White Paper Outsourcing IT services and SAP operations: processes and interfaces.

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1 White Paper Outsourcing IT services and SAP operations: processes and interfaces.

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3 Contents. 1. Introduction. 2. Customer requirements. 2.1 IT needs to contribute to value creation. 2.2 Outsourcing as part of corporate strategy. 2.3 Renting rather than owning. 2.4 Advantages of outsourcing. 3. Shaping the outsourcing relationship. 3.1 Governance model and ITIL standards. 3.2 Designing an ITIL-compliant process landscape. 3.3 Joint teams from both companies. 3.4 High availability thanks to professional service and support. 4. Future-proof SAP operations. 4.1 Run SAP guarantees a systematic approach. 4.2 Outsourcing encompasses all aspects of IT operations. 4.3 SAP Applications Operations. 4.4 Virtualization of IT resources. 4.5 Data backup in virtual environments. 4.6 Monitoring. 5. Benefits and conclusions. 6. Table of sources and figures. 7. Glossary

4 1. Introduction. The decision to outsource all or part of an organization s IT operations to an external provider is influenced by soft factors more than almost any other business process. For one thing, outsourcing touches a nerve in terms of autonomy and security. And for another, the success of any outsourcing arrangement depends largely on the level of trust and cooperation between the parties. That is not to imply that outsourcing decisions are simply guided by gut feeling, without a formal evaluation. And transition to an external provider is not necessarily the end of in-house IT. Instead, it could be the beginning of a genuine, long-term partnership. The cost and efficiency benefits of outsourcing can be added up in dollar terms. And today, there are clearly defined, globally standardized processes for transferring and operating IT environments. When deciding whether to outsource their IT, however, some decision-makers are still dogged by uncertainties. These can easily be resolved with the right information. That is the aim of this White Paper. Chapter 2 describes the situation in which many CIOs find themselves and which prompts them to consider outsourcing. With every release, SAP solutions grow in complexity. In addition, business processes are becoming increasingly integrated. As a result, IT professionals need both an understanding of these processes and SAP-specific knowledge to keep their systems operating reliably. The scale of this task is ballooning, causing costs to blow out. However, external IT providers can deliver cost control and visibility into processes tipping the balance in favor of outsourcing. The financial terms and other provisions are set out in the proposal, black on white. Cost parameters, influencing factors and sizing criteria are equally transparent. Chapter 3 highlights the de facto standards and models that embed the contractual relationship in a binding, dependable framework. Joint teams from both customer and outsourcer, and effective knowledge transfer between the two, are key to building a relationship of trust. The technical level of transferring IT operations is the subject of Chapter 4. It explains how the transition and operation of SAP applications throughout their lifecycle is similarly broken down into manageable components. These processes also follow clear global standards, meeting the criteria of industrialized IT. Application management addresses the hardware level: data centers, networks, servers, and other physical components. It determines the parameters of technical operations, which comprises databases, operating systems, backup and restore. SAP Basis operations include monitoring, SAP Basis administration, support and recovery. All of this provides the underpinning for actual application operations and business processes. Last but not least, provisions for service and maintenance, emergency plans, and professional crisis management in case of disruptions and incidents of any kind are standard in all outsourcing contracts. This White Paper concludes with an overview of the benefits of SAP application management and a real-world example.

