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WHAT QUESTIONS DO IT MANAGERS NEED TO ASK THEMSELVES IF THEY WANT TO OPEN SAP LANDSCAPES FOR CLOUD SOLUTIONS

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POSITIONING PAPER OPENING SAP LANDSCAPES FOR CLOUD SOLUTIONS

CONTENTS

Executive summary ................................................................................................................................................................................. 3

Requirements, and how to prepare IT organizations for the multi-cloud age? ....................................................................... 4

Level 1: Checking proof-of-concept or fundamental usability ................................................................................................. 5/6

Level 2: Developing a custom cloud strategy ............................................................................................................................... 6/7

Level 3: Implementing the cloud strategy ........................................................................................................................................ 7

Decision criteria for an appropriate cloud infrastructure partner .............................................................................................. 8

Conclusion ................................................................................................................................................................................................ 9

Further information ............................................................................................................................................................................... 10

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POSITIONING PAPER OPENING SAP LANDSCAPES FOR CLOUD SOLUTIONS

EXECUTIVE SUMMARY

Due to several parallel developments, SAP landscapes are in a fundamental transition process:

The technological generation change is taking corporate users into a completely new world with SAP HANA®, SAP S/4HANA®, the SAP Cloud Platform, and SAP Leonardo as core modules. Digitalization is causing SAP systems to open up to cross-company processes, and it is resulting in many new interfaces and increasing complexity. Specialist departments are driving new cloud solutions forward, sometimes without involving IT departments, so they can use innovations more quickly. Cloud solutions will probably be the preferred solutions for better scalability and higher levels of agility in the future.

These changes have especially significant effects on IT depart-ments. They need to manage the interplay of all IT components. “Cloudification” and DevOps are entering all areas as new operating models. An important success factor for the future will be close interaction among departments, development, and operations.

The purpose of this position paper is to give orientation to parties responsible for IT and business who want to consider the path to SAP S/4HANA® and their cloud strategy in the scope of further development of their IT and SAP strategies:

• How can companies prepare IT organizations for the multi-cloud age?

• How can a proof of concept (PoC) for SAP S/4HANA® or SAP Leonardo be carried out in an uncomplicated manner?

• How can companies develop their own cloud strategies?• How can existing SAP landscapes be transformed so they

can be used in the cloud?

We will elucidate approaches to solutions, show practical examples from companies that have started or gone down this path, and want to give ideas and stimuli for your own decisions.

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POSITIONING PAPER OPENING SAP LANDSCAPES FOR CLOUD SOLUTIONS

HOW TO PREPARE IT ORGANIZATIONS FOR THE MULTI-CLOUD AGE?

Digitalization and the associated changes have considerable effects on IT organizations. An IDG study on machine learning in 2018 determined that cloud computing is the leading topic which IT departments will be addressing in the next year. There are several reasons for this:

Departments want to get results faster, exert more direct influence on projects, and have more influence on technological develop-ments – and the market is demanding shorter innovation cycles. IT departments can use cloud solutions to deliver possible solutions for these issues. IT organizations need to open up to the cloud if they want to prevent the amount of “shadow IT” from increasing further.

The technological shift towards SAP S/4HANA® will further acceler-ate the need for change. The motto is “back to the SAP standard”. Products will be customized for customers primarily using the SAP Cloud Platform, microservices, and Cloud Foundry components in the future. It is important to build new knowledge quickly here.

The established “plan-build-run” scheme and the separation of data center operation and development is not good enough for quick innovation. We are observing a paradigm shift towards agile work and “DevOps,” which is to say the mixing of development and operations, to the point of continual deployment in the SAP environ-ment as well. For this to be possible, we need new structures, processes, and automation, such as for testing end-to-end processes in hybrid landscapes.

In the SAP community, three levels of maturity can be detected where SAP S/4HANA® and the cloud are concerned:

• Level 1: Checking proof-of-concept or fundamental usability Companies gain initial experience with SAP S/4HANA® and cloud offers from SAP. Functional depth, feasibility, acceptance, and other parameters are analyzed.

• Level 2: Developing a custom cloud strategy With the experience gained from preliminary projects, companies work towards developing their own cloud strategy and roadmap.

• Level 3: Implementing the cloud strategy The parties involved work through the roadmap, and the existing SAP landscape is consolidated and adjusted so that it can be transformed for the cloud. That must take place at the proper speed and in the right sequence for the company, and the process must be secure and free of interruptions.

We will now give you practical examples and suggestions for all three levels of maturity.

Agility is the key

In its 2017 study “The Future Tech Organization,” Forrester Research predicted a radical change in IT organizations towards small, specialized, and fast units in the next five to seven years. Parties responsible for IT need to control these change projects and create agile governance structures.

