How Legacy SAP Application Modernization via BTP Delivered 95% TCO Reduction

Businesses relying on SAP systems frequently encounter challenges associated with aging custom applications. High operational costs, complex integrations, and outdated user interfaces often limit efficiency and adaptability. However, migrating to an integrated platform like SAP Business Technology Platform (SAP BTP) streamlines operations and can result in considerable cost savings.

Recently, technology consultancy Qubittron assisted a client in migrating a complex, business-critical legacy application to SAP BTP. The project highlights how this migration helped the company achieve significant cost savings and functional improvements.

A Complex Legacy System

The client operated a legacy application deeply integrated with their core SAP system. While essential for operations, the application presented several difficulties:

• High Total Cost of Ownership (TCO), as maintaining the application and its infrastructure, incurred costs of approximately $550,000 annually.
• Complex and potentially fragile integration points due to years of development made changes difficult with the underlying SAP environment.
• Lack of modern accessibility since the application was designed for desktop use only. As a result, it lacked a responsive design suitable for tablets or mobile devices, hindering workforce flexibility.

The combination of these factors created a system that was expensive to run and failed to meet modern usability standards.

Strategic Migration to SAP BTP

The company engaged Qubittron to address these challenges. After assessing the situation, Qubittron recommended a strategic migration to SAP BTP as the most effective approach. The project would include developing a new application within the SAP BTP environment, integration management, and user interface modernization. The former included analyzing and rebuilding the necessary integration points to the core SAP system using SAP BTP’s tools and methodologies, aiming for greater stability and maintainability.

To deliver user interface modernization, Qubittron would design and implement a new, intuitive user interface with a responsive design, ensuring compatibility across desktops, tablets, and mobile devices.

Quantifiable Outcomes and Operational Improvements

Despite the inherent complexities, Qubittron’s team completed the migration project within several months. Moreover, the migration to the new SAP BTP application yielded significant, measurable results:

TCO Reduction: The annual operational cost dropped from $550,000 for the legacy system to $29,000 for the new BTP application, representing a 95% cost reduction. This was primarily due to SAP BTP’s platform-as-a-service model, which reduced infrastructure overhead and maintenance requirements.

Enhanced Accessibility and Usability: The new application is now fully accessible on any device, empowering users to perform tasks regardless of location or device preference. The client reported that the redesigned interface was more intuitive and easier to use, improving user adoption and efficiency.

Internal Team Enablement: As part of the engagement, Qubittron provided SAP BTP training to the client’s internal SAP support staff at no additional cost. This initiative aimed to equip the client team to independently handle Level 1 application support, reducing reliance on external vendors and contributing to further operational cost efficiencies.

This project demonstrates the potential of SAP BTP as a platform for successfully modernizing complex, tightly integrated legacy SAP applications. The outcomes highlight the possibility of achieving substantial operational cost reductions (in this case, a 95% TCO decrease) alongside significant improvements in usability and accessibility. For organizations facing similar challenges with aging, expensive custom SAP applications, exploring a BTP migration strategy presents a viable path toward modernization and efficiency.

What This Means for SAPinsiders

SAP BTP adoption is accelerating. It is increasingly central to SAP’s strategy and customer modernization efforts. SAPinsider research highlights SAP BTP as a preferred platform for transformation initiatives and faster project delivery when used effectively, often alongside SAP S/4HANA. Staying informed about SAP BTP’s capabilities, including its growing role in enabling Business AI, is crucial.

Partnerships matter in complex scenarios. Qubittron’s customers include organizations, from small and medium businesses (SMBs) to large enterprises using SAP, facing challenges with complex custom applications, high TCO often exceeding $100,000 per year, intricate integrations, and the need for modern, accessible user experiences. These organizations often require tailored development and strategic guidance for SAP BTP adoption, S/4HANA migration and optimization, or application management – areas where Qubittron focuses its expertise, emphasizing client success and transparent, flexible solutions.

When migrating to SAP BTP, end-users should evaluate several key factors. They include assessing current legacy costs against SAP BTP’s projected operational expenses, analyzing how SAP BTP’s Integration Suite can simplify and stabilize connections between SAP and non-SAP systems, and clearly defining needs for responsive design, mobile access, and improved workflows. Qubittron clients like Aleron, Acara Solutions, and Victrola have successfully leveraged Qubittron’s SAP BTP expertise to navigate these decision points and achieve positive outcomes.

Further information on Qubittron’s services and SAP BTP capabilities can be found at www.qubittron.com.