Adidas migrates to S/4 HANA in the cloud from AWS • The Register
Updated Adidas has chosen to upgrade its ERP system to SAP S/4HANA and move it to the cloud with AWS instead of using RISE with SAP, the lift-shift-and-transform service launched earlier this year. the German supplier was launched.
Seemingly unbeknownst to SAP, AWS confirmed it is now the sports brand’s preferred cloud provider for SAP workloads. Under the agreement, Adidas, which had sales of approximately $23 billion in 2020, will migrate its SAP environment to AWS and implement a modern SAP S/4HANA platform.
The press release said running these workloads in the cloud “would enable Adidas to digitize key business processes in its value chain to deliver better consumer experiences, become a more data-driven enterprise and support new business models such as direct-to-consumer.” ” .
“By committing to cloud infrastructure, we have the scalability and elasticity we need to handle the seasonality of our business during peak demand and support the projected growth in our e-commerce business in the coming years,” said Markus Rautert, senior vice president of Adidas. president, technology enablement, in a pre-canned statement.
“Deploying SAP environments on AWS isn’t just about transforming our technology – it’s about transforming business opportunities and leveraging AWS’s broad range of cloud capabilities to create efficiencies and bring us closer to consumers .”
SAP is eager to get its expansive on-prem ERP user base in the cloud, if only because subscription revenues offer higher margins. That’s his wish, it launched RISE with SAP at the beginning of the year, after SAP slashed its sales forecasts in 2020, wiping out its €28 billion worth.
The program promises to simplify migrations by “shaking one hand” customers behind which it would deal with third-party service providers.
It appears that the Adidas deal was closed outside of that arrangement, with no further comment from the sportswear brand, SAP or AWS.
According to analyst website AppsRuntheWorld, Adidas is currently running an ECC 6.0 environment, the last version of SAP’s ERP system before the in-memory system S/4HANA was released in 2015.
According to the information released, Adidas will benefit from AWS technologies that compete directly with SAP’s portfolio.
These include advanced analytics, data science, and business reporting. Adidas plans to build a cloud-based data lake on AWS to help it “gain visibility into its internal and consumer-facing operations to deliver new business and consumer insights.”
Adidas also plans to use Amazon SageMaker, a machine learning environment, to help developers and data scientists quickly build, train and deploy machine learning models.
The sports brand also plans to use AWS to run “complex workloads” for design teams around the world to “modernize 3D design capabilities at scale.” It hopes this will speed up the design and creation process, reduce costs and enable better collaboration with consumers and designers.
SAP has its own data lake technology in Data Lake IQ, as well as Leonardo’s analytics system and SAP Fiori machine learning environment. ®
Updated to add at 14:10 UTC November 23, 2021:
A SAP spokesperson told us: “Adidas and SAP share a long-standing and reliable partnership and both AWS and Adidas kept us informed of this announcement. As part of the SAP S/4HANA transformation, Adidas has decided to upgrade its SAP system. hosting infrastructure on a platform provided by the hyperscaler AWS.”