ERP IN THE CLOUD IT S THE RIGHT MOVE

Transcription

1 ERP IN THE CLOUD IT S THE RIGHT MOVE

2 Table of Contents Learn More i

3 Cost High total cost of ownership (TCO) of ERP Over-provisioning of resources Capital-intensive implementation Infrastructure and run-and-maintain staff support Complexity High performance requirements for availability, bandwidth and latency Extensive integration requirements Exponential growth and expectations of mobile users Need to respond to rapidly changing business requirements to add new modules and functionality, or upgrade to new software release Volatility of capacity requirements TCO for ERP Software license and maintenance fees Hardware costs, including maintenance, heating, cooling, power and data center footprint Skilled ERP IT staff for run-and-maintain support, including patching, backup, monitoring and disaster recovery 1

4 Cloud enables a new operating model for IT one that is more agile, flexible and scalable. What is driving cloud growth? Business demands for faster innovation, rapid response to market changes, and a move from heavy capital to lighter-weight variable-cost operating expense models. In a traditional operating model, IT struggles to meet business demands. Between 70% and 80% of IT budgets are spent keeping the lights on, constraining investment for new initiatives to grow revenue and compete more effectively. Application release cycles are not fast enough. Core ERP applications are aging; maintenance is high. Cloud as the technology having the greatest impact in IT in Organizations using hybrid cloud in Organizations running production applications in the cloud 2 Percentage of Respondents 47% 49% 45% 1 Enterprise Management Associates, Hosting and Cloud Study 2014: Hosting and Cloud Go Mainstream, 451 Research Business requirements driving cloud adoption Accelerate time to develop, implement and modify applications Respond more quickly to business requirements Eliminate the barriers to experimentation Remove capital investment hurdles for new initiatives requiring IT support Improve ability to respond to changing demand for IT resources Reduce waste of idle resources Eliminate cost and business risk of inaccurately forecasting demand Respond to the needs of mobile users We ve gone from spending 50% of our operating budget on infrastructure to just 26%. A nearly 75% investment in apps and information rather than infrastructure that s huge. Michael Harte, CIO of CBA, Wall Street Journal Cloud-empowered enterprises reduce their spend on infrastructure and redirect savings to upgrading and developing applications. SAP CEO Bill McDermott on why SAP is moving to cloud: Because it offers instant consumption, instant innovation, and helps companies grow. Washington Post 2

5 Security, Regulatory and Compliance Choose a cloud provider that meets the enterprise security need for production applications Select a virtual private or private cloud service and resource segregation to meet security or compliance needs Ensure you are able to contractually specify the region/country where your data is stored Implement a multiprotocol label switching service (MPLS) virtual private network (VPN) to provide quality of service (QoS) enforcement Require easily accessible security reports on the cloud environment, including vulnerability alerts, intrusion detection events, monitoring of access controls and firewall rule sets Reliability and Operational Performance Select an industry-recognized, SAP-certified cloud provider Review SLAs, performance track record and resiliency of underlying infrastructure when selecting your cloud provider Address latency issues by selecting a private cloud service deployed at your data center for applications that must remain on site Ensure backup and disaster recovery (DR) capabilities are available for your production environments Consider the advantages of single-source support for cloud migration, cloud infrastructure and management Top 6 Inhibitors for Considering Public Cloud Services Security concerns Regulatory or compliance issues Reliability concerns in terms of service availability cloud cannot support the operational/performance requirements of critical applications Immaturity of cloud it is a new technology IDC Cloud Tracker Survey, October, 2013 Governance and Integration 35.3% 32.9% 32.3% 31.0% 30.7% 49.0% Percentage of Respondents Choose a cloud management platform that provides blueprinting ERP landscapes and enables acceleration of the release management lifecycle Support integration with legacy environments and transitioning to cloud in stages by choosing a provider that can manage both cloud and legacy ERP environments 3

