AWS Summit Berlin 2013 - Realtech - How to Determine the Economic Value of SAP in the Cloud

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

[email protected]

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


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 & 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!


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!


First RUN SAP

Partner EMEA

&

Now

Operations 80%

New IT 20%

Current Situation: The everyday „IT balancing act“


Now

Operations 80%

New IT 20%

Future

Industrialization 50%

Innovation 50%



Now

Operations 80%

New IT 20%

Future

Industrialization 50%

Innovation 50%


Still and especially true for lots of SAP customers

The “Cloud“ might help…?!


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?


55%

45%

% of Responses

Easy To Quantify

Difficult To Quantify

Are methods in place to measure ROI for your CC initiatives?


35%

45%

20%

% of Responses

Yes

No

Unknown

Do you expect your Cloud initiative to significantly impact one or more business processes?


82%

18%

% of Responses

No

Yes

If yes, how prepared are you for these changes?


28%

72%

% of Responses

Not Prepared

Prepared

Some typical challenges for SAP customers / IT decision makers


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


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

How to get there: REALTECH Cloud Benefit Assessment (CBA)


Cloud driver B: Gain Speed & Flexibility


Deliver / provide

(new) IT

services / products …

Cloud driver B: Gain Speed & Flexibility


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)


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)


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)


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


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

*


IT Infrastructure

Customer

Sync

Control


Support

SAP Afaria on AWS

Manage


*


IT Infrastructure

Customer

Sync

Control


Support

SAP Afaria on AWS

Manage


*


IT Infrastructure

Customer

Sync

Control


Support

SAP Afaria on AWS

Manage


*

Time2Market < 2 Months

Our Cloud Methodology …


REALTECH´s RealCloud Lifecycle


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


See you at the REALTECH booth B.06

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

AWS Summit Berlin 2013 - Realtech - How to Determine the Economic Value of SAP in the Cloud

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