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Deploying SAP on Microsoft Azure is a powerful way to scale operations, improve flexibility, and optimize costs. But a successful migration isn’t just about moving workloads—it’s about doing it right. Whether you’re running SAP ECC or moving to S/4HANA, following best practices ensures stability, performance, and long-term value. Here’s a deep dive into the top 16 best practices to follow when deploying SAP on Azure.
1. Understand Your SAP Landscape Requirements
Before anything else, it’s crucial to understand exactly what your current SAP setup looks like and what your future needs will be. Think of this step as creating a detailed blueprint before building a house. Without it, the whole foundation of your Azure deployment could be flawed.
Assess Current Workloads
Start with a full inventory of your SAP systems—this includes production, quality assurance, development, and sandbox environments. Evaluate their computing, memory, and storage consumption. Look into peak workloads, system interdependencies, and performance bottlenecks. Are you running SAP on HANA or a legacy database? Do you have custom modules? These questions shape your Azure design.
Collect data on:
- CPU and memory usage trends
- Disk IOPS and throughput
- Network bandwidth and latency
- Application dependencies
SAP EarlyWatch and SAP Solution Manager can help monitor and generate insights to aid your evaluation.
Determine Compliance and Governance Needs
Your industry might have strict data residency or compliance requirements (like GDPR, HIPAA, or SOX). Azure supports compliance at scale, but you need to map those policies to your deployment plan. This could influence where your data resides (Azure region) or how you configure network security and identity management.
Collaborate with your security and compliance teams early. Define:
- Encryption standards for data at rest and in transit
- Identity access controls
- Logging and auditing requirements
By understanding the full scope of your landscape and compliance environment, you’re laying the groundwork for a resilient and scalable SAP system on Azure.
2. Choose the Right Azure Architecture
The second best practice is all about architecture. You wouldn’t use the same blueprint for a cottage and a skyscraper—so don’t use a one-size-fits-all model for SAP on Azure. This step ensures that performance and availability are aligned with your workload needs.
SAP-Certified VM Types
Azure offers a range of virtual machines (VMs) certified for SAP. Depending on your system size, you might choose from:
- Dv5, Ev5 Series: Ideal for application servers
- M-Series (Mv2, Mv3): Tailored for HANA database workloads
- NFS/Ultra Disk: For high-performance storage needs
Make sure to match your SAPS (SAP Application Performance Standard) requirements with the VM’s capabilities. Microsoft regularly updates its list of SAP-certified instances, so always check for the latest.
Availability Zones and Sets
High availability (HA) is non-negotiable for business-critical workloads. Azure provides several ways to ensure this:
- Availability Zones distribute resources across multiple physical locations in a region. If one zone goes down, others keep services running.
- Availability Sets help protect against hardware failures within a single data center.
Design your architecture using a combination of these methods so your system stays resilient even during hardware or data center failures. SAP Central Services, application servers, and databases should be properly segregated across zones/sets for optimal failover capabilities.
3. Engage Early with Key Stakeholders
Let’s be honest: technical migrations that don’t involve business teams early often hit a wall. That’s why this best practice focuses on communication and alignment.
IT Teams and SAP Experts
Get your IT architects, SAP Basis team, cloud operations, and infrastructure leads talking—right from the start. Everyone must understand the objectives, timelines, and constraints. If your SAP team doesn’t understand Azure, and your cloud team doesn’t understand SAP, it’s a recipe for misconfigurations.
Here’s what you should align on:
- Deployment timelines and key phases
- Responsibility matrix (who does what)
- Handover and maintenance processes
Business Unit Alignment
Equally important is involving business stakeholders—finance, supply chain, HR, or whoever owns the SAP modules. They know the processes inside out and can highlight dependencies or peak usage cycles (e.g., month-end closings or seasonal spikes). Their input helps prioritize systems, plan cutovers, and test functionality.
Transparent communication leads to smoother transitions, faster issue resolution, and more confidence across the organization.
4. Use Azure’s SAP Deployment Planning Tools
Why when Microsoft provide tools to help? Planning your SAP deployment is much easier with a suite of Azure tools built specifically for this purpose.
Azure Migrate and SAP Sizing Tools
Azure Migrate assesses your current infrastructure and gives right-sizing recommendations. For SAP workloads, it helps map on-premises performance metrics to suitable Azure VM sizes. You can simulate the costs, performance, and availability impact of your migration.