5 2. Customer requirements IT needs to contribute to value creation. Formerly, corporate IT was essentially technology-driven. CIOs mission was to deliver maximum performance to their internal customers by leveraging the best available technology and in-house resources. Cost efficiency was often achieved by paring back external resources. But now, IT decision-makers roles are undergoing a transformation: the focus is shifting away from the selection, procurement and management of technology. Rather, the modern-day CIO s primary responsibility is to provide an efficient, flexible IT environment that helps the organization to create value. IT decision-makers key tasks are to keep operating costs under control while at the same time ensure the IT landscape is ready for future challenges. On an everyday basis, CIOs need to meet their internal customers ever-changing and growing demands on a static budget, and maintain a reliable, cost-effective IT landscape. This involves a continual balancing act between cost pressures on one side and demands for greater productivity, stability and security on the other. The flexibility of (SAP) applications gives rise to further challenges: while this can solve many problems, it compounds the increasing complexity of structures and processes. Last but not least, IT chiefs need to be permanently on the lookout for technology trends that could be relevant for their organization in the future. This is not just trend-spotting: CIOs also need to know if and how these developments could be implemented. 2.2 Outsourcing as part of corporate strategy. Over the long term, no company can keep its IT landscape in ideal shape with simple technical upgrades alone. Rather, enterprises need to undertake functional extensions in step with the development of their business. However, many companies struggle to implement the steady stream of SAP projects at the speed required by upgrades. In addition, the solution needs to be highly flexible and fault-tolerant. Confronted by the many and diverse tasks and challenges surrounding IT operations, enterprises often find outsourcing a more attractive proposition than operating their SAP landscape in-house. Cost factors are another reason propelling IT decision-makers to make outsourcing part of their corporate strategy. 2.3 Renting rather than owning. IT decision-makers have an array of options when it comes to making SAP functionality available to their internal customers. These days, companies can choose to rent rather than own enterprise applications. By transferring their IT resources to a dynamic platform, they can benefit from scalable infrastructures, platforms and applications as a service via a network. One such example is T-Systems Dynamic Service offering. Virtualized resources are provisioned from a central pool. Enterprise users access these as they need them, through diverse platforms and networks. This draws on services provided over the company s own private network or a highly secure Internet connection. Companies no longer need to purchase and integrate all these components themselves. This frees up capital that can then be invested elsewhere in the organization (shifting from capex to opex). 2.4 Advantages of outsourcing. In conventional SAP operations, customers have to invest from the start in enough resources to cope with the expected maximum load. Models such as Dynamic Services, however, deliver scalable resources geared to users needs. The cost parameters and influencing factors are flexible from the outset. Another advantage of this model: Customers benefit from certified data centers offering ironclad security and robust availability of data and applications unaffordable for a company working alone. Enterprises expect outsourcing to boost transparency and deliver more IT performance for their money. But by teaming up with a certified service provider, CIOs can reap a host of additional benefits: Standardized processes and homogenized resources. Visibility into processes, IT service levels and costs. Greater innovation (new opportunities for development, easier access to new technologies). Resolution of problems and weaknesses, often thanks to innovative services, relieving the IT team. Shorter development cycles and deployment times, by reusing existing service modules. Reduced complexity and lower maintenance costs, by virtualizing systems.

6 By outsourcing their entire IT to a specialist provider, enterprises can safeguard their all-important business continuity: in the event of an outage or a disaster of any kind, critical business processes will be disrupted only briefly or not at all. That s because IT providers have professional emergency and crisis plans, backed up by redundant and highly secure infrastructure. Tracking the latest technology trends and challenges also motivates companies to outsource all or part of their IT. This is especially the case when the enterprise does not have the necessary knowledge, skills or resources in-house to implement these new technologies in the near future. The latest technology trends in the SAP space In-memory technology: Rather than being maintained in databases, information is kept in main memory. This speed-enhancing technology is leveraged by business intelligence products, for example. But it depends on the unlimited availability of cheap memory capacity. Pervasive connectivity: Integrating mobile devices such as ipads, iphones, Blackberries and other smartphones in business applications has a bright future. This is set to open up new business opportunities and create new target groups. Unlocking this potential requires the seamless integration of ERP systems with mobile apps and the availability of the necessary interfaces. Cloud computing: Cloud computing is about delivering IT infrastructure via a network, for example the Internet. Applications (software-as-a-service) or on-demand models can be accessed flexibly from the cloud. In the SAP space, core ERP functionality and related solutions could soon be provisioned this way. However, there need to be provisions in place to guarantee the confidentiality and security of critical business data. NetWeaver platform: SAP NetWeaver is a popular integrated platform for enterprise applications. SAP NetWeaver 7.3 enables companies to unite the above technology trends on a single platform. Thanks to improved flexibility, IT organizations can fulfill business requirements with greater agility. What s more, this brings increasingly complex software landscapes under control.

