Orange County Convention Center Orlando, Florida June 3-5, Architecturing the cloud for your SAP landscape Florian Stilkerich

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1 Orange County Convention Center Orlando, Florida June 3-5, 2014 Architecturing the cloud for your SAP landscape Florian Stilkerich

2 LEARNING POINTS What are the different types of Cloud Enterprise Architecture for Cloud Compare Cloud Deployment Models Cloud Architecture Scenarios On-premise Managed private cloud Hybrid Cloud Public Cloud (HR, CRM, Procurement) Cloud Integration is key

3 What are the different types of Cloud? Public Cloud (multi-tenant) Resources shared by multiple customers accessed via the Internet Self-service access and tools On the premises of the cloud provider, not customer Private Cloud Hybrid Cloud Public Cloud Private Cloud (typically single-tenant) Resources dedicated to one customer accessed through a Virtual Private Network (VPN) Owned, managed and operated by the customer, a thirdparty, or both On or off premises of the customer Hybrid Cloud Resources a mix of two or more distinct clouds Integrated by standardized or proprietary technology enabling data and application portability On-Premise Off Premise / Third Party Any mix of an On-Premise and a Cloud solution is referred to as a Mixed Environment, or simply On-Premise and Cloud *Source: National Institute of Science and Technology (NIST)

4 Cloud Computing Benefits Business Agility Pay-per-use Simplicity Flexibility Scalability Leverage cloud computing to focus on rethinking the way you run the business and evaluate the areas where cloud computing can help streamline processes and reduce costs through scalability, flexibility, simplicity and agility.

5 Comparing Cloud Deployment Models Customers Public Cloud Private Cloud Hybrid Cloud On-Premise (a.k.a. Managed Cloud) Firewall Multi-tenant App server in Datacenter Dedicated App servers in Datacenter Hybrid Customer Dedicated App server in Datacenter App server inside firewall Multi-tenant App server Performance Security Scales to customer demand Configurable; rapid time-tovalue Rapid innovation cycles with updates pushed to all endusers Data stored in vendor data center All customers share single instance Scales to customer demand More customizable Data stored in vendor data center Each customer has dedicated instance Scales to customer demand Broadest choice of applications Hybrid deployment transparent to end-user Data stored in vendor data center(s) Incremental fixed investment to scale Highly customizable Control of infrastructure Data stored on customer premise Cost Customer pays service subscription Vendor owns and bears cost of infrastructure and management Customer pays service subscription (typically higher cost than public cloud) Vendor owns and bears cost of infrastructure and management Customer pays service subscription Typically requires additional integration costs for customers Vendor owns and bears cost of infrastructure and management Customer pays for software license & maintenance and hardware Corporate IT manages applications and infrastructure

6 Cloud usage options On Premise Managed Public Cloud Managed Enterprise Cloud Software Defined Data Center Cloud for Projects SaaS Cloud for Envisioning & Demo IaaS Business process in the cloud Developer Cloud PaaS Inhouse private cloud Business network in the cloud

7 EA Framework for Cloud Architecture PLAN FORECAST Product Information Online Order Guides ORDER VEHICLE Incentive / Marketing Plan Updates Order Creation / Placement MANAGE INVENTORY Complete Sales Delivery Reporting Popular Configurations in MY Market Demand Sensing Sales Planning and Forecasting Allocation BEEST Portal Suppliers & Partners LOCATE VEHICLE Order Tracking / Inventory Management DELIVER VEHICLE Increased Integration with Partners INTEGRATION & ORGANIZATION RESPONSIBILITY Engineering Procurement Manufacturing Sales & Distribution Customer Service Supplier Collaboration Strategic Sourcing Operational Procurement and Inbound Logistics Time-to-Market New Product Development and Introduction Life-cycle Data Management Build-to-Order Supply-to-line Manufacturing Enterprise Asset Management Sales & Marketing Brand and Customer Management Vehicle Lifecycle Management Vehicle Planning & Forecasting Order-to-Delivery Enterprise Management & Support Customer Service Warranty Management Interaction Center Service Parts Planning Service Parts Execution Customers & Channels Upcoming business priorities? Value-add through cloud models? Governance and Change Management, Qualities Framework Which processes are affected? New operating model? To-Be Application Architecture Q2 05 Q3 05 Q4 05 Q1 06 Q2 06 Q3 06 Roadmap and adoption plan Security, bandwidth, SLA management Source: SAP usage of thethe OpenGroup Architecture Framework.

8 Cloud Transformation Roadmap Discover Prepare Implement Optimize and Expand How can cloud impact my SAP-basedbusiness? How do I move my SAP-basedbusiness into the cloud? How can I accelerate the cloud adoption? How can I optimize IT operations in the cloud? I am in the cloud but how do I extend? Business and Technology Innovation Roadmap Cloud Adoption Strategy TCO-efficiency Change Approach Process, data and system validation, optimization, and harmonization Transformation Blueprint IT Operations Efficiency Prepare Change System and Data Migration Onboarding and Integration IT Automation Enable and Coach QA, Safeguarding Cloud Based Operation Application Management Relationship Mgmt. IT as a Service Quality Measures Cloud-to-cloud Integration Seamless Real-time Operation and Analytics Business Outcome Management Learning Hub

