Orange County Convention Center Orlando, Florida May 15-18, 2011 Designing Cloud Computing Solutions for Integration with SAP Bhavik Gupta ]
Learning Points Understanding cloud solutions and considerations for implementing them Designing cloud solutions to integrate with SAP Products Implementation experiences and leading practices 2
Agenda Fundamentals of Cloud Computing What is the Cloud Key Benefits Evaluating Cloud Solutions Integration with SAP Products Landscape Bridge Program & Interfaces Data Consistency & Validations Implementation Experiences & Lessons Learned Q&A 3
What is the Cloud? Streaming 4
Cloud Solutions for Businesses Infrastructure as a Service (IaaS) Platform as a Service (PaaS) Software as a Service (SaaS) 5
Key Benefits of Cloud Computing Faster Deployments Automatic Upgrades Direct Vendor Support Cloud Computing Predictable Costs Lower Cost of Ownership Scalable On Demand 6
Factors to Take into Consideration Costs Lower start-up and implementation costs Usage based cost structure Internal costs despite cloud solution Security & Data Privacy Access methods Security of data with service provider Data exchange security Data privacy agreements Support & Improvements Service provider support Integration/Internal support Implementation of additional functionality Automatic upgrades/patches and their timing Scalability & Performance Implementation Timeframe Faster implementation No customization; configuration only Scalable solutions Performance metrics OS/Browser support 7
When do Companies Look at Cloud Solutions? Most companies have SAP or another ERP system in place, that would not be replaced by a cloud solution anytime soon. Companies typically consider cloud solutions or alternatives when: Solutions with specific required functionality are available Replacement of outdated systems is more beneficial than upgrading existing systems There is a preference to shift costs towards operating expenses instead of upfront capital investments The company has different divisions on different platforms 8
Case Study: Cloud Based Travel & Expense System Implementation of a Travel & Expense Solution for a company with multiple divisions having their own separate back end Financials and HR/Payroll systems 9
Landscape Integration with Multiple Systems T&E Cloud Solution SAAS DATA CENTER File Decryption File Encryption INTERNAL NETWORK File Encryption File Decryption Middleware/Bridge Program Employee Data Payment Conf Payment Data Financial Data Master Data HR System Payroll Financial Data SAP 10
Bridge Program and Interfaces Bridge Program Single point of interaction with the cloud solution Encryption/Decryption of files Data translation Additional data validations Business logic not handled by cloud solution Data transformation based on other internal systems Interface monitoring and error handling 11
Bridge Program and Interfaces (cont d) Interfaces The format and type is mostly governed by what the solution provider supports. If possible real time web services should be employed: Help keep the source and target much more in sync by having a closed loop process Provide better traceability and monitoring capabilities Obtain a clear understanding of the standard interface format under different use cases 12
Data Consistency To reduce translation requirements utilize SAP data in the new cloud based system Organizational Data Master Data Use automated feeds to ensure that the data in the cloud solution is updated with the latest Organizational and Master data from SAP and other downstream systems Full updates or delta loads can be used. Full updates are easier to manage, but the data volume could pose a hindrance. Real time interfaces are preferable as batch processes involve delays in such updates 13
Data Consistency (cont d) Upfront validation of data in the cloud solution will minimize errors during interface runs. Possible solutions include: Drop down lists for user entry and back end validations based on master data feeds Format, length and data type validations can be employed where data feeds are not possible (E.g. very large master data set) If web services are enabled, real time checks in SAP can be performed E.g. master data checks, posting simulation etc. 14
Implementation Lessons Learned Project Prep Business Blueprint Realization Final Prep Go Live & Support Design Solution provider typically performs the configuration design As the knowledge within the client organization is low at this stage, it is essential to ask for alternatives and implications; An integrator can help navigate this step with lessons learned from prior engagements Flexibility for future changes should be built into the configuration rather than just ease of maintenance and associated consolidation Standard interface specifications are typically provided by the service provider. These should be clearly understood 15
Implementation Lessons Learned (cont d) Project Prep Business Blueprint Realization Final Prep Go Live & Support Configuration As the cloud environment is configured by the solution provider, the client should thoroughly unit/string test the configuration and even insist on testing results from the solution provider Configuration documentation should be thorough and in a form that can be updated in the future The data exchange mechanisms and encryption should be setup early, to avoid delays during interface testing 16
Implementation Lessons Learned (cont d) Project Prep Business Blueprint Realization Final Prep Go Live & Support Testing Configuration related permutations and data validations should be thoroughly tested Back up connectivity should be tested (fail over) Cutover Cutover rehearsals should be performed like dress rehearsals, maturity of migration tools for the cloud solution should be understood and appropriately managed Internal client cutover steps should be part of the rehearsal, even if the solution provider does not focus on it A common cutover plan should be prepared and managed across all parties 17
Implementation Lessons Learned (cont d) Project Prep Business Blueprint Realization Final Prep Go Live & Support Support While the service provider is responsible for the cloud application, several support functions and tasks fall to the client support organization and should be planned for: End user how-to s and master data setup Escalating issues received from end users to the service provider Interface monitoring and error resolution Downstream interface issues in client s internal systems Service provider SLAs should be closely monitored and escalations performed per the contract Obtain a schedule of planned maintenance and downtime to publish to end users and internal support groups 18
Managing Future Changes As the cloud solution cannot be customized, some desired functionality might not be available. Some options exist: Build into bridge program if possible Send enhancement requests to the service provider through their designated method. These are used by the service provider to develop functionality for future releases Managing releases and improvements Obtain the release schedule and associated downtime to perform the appropriate internal notifications Issues can crop up after a release by the service provider, and so end user calls should be closely monitored during this period Test any new functionality (configuration) being specifically implemented for you. 19
Key Learnings Cloud solutions can provide several benefits, but a number of factors should be considered before creating the business case Implementing cloud solutions requires careful planning and execution Integration with internal systems should be addressed during design to build a hands-free system as far as possible Internal support requirements for cloud solutions should not be underestimated Cloud solutions can be very beneficial and can be designed to integrate with your SAP solution 20
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Thank you for participating. ] SESSION CODE: 1007 Please remember to complete and return your evaluation form following this session. For ongoing education in this area of focus, visit www.asug.com.