7 3. Shaping the outsourcing relationship Governance model and ITIL standards. If a company decides to outsource its IT operations, it will discover that professional service providers follow global standards when setting up an IT service organization. This governance framework specifies organizational structures, processes and procedures. Its purpose is to ensure high-performance, disruption-free IT operations. In addition, it promotes effective cooperation between the customer and service provider. To this end, the governance model defines the interactions between the parties, spelling out how the service provider delivers its IT services to the customer. This comprises: The organizational structure with all functions and roles. The decision-making process. Communications channels. The process for agreeing on innovations. The framework for collaborating with third parties. An effective (IT) governance model addresses all aspects of the interactions between the outsourcing customer and IT service provider. This clearly defines processes, structures, communications channels, and security policy issues relating to access and workflows. All of these processes are aligned with ITIL standards (IT Infrastructure Library see 3.2). At the beginning of the outsourcing partnership (the transition phase) the parties define the policies, workflows and tools for the management of the contractual relationship. This lays the foundations for productive communications, management and planning at a strategic, tactical and operational level. Governance model. Strategic level Customer Provider Management Board Tasks Definition and implementation of the corporate IT strategy Alignment with company strategy Responsibility Executive management ICT management Guidance and control level Steering Committee Management and monitoring of projects Identification of deviations from plan Where necessary, decisions about how to respond Mid-level ICT management Customer business management Service delivery management Innovation Board Identification and evaluation of new ICT solutions Innovation management Solution architect Project Steering Committee Transition & Transformation Management and progress monitoring of transition and transformation projects Identification of deviations from plan Where necessary, decisions about how to respond Project management Customer business management Service delivery management Service Level Service Management Office & Service Boards SLA management, order management, quality monitoring and reporting Customer business management Service delivery management Technology Board Evaluation of new technical solutions Solution architect, Service delivery manager Others as required Fig. 1.

8 The strategic level. All strategic aspects of the partnership are clarified at this level. A company that signs an outsourcing agreement obviously wants to be sure that its strategic business goals will be supported by IT services as effectively as possible. To this end, the IT service provider takes on certain strategic control responsibilities. The guidance and control level. This level addresses the business relationship between the parties and the management of IT services. This includes building trust and confidence, and managing conflicts. The implementation of jointly defined goals is another focus. The IT service provider plays a more significant role at this level, proactively upgrading processes and infrastructure, improving quality, and cutting costs. This includes activities such as capacity and availability planning, approval processes and organizational changes. The service level. The service level goes a step further. Its purpose is to ensure that the IT services and infrastructure are delivered and operated at the agreed service level. The focus is on technical aspects of service delivery and user support processes such as incident management, problem management and change management, plus cooperation between the operational teams. Another task is to establish a service management team responsible for issues such as reporting, invoicing, handling changes in scope of service or in service quality. 3.2 Designing an ITIL-compliant process landscape. To ensure the customer s critical business processes benefit from an errorand disruption-free IT landscape, the service provider aligns its IT service processes with ITIL. ITIL is a framework that sets out the processes, organizational structures, and tools required for the operation of IT infrastructure. These are based on best practices and interlink the technical and business aspects of the services. The current version of ITIL, V3, focuses on the service lifecycle. This consists of five phases: Service Strategy, Service Design, Service Transition, Service Operation, and Service Improvement, which is ongoing. Service Transition is particularly important for our purposes, as this phase describes how IT services are transferred to the auspices of the IT service provider. When choosing an IT service provider, companies should look for expertise in ITIL or for a service organization based on best practices. The following processes from the five phases of ITIL V3 should be integral to the provider s IT operations: Incident management Problem management Change management Configuration management Service level management Commercial order management Availability management Capacity management Continuity management Security management The customer organization is involved in all of these. This enables it to influence activities and ensures that its specific needs are met at all times. The result: the optimum in IT services for that organization.

