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SAP ALM

Hybrid SAP ALM Architecture: Strategy for the 78 percent majority not running a pure cloud environment

A hybrid SAP ALM architecture manages SAP cloud and on-premise components within a consistent change process.
April 29, 2026
min Lesezeit
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What a hybrid SAP ALM architecture is and who needs it

A hybrid SAP ALM architecture is an ALM landscape that manages SAP cloud components and SAP on-premise components together, within a consistent change process, with a consistent audit trail, and under consistent governance. It is the structural answer to an equally hybrid application landscape in which S/4HANA on-premise, private cloud, public cloud, BTP, BW/4HANA, SuccessFactors, Ariba, and non-SAP systems are operated side by side.

In the DACH SAP market, this architecture is not an exception, but the rule. The DSAG Investment Report 2026 documents that 78 percent of DSAG members operate hybrid on-premise and cloud environments. Public cloud penetration is around 5 to 7 percent. 42 percent of 2026 investments are flowing into S/4HANA on-premise, 22 percent into private cloud, and 6 percent into public cloud. 54 percent of respondents still have ECC or Business Suite in their system landscape.

Hybrid architecture is not a stopover on the way to the pure cloud. For the majority of users, it is the target architecture. An ALM strategy that only recognizes cloud paths leaves 78 percent of DACH users underserved.

78 percent operate in a hybrid environment: the strategic starting point

The DSAG Investment Report 2026 provides the empirical basis. The figures: 64 percent of S/4HANA investments are on-premise or private cloud. The RISE share (public cloud) is marginal. 54 percent of the companies surveyed still have ECC or Business Suite in their landscape.

For the majority of DACH SAP customers, this means they are simultaneously operating legacy on-premise systems, new S/4HANA instances (on-premise or private cloud), SAP cloud solutions (SuccessFactors, Ariba, Concur), SAP BTP, and non-SAP applications. Each of these systems has its own transport mechanisms, release cycles, and change requirements.

An ALM designed only for S/4HANA manages only part of the landscape. An ALM designed only for cloud systems manages another part. Neither SAP Cloud ALM nor ServiceNow covers the entire hybrid operation out-of-the-box.

Comparison of architectural options for hybrid landscapes

There are four fundamental options for hybrid SAP ALM architectures:

Option A: SAP Cloud ALM as a central platform with third-party additions. Cloud ALM handles operations monitoring, ITSM, and parts of change management. Third-party tools are added to address functional gaps (transport orchestration, single-landscape CSOL, release cycles). Suitable for customers who want to stay close to SAP standards.

Option B: SAP Solution Manager (Extended Maintenance) as a bridge. SolMan remains the central ALM tool until Cloud ALM provides the missing functions. Paid extended maintenance is available until 2030. It buys time but does not solve the structural problem.

Option C: Third-party ALM as a central orchestration layer. An SAP-native third-party provider (Rev-Trac, ActiveControl, Solutive ESM Suite) handles transport orchestration, CSOL, release governance, and audit trails for all SAP components. Offers the most complete coverage for hybrid landscapes.

Option D: ITSM platform as an umbrella. ServiceNow handles change management, integrating with SAP-specific tools via connectors. Makes sense for companies that use ServiceNow enterprise-wide.

Why cloud-first ALM is not enough for hybrid customers

Functional gap accumulation. Cloud ALM has individual functional gaps (single-landscape CSOL, transport orchestration, release cycles). For a pure cloud customer, these may be tolerable. For a hybrid customer with parallel on-premise maintenance lines, they accumulate into a structural deficit.

The SolMan sunset problem. Anyone currently operating hybrid landscapes and ChaRM has until the end of 2027. Migrating to Cloud ALM alone is not a complete solution because it creates functional gaps. It works with third-party add-ons, but with increased complexity.

The regulatory problem. SOX, NIS2, DORA, and the EU AI Act require seamless audit trails for all systems. A hybrid landscape with a partial ALM process creates incomplete compliance. The uncovered part of the landscape lacks a reliable audit trail.

Landscape structure first, tool decision second

Landscape inventory as a starting point. Before any tool decision is made, the landscape must be inventoried: Which systems are being operated? What change mechanisms do they have? What dependencies exist? This inventory is the foundation for defining requirements.

Requirements matrix for hybrid architecture. The inventory results in a matrix: Which systems must be managed by the ALM? Which transport mechanisms must be supported? Which compliance requirements apply? Which functions are non-negotiable?

Tool selection based on the requirements matrix. Only after the inventory and matrix are complete is the tool selection made. For many hybrid customers, the answer will be a combination: one tool for transport orchestration and governance, another for ITSM and monitoring.

Migration path with explicit transition phases. Migrating from ChaRM to a hybrid target architecture is a process, not an event. Transition phases must be explicitly planned, with clear criteria for the completion of each phase.

Tool Landscape

Summary

In 2026, a hybrid SAP ALM architecture is not just a transition phase, but the target architecture for 78 percent of SAP customers in the DACH region. Cloud-first ALM is not enough for hybrid landscapes. Landscape inventory and a requirements matrix must come before the tool decision. The answer for many customers: one tool for transport orchestration and governance, another for ITSM and monitoring.

Autor:
Christian Steiger
Thomas A. Anderson