Migration from SAP ERP On-Premises to SAP S/4HANA in Microsoft Azure

This describes the tool guided migration of an on-premises SAP ERP system into Microsoft Azure, combined with a system conversion to SAP S/4HANA. The Software Update Manager (SUM) acts as the technical engine for the conversion. I will also explain how the SAP Cloud Appliance Library streamlines this process through a step-by-step approach. 

In general, there are three primary paths for migrating to SAP S/4HANA: 

1. Selective Data Transition
2. New Implementation
3. SAP S/4HANA System Conversion 

 

 

 

1.System Conversion 

It will break down into the Preparation Phase and Realization Phase. 

Preparation Phase 

1. System Requirements

This phase ensures that the current SAP ECC system, infrastructure, database, and operating system meet the minimum prerequisites for a conversion to SAP S/4HANA. 
Key activities include: 

• Verifying supported OS, DB, and Unicode requirements 

• Checking add-ons and thirdparty components 

• Confirming hardware capacity (CPU, RAM, storage) 

• Assessing source release compatibility for SUM execution 

This step forms the technical foundation before any planning can begin. 

2. Maintenance Planner

SAP Maintenance Planner validates and prepares the system stack for conversion. 
It checks: 

• Active add-ons and their compatibility 

• Installed components and required upgrade paths 

• Target SAP S/4HANA release stack 

• Required XML file generation for SUM 

Outcome: A stack XML file used by SUM to guide the technical conversion. 

3. Simplification Item Check (SICheck)

SICheck analyzes the ECC system for mandatory functional and technical changes required by SAP S/4HANA. 
This includes: 

• Identifying simplification items (Example: Finance, Logistics, master data changes) 

• Highlighting inconsistencies in custom or standard objects 

• Showing mandatory actions before conversion (Example: Customer Vendor Integration (CVI) for Business Partner (BP), Open Item Management updates) 

This provides a detailed “to-do list” to bring the system into an S/4HANAcompliant state. 

4. Custom Code Preparation

This phase ensures that custom developments (Zprograms, enhancements, exits) will work on the S/4HANA environment. 
Activities include: 

• Running ABAP Test Cockpit (ATC) checks 

• Identifying usage-based custom code via SAP Readiness Check / UPL 

• Adapting code for removed or deprecated data structures (Example: MATDOC, tables replaced in S/4HANA) 

• Planning remediation for performance or syntax changes 

This ensures custom code does not break after conversion. 

Realization Phase 

5. Software Update Manager (SUM)

The Software Update Manager serves as the technical engine for system conversion. 
It performs: 

• Database migration to SAP HANA 

• Software component upgrade to S/4HANA 

• Data conversion and migration 

• Technical downtime execution 

• Post-processing of the system landscape 

 

 

 

SUM combines upgrade, migration, and conversion into one guided procedure. You can perform the conversion using the in-place option, allowing the existing SAP ECC system to remain on-premises. Alternatively, you can combine the move with a transition to a hyperscaler, an approach that becomes particularly powerful in the context of RISE with SAP. 

RISE with SAP provides a comprehensive, modular cloud transformation offering that bundles software, infrastructure, and managed services into a single contract. It enables organizations to modernize their SAP landscape by running SAP S/4HANA in a hyperscaler environment (such as Microsoft Azure) while SAP takes responsibility for technical operations at the application layer. This includes lifecycle management, technical monitoring, SLA-backed operations, security patching, and upgrading orchestration. RISE also supports business transformation through embedded tools, extensibility options, and continuous innovation. 

By integrating your system conversion with RISE with SAP, you can streamline the journey to S/4HANA, reduce operational overhead, shift from CAPEX (Capital Expenditure) to OPEX (Operational Expenditure), and accelerate innovation using cloud-scale capabilities while SUM delivers the technical conversion engine underneath. 

6. Application-Specific Follow-Up Activities

After the technical conversion, functional teams’ complete configuration and validation tasks specific to their modules. 
Example: 

• Finance: Activation of Universal Journal, data reconciliation, asset accounting migration 

• Logistics: Credit management migration, new ATP setup 

• Security: Role and authorization adjustments 

• SAP Basis and ABAP team: Fiori activation and launchpad configurations 

• Techno functional: Business validation and testing 

• SAP Basis: Cutover activities and golive preparation 

These steps ensure that the converted system is functional, optimized, and ready for productive use. 

