AWS Summit Berlin 2013 - Realtech - How to Determine the Economic Value of SAP in the Cloud

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How can my SAP landscape be optimized safely with distributed computing so that I can meet my business needs, reduce costs, and increase value? How can I formulate hard metrics that construct a SAP optimization strategy and roadmap custom fit to my organization?.
Speaker: Chris Kohlsdorf, Managing Director, Realtech Consulting GmbH

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AWS Summit Berlin 2013 - Realtech - How to Determine the Economic Value of SAP in the Cloud

  1. 1. Driving Value With ITAWS Summit 2013 BerlinHow to Determine the Economic Value of SAP in the Cloud02. Mai 2013REALTECH Consulting GmbHChris KohlsdorfManaging Directorchris.kohlsdorf@realtech.comwww.realtech.com
  2. 2. AgendaAbout REALTECHCurrent SituationToday‘s Challenges for SAP CustomersDriver A: Cost ReductionDriver B: Gain Speed & FlexibilityREALTECHs Cloud Methodology
  3. 3. About REALTECH* as of December 31, 2012REALTECH Consulting GmbH More than 340 employees* Global footprint More than 39 Mio. EUR inrevenues* SAP-specialists since our foundationin 1994 Headquarters: Walldorf/Germany
  4. 4. Our integration expertise is what makes REALTECH uniqueEducate Evaluate Implement Run & Change OptimizeSAP HANACloudSAP MobileSAP TechnologySAP Solution ManagerREALTECH Consulting GmbH
  5. 5. REALTECH & SAP - A valuable partnership ...... that benefits our customersREALTECHs consultants support SAP in the roll-out and ramp-up projects of importantSAP customers, which affords them the opportunity to develop early expertise. Ourconsultants are also involved in SAPs most cutting-edge projects, such as HANA orMobile. This gives REALTECH customers the benefit of an independent assessment of thelatest SAP solutions.We are a SAP Service Delivery Partner!REALTECH Consulting GmbHFirst RUN SAPPartner EMEA
  6. 6. REALTECH & SAP - A valuable partnership ...... that benefits our customersREALTECHs consultants support SAP in the roll-out and ramp-up projects of importantSAP customers, which affords them the opportunity to develop early expertise. Ourconsultants are also involved in SAPs most cutting-edge projects, such as HANA orMobile. This gives REALTECH customers the benefit of an independent assessment of thelatest SAP solutions.We are a SAP Service Delivery Partner!REALTECH Consulting GmbHFirst RUN SAPPartner EMEA&
  7. 7. NowOperations80%New IT20%Current Situation: The everyday „IT balancing act“REALTECH Consulting GmbH
  8. 8. NowOperations80%New IT20%FutureIndustrialization50%Innovation50%Current Situation: The everyday „IT balancing act“REALTECH Consulting GmbH
  9. 9. NowOperations80%New IT20%FutureIndustrialization50%Innovation50%Current Situation: The everyday „IT balancing act“Still and especially true for lots of SAP customersThe “Cloud“ might help…?!REALTECH Consulting GmbH
  10. 10. Usage of Cloud Computing in German businesses28%37%22%29%2011 2012In useUsage in discussionREALTECH Consulting GmbHQuelle: Cloud Monitor 2013 – BITKOM, KPMG, PAC26%45%65%20-99 100 - 1999 >= 2000Usage by company sizeNumber of employees
  11. 11. Concerns vs. real Risks  Before and after ProjectSecurity Availability Performance Cost StandardsConcerns#1 #2 #3 #4 #5Risks
  12. 12. Concerns vs. real Risks  Before and after ProjectSecurity Availability Performance Cost StandardsConcerns#1 #2 #3 #4 #5#4 #2 #5 #3 #1Risks
  13. 13. How hard is it to quantify your Cloud ROI on Business Requirements?REALTECH Consulting GmbH55%45%% of ResponsesEasy To QuantifyDifficult To Quantify
  14. 14. Are methods in place to measure ROI for your CC initiatives?REALTECH Consulting GmbH35%45%20%% of ResponsesYesNoUnknown
  15. 15. Do you expect your Cloud initiative to significantly impact one ormore business processes?REALTECH Consulting GmbH82%18%% of ResponsesNoYes
  16. 16. If yes, how prepared are you for these changes?REALTECH Consulting GmbH28%72%% of ResponsesNot PreparedPrepared
  17. 17. Some typical challenges for SAP customers / IT decision makersREALTECH Consulting GmbHReducecostReducecomplexityMove fromCAPEX toOPEXUnclear scopefor upcomingIT demandFast changingbusinessrequirementsProvisioningtakes toomuch time / isnot fastenoughNot enough(skilled)employeesFast changingIT know howTemporarilyneededsystemsM & A / Splits…
  18. 18. Some typical challenges for SAP customers / IT decision makersREALTECH Consulting GmbHReducecostReducecomplexityMove fromCAPEX toOPEXUnclear scopefor upcomingIT demandFast changingbusinessrequirementsProvisioningtakes toomuch time / isnot fastenoughNot enough(skilled)employeesFast changingIT know howTemporarilyneededsystemsM & A / Splits…
