Executing Your SAP Cloud ERP Strategy: Multi-Cloud Realities and Sovereign AI

The 2027 end-of-mainstream-support deadline for SAP ECC 6.0 is looming, making the transition to SAP S/4HANA a pressing necessity. Moreover, organizations must now navigate a complex matrix of new operating models, targeted multi-cloud deployments, and the emerging imperative of Sovereign AI. While the first part of our three-part series introduced the strategic implications of sovereign cloud models, the second part explored sovereignty as a core architectural lens. In this concluding post, we examine the practical execution of an enterprise transformation to the cloud.

Shifting Responsibilities in the RISE Operating Model

According to a whitepaper by T-Systems, adopting SAP Cloud ERP Private (formerly RISE with SAP) represents a key shift in the enterprise operating model. Under this framework, SAP steps into the role of the direct cloud service provider. For IT leaders, this means that legacy support structures, service-level agreements (SLAs), and operational responsibilities must be completely re-evaluated.

To bridge the gap between global scale and local compliance, organizations are increasingly turning to certified Premium Suppliers. Providers like T-Systems orchestrate these environments by offering a RISE-certified private cloud hosted entirely within Europe, ensuring that critical operations remain shielded from extraterritorial policies like the US CLOUD Act. By maintaining strict certifications tailored to highly regulated sectors—such as BaFin’s DORA for finance or GxP for pharmaceuticals—this approach delivers operational sovereignty without sacrificing SAP’s modernized core.

The Pragmatic Multi-Cloud Split

The reality of enterprise IT is that a one-size-fits-all infrastructure does not exist, the T-Systems whitepaper notes. The most successful SAP transformations employ an intelligent multi-cloud strategy to balance compliance and cost efficiency.

Consider the example of Deutsche Telekom IT’s internal migration. Faced with the challenge of moving over 80 complex SAP systems, the organization conducted a rigorous sovereignty analysis before executing its RISE transformation.

The result was a pragmatic split: approximately one-third of the systems were routed to Google Cloud to maximize agility and cost-effectiveness, while the remaining two-thirds—handling sensitive, business-critical workloads—were migrated to a heavily secured private cloud. This targeted approach prevents overspending on sovereignty for non-critical assets while locking down essential enterprise data.

The Next Frontier: Sovereign AI

As the SAP Cloud journey progresses, the conversation inevitably turns to artificial intelligence. While nearly 80% of companies globally are deploying AI, a staggering 70% of the world’s AI computing capacity resides in the United States. This geographic concentration poses a significant compliance risk for European companies that feed sensitive SAP data into large language models.

To solve this challenge, a sovereign AI infrastructure is taking shape in Europe. Through initiatives like the Industrial AI Cloud in Munich, which leverages thousands of NVIDIA GPUs operating in compliance with EU law, enterprises can securely process AI-driven insights. When combined with the SAP Business Technology Platform (BTP), organizations gain the computational power required for predictive analytics and digital twins without exposing their proprietary algorithms to foreign jurisdictions.

What This Means for SAPinsiders

Redefine SLAs within the New RISE operating model. In the SAP Cloud ERP framework, SAP becomes the primary cloud service provider, fundamentally changing an organization’s existing support structures and service-level agreements (SLAs). Therefore, SAPinsiders must proactively renegotiate incident management protocols and establish clear operational boundaries, particularly for mission-critical systems subject to strict European legal jurisdiction and requiring cleared personnel access.

Organizations must execute a granular multi-cloud split. Rather than treating migration as an all-or-nothing move, organizations should segment their landscapes based on explicit risk profiles. Deutsche Telekom’s migration of over 80 SAP systems demonstrates a blueprint for balancing cost optimization with regulatory defense.

AI strategy should be anchored in sovereign infrastructure. With SAP ECC 6.0 mainstream support ending in 2027, the move to SAP S/4HANA also serves as a gateway to enterprise AI. However, training models on global platforms expose proprietary data to foreign jurisdictions. SAPinsiders must build their AI capabilities on sovereign platform-as-a-service (PaaS) stacks, such as the SAP Business Technology Platform (BTP) hosted on European infrastructure, to safely leverage advanced computing power without sacrificing compliance.