SAP, AI and Digital Sovereignty Why Companies Are Seeking Greater Control Over Cloud Infrastructure

SAP, Hewlett Packard Enterprise (HPE), and the evolution of hybrid cloud infrastructures are increasingly at the center of discussions about digital sovereignty in Europe. The topic is no longer limited to migration to SAP S/4HANA or ERP modernization, but extends to how much control organizations can retain over their data, infrastructure, and AI environments.

According to the analysis, more and more companies are questioning whether SAP Cloud ERP must necessarily run on global hyperscaler infrastructure, or whether there are alternatives that allow for a higher level of independence and control.

SAP expands its strategy with Rise Journey

In 2025, SAP enhances its cloud transformation strategy through the “Rise Journey” concept. Instead of a model focused mainly on migration to S/4HANA and a standard cloud approach, the new strategy emphasizes long-term transformation aligned with specific business goals.

The new model provides greater flexibility in terms of:

• timing of individual phases
• adaptation of the transformation
• options to change or exit a given model
  
  

This is particularly important for large organizations, where full migration to S/4HANA before the end of support in 2030 remains a significant challenge.

Challenges in S/4HANA migrations

According to the analysis, many companies are still at the early stages of their S/4 transformation. In many cases, organizations are not yet able to clearly assess the real impact on:

• costs
• processes
• functionality
• operational efficiency
  
  

An additional challenge is dependency on hyperscaler providers. Beyond software lock-in, companies are increasingly facing infrastructure dependency, which can limit their technological and organizational independence.

SAP Cloud ERP Private and the on-prem cloud model

As an alternative, SAP offers the SAP Cloud ERP Private model, Customer Data Center Option (CDC). In this model, SAP software runs in the customer’s own data center or in a chosen colocation environment.

Technologically, the system remains identical to cloud variants used by hyperscaler providers, but the organization retains physical control over:

• infrastructure
• data
• applications
  
  

This is considered an important factor in disaster recovery scenarios or when a change in cloud strategy is required.

HPE GreenLake as a hybrid cloud alternative

HPE GreenLake plays a key role in this model. The solution provides compute, storage, and networking resources “as-a-service,” but within infrastructure chosen by the customer.

SAP uses GreenLake as an on-prem cloud option for organizations that do not want to rely entirely on public cloud platforms. This allows companies to use typical cloud management and billing models while maintaining a higher degree of control over:

• infrastructure
• operations
• costs
• vendor choice
  
  

Real-world examples and infrastructure for SAP environments

An example highlighted is the Danish company Danfoss, which uses SAP S/4HANA through HPE GreenLake Cloud Services in its own energy-efficient modular data centers in Denmark.

The analysis also points to the role of Intel Xeon-based HPE servers, which are used both in hyperscaler environments and in private cloud and enterprise infrastructures for SAP services.

AI transformation increases complexity

Alongside ERP transformations, organizations are increasingly adopting AI solutions, which further increases the need for scalable and secure hybrid cloud infrastructure.

HPE positions GreenLake as a foundation for AI environments where workloads can run:

• in the organization’s own data center
• at edge locations
• in cloud environments

The company views AI as a hybrid and controllable service, rather than a solution fully dependent on public cloud.

Balancing innovation and control

According to the analysis, organizations face the need to balance the adoption of modern cloud and AI technologies with maintaining technological and economic control.

Topics around SAP transformation, AI infrastructure, and hybrid cloud strategies are increasingly becoming not just IT projects, but strategic decisions related to digital sovereignty and long-term business independence.