Pair this with SAP’s Quick Sizer tool. It uses inputs like the number of users, data volume, and transaction frequency to suggest optimal configurations for CPU, RAM, and disk.
Total Cost of Ownership (TCO) Calculator
Moving to the cloud isn’t just a technical decision—it’s a financial one. Microsoft’s TCO Calculator lets you estimate the full cost of your Azure deployment versus staying on-prem. It includes licensing, infrastructure, energy, and labour cost savings.
These tools take the guesswork out of the planning phase and enable you to make informed, data-driven decisions.
5. Prioritize High Availability and Disaster Recovery
Downtime is expensive—every second counts. That’s why designing for high availability and disaster recovery (HA/DR) is essential for SAP systems on Azure.
Leverage Azure Site Recovery
Azure Site Recovery (ASR) automates replication, failover, and recovery processes for SAP workloads. It ensures business continuity without manual intervention.
For SAP HANA, you can set up HANA System Replication (HSR) across regions and combine it with ASR for app-level redundancy.
Deploy Across Multiple Regions
For mission-critical SAP systems, don’t rely on a single region. Instead, deploy across primary and secondary Azure regions—Configure geo-redundant storage, load balancers, and DNS failover mechanisms to enable seamless redirection during outages.
Also consider:
- Automating failback procedures
- Regular DR testing
- Keeping backup and recovery SLAs well-documented
This approach gives you peace of mind that even in the worst-case scenario, your SAP system can bounce back fast.
6. Implement Strong Identity and Access Management (IAM)
Security isn’t just a checkbox—it’s a culture, especially when dealing with enterprise systems like SAP. Azure gives you powerful tools for managing identities and controlling access, but it’s up to you to implement them properly.
Use Role-Based Access Control (RBAC)
RBAC in Azure allows you to assign permissions to users, groups, and applications based on their roles. This minimizes the risk of unauthorized access to SAP environments and ensures that only the right people have the right permissions.
Here’s how to use RBAC effectively:
- Apply the principle of least privilege—only grant access to what’s necessary.
- Use resource groups to segment access to specific parts of your SAP infrastructure.
- Regularly review and audit access logs to catch anomalies or misuse.
Integrate Azure Active Directory
By integrating SAP with Azure AD, you can:
- Enable single sign-on (SSO) for SAP GUI and Fiori apps
- Enforce multi-factor authentication (MFA)
- Use conditional access policies based on device compliance or user location
This not only improves user experience but also strengthens security posture.
IAM might sound like a technical detail, but it’s one of the most critical aspects of a secure SAP deployment.
7. Automate Infrastructure with Infrastructure as Code (IaC)
Manually setting up SAP systems on Azure is not only time-consuming—it’s error-prone. That’s why automation through Infrastructure as Code is a best practice that pays huge dividends in scalability, repeatability, and speed.
Use Azure Resource Manager (ARM) Templates
ARM templates allow you to define your SAP infrastructure—VMs, storage, network interfaces, and more—in a declarative JSON format. This makes it easy to:
- Re-deploy identical environments (like dev/test)
- Track infrastructure changes via version control
- Enable automated provisioning in CI/CD pipelines
Microsoft also provides SAP reference templates on GitHub, which you can modify for your environment.
Leverage Tools like Terraform and Bicep
Terraform (by HashiCorp) and Bicep (Microsoft’s IaC language) are also excellent choices for deploying SAP on Azure. They offer cleaner syntax, modularity, and cross-cloud compatibility. Many enterprises prefer Terraform for multi-cloud strategies.
With IaC, you’re treating infrastructure like code—so you can test it, validate it, and reuse it. It’s the foundation of modern DevOps practices and a huge win for consistency and agility.
8. Monitor Performance and Set Up Alerts
A healthy SAP system doesn’t just run—it performs optimally. And the only way to ensure that is through continuous monitoring and smart alerting. Azure offers a rich suite of tools to give you real-time insights into your SAP workloads.
Azure Monitor and Log Analytics
Azure Monitor collects metrics and logs from every layer—compute, network, and storage. When integrated with Log Analytics, you can build dashboards, set thresholds, and get detailed diagnostics.
Key metrics to watch:
- CPU and memory usage of SAP VMs
- Disk IOPS and latency for HANA storage
- Network throughput and packet loss
Set up custom alerts so you’re notified when performance degrades, or anomalies occur—before users feel the pain.
SAP Focused Run or Solution Manager Integration
For enterprises using SAP Solution Manager or SAP Focused Run, you can forward telemetry from Azure to those platforms for a unified view. This is especially useful for hybrid deployments or centralized monitoring environments.