Summary View: 

 

2. New implementation: 

New Implementation with DMO (Database Migration Option) 

A New Implementation (Greenfield approach) means building a completely new SAP S/4HANA system and migrating selected data into it. 

How DMO fits in: 

DMO is not used on the new S/4HANA system itself, instead it is used on the source ECC system when needed to support the transition process. 

You would use DMO when you want to: 

• Upgrade and/or migrate the old ECC system to the SAP HANA database temporarily 

• Enable smoother extraction of data using SAP Migration Cockpit or 3rdparty ETL tools 

• Prepare the source system technically and functionally before data migration to the new S/4HANA system 

DMO prepares the old system, but the final target is a clean, newly installed S/4HANA instance. 

 

 

 

We have two options when using the Software Update Manager (SUM): 

1. DMO with System Move: 
   In this scenario, SUM begins the procedure on the source system and then continues execution on the target system. This is typically used when migrating to a new host or infrastructure while performing the upgrade and database migration in one combined process. 

1. DMO Migration Option – Move to SAP S/4HANA on a Hyperscaler (DMOVE2S4): 
   Here, SUM starts an additional application server that runs in the target environment but still belongs to the source system landscape. This enables a controlled transition to a hyperscaler environment (such as Azure) while completing the conversion and migration steps required for SAP S/4HANA. 

In both cases, several preparatory tasks must be completed in the target environment, such as: 

 

 

 

 

 

 

 

1. Selective Data Transition (SDT) with DMO: 

Selective Data Transition is a hybrid approach between Brownfield and Greenfield. 
It allows moving only the data you choose, such as: 

• Specific company codes 

• Selected historical periods 

• Organizational carveouts 

• M&A (Merger and acquisition) landscape consolidation 

How DMO fits in: 

DMO is typically used as the first step in preparing the source ECC system. 

• It migrates the source ECC system to SAP HANA 

• Performs required technical upgrades 

• Ensures compatibility with the S/4HANA data model 

• Prepares system objects so that selective extraction tools (SNP, Natuvion, CBS, etc.) can run 

After DMO, partner tools extract selected data into the target S/4HANA system. DMO modernizes and upgrades the source system, enabling selective extraction and migration. 

Target Environment Preparation Tasks (for DMO with System Move & DMOVE2S4) 

Before SUM can execute migration steps in the target environment, several technical preparations must be completed. These ensure that the new infrastructure (IaaS, or hyperscaler) is fully ready for the handover from the source system. 

1. Provisioning the Target Infrastructure

You must set up a clean, properly sized environment that will serve as the new application host or target system. This includes: 

• Creating virtual machines or hosts (on hyperscaler) 

• Ensuring CPU, RAM, and storage meet SAP sizing guidelines 

• Preparing appropriate disk layout for /usr/sap, /sapmnt, /hana/shared, and log/data volumes (for HANA scenarios) 

2. Operating System Preparation

The OS must meet SAP and SUM prerequisites: 

• Install a certified OS version (Example: RHEL, SLES, Windows if applicable) 

• Apply required OS patches and kernel versions 

• Configure OS locales, time synchronization, and system limits (ulimits, transparent huge pages, UUID config) 

• Create SAP system users (Example: <sid>adm, sidadm, sapadm) if not automatically provisioned 

3. Network and Connectivity Setup

DMO requires bidirectional connectivity between source and target systems: 

• Open required TCP ports (e.g., DIAG, RFC, HANA SQL ports, SAP Host Agent ports) 

• Validate hostname resolution using DNS or /etc/hosts 

• Set up VPN, ExpressRoute, or Peering if migrating to a hyperscaler 

• Ensure no restrictive firewalls block SUM or SAP Host Agent communication 

4. SAP Host Agent Installation

SUM requires a functional Host Agent on the target system: 

• Install SAP Host Agent (latest version recommended) 

• Configure Host Agent service user and permissions 

• Validate connectivity from source to target Host Agent 

5. File System Preparation

Depending on your architecture: 

