SAP on Azure Solution for Origo

Business Challenge 

Together with Origo, we have established a long-term successful collaboration, having worked together on a number of solution implementation projects to cover both the internal needs of Origo and their clients.  

Given that Origo provides numerous services and solutions to various categories of businesses and individuals, Origo needs an effective instrument to manage their internal business processes. Origo was utilizing the on-premises SAP ERP system. Since the older version of the SAP ERP didn’t satisfy the requirements of the continuously growing business, Origo decided to move to SAP S/4HANA– a modern, most advanced in-memory ERP solution. Instead of conducting a system conversion, also known as Brownfield, Origo opted to conduct a full-scale migration, i.e., implementation of the “new” or re-architected SAP S/4HANA system. 

To ensure flexibility of resources management and enable additional cost savings, Origo opted to re-host SAP DEV/QAS environments on Microsoft Azure cloud service, while the SAP production environment would be hosted locally. 

Solution  

A Tietoevry Create entity in Ukraine worked closely with Origo’s internal SAP team, helping to manage numerous aspects of the project implementation process. Thus, we decided to build hybrid cloud architecture for Origo and transform the existing SAP landscape:  

• We conducted installation and configuration of SAP S/4HANA, setting up all the integrations with on-premises per client’s requirements.  
• Hybrid SAP infrastructure was built by leveraging Azure IaaS services in the cloud and establishing the connection to on-premises SAP workloads.  
• Dev and Test (QAS) SAP S/4HANA environments were deployed on Azure by moving (re-hosting) existing VM from the on-premises environment.  
• Production SAP S/4HANA environment will be hosted on-premises due to strict security requirements and the complexity of existing integrations with on-premises apps.  
• Ensured full compatibility of Azure-hosted instances with the production environment by fine-tuning all policies and connections, as well as setting up hybrid connectivity to on-premises-based Active Directory via VPN.  

The required Master data will be transferred from the old SAP ERP to the new S/4HANA system before production go-live as the second phase of the project. 

Origo Hybrid SAP Infrastructure Architecture 

Technologies & Tools 

• Azure Linux Virtual Machines 
• Azure Active Directory 
• Azure Monitor 
• Azure Resource Manager 
• Azure Cost Management + Billing 
• Azure Site Recovery 
• Azure portal 
• Azure VPN Gateway 
• Azure Managed Disks 
• Azure Storage Account 
• SAP S/4HANA 
• SAP HANA Cockpit 
• Red Hat Enterprise Linux 

Business Value 

The new SAP S/4HANA solution will help Origo manage all internal business processes – from equipment procurement and logistics to CRM, accounting, invoice processing, and financial consolidation.  

• SAP on Azure environments were easier and quicker to deploy than to build a separate infrastructure on-premises.  
• By hosting the production environment on-premises and other instances on Azure, Origo reduces expenses on hardware and relevant upgrade and maintenance processes, while maintaining the relevant levels of cybersecurity.  
• A hybrid cloud architecture helps Origo further reduce TCO and facilitates resource management. The ability to turn off Dev & QAS instances when they’re not in use is very cost-effective.  
• The time-to-market for the new requirements implementation and new system versions rollout was significantly improved.  
• The scalability and flexibility of the new SAP on Azure solution reduced efforts required for integration with other Azure services.  
• Project timeframe: October 2019 – May 2020.  

After the project finalization in 2020, we continued leveraging cutting-edge cloud technologies for Origo’s and their customers’ success.  

Origo SAP Basis team is very happy with our partners and their approach to the project. They have conducted an excellent job, meeting all challenges with a good understanding, giving good estimates, providing timely feedback, and, most importantly, by flawlessly implementing our ERP transformation strategy. 

- Gunnlaugur Th Einarsson, Origo CIO