9 Joint teams from both companies. Joint management teams with members from both parties offer an effective interface between the customer and the IT service provider. Taking the service organization as an example, the following shows the roles and responsibilities of the joint teams tasked with ensuring reliable delivery. Sample structure of a service organization. Service organization Customer Business Management Relationship management and requirement management Order processing and invoicing/contract management Escalation management/customer satisfaction Service Delivery Management Reporting and SLA management (improvement management) Management of the delivery organization and suppliers Escalation management and change management Escalation Operations Management Service delivery in line with the agreed scope and quality of services Technical solution delivery and operations Escalation management Fig. 2. The service organization comprises three sharply defined functions. At the enterprise level, customer Business Management has overall responsibility for the relationship between the customer and IT service provider. Operational services fall under the aegis of Service Delivery Management. Operations Management takes charge of all activities related to service delivery and oversees compliance with service levels in terms of deadlines, costs, and quality. At all three levels, these teams should be drawn from the ranks of both customer and provider. Customer Business Management. Customer Business Management provides a framework for collaboration between the customer and IT service provider. In more specific terms, this means maintaining relationships between employees on both sides and documenting their requirements and expectations. In addition, Customer Business Management handles everything from order processing to invoicing and general contract management. It monitors compliance with the service level agreements and is responsible for escalation management. Through regular personal contact, Customer Business Management gauges customer satisfaction and where necessary, takes steps to ensure it remains high.

10 Service Delivery Management. Service Delivery Management deals with operations and the provision of service on the ground. It is the central point of contact for all inquiries and requests relating to planning, managing and monitoring the outsourced services. Service Delivery Management oversees service-level compliance and is responsible for resolving faults and disruptions. Other duties include reporting on quality parameters and deadline compliance, and the continuous improvement of existing services and processes, as well as planning new ones. Operations Management. Operations Management works hand in glove with Service Delivery Management. Its responsibilities include complying with service levels, change and configuration management and the improvement of delivery processes. 3.4 High availability thanks to professional service and support. The IT service provider makes use of an extensive service and support infrastructure to provide the customer with disruption-free IT operations that meet the highest professional standards. Quality and performance parameters are defined in the service level agreement (SLA). This specifies the content and scope of the agreed services and when and by what means they are to be delivered. Depending on the customer s requirements, the SLA can define a range of service level classes that differ in terms of the specified response times and scope of services. Standardized SLAs are also available. A user help desk (first-level support) offers an additional interface with the customer. The user help desk receives queries and problem reports and logs them as trouble tickets. More complex queries and problems that could not be resolved by the first level are escalated to second level support. Any new solutions developed in response are entered in knowledge bases, enabling first-level support to profit from them. Particularly thorny problems that second level support is unable to deal with are forwarded to third-level support. This comprises specialists from the vendor and represents the highest level of escalation within the support organization. In an outsourcing relationship, it is the customer organization that formulates its business continuity requirements. In other words, it determines the level of service availability that the IT provider is obliged to deliver. To eliminate or minimize disruptions to key business processes even in critical situations, the IT provider establishes strong, effective disaster recovery and crisis management procedures. In addition, it develops a coordinated, documented, ready-to-go business continuity plan. This means that even if disaster strikes, the company is not faced with any existential threat. Internally, the IT service provider establishes its own IT service continuity management procedures (based on ITIL V3, Service Design), which describe precisely how the customer s business continuity requirements will be implemented.

