benchmark report highlights that the end of mainstream maintenance for ECC is the top driver for migration cited by 57% of organizations. However, the biggest hurdle is managing years of accumulated custom code. SAPinsiders should note that this is where the clean core principle becomes critical to achieve agility, reduce total cost of ownership (TCO), and be ready for future innovations like AI. The trend is to move extensions and custom applications outside the core, which ensures smoother, faster upgrades and allows businesses to innovate without destabilizing their foundational system. 

Neptune’s dual deployment is key for a pragmatic migration. Instead of forcing a costly, high-risk rip-and-replace approach, Neptune allows companies to start their modernization journey by building new apps and user interfaces directly on their existing SAP ECC or SAP S/4HANA systems. Later, companies can migrate those same applications to a side-by-side, cloud-native architecture without rebuilding them. This build once, deploy anywhere capability acts as a strategic bridge, enabling companies to start their clean core journey, even before a full SAP S/4HANA migration.  

Low-code, no-code platforms are essential for a successful clean core strategy. For SAPinsiders, low-code/no-code platforms have emerged as the indispensable toolset for building new functionalities and modernizing processes outside the Core. The benefits are clear and include speed and agility, reduced costs, and democratized innovation, as mentioned by Gonçalves during an interview with SAPinsider. By using platforms like Neptune DXP, SAPinsiders can systematically chip away at their custom code debt, build flexible extensions, and create modern user experiences while ensuring their SAP S/4HANA core remains clean, stable, and ready for the future.