Orica Transitions SAP Platform from Microsoft Azure to Google Cloud in Significant Cloud Migration
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Brief Overview
- Orica has transitioned its SAP S/4 HANA environment from Microsoft Azure to Google Cloud.
- This transition was prompted by performance challenges, cost optimization, and the potential for AI integration.
- The migration was finalized in a mere 83 working days with the assistance of Google Cloud Consulting and partners.
- Reported improvements include backup durations shrinking from up to 16 hours to just 20 minutes, and enhanced Fiori app responsiveness.
- Custom AI models built on SAP data have boosted sales forecast accuracy by 10%.
- Orica marks the inaugural Asia-Pacific company to undertake this specific SAP cloud migration.
Strategic Transition to Google
Reasons Behind Orica’s Decision
ASX-listed mining and infrastructure solutions provider Orica has implemented a significant alteration in its cloud strategy by shifting its SAP environment from Microsoft Azure to Google Cloud. The decision, made in early 2024, stemmed from the necessity for enhanced performance, cost savings, and improved capabilities in artificial intelligence and analytics.
As articulated by Rachael Sandel, Orica’s Group CIO, the shift followed a thorough review that coincided with the conclusion of several Azure reservations. This review uncovered performance issues in their existing SAP S/4 HANA configuration, particularly after the upgrade to the 2022 version. Despite refining the application layer, Orica faced ongoing issues that led to a reassessment of the underlying infrastructure.
Support Gaps and Infrastructure Limitations
Orica also encountered a significant lack of support when Microsoft discontinued its Premier Support, compelling the company to depend on a third-party provider. Unfortunately, this support was inadequate at critical junctures, raising concerns regarding business continuity and operational dependability.
Technical Enhancements Following Migration
Performance and Backup Improvements
The transition to Google Cloud markedly enhanced system performance. A resource-intensive task that previously required weekend execution now finishes 50% quicker. Additionally, the response times for SAP Fiori applications and S/4 HANA core have displayed considerable improvements.
Most notably, backup durations for the SAP environment diminished from a lengthy 6–16 hours to a mere 20 minutes. This significant reduction in recovery durations is vital for enterprise continuity and data safeguarding.
Standardization and Cost Reduction
Throughout the re-platforming process, Orica standardized its cloud tasks utilizing Linux-based instances, replacing its earlier mixed-server OS environment. This simplification assisted in lowering administrative burdens and led to recurrent cost savings.
“We’ve succeeded in achieving ongoing sustainable savings through rightsizing and our relationship with Google Cloud,” stated Sandel.
AI-Driven Evolution Utilizing SAP Data
Unlocking AI and Analytics Capabilities
With its SAP data now residing on Google Cloud, Orica has incorporated Google’s AI platform to create an intelligent data repository. Initial findings indicate promising potential to harness machine learning for predictive analytics, especially within supply chain and demand planning frameworks.
In North America, Orica has already implemented a bespoke AI model trained on SAP data. This model employs 50,000 machine learning models to predict demand for every SKU combination. The outcome? A 10% enhancement in sales forecast accuracy — a significant advantage for inventory management and revenue assurance.
Plans for Global Expansion
While this AI project is currently confined to the North American landscape, Orica intends to expand these capabilities worldwide as part of its extensive digital transformation strategy.
Migration Complexity and Considerations
Selective Application Migration
Sandel cautioned that not every application was migrated to Google Cloud — a tactical decision based on risk, expense, and integration complexity. Each workload was appraised individually to guarantee feasibility within the tight migration timetable.
The migration endeavor, accomplished in just 83 working days, involved Orica’s own teams, Google Cloud Consulting, and partners such as Accenture, LTIMindtree, and Cognizant.
Conclusion
Orica’s transition from Microsoft Azure to Google Cloud for hosting its SAP S/4 HANA environment signifies a pivotal phase in the company’s digital progression. Driven by the demand for enhanced system performance, better support, and the opportunity to harness AI capabilities, the migration has already realized concrete benefits. With dramatically reduced backup times, optimized resource-intensive processes, and AI models delivering actionable insights, Orica is pioneering modern enterprise IT transformation in the Asia-Pacific region.
Q&A Section
Q: What prompted Orica to relocate its SAP environment from Azure to Google Cloud?
A:
Orica transitioned its SAP environment due to performance challenges, cost factors, insufficient support from Microsoft, and the ambition to utilize Google Cloud’s advanced AI and analytics functionalities.
Q: How much time did it take to migrate to Google Cloud?
A:
The re-platforming project was finished in 83 working days, involving Orica’s internal teams and partners like Google Cloud Consulting, Accenture, LTIMindtree, and Cognizant.
Q: What improvements has Orica witnessed since the migration?
A:
Notable enhancements include a 50% reduction in duration for resource-intensive jobs, quicker response times for SAP Fiori applications, and a dramatic decrease in backup times from up to 16 hours to merely 20 minutes.
Q: What is AI’s role in Orica’s new cloud setting?
A:
Orica is employing Google Cloud’s AI platform to construct and implement tailored machine learning models for demand forecasting, achieving a 10% increase in sales forecast accuracy in North America.
Q: Did Orica migrate all applications to Google Cloud?
A:
No, not all applications were transitioned. Each system was assessed based on cost, risk, and technical intricacy, and only feasible systems were moved in this migration phase.
Q: Is Orica considering global expansion for its AI initiatives?
A:
Yes, following initial success in North America, Orica plans to extend its AI-powered forecasting and analytics solutions globally.
Q: How has this migration affected Orica’s operating expenses?
A:
By rightsizing and streamlining its infrastructure on Google Cloud, Orica has achieved ongoing cost savings that are anticipated to continue over time.
Q: What significance does this migration hold in the APAC region?
A:
Orica stands out as the first organization in Asia Pacific to transition its SAP S/4 HANA environment from Microsoft Azure to Google Cloud, paving the way for similar enterprises contemplating cloud modernization.