Proactive monitoring ensures you’re always one step ahead of issues—and when something breaks, you’re ready to fix it fast.
9. Optimize for Cost and Performance
Just because you’re in the cloud doesn’t mean costs manage themselves. Azure gives you flexibility, but it’s up to you to balance cost and performance. Without optimization, you might overprovision resources or underdeliver on performance.
Right-Size VMs and Storage
Start by analyzing usage patterns to avoid overprovisioning. You might find:
- Some dev/test systems are idle 80% of the time
- Peak CPU utilization is far below the VM capacity
In those cases, consider:
- Auto-shutdown for dev/test environments during off-hours
- Reserved Instances (RI) for consistent workloads (up to 72% savings)
- Spot VMs for non-critical batch jobs
Use Azure Cost Management + Billing
Azure provides detailed usage reports and budgeting tools. Set up:
- Budgets and alerts for different departments or projects
- Cost allocation tags for chargebacks and accountability
- Performance reviews monthly or quarterly
It’s not just about cutting costs—it’s about spending smart. Pay for what you use and nothing more.
10. Secure Data with Backup and Encryption
Data is the lifeblood of SAP systems. Whether it’s transactional records, financial data, or HR info—losing it is not an option. Azure offers a wide array of data protection mechanisms that you should bake into your deployment from day one.
Configure Azure Backup for SAP
Azure Backup supports:
- Application-consistent backups for SAP HANA
- Integration with Azure Backup Center for centralized monitoring
- Granular recovery options—from full systems to individual files
Schedule regular backups and test your restore process. Backups that haven’t been tested are just wishful thinking.
Enable Encryption Everywhere
By default, Azure encrypts data at rest using Storage Service Encryption (SSE) with Microsoft-managed keys. You can also use customer-managed keys (CMK) for additional control.
For sensitive environments:
- Use Azure Key Vault to store and rotate keys
- Enable disk encryption with BitLocker or DM-Crypt
- Ensure data in transit is protected with SSL/TLS encryption
Your SAP data is valuable—treat it like gold. Back it up, lock it down, and audit it regularly.
11. Design for High Availability and Disaster Recovery
When SAP is the backbone of your business, downtime isn’t just inconvenient—it’s expensive. Designing your deployment with high availability (HA) and disaster recovery (DR) in mind ensures business continuity and minimizes risk.
High Availability for SAP HANA and Application Layer
Azure offers native support for HA clusters:
- Use Azure Availability Sets or Availability Zones to distribute workloads across fault domains and update domains.
- Implement HANA System Replication (HSR) for database layer redundancy.
- For the SAP application layer, consider NLB (Network Load Balancer) or Azure Application Gateway to distribute traffic and reduce single points of failure.
These configurations ensure your SAP system keeps running even if a VM or data center experiences an issue.
Disaster Recovery with Azure Site Recovery
Azure Site Recovery (ASR) provides:
- Automated replication of SAP VMs to another region
- Failover orchestration and testing
- Minimal data loss and quick recovery times
Define Recovery Time Objectives (RTOs) and Recovery Point Objectives (RPOs) that align with your business needs. Then, test your DR plan regularly—because a plan that’s not tested is just a theory.
Designing for resilience ensures your SAP system can handle anything from hardware failure to full-region outages.
12. Enable Logging and Audit Trails for Compliance
Whether you’re in finance, healthcare, or manufacturing—compliance is a reality. From GDPR to HIPAA, every industry has data governance requirements, and Azure helps you stay compliant with robust logging and auditing tools.
Use Azure Policy and Blueprints
Azure Policy lets you enforce organizational standards:
- Restrict VM sizes
- Enforce storage encryption
- Require tagging for resources
Blueprints can bundle policies, ARM templates, and role assignments for consistent deployments across teams or environments.
Enable Activity Logging and Diagnostics
Azure automatically logs:
- Resource creation/deletion/modification
- User access and role assignments
- Security events and alerts
Use Azure Activity Log, Diagnostic Settings, and Log Analytics to aggregate this data. You can then create audit trails to meet regulatory needs or internal security policies.
Integrate with SIEM Systems
If you’re using tools like Microsoft Sentinel or Splunk, stream logs into those platforms for:
- Real-time alerts
- Threat detection
- Automated response workflows
Logging and auditing aren’t just about catching bad actors—they’re about proving to auditors (and yourself) that your SAP system is secure and under control.