  19. 19. Cloud driver A: Reduce cost: Possible savings running SAP on AWS The overall 5-year TCO savings when running SAP on AWS ranges between 16% and 22%. The savings in the areas, where AWS has an impact on, range between 59% and 71%.Beyond lowering platform and operations cost, AWS turns infrastructure costs from being capitalexpenses (CAPEX) into variable operational costs (OPEX).This transfers the No.1 argument for using Cloud Services – flexibilty in adding and reducing capacity –to the business model.Based on benchmark data from our partner VMSSavings(5 years)vs. large ERP(on-premise)vs. small ERP(on-premise)vs. small ERP(outsourcing)vs. SAP All-in-One(on-premise)% savings in overall TCO 16% 18% 15% 22%% savings on items thatAWS has an impact on62% 63% 59% 71%
  20. 20. Individual savings on running SAP on AWS All SAP systems are different. And each SAP system is controlled by tens of thousands of parameters Your individual situation compared to best practices of more than 2,600 SAP systemsSavings up to 1.5 M€/yr using CloudSavings up to 3.2 M€/yr using CloudTCWO = Customer TCO without CloudTCW = Customer TCO with CloudBPWO = Best Practice TCO without CloudBPW = Best Practice TCO with CloudBased on benchmark data from our partner VMSEnvironment TCWO TCW BPWO BPW10 SAP systems:Three larger ERP, each with HR, CRM, BI, twoPortals, one APO, one SolMan4M€/yr2.8M€/yr3.3M€/yr2.3M€/yr4 SAP systems:One ERP, one HR, one BI, one SolMan2.2M€/yr1.6M€/yr1M€/yr0.7M€/yr16 SAP systems:Six ERP, two HR, two BI, one APO, threePortals, two SolMan5.6M€/yr3.5M€/yr3.1M€/yr2.4M€/yr5 SAP systems:One large ERP, one large HR, one BI, onePortal, one SolMan6.7M€/yr4.6M€/yr6.5M€/yr4.5M€/yr10 SAP systems:Three larger ERP, each with one HR, CRM, BI,two Portals, one APO, one SolMan3.3M€/yr3.3M€/yr4.1M€/yr3.1M€/yr
  21. 21. How to get there: REALTECH Cloud Benefit Assessment (CBA)REALTECH Consulting GmbH
  22. 22. Cloud driver B: Gain Speed & FlexibilityREALTECH Consulting GmbHDeliver / provide(new) ITservices / products …
  23. 23. Cloud driver B: Gain Speed & FlexibilityREALTECH Consulting GmbHveryfastat lowriskwithunclearutili-zationup- anddown-sizeableDeliver / provide(new) ITservices / products …
  24. 24. REAL Use Case: REALTECH Managed Afaria on AWS (MoDM Solution)REALTECH Consulting GmbHRapid deploymentNo on-site know how neededScalableNo infrastructureneededManaged and pre-configuredusing Best PracticesCustomizableVision for our customers:„Out-of-the-box Managed Mobile Device Management Solution“Flexible contract duration„Pay as you go“price model
  25. 25. REAL Use Case: REALTECH Managed Afaria on AWS (MoDM Solution)REALTECH Consulting GmbHRapid deploymentNo on-site know how neededScalableNo infrastructureneededManaged and pre-configuredusing Best PracticesCustomizableVision for our customers:„Out-of-the-box Managed Mobile Device Management Solution“RT Internal Goals: Fast go2market Ready to run in 24 hours No pre-investment ininfrastructure (reduce risk) „Pay as you go“ price model Increase and decreasecapacity and storage withinhours Focus on content of servicenot on underlyinginfrastructure Can be transfered into on-premise solution if neededFlexible contract duration„Pay as you go“price model
  26. 26. SAP Afaria on Amazon Web Services – Remote Managed ServiceIT InfrastructureCustomerSyncControlFull Managed Service&SupportSAP Afaria on AWSManage*Requires valid Afaria license from customer*
  27. 27. SAP Afaria on Amazon Web Services – Remote Managed ServiceIT InfrastructureCustomerSyncControlFull Managed Service&SupportSAP Afaria on AWSManage*Requires valid Afaria license from customer*
  28. 28. SAP Afaria on Amazon Web Services – Remote Managed ServiceIT InfrastructureCustomerSyncControlFull Managed Service&SupportSAP Afaria on AWSManage*Requires valid Afaria license from customer*
  29. 29. SAP Afaria on Amazon Web Services – Remote Managed ServiceIT InfrastructureCustomerSyncControlFull Managed Service&SupportSAP Afaria on AWSManage*Requires valid Afaria license from customer*Time2Market< 2 Months
  30. 30. Our Cloud Methodology …REALTECH Consulting GmbH
  31. 31. REALTECH´s RealCloud LifecycleREALTECH Consulting GmbHEducateEvaluateInnovateManageOptimize What is Cloud Computing? How does it align to your business objectives? What is the right cloud strategy? Cloud Roadmap Business Case - ROI Market Assessment Tech / APP Review Risk / Evaluation Project Planning Contract Preparation (RFI/RFP) Vendor Assessment Vendor Management Change Management Quality Management Risks Management Skills Management Post Implementation Review Measure, Monitor, and Re-evaluate Market Changes Upgrade or Overhaul
  32. 32. REALTECH Consulting GmbHSee you at the REALTECH booth B.06
  33. 33. SAP HANACloudSAP MobileSAP TechnologieSAP Solution ManagerDriving Value With ITREALTECHsystem consulting GmbHIndustriestrasse 39c69190 Walldorf• GermanyFon +49.6227.837.370Fax +49.6227.837.837Mobile +49.173.302.1820chris.kohlsdorf@realtech.comChris KohlsdorfConsulting Managerwww.realtech.comREALTECHConsulting GmbHIndustriestrasse 39c69190 Walldorf• GermanyFon +49.6227.837.370Fax +49.6227.837.837Mobile +49.173.302.1820chris.kohlsdorf@realtech.comChris KohlsdorfManaging Directorwww.realtech.com

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