aws summit berlin 2013 - realtech - how to determine the economic value of sap in the cloud
TRANSCRIPT
Driving Value With IT
AWS Summit 2013 Berlin
How to Determine the Economic Value of SAP in the Cloud
02. Mai 2013
REALTECH Consulting GmbH
Chris Kohlsdorf
Managing Director
www.realtech.com
Agenda
About REALTECH
Current Situation
Today‘s Challenges for SAP Customers
Driver A: Cost Reduction
Driver B: Gain Speed & Flexibility
REALTECHs Cloud Methodology
About REALTECH
* as of December 31, 2012
REALTECH Consulting GmbH
More than 340 employees*
Global footprint
More than 39 Mio. EUR in revenues*
SAP-specialists since our foundation in 1994
Headquarters: Walldorf/Germany
Our integration expertise is what makes REALTECH unique
Educate Evaluate Implement Run & Change Optimize
SAP HANA Cloud
SAP Mobile
SAP Technology
SAP Solution Manager
REALTECH Consulting GmbH
REALTECH & SAP - A valuable partnership ...
... that benefits our customers REALTECH's consultants support SAP in the roll-out and ramp-up projects of important
SAP customers, which affords them the opportunity to develop early expertise. Our
consultants are also involved in SAP's most cutting-edge projects, such as HANA or
Mobile. This gives REALTECH customers the benefit of an independent assessment of the
latest SAP solutions.
We are a SAP Service Delivery Partner!
REALTECH Consulting GmbH
First RUN SAP
Partner EMEA
REALTECH & SAP - A valuable partnership ...
... that benefits our customers REALTECH's consultants support SAP in the roll-out and ramp-up projects of important
SAP customers, which affords them the opportunity to develop early expertise. Our
consultants are also involved in SAP's most cutting-edge projects, such as HANA or
Mobile. This gives REALTECH customers the benefit of an independent assessment of the
latest SAP solutions.
We are a SAP Service Delivery Partner!
REALTECH Consulting GmbH
First RUN SAP
Partner EMEA
&
Now
Operations 80%
New IT 20%
Current Situation: The everyday „IT balancing act“
REALTECH Consulting GmbH
Now
Operations 80%
New IT 20%
Future
Industrialization 50%
Innovation 50%
Current Situation: The everyday „IT balancing act“
REALTECH Consulting GmbH
Now
Operations 80%
New IT 20%
Future
Industrialization 50%
Innovation 50%
Current Situation: The everyday „IT balancing act“
Still and especially true for lots of SAP customers
The “Cloud“ might help…?!
REALTECH Consulting GmbH
Usage of Cloud Computing in German businesses
28% 37%
22%
29%
2011 2012
In use
Usage in discussionREALTECH Consulting GmbH
Quelle: Cloud Monitor 2013 – BITKOM, KPMG, PAC
26%
45%
65%
20-99 100 - 1999 >= 2000
Usage by company size
Number of employees
Concerns vs. real Risks Before and after Project
Security Availability Performance Cost Standards
Concerns
#1 #2 #3 #4 #5
Risks
Concerns vs. real Risks Before and after Project
Security Availability Performance Cost Standards
Concerns
#1 #2 #3 #4 #5 #4 #2 #5 #3 #1
Risks
How hard is it to quantify your Cloud ROI on Business Requirements?
REALTECH Consulting GmbH
55%
45%
% of Responses
Easy To Quantify
Difficult To Quantify
Are methods in place to measure ROI for your CC initiatives?
REALTECH Consulting GmbH
35%
45%
20%
% of Responses
Yes
No
Unknown
Do you expect your Cloud initiative to significantly impact one or more business processes?
REALTECH Consulting GmbH
82%
18%
% of Responses
No
Yes
If yes, how prepared are you for these changes?
REALTECH Consulting GmbH
28%
72%
% of Responses
Not Prepared
Prepared
Some typical challenges for SAP customers / IT decision makers
REALTECH Consulting GmbH
Reduce cost
Reduce complexity
Move from CAPEX to
OPEX
Unclear scope for upcoming
IT demand
Fast changing business
requirements
Provisioning takes too
much time / is not fast enough Not enough
(skilled) employees
Fast changing IT know how
Temporarily needed systems
M & A / Splits
…
Some typical challenges for SAP customers / IT decision makers
REALTECH Consulting GmbH
Reduce cost
Reduce complexity
Move from CAPEX to
OPEX
Unclear scope for upcoming
IT demand
Fast changing business
requirements
Provisioning takes too
much time / is not fast enough Not enough
(skilled) employees
Fast changing IT know how
Temporarily needed systems
M & A / Splits
…
Cloud driver A: Reduce cost: Possible savings running SAP on AWS
The overall 5-year TCO savings when running SAP on AWS ranges between 16% and 22%.
The savings in the areas, where AWS has an impact on, range between 59% and 71%.
Beyond lowering platform and operations cost, AWS turns infrastructure costs from being capital expenses (CAPEX) into variable operational costs (OPEX).
This transfers the No.1 argument for using Cloud Services – flexibilty in adding and reducing capacity – to the business model.