9 Cloud Architecture Extend to public Cloud Achieve greater access to innovation, but expect minimal disruption to the Core Enterprise Business Software On-Premise Public Cloud Business Suite or SoH HCM CRM 1 Migrate individual LoB apps to Public Cloud (option to leave certain LoB capabilities On- Premise) SRM BW PLM / PP MM / SD FICO SAP HANA Cloud Integration (HCI) SFSF Cloud for Customer SRM 3 rd Party 3 Prepackaged integration with existing On-Premise apps through iflows SAP HANA Cloud Platform H

10 Cloud Architecture Managed Private Cloud Achieve real-time performance and lower operating costs, while leveraging existing investments in the Enterprise Business Software On-Premise HANA Enterprise Cloud Business Suite Suite on HANA HCM HCM CRM CRM SRM SRM PLM / PP PLM / PP BW MM / SD FICO BW MM / SD FICO SAP HANA Cloud Platform H 1 Migrate core apps to Suite on HANA

11 Cloud Architecture Hybrid Cloud Achieve greater access to innovation, real-time performance and lower operating costs, while leveraging existing investments in Enterprise Business Software On-Premise HANA Enterprise Cloud Public Cloud Business Suite HCM CRM SRM Suite on HANA HCM CRM SRM 2 Migrate individual LoB apps to Public Cloud from On- Premise or Private Cloud (option to leave certain LoB capabilities in Private Cloud) BW PLM / PP MM / SD FICO BW PLM / PP MM / SD FICO SFSF Cloud for Customer SRM 3 rd Party SAP HANA Cloud Platform H H 1 Migrate core apps to Suite on HANA

12 Move CRM capabilities to the Cloud Drive field engagement and sales effectiveness through social collaboration, in-context customer intelligence, real-time analytics, deal orchestration from prospect-to-pay and complete mobile apps 1 Enable mobile sales force to access, update, and capture information and collaborate while in the field Cloud for Sales 2 Connect Cloud for Sales with SAP CRM and/or directly to core ERP system(s) through HCP 3 Cloud On-Premise / Managed Cloud Leverage existing capabilities in SAP CRM (e.g., order management, warranty management, trade promotion management) Customer profiles, Quote, Order and Service SAP HANA Cloud Platform (HCP) 1 SAP CRM Requests for sales quotes and sales orders SAP ERP (1) SAP ERP (2) Customer profiles, Quote, Order, Service, Inventory, Product, and Pricing data 1 Integration using SAP iflows (Prepackaged Integration Content) with SAP HANA Cloud Integration and/or SAP NetWeaver Process Integration (PI)

13 Move HR capabilities to the Cloud Enable employee self-service, analytics and collaboration by consolidating disparate Core HR systems to a single, standard system of record 1 Migrate and/or consolidate legacy systems to single EC instance configured based on standard workflows Workforce Software Benefitfocus Kronos Employee Central Payroll Aon Hewitt Other 3 rd Party 3 Connect to 3 rd party solutions and services with SAP HANA Cloud Integration or open APIs 2 Cloud On-Premise / Managed Cloud Connect EC/Payroll with core ERP Financial system(s) through HCP Employee Org Structure SAP HANA Cloud Platform (HCP) 1 SAP ERP FI Financial Posting Active Directory Other FI Systems Other FI Systems 1 Integration using SAP iflows (Prepackaged Integration Content) with SAP HANA Cloud Integration and/or SAP NetWeaver Process Integration (PI)

14 Move Procurement capabilities to the Cloud Reduce prices from suppliers, improve compliance, increase process efficiency, and improve working capital 1 Enable procurement to discover new suppliers and negotiate best prices and terms in agreements (Ariba Discovery and Contract Mgt) 5 Take advantage of contracted payment terms and dynamic discounts (Ariba Discount Professional) Business Network Ariba Cloud POs Invoices 2 Provide employees consumer-like shopping experience and drive purchasing from pre-approved vendor catalogs with negotiated prices (Ariba Procurement Content) Private Cloud On-Premise / Managed Cloud Suppliers and materials added to vendor master SAP ERP/SRM Leverage existing purchasing workflows and rules in SAP SRM with out-of-the box ECC integration to the Business Network 1 Integration using SAP iflows (Prepackaged Integration Content) with SAP HANA Cloud Integration and/or SAP NetWeaver Process Integration (PI) 3 Clean invoices SAP HANA Cloud Platform (HCP) 1 Buyers 4 Suppliers Eliminate manual, paper-based, and complex point-to-point connections and reduce exceptions with PO automation and smart invoicing (Ariba Sourcing)

15 Integration is key to achieve Business Outcomes from Cloud As companies adopt cloud, real-time end to end business process integration is critical Customers have complex on-premise landscapes As customers adopt cloud solutions, hybrid landscapes will become a norm Integration across the boundaries of cloud and on-premise is a must to prevent application silos End-to-End Business Processes Market-to-Cash Source-to-Pay Recruit-to-Retire

16 Cloud integration options for SAP solutions As companies adopt cloud, real-time end to end business process integration is critical SAP HANA Cloud Integration technology iflows (prepackaged integrations) Open APIs and deployment choice

17 KEY LEARNINGS Choosing the right cloud architecture depends on the business priorities SAP provides prepackaged integrations within each public cloud solution. Consider a holistic cross-covering integration concept. Use the API s for direct integration in favor of iflows Use SAP s cloud middleware technology, either in the cloud or on-premise for the development of custom and extended integrations.

18 FOLLOW ME Florian de.linkedin.com/in/stilkerich/

19 THANK YOU THANK YOU FOR PARTICIPATING Please provide feedback on this session by completing a short survey via the event mobile application. SESSION CODE: 1010 For ongoing education on this area of focus, visit

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