6 Become More Agile Rapidly expand or modify business operations Speed ERP deployment and release Reduce total time to implement IT tasks/activities Spin up ERP instances to handle testing waves; rapidly refresh and test development retrofit Simplify integration and eliminate data silos Deliver access from anywhere Cloud Acceleration Opportunities Occurrence Frequency Service Pack Release Functional Enhancement Major Release Upgrade New ERP Module Implementation Technology Change (SAP HANA, Mobile) Merger, Acquisition, Divestiture New ERP Implementation Rapid scalability enables IT to support the business in responding to market challenges and opportunities. The scalability of a Cloud Utility Service provides expansion and contraction of IT resources as needed including professional resources providing basis support. With cloud, additional landscapes to support expansion or respond to an acquisition can be added on demand. Reduction in the cycle time or elapsed time to complete IT ERP tasks in a cloud environment provides the ability to release enhancements more rapidly, implement a new ERP system or upgrade to a new release quickly. How much faster? For a high tech manufacturer, IT tasks in an SAP environment were completed 2 to 10 times faster in a cloud infrastructure utility. Elapsed Time Comparisons Traditional and Cloud Environments New Environment Landscape Clone System Clone Implementation Time System Refresh DR Failover Test Cloud IU for SAP Traditional Infrastructure Elapsed Time in Days Based on experience of a global information systems company 4

7 Improve forecasting and budgeting Eliminate or reduce capital investment requirements Reduce time to restore SAP systems Pay on consumption basis Speed patch management process Unpredictable business requirements often lead to under-utilization. To avoid the business risk of insufficient resources, ERP environments are often over-provisioned and under-utilized in a traditional ERP environment. The time required to gain additional approval, source, and add resources exacerbates this behavior. Cloud enables right sizing of overall infrastructure, eliminating over-resourcing due to inaccurate forecasting and cushioning the requirements to avoid business risk. With cloud, infrastructure is scalable and consumption based. Some providers also deliver skilled resources to provide ERP run-and-maintain support based on usage. Based on the ERP system, moving to the cloud can either minimize or eliminate upfront capital investment. An OPEX-based delivery model with increased ROI improves the payback period and allows initialization of more initiatives with a much lower business risk profile. An effective patch management process, consistently implemented, is available when required with a managed infrastructure utility service. Patch management reduces business and operational risk. 5

8 Doing more with less continues to be a mandate for IT. fits the bill. IT remains under pressure to reduce spending by 40% to 60% over the next 3 to 5 years and fund new IT projects using savings from existing IT costs. The Cloud Cost Advantages Improve overall operational efficiency; spend less time on critical IT tasks Reduce waste of underutilized resources Scale up or down on demand as business requirements dictate Lower costs with platform standardization Optimize ERP run-and-maintain costs Leverage shared infrastructure resources New Environment Landscape Clone System Clone System Refresh DR Failover Test Based on experience of a global information systems company Cloud IU for SAP Traditional Infrastructure The Cloud Advantages Managed Enterprise Cloud Infrastructure Utility provides the use of a preconfigured and managed stack of IT resources. Multiple instances of an identical infrastructure can be delivered on demand with the cloud. Test and development environments can be delivered only on an as-required basis, avoiding the cost of under-utilized assets. Migration between staging and production becomes seamless. Unlike typical traditional deployments of ERP that do not fully utilize systems, cloud improves resource utilization and reduces wasted space, energy and maintenance support costs. A true cloud utility service also includes scaling of run-and-maintain services. Using a leading electronic and information company s experience, when compared to a traditional environment, the total effort of building a new environment in a Cloud IU for SAP environment was reduced by a factor of 4, and cloning a landscape was accomplished in 11% of the time required in a traditional environment. Less effort equates to lower cost, and the ability to deploy resources on higher-value activities. IT unit costs improve through an OPEX-based model. 6

9 Moving to the cloud with ERP drives innovation and supports transformation to a new business operating model. When is the right time to migrate your application to the cloud? The advantages are clear; the time is now. To develop your business case for migration, review business and IT events that will compel action, such as: Replacement of an aging core ERP system that is out of support or running on legacy, old technology platforms such as mainframes Upgrading to a new ERP version or extending an ERP platform to support additional application areas Supporting a merger or acquisition that requires integration Consolidation of multiple instances of ERP across the enterprise Divestiture that requires organizational segregation Adoption of DevOps methodology and processes Geographic expansion Data center consolidation 7

10 SAP Delivery Excellence, Application Expertise, Security Foundation SAP Global Partner, certified SAP cloud service provider Almost 8,000 SAP consultants and more than 2,000 implementations worldwide Security ingrained in our processes, our tools, our solution and our culture Recognized as a Cloud IaaS Leader by Gartner for 3 consecutive years End-to-End Service Provider SAP consulting services to implement, upgrade or consolidate SAP management services to bring efficiency and predictability to SAP environments Cloud services to jumpstart adoption, shape your strategy and develop a roadmap Technology and Service Delivery Innovation On- and off-premises models billed as a service Complete managed service packages Worldwide partnerships with leading technology companies, including SAP, VCE, EMC, Cisco and VMware 8