11 4. Future-proof SAP operations Run SAP guarantees a systematic approach. IT service providers also follow standardized, transparent procedures for the technical aspects of implementing an outsourcing agreement. The Run SAP methodology facilitates the efficient planning, design, operation and further development of SAP applications. This framework enables technical and human resources, risks and costs to be managed in a systematic way. Run SAP supports the continuous improvement of an SAP solution throughout its lifecycle. The methodology specifies predefined processes and standardized procedures for operating mission-critical applications. It includes role descriptions for all participants, taking account of the interactions between them. In addition, it describes how to use the tools and services made available with Run SAP. To underpin the above, Run SAP exploits knowledge, experience and best practices from thousands of installations. Run SAP is based on the core management tool, SAP Solution Manager, a platform for application management and administration of SAP environments. The main components of Run SAP are SAP standards for solution operations and the Run SAP roadmap. The Run SAP methodology focuses on application management, business process operations and administration of SAP solutions. What s more, to enable end-to-end solution operations to be implemented successfully, it provides SAP best practices for processes, content, services, training and tools. It supports the whole product lifecycle: from design to implementation, to optimization of the SAP solution. Run SAP also shows how to implement end-to-end solution operations for a variety of SAP-software based processes. Roadmap to end-to-end solution operations. Enterprise SOA Readiness Assessment & Scoping Design of Operations Setup of Operations Handover into Production Operations & Optimization The first roadmap phase includes assessing the business and technical requirements and the governance model for the operations phase. In this phase, project participants develop concepts for various areas such as end-user support, change and application management, business process operations, and technical operations. The third phase of the roadmap concerns the implementation of the concepts developed in the previous phase. Success depends on a good working relationship between the contractual parties, and targeted knowledge transfer. This phase includes final testing, handover/acceptance procedures, and go-live. After the implementation stage, various support and management services provide ongoing assistance to the customer. Fig. 3. Run SAP is credited with the potential to enhance efficiency in SAP applications management, promote process reliability, and reduce operating costs in a sustained way. After all, it addresses functional, technical and organiza- tional factors. As a result, using a methodology like Run SAP makes an important contribution to the industrialization of IT: It enables the automation, standardization and industrialization of many different services with all the financial and quality benefits that brings.

12 4.2 Outsourcing encompasses all aspects of IT operations. The importance of standardized services for SAP applications operations becomes apparent when we consider the sheer complexity of the task: When an IT service provider assumes responsibility for SAP operations, its role is not limited to providing IT infrastructure like hardware, operating system, database and applications. A wide range of other services is required to assure stable operations and the transparent provision of functionality. The following diagram shows the complexity of SAP operations in the form of a comprehensive model: Simplified layer model for SAP operations. Vereinfachtes Schichtenmodell der SAP Operations 7 SAP Functionality Supporting Business Processes 6 Level-2 Application Management and Modernization and Level-3 Support, Problem Management, Change Management, Maintenance, Minor Changes AM&M 5 Version Control, SAP Application Operations Transport System, Interface Management, Authorization (Access Rights, Profiles, Users) 4 Performance Monitoring, Release Changes, Batch Job Management Basis Database Infrastructure DB Software, DB Admin and Tuning, Extension Management, Imports/Exports, Monitoring, Reorganization, Updates Operating System Operating Software, Backup & Recovery, Updates, Monitoring, Print Spooler, Performance, Connectivity, Security Hardware Platform Hardware, Hardware Installation, Cabling & Wiring, Hardware Maintenance Fig. 4. The layer model for SAP operations gives an overview of the services delivered to the customer. SAP Basis operations encompasses all computing activities around the provision and operation of SAP environments. SAP Basis operations will be described in greater detail in the next section.

13 SAP Application Operations. Layers 1 to 3 describe the infrastructure provided to the customer hardware, operating system and database including all services required to assure stable, secure operations. These include consulting, configuration, installation, startup and monitoring. Major tasks include server hosting, storage and database management. A basic prerequisite is that the IT infrastructure is operated on a standard platform open for all operating systems, which can be accessed quickly and securely via MPLS or Internet VPN. This applies to the end-to-end infrastructure racks, servers and processing capacity, including additional systems such as fire protection systems, backup power supplies and air conditioning systems. These infrastructure services are complemented by network services and security services, such as firewalls, intrusion detection and prevention, and virus scanning. Provision of SAP operations by an IT service provider is clearly structured and supported by binding definitions of service contents. Key aspects of fundamental importance to SAP operations by a provider are described in more detail below. The SAP Basis services in layer 4 are of elementary importance for smooth operations. They include performance monitoring and release changes, and are assured through the Run SAP methodology. Layers 5 and 6 represent application management and modernization, or AM&M. This includes determining which users with which rights and roles may access infrastructure; managing all interfaces; second- and third-level support; and tasks such as problem and change management. All of this underpins the functionality of the SAP environment that supports the company s business processes. 4.4 Virtualization of IT resources. An SAP system can be operated on a dynamic platform independently of a given infrastructure and side by side with other applications. For this purpose, the IT service provider makes available to each customer a dedicated, strictly separated VLAN. Conventionally operated systems and applications can be integrated just as easily. An application can be distributed across multiple servers, or multiple applications can run on a single server, for example. The advantage of dynamic provision is that IT capacity can be rapidly adapted to meet changing business requirements.