13. Adopt DevOps for SAP Development and Transport Management
SAP development used to be a waterfall-heavy, manual process. But times are changing. With Azure’s integration capabilities, it’s now possible to bring DevOps principles to your SAP landscape.
Version Control for SAP Code
Use tools like Git to version-control custom ABAP code, workflows, or Fiori UI enhancements. This allows:
- Code reviews
- Branching strategies
- Rollbacks and traceability
CI/CD Pipelines for SAP Transports
Set up CI/CD pipelines using:
- Azure DevOps
- GitHub Actions
- Jenkins or similar tools
Automate:
- Testing in lower environments (QA, staging)
- Transport approvals
- Deployments into production
You can integrate with SAP CTS+, ChaRM, or even containerized pipelines for greater control and automation.
By bringing DevOps into SAP, you’ll reduce errors, speed up delivery, and increase collaboration between developers, QA, and operations.
14. Regularly Patch and Update SAP and Azure Components
Outdated systems are a security and performance liability. That’s why patch management must be a part of your regular operations for both SAP and the Azure infrastructure it runs on.
Patch SAP Systems with Minimal Downtime
SAP provides regular Support Packages (SPs) and kernel updates. Schedule regular maintenance windows and leverage:
- SAP Software Update Manager (SUM)
- Rolling updates in HA clusters
- Snapshot backups for quick rollback in case of issues
Keep a patch calendar and coordinate with business users to minimize disruption.
Patch Azure OS and VM Components
Use Azure Update Management to automate and monitor:
- Windows and Linux OS patches
- Third-party software updates
- Compliance reporting
This service integrates with Log Analytics, providing dashboards and patch status summaries across all VMs.
Neglecting patches is like ignoring a leaking roof—it might not hurt today, but it’s going to be a problem when the storm hits.
15. Align with Microsoft’s Well-Architected Framework
To ensure your SAP deployment is not only functional but also optimized for Azure, use Microsoft’s Well-Architected Framework (WAF). It offers a set of best practices across five key pillars:
1. Cost Optimization
Evaluate spending, use cost management tools, and eliminate wasteful resources.
2. Operational Excellence
Automate deployments, monitor systems, and continuously improve processes.
3. Performance Efficiency
Match workload demands with the right VM sizes, storage types, and configurations.
4. Reliability
Design for failover, test backups, and build self-healing infrastructure.
5. Security
Implement IAM, encryption, threat detection, and secure networking.
Each of these pillars helps you evaluate and improve your SAP-on-Azure architecture. The more aligned you are with WAF, the smoother your operations will be—both today and as your system scales.
16. Continuously Monitor, Optimize, and Evolve the Deployment
Deploying SAP on Azure is not a “set it and forget it” situation. Once live, your SAP environment should be treated as a living, breathing ecosystem that needs constant observation, tweaking, and improvement.
Implement End-to-End Monitoring
Use Azure Monitor, Log Analytics, and Application Insights to track:
- VM and storage performance
- Network latency and availability
- SAP application performance metrics
- Custom KPIs through integration with SAP Solution Manager
Enable Application Performance Management (APM) tools and integrate with Azure Sentinel for a complete security and performance overview.
Leverage Azure Advisor and Cost Management
Azure offers real-time recommendations via:
- Azure Advisor: Suggests VM resizing, right-sizing storage, and eliminating unused resources
- Cost Management + Billing: Helps track usage, forecast spending, and create budgets
Take advantage of Reserved Instances for predictable workloads and spot instances for non-critical batch jobs to reduce costs without sacrificing performance.
Adopt a Continuous Improvement Mindset
Schedule regular architecture reviews and include the following:
- SAP Basis teams
- Infrastructure specialists
- Security and compliance officers
Conduct performance tuning, security audits, and cost reviews at least quarterly. Use KPIs and SLAs to guide improvement efforts.
Continuous improvement isn’t a luxury—it’s the key to making sure your SAP on Azure investment delivers long-term ROI.
Conclusion
Deploying SAP on Azure offers unmatched scalability, flexibility, and innovation—but it also introduces new complexities. By following these 16 best practices, you’ll ensure your deployment is not only successful at go-live but also resilient, secure, and future-ready.
From planning your architecture and sizing VMs to implementing DevOps, securing access, and continuously optimizing, every best practice plays a role in your success story.
Whether you’re migrating SAP ECC, deploying SAP S/4HANA, or modernizing with SAP BTP, Azure provides the tools to get it done—smartly and securely.