11 Private cloud continues to be the most prevalent cloud model for ERP production applications. The do-it-yourself (DIY) private cloud can take 6 10 months to build, minimally 2 months to get through capital procurement and $6M to $8M of upfront cost. Often, it is missing the software and processes required to provide a self-service, on-demand infrastructure. CSC BizCloud Private cloud billed as a service from a standard rate card Ready for deployment in as little as 10 weeks Deployed from the customer s choice of premises Combines the privacy, security and control of a private cloud with the elasticity and convenience of a public cloud Streamlines access, provisioning and administration of private cloud resources Aligns cost with use CSC CSC BizCloud Virtual Private Edition (VPE) addresses multi-tenancy cloud concerns by providing dedicated compute, dedicated LUN storage, VLAN separation, a dedicated network switch and a dedicated vsphere Cluster. The Build-It-Yourself Private Cloud Alternatives from CSC Reduce Risk Preserve Capital Increase Agility and Flexibility Standardize Global Delivery Build Your Own Private Cloud CSC BizCloud On-Premises Solution 4 4 Managed Risk and Security Capital Expense 4 CSC BizCloud VPE Operating Expense 4 4 Elasticity Dial Resources Up and Down Pay as You Go with Standard Rate Card Chargeback Capability 4 4 Fully Managed Orchestration Capability $$$ 4 4 Service Catalog $$$ 4 4 Self-Service Provisioning Portal Standard Operating Environments Monitoring and Management (Infrastructure and OS) Single Contact for Support and Maintenance $$$ extended timeline $$$ higher costs 10 Months $$$$ 10 Weeks $$ Days $ 9

12 provides a single, consolidated control point to orchestrate, manage and govern complex workloads and applications across hybrid IT environments. It unlocks the productivity of developers and supports enablement of a DevOps environment. Development Test IT Operations IDE Build Tools Test Suite Dev Cloud QA Cloud Common Application Platform Blueprint Release Mgmt. Ready for Production Firewall Web Servers App Servers Self-service, cloud-based IT resources to support SAP development and testing teams: Embed standard operating environments upstream for earlier Dev and Test use Automate application and service configuration Manage security and operational SLAs across each role in the SDLC Cloud-Portable Blueprints to create custom multi-tier platforms Policy-based governance controls Integration with existing Software Development Lifecycle (SDLC) tool chains IT Operations Database Servers Application Release Automation provides a visual dashboard to promote application code artifacts and complete deployment environments across SDLC stages. 10

13 CSC Cloud Infrastructure Utility (IU) for SAP is a cloudmanaged utility service supporting development and testing environments as well as production. It combines the cloud platform with SAP Basis services. A modular design and service catalog enable customer choices for SAP management options and professional services. SAP Basis Service Catalog Platform, operations and service optimized for an SAP environment, in a pay-as-you-go service. Focus your team s energies on the SAP business processes and let CSC take care of the rest. SAP Support Team CSC Cloud Infrastructure Utility for SAP Reliable, Secure Delivery of Basis Support and Infrastructure Management and Reporting Antivirus Monitoring Patching Provisioning Cloud IU for SAP Basis Support Backup Application and Database Operating Systems Basic Compute Storage Virtual Landscape SAP Basis services include all ongoing run-and-maintain tasks such as monitoring of the SAP system; application, platform, transport requests; batch jobs and backup; and maintenance for the operating system and SAP Solution Manager. CPUs SAP Support Team Memory You focus on your SAP business processes we take care of the rest. 11

14 Learn More Contact us at See the video overview of at Browse our site at Follow us on Subscribe to our CSC Cloud Newsletter. and the Modern Business, Michael Fauscette, IDC #244611, December Worldwide Enterprise Resource Management Applications 2012 Vendor Shares, Christine Dover, IDC #242210, July Survey Analysis: Adoption of Cloud ERP, 2013 Through 2023, Gartner, January 24, 2014; Nigel Rayner, G Cloud Computing Offers Both Near-Term and Long- Term Benefits for SAP Customers, Bill Martorelli and Liz Herbert, October 15, 2010, Forrester. SAP in : Market Update and Lessons Learned from Early Adopters, Liz Herbert with Chris Andres and Kelsey Stone, December 8, Enterprise Management Associates, 2014 Hosting and Cloud Study 2014: Hosting and Cloud Go Mainstream, 451 Research IDC Cloud Tracker Survey, October,