• Set up NFS shares for /sapmnt (if shared in distributed system environments) 

• Prepare directories for SUM extraction and temporary files 

• Ensure proper ownership and permissions: sidadm:sapsys 

6. Database Preparation 

For HANA-based targets: 

• Provision SAP HANA DB following sizing guidelines 

• Configure data and log volumes with recommended I/O throughput 

• Install the correct HANA version compatible with your SUM stack 

• Validate HANA OS parameters (vm.dirty_background_ratio, thp, huge pages) 

• Ensure network configuration supports SAP HANA replication if needed 

7. Software Staging and Media Preparation

For SUM to continue the target: 

• Download and stage SAP software media (kernel, stack files, SAP HANA installation media, archives) 

• Ensure directories are accessible to SUM during the handover phase 

• Upload SUM SAR files and extract them on the target host if required by your scenario 

8. Security and User Setup

Depending on your landscape: 

• Configure secure shell (SSH) trust between source and target (for SUM) 

• Set up service users and groups (sapsys, <sid>adm) 

• Validate OS-level sudo rules if needed for certain scripts or root actions 

9. Parameter Alignment Between Source & Target

To ensure SUM can continue seamlessly: 

• Synchronize system parameters (Example: time zone, code page, locale) 

• Ensure consistent SAP profiles (DEFAULT.PFL, instance profiles) 

• Confirm kernel patch levels where required 

10. Storage & Backup Preparation

Before running SUM: 

• Configure snapshot policies if supported by your hyperscaler 

• Ensure backup tools or agents are installed (Azure Backup, thirdparty agents) 

• Validate I/O throughput to avoid SUM performance bottlenecks during migration 

11. Validation & Health Checks

Before starting SUM: 

• Run OS validation scripts provided by SAP 

• Test Host Agent connectivity from the source system 

• Confirm network speed between source ↔ target meets SAP minimum requirements 

• Validate free disk space for SUM logs, dumps, and temporary directories 

Summary Comparison 

 

System Conversion – Data Migration Option to Microsoft Azure: 

 

 

 

The diagram illustrates a coordinated, tool driven, end-to-end migration path where: 

• The Customer sets direction and validates outcomes 

• Maintenance Planner creates a certified conversion plan 

• SAP CAL automatically provisions the Azure target landscape 

• SUM executes all technical conversion and database migration steps 

Together, these components create a standardized, repeatable, and automated path to move from SAP ERP on-premises to SAP S/4HANA on Microsoft Azure. 

 

Conclusion: 

The Database Migration Option (DMO) of the Software Update Manager provides a powerful and flexible framework for transitioning SAP systems to SAP S/4HANA whether through a classic system conversion, a new implementation scenario, or a selective data transition approach. Both DMO with System Move and DMOVE2S4 extend these capabilities by enabling migrations to new infrastructure or hyperscale environments while maintaining a controlled, SAP supported technical procedure. 

Regardless of which DMO scenario is selected, success hinges thoroughly preparing the target environment. Proper provisioning of infrastructure, operating system configuration, network readiness, SAP Host Agent installation, file system setup, software staging, and security alignment ensure a smooth and stable handover from source to target. These preparation activities minimize technical risk, reduce downtime, and enable SUM to execute migration and conversion with high reliability. 

By combining SAP’s proven migration tooling with a well-prepared target landscape, organizations can confidently modernize their SAP footprint, leverage hyperscale scalability, and move toward a future ready SAP S/4HANA platform aligned with cloud transformation strategies. 

 

Reference links:  

• SUM & DMO on SAP Help Portal: Software Update Manager | SAP Help Portal 

• SAP Note 2377305 – DMO: Database Migration Option: https://me.sap.com/notes/2377305 

• SAP Readiness Check: Integration Between SAP Readiness Check and SAP Cloud ALM | SAP Help Portal 

• SAP CAL Homepage: https://cal.sap.com/ 

• RISE with SAP Overview:  RISE with SAP | Transformation journey to SAP Business Suite 

• RISE with SAP S/4HANA Cloud documentation: https://help.sap.com/docs/RISE_WITH_SAP 
• SAP on Azure migration: SAP on Azure Migration – SAP Intelligent Enterprise | Microsoft Azure