Siemens Energy: Supporting a growing demand for greener energy with a future-ready, cloud-based IT infrastructure
Simplifying the IT landscape of a new carve-out
When Siemens Energy AG split from global technology leader Siemens AG, it needed a scalable IT infrastructure that would support a rapidly expanding customer base of companies looking for more-sustainable energy systems. The newly independent business deployed SAP Cloud ERP Private solutions, standardizing processes and simplifying the IT landscape.
| Industry | Region | Company Size | Partner |
| Oil, gas, and energy | Munich, Germany | 103,000 employees | Infosys Limited |
ERP instances now supporting business activities.
users worldwide so far, with plans to roll out to 35,000.
Lead Technical Architect, Siemens Energy AG
Energizing societies across the globe while supporting decarbonization
With approximately one-sixth of global electricity generation based on its technology, Siemens Energy AG operates in more than 90 countries across the energy landscape. With a mission to create a more sustainable world, the company is supporting companies and countries in reducing greenhouse gas emissions while making energy reliable and affordable. With research and development fundamental to its success, Siemens Energy invests around €1.2 billion in R&D activities each year and is committed to making energy reliable, affordable, and more sustainable. Its focus is aimed at addressing the challenges posed by the market-defining megatrends: growing electricity demand, decarbonization, digitalization, and decentralization.
Following a carve-out from parent company Siemens AG in 2020, the new company reevaluated the IT infrastructure it would need to support global leadership in the energy business going forward. Key requirements were to establish a future-ready, cloud-based environment that would enable Siemens Energy to take advantage of the latest technological advances while scaling quickly to keep pace with business growth. In addition, the company wanted to simplify its IT landscape by reducing the number of ERP instances it relied on and by standardizing processes.
Migrating to a managed, cloud-based IT environment
With SAP already established as a trusted partner of Siemens, Siemens Energy decided to base its new IT infrastructure on SAP Cloud ERP Private. As part of a RISE with SAP journey, the newly formed company began to migrate its legacy systems to the new solutions with help and guidance from SAP partner Infosys Limited. In addition, Siemens Energy used SAP MaxAttention services to safeguard the deployment and help ensure a smooth transition.
At the end of the transformation, 23 on-premises instances of SAP ERP Central Component will be consolidated into two greenfield instances of SAP Cloud ERP Private. One of these is already deployed, supporting operations for Siemens Gamesa, the wind power business that was recently merged with Siemens Energy. The other instance will support the rest of the company’s operations, with ongoing rollouts taking place in the next few years. To customize the solutions, the company used the ABAP Cloud development model on SAP S/4HANA Cloud Private Edition.
To help it define new processes as part of a drive toward standardization, the company used SAP Signavio solutions.
Saving time on IT maintenance while speeding up reporting
With SAP Cloud ERP Private deployed and the IT landscape simplified, time spent on systems maintenance has been drastically reduced for the IT team. Since SAP Cloud ERP Private is a managed software as a service, updates take place automatically, freeing IT staff to spend time on more strategic tasks. In addition, 24x7 monitoring by the SAP Enterprise Cloud Services team helps keep systems online and running optimally, enabling users to stay productive.
Meanwhile, finance teams are benefiting from consolidated group reporting that helps them prepare balance sheets faster across multiple business units, while the manufacturing teams gain flexibility from site-specific information. Replacing a complex, customized landscape that involved combining data from numerous SAP and third-party systems, standardized reporting functionality in SAP Cloud ERP Private provides up-to-date, company-wide balance figures.
Evolving the IT infrastructure to meet changing business needs
As well as bringing Siemens Energy increased system stability, SAP Cloud ERP Private also offers the flexibility to adapt to new business requirements. The company can scale up the solution quickly when needed to accommodate ongoing business growth.
Moving to a cloud-based environment has also made it easier to integrate other SAP solutions with SAP Cloud ERP Private. Siemens Energy is currently focusing on integrating SAP Ariba solutions to support spend management and SAP Concur solutions to manage travel expenses. Siemens Energy is also looking into deploying the SAP Business Data Cloud solution to improve data governance and quality across the organization to drive AI use cases.
By adopting standardized processes and adhering to side-by-side extensibility concepts enabled by SAP Business Technology Platform, Siemens Energy is taking a clean core approach. The company is using ABAP Cloud on SAP S/4HANA Cloud Private Edition to create on-stack extensions and SAP Build solutions to create side-by-side extensions. This will help it keep its IT environment future ready, with the ability to quickly take advantage of the latest technological innovations to gain a competitive edge.
Featured partner
One of the market leaders in next-generation digital services and consulting, Infosys Limited has 320,000 employees worldwide serving customers in more than 50 countries. The SAP partner provided Siemens Energy with project guidance and implementation support during its greenfield migration to SAP Cloud ERP Private.