Benefits and Potential Drawbacks to Implementing SAP as a Hosted Solution; Run SAP Like a Factory Factory Controls

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1 8/24/12 Information Systems Audit and Control Association Silicon Valley Conference (ISACA SV) Benefits and Potential Drawbacks to Implementing SAP as a Hosted Solution; Run SAP Like a Factory Factory Controls

2 Agenda Run SAP Like a Factory Introduction Mark Richter, Founder and President About istreet Business Architecture, Governance, Risk, & Compliance ASAP Methodology Benefits, Controls, On Premise vs. Hosting Simple Functional SAP module solution initial output Technology Architecture; Options Bringing it all together; SSAE 16, SAP Hosting Audit SAP Solution Manager: ITIL Reports: SLAs & OLAs Contact Us: Follow, Like, or Connect. Well follow back Twitter Facebook facebook.com/istreetsolutions LinkedIn - linkedin.com/in/markgrichter

3 About istreet Offices in Sacramento, CA Enterprise data center in West Sacramento Metro Ethernet enabled: On net to over 9,000 building in N. CA Certified SAP Hosting Services Partner since 2005 Recertified in 2007, 2009, 2012 Primary Focus SAP, Microsoft, Oracle Managed Platform Services Private Cloud and Dedicated Servers Infrastructure (Colocation) Disaster Recovery

4 Business Architecture: Governance, Risk, & Compliance

5 Governance Management

6 Managed Platform Services For SAP All-In-One; On Premise or Hosted Business Suite Applications ERP / CRM / SRM / SCM etc. Operation Software OS / DB / SAP Basis Infrastructure Servers / Storage / Telco Customer Team Designs, Installs & Configures the application, Monitors & Maintains Customer Team or Hosting/Cloud Provider Designs, Installs, Monitors & Maintains Development - Test - Production For both new and existing installations!

7 Benefits of Hosting SAP on premise Control success of blueprinting, realization, go live, ongoing Have controls in place for governance, risk, & compliance Control IT, staff, SLAs, OLAs Use existing staff. Train or hire to fill gaps. Hire SAP specialists. Use existing or upgraded network, data center and IT. Procure new where needed. Have adequate budget for all support. Business Suite Applications ERP / CRM / SRM / SCM etc. Operation Software OS / DB / SAP Basis Infrastructure Servers / Storage / Telco Customer Data Center Customer Managed

8 Hosted on Provider s Cloud Platform Business Suite Applications ERP / CRM / SRM / SCM etc. Operation Software OS / DB / SAP Basis Infrastructure Servers / Storage / Telco istreet Sacramento CA or Remotely Managed on Your Platform Business Suite Applications ERP / CRM / SRM / SCM etc. Operation Software OS / DB / SAP Basis Infrastructure Servers / Storage / Telco Customer Data Center istreet Sacramento CA

9 Are Hosted/Cloud Management Services Right for You? Is standing up your Development, Test, and Production environments on your projects critical path? Providers experienced team can very likely do it faster Are you interested in reducing the Total Cost of Ownership of your SAP landscape? Provider leverages staff across multiple client landscapes Do you need to hire a new team to support your SAP landscape, or have trouble hiring and/or retaining skilled SAP professionals? Take that one off the table.let the Provider handle it Are you unhappy with the quality of service your SAP team provides? Find a Provider driven by relentless adherence to standardized processes and procedures to routinize all client work Are you under pressure to reduce or avoid altogether up-front capital outlays? Spread up-front costs over the life of your service agreement

10 Why SMBs choose hosting Hosted/Cloud Platform Management Solutions: Reduce time-to-market Lower Total Cost of Ownership (TCO) Industry analysts estimate 20-50% cost savings per user/month Free up IT staff for higher value-added projects Reduce risk during project implementation Provide scalable, flexible solutions that are easily adapted to changing requirements Reduce employee training at startup Run SAP Like a Factory