14 Virtualization of IT resources in an SAP application environment. SAP ERP Resource Pool SAP BI Resource Pool Test & Dev Resource Pool SAP HR System SAP ERP Cluster SAP Business Intelligence SAP Test & Development Systems SAP HR SAP ERP SAP ERP SAP CRM SAP BI Test & Dev Test & Dev Application Servers Windows Windows Windows 64 Bit Linux Linux Linux 64 Bit Windows 64 Bit 2003 Server 2000 Server Virtual Machine Virtual Machine Virtual Machine Virtual Machine Virtual Machine Virtual Machine Virtual Machine Virtualization software Application Servers Application Servers Application Servers Application Servers Application Servers Application Servers Virtualization layer Virtualization software Hardware layer Servers Servers Storage Storage Hardware layer Site 1 Hardware layer Site 2 Network Network Fig. 5. When an application is virtualized, it is no longer tied to a particular physical server, so it can be restarted on a different machine at any time. This allows system administrators to optimize server loads. All servers are combined into a computing resource pool and can be used by different applications as required. At the same time, the storage systems must also be virtualized so that all application data resides on a central file system and can be accessed by any allocated server. This is only possible if the network infrastructure fulfills certain criteria, such as security requirements, to reliably control access to the different zones in a virtual environment.

15 Data backup in virtual environments. 4.6 Monitoring. Data backup has a fundamental role to play in virtual environments. Data backup methods ensure that the application and its associated data can be restored at a later time. This may be necessary if the production data is damaged in some way, or if demanded by regulatory requirements. A backup plan documents what is backed up when and how often, which method is used, the physical storage location, and how long backups are retained. This means that the backup plan always contains the status quo respecting the content of backups, and is the lead document for performing data backups. All backup methods are designed to enable backed up data to be restored on other IT systems with suitable resources (hardware, operating system, storage, database version) and by means of standard tools. Another important task for SAP Basis operations is the effective, continuous monitoring of standard system processes and services. The goal is to enable administrators to proactively identify and resolve issues causing loss of performance before users of the service are materially affected. Four basic parameters are monitored: system availability, CPU load, memory utilization and storage/disk utilization. These parameters are monitored within the scope of system management round the clock, 365 days a year. To enable end-to-end monitoring, various components on the customer environment s servers are linked by means of a basic infrastructure. Offline reporting includes a standardized month-end report giving availability statistics for the customer s SAP environment. The report can be customized if desired. Online reporting can also be provided as an additional service component.

