Understanding SAP Hosting in the Cloud


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How will cloud computing impact your business?

In this session Symmetry’s hosting expert, Frank Powell will cut through the marketing hype to give you a clear overview of what cloud computing is and isn’t. Learn how cloud computing is being used in the world of SAP and what it really means for the future of your SAP environment.

• Unravel the technical differences between cloud models including public vs. private clouds and outsourced hosting.
• Discuss common terms and concepts in cloud computing.
• Learn about the SAP specific risks and benefits of the different cloud models.
• Get an overview of cloud-based solutions for SAP and determine their fit for your SAP environment
• Discuss integration challenges between SAP solutions and other cloud-based third party applications.

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Understanding SAP Hosting in the Cloud

  1. 1. Understanding SAP Hosting in the Cloud 1-2pm Central, Wednesday July 21, 2010 Frank Powell Chief Operating Officer
  2. 2. Download the presentation recording with audio from the Symmetry Knowledge Center www.sym-corp.com/knowledge-center
  3. 3. Symmetry Corporation Established 1996 21st Century ERP Model Based in Milwaukee WI Quality – proactive support 100% SAP focus delivered by US-based experts All SAP applications Accessibility – 24x7 direct access All platforms to your support team Affordability – highly competitive, fixed price contracts
  4. 4. Introducing Frank Powell Chief Operating Officer
  5. 5. Agenda The Cloud Computing Phenomenon Defining Cloud Computing SAP Products and the Cloud SAP’s 3 Layers of the Cloud Cloud Models Benefits and Risks What Does Cloud Computing Mean to SAP Customers? Questions to Ask Before Leveraging a Cloud Solution
  6. 6. The Cloud Computing Phenomenon Quick Cloud Statistics 44% of enterprises considering private clouds (IDC) Cloud computing services will reach that $222.5 billion market by 2015 (Global Industry Analysts) 82% of solution providers expect revenue increase with cloud/SaaS offerings (CRN State Of The Market) 20% of all businesses will own absolutely no IT assets come 2012 (Gartner)
  7. 7. The Cloud Computing Phenomenon Business Drivers 5% reduction in expenses can result in up to 45% increase in net income (SAPInsider/ASUG/SAP) IT Budgets = 66% for running the business, 19% for growing the business and 15% for transforming the business (Gartner) Overall IT mission to do more with less
  8. 8. SAP Hosting in the Cloud …or…
  9. 9. How Do You Define the Cloud? The Internet Is the Cloud
  10. 10. How Do You Define the Cloud? Cloud computing is internet-based computing, whereby shared resources, software and information are provided to computers and other devices on-demand, like electricity. en.wikipedia.org/wiki/Cloud_computing On-demand self-service internet infrastructure where you pay-as-you- go and use only what you need, all managed by a browser, application or API. Cloud computing is broken up into multiple segments including: Cloud Infrastructure, Cloud Platforms and Cloud Applications. (see "Cloud Pyramid") www.servepath.com/support/definitions.php Computing in “the cloud” may refer to a company's own network, but it typically refers to the Internet and the use of web browser-based or rich client applications. In these applications, the software comes from the web servers, and the data may be saved on the servers as well. http://h71028.www7.hp.com/enewsletter/cache/611914-0-0-225- 121.html?jumpid=em_di_417810_US_US_0_000
  11. 11. Definitions Multi-tenancy Multiple customers sharing the resources, database and application (like tenants in an apartment) Lock-in Refers to being “locked-in” to a cloud vendor’s architecture, configuration and requirements. Could lead toward monopolies by certain key vendors Private cloud An environment using the technologies of cloud computing, but managed internally On-premise Being physically located at the customer site
  12. 12. Definitions SaaS* Software as a Service – Applications on the Net that are generally sold per user by month IaaS* Infrastructure as a Service - Outsourced infrastructure in terms of servers, storage and networking CaaS Computing as a Service – Same as IaaS LaaS Landscape as a Service – Generic SAP specific landscapes that are hosted on a project or full time basis PaaS Platform as a Service – An IaaS configured for a specific purpose or development platform
  13. 13. Definitions Virtualization A logical (instead of physical) division of hardware On-demand Access to hardware, software or applications on an as-needed basis Consumption* Use of an application without regard to location of the core application or the access point SOA – Service Oriented Architecture Not specific to cloud computing An application development methodology based on building blocks of “services”
  14. 14. SAP Products and the Cloud Business Suite Traditional ERP products Symmetry traditionally supports ECC, CRM, PLM, SCM, SRM All-in-One Same NetWeaver based applications as Business Suite but with pre-configured clients supported by resellers with vertical solutions Packaged as ERP, CRM, SRM, BI Business Objects BI Known as Data Warehouse, then BW, then BI, then BW now Business Object BI BI still the data store Business Objects is the design/display environment Business One Smaller Windows only base ERP package Meant only for small businesses More of a competitor with Great Plains, Microsoft Dynamics, etc. Completely different than Business Suite solutions