11 SAP Hosting Audit of Controls The Factory Audit Area # Controls SAP Service Portfolio 10 Skills and Certifications 12 Data Center 23 Network and Connectivity 8 Managed Backup and Disaster Recovery 22 IT Service Management Support Processes 23 IT Service Management Delivery Processes 16 SAP Application Hosting 25 Project Management 14

12 Managed Backup and Disaster Recovery Check Centralized backup infrastructure Fully automated redo-log backup Recovery tests done regularly Backup media retention time >= 28 days Maximum loss of productive data = 0 minutes (data is mirrored synchronously to a separate fire protection area) DR data center mirrored SAP systems across two DCs

13 IT Service Management Support Processes The Factory Monitoring and Control System SAP Solution Manager Check System monitoring integrated into Service Desk implemented with tool support Tool supported escalation management Defined standard service requests with a predefined procedure Service Desk, Incident Management, Problem Management, Change Management implemented with IT Service Management tool support Configuration Management integrated in ITSM tool

14 SAP Solution Manager

15 SAP Solution Manager

16 IT Service Management Delivery Processes Check Service Level Management implemented, SLA Reports, tool supported - covering all agreed SLAs Customer satisfaction surveys at least once per year Capacity, Availability, Service Continuity/Business Continuity Management implemented Company security policy available, Security Officer Internal & external security audits and vulnerability tests done regularly

17 SAP Solution Manager

18 SAP Application Hosting Check Automated system monitoring (ping, hard disk, CPU and basic network monitoring) Operation manual reviewed regularly, System landscape diagrams Automated SAP system monitoring (update tasks, tablespaces, short dumps,...) SAP EarlyWatch Alert activated for all productive systems SAP E2E Standards for Solution Operations implemented Usage of Run SAP Best Practices for Solution Operations

19 Monitoring SAP BASIS

20 SAP Solution Manager

21 Data Center Compliance Statement on Auditing Standards SSAE 16 SOC 2 Type II The istreet data center in Sacramento, CA is compliant with the American Institute of Certified Public Accountants (AICPA) publication on SSAE 16 auditing standards included in both the AICPA professional standards and in the Public Company Oversight Accounting Board (PCAOB) professional standards. Allows qualified customers to assess internal controls over financial reporting in accordance with Section 404 of The 2002 Sarbanes-Oxley Act and with the PCAOBs auditing standards.

22 SAP Hosting Monthly Reports Key Performance Areas SAP Application Performance Accomplishments Recommendations Service Change Order Summary Service Request Summary Incident Summary Call Center Summary System Outage Summary System Availability Application Outage Summary Application Availability CPU Utilization Memory Utilization Disk Utilization Total Landscape Disk Allocation Backup Status Non-Prime Shift Work Service Boundaries System Specifications

23 Conclusion Run SAP Like a Factory Contact Us: Follow, Like, or Connect. Well follow back Twitter Facebook facebook.com/istreetsolutions LinkedIn - linkedin.com/in/markgrichter

24 You concentrate on your business. Well concentrate on your SAP infrastructure. For more information contact: Or your local SAP Account Executive

25 Summary - Key Components Servers and Storage Dedicated and virtual servers, with either integrated disk or SAN storage, depending on the customers current and anticipated future requirements. Relationships with many of the leading enterprise-class hardware, operating system and database vendors ensure compelling price/performance solution irrespective of changes in vendor capabilities over time. Failover and Disaster Recovery Customer requirements for Recovery Time Objective (RTO) and Recovery Point Objective (RPO) for both localized and facility-wide failures drive many platform decisions.

26 Summary - Key Components Networks A variety of network connectivity solutions for your SAP users, ranging from VPN over the public network to private circuits to Metro Ethernet with customer-specific local domains. Solutions to enable business partner and public access to your applications are available. Production Operations The job doesnt end when the new system goes live there are a myriad of platform management tasks that require SAP-specific skills and expertise. These tasks include creating new clients to support training, installing software patches, monitoring performance, among others.

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