16 5. Benefits and conclusions. The role of IT within an enterprise has changed. While its main task hitherto was to provide suitable tools for supporting and enhancing business processes, it is now expected to make a far greater contribution to building and safeguarding a company s competitiveness. However, IT managers freedom of action is constrained on the one hand by cost pressures and on the other hand by the need to provide a secure, future-proof, and productivity-boosting IT environment. Making outsourcing part of the corporate IT strategy combines unbeatable IT efficiency with total cost visibility. At the same time, a systematic approach to setting up the service organization and transferring SAP Application Operations delivers both cost and technical benefits. This only applies, however, if the outsourcer has implemented standards, best practices, and guidelines such as the IT Infrastructure Library and Run SAP for ongoing application management of end-to-end solutions. As a rule, IT standardization reduces system complexity and administration costs. This basic principle delivers benefits to Dynamic Services customers, too: They enjoy reduced costs; simpler, more streamlined processes; and lower error rates. Thanks to their standardized interfaces, SAP modules are readily extensible. And through techniques such as virtualization, resource pooling and imaging technology, SAP applications are not tied to specific operating systems or hardware, ensuring vendor-independence. Pooling cuts operating costs, while an environment based around virtual application servers, with the automatic addition and removal of servers, allows an enterprise to scale resources up and down quickly and flexibly in line with fluctuating demand. The organization benefits from transparent costs and usagebased billing. Key advantages of SAP Application Operations. Speed. In today s tough economic climate, customers demand a modular, flexible offering that allows them to adapt system usage and the scope of services to current demand at short notice. Models such as Dynamic Services enable organizations to adjust IT resources and capacities in line with changing business needs within 24 hours. This is made possible through minimized delivery and provisioning times and faster restores. Flexibility. Shorter business cycles lead to increased competitive pressures and highly dynamic markets. Decisions (not only mission-critical ones) are taken faster and market and product lifecycles are shrinking dramatically. These developments are reshaping the customer-supplier relationship. SAP service providers help customers to master these challenges by accelerating the provision of systems and services. At the same time, providers are making complex SAP environments more manageable: they are meeting customer demands by making leading experts available quickly, and by using workflow tools for automatic provisioning and installation. The cloud computing paradigm enables organizations to align system utilization and the scope of services with their current business needs at short notice. That means scaling up capacity fast to handle demand peaks, and scaling it down again just as easily when the workload returns to normal. Data protection. When IT takes on a greater role in terms of value creation, IT security becomes a pressing and crucial issue. As the complexity of SAP environments rises, so, too, do the associated security risks. Leading-edge data backup techniques are designed to address this problem, and enable data to be restored on alternative IT systems with suitable resources and with the help of standard tools. Dynamic Services. IT service providers can offer their customers top-quality services at affordable prices thanks to Dynamic Services. They can set up system environments in the form of virtual machines flexibly, automatically and significantly faster than with dedicated hardware. There are versions of the Windows, Linux, AIX and Solaris operating systems available that come ready tailored to a dynamic platform. With the Dynamic Services model, the hardware is completely decoupled from the application logic, and the virtual machines are managed using the tools provided by the system environment. Live processes can be moved from one physical server to another without data or performance loss, which makes for high availability. The customer also benefits from a new billing model: the scope of services ordered in the agreement can be scaled up or down monthly even daily with SAP systems. This makes the customer able to respond flexibly to fluctuating capacity requirements due to seasonal effects, spikes in demand, year-end closing, and so forth.

17 6. Table of sources and figures Source Title SAP AG T-Systems T-Systems T-Systems T-Systems RUN SAP methodology: Method and standards for optimal operation of SAP applications. T-Systems Book. Service Delivery Management Book. T-Systems Book. Governance. T-Systems Book. Service Management Processes. T-Systems Book. Business Continuity. No. Figure Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Governance model. Sample structure of a service organization. Roadmap to end-to-end-solution operations. Simplified layer model for SAP operations. Virtualization of IT resources in an SAP application environment.

18 8. Glossary. Term Definition Business Continuity Business Intelligence Capex Escalation management ITIL Opex SAP Ticket User help desk Business Continuity describes the development and implementation of strategies, plans and activities to continue business operations in the event of a disaster. Business Intelligence describes methods and processes for the systematic analysis (collection, analysis and presentation) of data in electronic form. Its purpose is to gain knowledge that improves operational or strategic decision-making in accordance with corporate goals. Capital expenditure (funds used to buy or upgrade long-lived physical assets). Escalation management describes methods and processes for responding to escalations. The Information Technology Infrastructure Library a collection of best-practice documentation for IT service management. Operational expenditure: the costs of an enterprise s regular operations. SAP, headquartered in Walldorf, Germany, is Europe s leading software vendor and the fourth largest globally. Its core competency is developing software used to manage all of a company s business processes, such as accounts, managerial accounting, sales, procurement, production, warehousing and human resource management. (in the context of user help desks) A ticket is a record containing information about a problem or incident that has been reported to the help desk. Tickets are usually entered in a problem or incident management tool. Typically, user help desks (UHD) provide support to hardware and software users, but they can be employed to handle customer queries by service organizations of many kinds.

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20 Published by: T-Systems International GmbH Hahnstr. 43d Frankfurt am Main Responsible for content: IT/ICT Solution Marketing Outsourcing IT services and SAP operations: processes and interfaces (V1) November 2011 Contact: T-Systems International GmbH Holger Wächtershäuser Market Intelligence Hahnstr. 43d Frankfurt am Main, Germany T-Systems International GmbH Sibylle Becker IT/ICT Solution Marketing Moltkestr Konstanz, Germany

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