  15. 15. SAP Products and the Cloud Business by Design True “cloud based” application completely re-engineered First version once known as A1S Still in Ramp-up – Supposed to be GA by end of July 2010 Contains ERP, CRM, Analytics and other functionality “Apps” on Demand (ie. CRM on Demand) Same applications as Business Suite, but hosted and provided at a per user per, month pricing model Simply marketed as cloud applications Other… xAPPS (xMII, xRPM, etc) Industry Solutions – Vertical solutions for major industries Duet – Microsoft Exchange Integration Crystal Reports Extensions – Connectors for 3rd party applications(Forms,Vistex, Opentext)
  16. 16. SAP’s 3 Layers of the Cloud Infrastructure Servers Storage Networking SaaS Application Software Consumption Use of the application Without regard to application location Without regard to user location or access technology
  17. 17. Cloud Models – Off Premise (Hosted) Model Very much like traditional hosting Leveraging technology Virtualization SAN technologies Fast broadband connections
  18. 18. Cloud Models - Off Premise (Hosted) Model Cloud
  19. 19. Cloud Models – True SaaS Model Subscription based Think SAP Business By Design Google Apps Third party applications (Fax or EDI) Architecture Completely hosted by vendor Shared with other customers Maintenance performed by vendor
  20. 20. Cloud Models - SaaS Firewall Cloud Business by Design SAP on Demand Apps Subscription Service Google Apps Pay per User by Month Salesforce.com Autotask
  21. 21. Cloud Models – SaaS (very near future) Firewall Cloud
  22. 22. Cloud Models – On-Premise and SaaS Model ECC at your site 3rd party products hosted by 3rd party Limit internal infrastructure Core applications Core competencies Controlled DR Leverage 3rd party expertise SAP On-demand products Fax EDI Google Apps
  23. 23. Cloud Models - On Premise and SaaS Model Cloud
  24. 24. Cloud Models – Off-Premise SaaS Model Hosted core systems ECC BW XI SaaS for 3rd Party Apps CRM on-demand Fax EDI No internal infrastructure Limited internal technical expertise WAN connectivity is key Bandwidth requirements Redundancy
  25. 25. Cloud Models - Off Premise and SaaS Model Cloud
  26. 26. Cloud Models – Network Design VPN MPLS T1 DS3
  27. 27. Cloud Model – Benefits and Risks Benefits Speedy deployment (the app, hardware, network should already exist) Vendor maintained expertise Leveraging the latest in technology Lower overall Total Cost of Ownership (or just Total Cost) On-demand resources and licensing Risks Multi-tenancy concerns – performance, availability Security – access, compliance, data Most apps today allow for limited customization Interfaces and/or interface development may be limited Less control over environment Time to enhancement modifications and patches
  28. 28. What Does the Cloud Mean to SAP Customers? What it is… Opportunity to leverage best TCO solutions for your organization Business opportunities: Prototype new application with little or no up front investment Dynamically grow resources as needed – On-demand Licensing by-the-drink The cloud has bridged the gap to allow access to applications anywhere Another tool in the IT belt to be used where appropriate What it is not… An end to current mainstream SAP architecture Complete replacement of your current landscape It is not a perfect fit for all situations or all customers A computing environment without issues
  29. 29. Questions to Ask Before Leveraging a Cloud Solution 1. What is your definition of Cloud computing? Make sure you and your team are speaking the same language first Be clear with vendors on your definition
  30. 30. Questions to Ask Before Leveraging a Cloud Solution 2. What are your business objectives? Determine your business objectives, then the goals and strategy that fit them Core applications Infrastructure 3rd party applications Business drivers Costs Expertise Location
  31. 31. Questions to Ask Before Leveraging a Cloud Solution 3. How will a cloud model impact your IT policies? Security GRC concerns (ITAR, PCI?) Multi-tenancy concerns Data security SLA’s
  32. 32. Questions to Ask Before Leveraging a Cloud Solution 5. How important is custom development/customization to your organization Does a cloud solution provide the required flexibility? 6. What interfaces must be accounted for? What requirements do you have? How often do they change?
  33. 33. Questions to Ask Before Leveraging a Cloud Solution 7. How do you calculate ROI? Infrastructure License fees Support/Maintenance fees Training Labor costs Upgrades costs Capital expense vs. lease or rent Over how many years?
  34. 34. Symmetry’s Cloud Offerings Traditional hosting Private cloud Rental systems CaaS – Computing as a Service LaaS – Landscape as a Service IaaS – Infrastructure as a Service
  35. 35. Summary Cloud computing is more of a market label and not a single unique technology Provides flexibility in deployment of new applications and should be a consideration for new needs Bridges a gap to permit application located anywhere to be accessed from anywhere Evaluate business requirements and ROI when investigating cloud based solutions
  36. 36. Download the presentation recording with audio from the Symmetry Knowledge Center www.sym-corp.com/knowledge-center
  37. 37. Frank Powell 414-732-2731 fpowell@sym-corp.com
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