Based on benchmark data from our partner VMS
Savings (5 years)
vs. large ERP (on-premise)
vs. small ERP (on-premise)
vs. small ERP (outsourcing)
vs. SAP All-in-One (on-premise)
% savings in overall TCO 16% 18% 15% 22%
% savings on items that AWS has an impact on
62% 63% 59% 71%
Individual savings on running SAP on AWS
All SAP systems are different. And each SAP system is controlled by tens of thousands of parameters
Your individual situation compared to best practices of more than 2,600 SAP systems
Savings up to 1.5 M€/yr using Cloud
Savings up to 3.2 M€/yr using Cloud
TCWO = Customer TCO without Cloud
TCW = Customer TCO with Cloud
BPWO = Best Practice TCO without Cloud
BPW = Best Practice TCO with Cloud
Based on benchmark data from our partner VMS
Environment TCWO TCW BPWO BPW
10 SAP systems: Three larger ERP, each with HR, CRM, BI, two Portals, one APO, one SolMan
4 M€/yr
2.8 M€/yr
3.3 M€/yr
2.3 M€/yr
4 SAP systems: One ERP, one HR, one BI, one SolMan
2.2 M€/yr
1.6 M€/yr
1 M€/yr
0.7 M€/yr
16 SAP systems: Six ERP, two HR, two BI, one APO, three Portals, two SolMan
5.6 M€/yr
3.5 M€/yr
3.1 M€/yr
2.4 M€/yr
5 SAP systems: One large ERP, one large HR, one BI, one Portal, one SolMan
6.7 M€/yr
4.6 M€/yr
6.5 M€/yr
4.5 M€/yr
10 SAP systems: Three larger ERP, each with one HR, CRM, BI, two Portals, one APO, one SolMan
3.3 M€/yr
3.3 M€/yr
4.1 M€/yr
3.1 M€/yr
Cloud driver B: Gain Speed & Flexibility
REALTECH Consulting GmbH
Deliver / provide
(new) IT
services / products …
Cloud driver B: Gain Speed & Flexibility
REALTECH Consulting GmbH
very fast
at low risk
with unclear
utili-zation
up- and down-
sizeable
Deliver / provide
(new) IT
services / products …
REAL Use Case: REALTECH Managed Afaria on AWS (MoDM Solution)
REALTECH Consulting GmbH
Rapid deployment
No on-site know how needed
Scalable No infrastructure needed
Managed and pre-configured using Best Practices
Customizable
Vision for our customers: „Out-of-the-box Managed Mobile Device Management Solution“
Flexible contract duration
„Pay as you go“ price model
REAL Use Case: REALTECH Managed Afaria on AWS (MoDM Solution)
REALTECH Consulting GmbH
Rapid deployment
No on-site know how needed
Scalable No infrastructure needed
Managed and pre-configured using Best Practices
Customizable
Vision for our customers: „Out-of-the-box Managed Mobile Device Management Solution“
RT Internal Goals: Fast go2market
Ready to run in 24 hours
No pre-investment in infrastructure (reduce risk)
„Pay as you go“ price model
Increase and decrease capacity and storage within hours
Focus on content of service not on underlying infrastructure
Can be transfered into on-premise solution if needed
Flexible contract duration
„Pay as you go“ price model
SAP Afaria on Amazon Web Services – Remote Managed Service
IT Infrastructure
Customer
Sync
Control
Full Managed Service &
Support
SAP Afaria on AWS
Manage
*Requires valid Afaria license from customer
*
SAP Afaria on Amazon Web Services – Remote Managed Service
IT Infrastructure
Customer
Sync
Control
Full Managed Service &
Support
SAP Afaria on AWS
Manage
*Requires valid Afaria license from customer
*
SAP Afaria on Amazon Web Services – Remote Managed Service
IT Infrastructure
Customer
Sync
Control
Full Managed Service &
Support
SAP Afaria on AWS
Manage
*Requires valid Afaria license from customer
*
SAP Afaria on Amazon Web Services – Remote Managed Service
IT Infrastructure
Customer
Sync
Control
Full Managed Service &
Support
SAP Afaria on AWS
Manage
*Requires valid Afaria license from customer
*
Time2Market < 2 Months
REALTECH´s RealCloud Lifecycle
REALTECH Consulting GmbH
Educate
Evaluate
Innovate Manage
Optimize
What is Cloud Computing? How does it align to your business objectives? What is the right cloud strategy?
Cloud Roadmap Business Case - ROI Market Assessment Tech / APP Review Risk / Evaluation
Project Planning Contract Preparation (RFI/RFP) Vendor Assessment
Vendor Management Change Management Quality Management Risks Management Skills Management
Post Implementation Review Measure, Monitor, and Re-
evaluate Market Changes Upgrade or Overhaul
SAP HANA Cloud
SAP Mobile
SAP Technologie
SAP Solution Manager
Driving Value With IT
REALTECH
system consulting GmbH
Industriestrasse 39c 69190 Walldorf • Germany Fon +49.6227.837.370 Fax +49.6227.837.837 Mobile +49.173.302.1820 [email protected]
Chris Kohlsdorf Consulting Manager
www.realtech.com
REALTECH
Consulting GmbH
Industriestrasse 39c 69190 Walldorf • Germany Fon +49.6227.837.370 Fax +49.6227.837.837 Mobile +49.173.302.1820 [email protected]
Chris Kohlsdorf Managing Director
www.realtech.com