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POSITIONING PAPER OPENING SAP LANDSCAPES FOR CLOUD SOLUTIONS

LEVEL 1: CHECKING PROOF OF CONCEPT OR FUNDAMENTAL USABILITY

For an SAP S/4HANA® evaluation, a quickly available standard SAP S/4HANA® system is generally needed. It is a good idea to use public cloud offers in this instance. There is a wide range of offers:

For instance, there are pre-configured systems for SAP S/4HANA®, SAP ERP with Netweaver, or BW4 for HANA®. They make it possible to set up demo, test, or proof of concept (PoC) systems very quickly without having to purchase hardware and other infrastructure. If the systems are no longer needed, it is very easy to deactivate them again. If more capacities are needed, they can simply be booked.

Typical questions

In the first phase SAP user companies an interested parties address these questions and similar ones:

• Which function scopes does SAP S/4HANA® offer for the respective department and process?

• How does interaction between the “old” and the “new” world work?• How can we map end-to-end processes that run through hybrid

systems?• Can we use SAP Leonardo scenarios and innovations profitably?• Are the cloud offers reliable? And does this operating model suit

our needs?• Are the requirements for high availability being met?• How do network integration and the security of the overall system

function?• How are backups and restores organized?• Is my provider effective enough and suitable for our requirements?

The list could be continued and is not complete. Our expert teams can help answer these questions.

If someone simply wants to try out an SAP solution, T-Systemsʼ “Jump Start” package is a good option. It contains consulting services and implementation for a fixed price. Customers get an SAP solution from the cloud that meets their own needs and that they use as a self service or a managed service.

Self service means they use the toolboxes from the IaaS cloud provider, and they also provision and operate the SAP system on their own according to the instructions provided by the manufac-turer and SAP. Afterwards, they can develop the logic themselves or have this done in the scope of system integrations projects.

If a company decides to use the managed service variant, it receives a special tool suite with its own portal for provisioning, productive operations, and system enhancements, including technical access to the preferred cloud infrastructure. Essentially, T-Systems bears operational responsibility in this operating model. However, companies can make individual adjustments and change the level of support they receive.

The requirements placed on the cloud infrastructure are usually customized once users are further along in the evaluation process or want to address matters in depth. In that case, particularities of the database, the sub-system, and internal applications need to be taken into consideration. T-Systems provides services to help with this.

Sample projects and typical scenarios

“Demo 21” test system: Companies want to gain initial experience with SAP S/4HANA®, get a feel for usability, prepare departments and key users, and determine the expenditure necessary for training. They can get systems like these “at the touch of a button” from the public cloud infrastructure.

Addressing operational issues: An automotive manufacturer ex am-ined how to transfer its SAP project landscape to the cloud. The com-pany is letting T-Systems take care of management to prepare the SAP S/4HANA® deployment for the long term and is thus attaining a higher level of flexibility in development and test systems.

Getting to know the managed service operating model: Com panies often have no experience with external SAP Basis operation. Using an SAP S/4HANA® system from the public or private cloud is a good way to try out working together and evaluate the changed operating model. Often, in this context, companies also address whether in-house operation or a managed service is right to them. Additionally, they learn what works and what does not, which is important. Hybrid landscapes entail a new level of complexity, and customers often hand over management of this complexity to service providers through service level agreements.

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POSITIONING PAPER OPENING SAP LANDSCAPES FOR CLOUD SOLUTIONS

LEVEL 2: DEVELOPING A CUSTOM CLOUD STRATEGY

During digitalization, companies optimize or change their business processes – sometimes fundamentally. Cloud usage is not an end in itself; it helps prepare IT departments for higher performance capac ities as a result of business requirements or the desire to quickly use innovations, such as from IoT scenarios or other SAP Leonardo modules.

Departments can use solutions more quickly and easily if IT depart-ments provide them from the cloud. As a result, innovations can be incorporated into everyday operations more swiftly, and they can be scaled back again without the loss of large investments if the innovation scenarios do not fulfill expectations. It also reduces or terminates the growth of “shadow IT”.

It is especially important to find the right cloud model. “Cloud” does not necessarily mean “less expensive.” Companies need to decide whether they only want to use cloud infrastructure and take care of the rest themselves or whether they want to use a managed service.

They also need to determine which applications need to be out-sourced to the cloud and how they are going to do this. For this purpose, T-Systems offers a standardized product called the “Cloudifier,” which consists of process consulting, as well as imple-mentation and integration components for evaluating and realizing the transformation project.

Furthermore, companies need to define how the public cloud is to be accessed and how that access will be organized internally. In these kinds of constellations, providers no longer have administrator access.

Companies need to examine their IT landscape as a whole during the ensuing development of their own cloud strategy. The definition of the future IT architecture and a road map is fundamental for the transition and must fit the new definition of the business processes and corporate goals. T-Systems can put together project teams with

Evaluate high availability: An automotive manufacturer checked possible ways of migrating SAP and non-SAP systems of various origins to the cloud infrastructure. In particular, it examined aspects regarding high availability, such as disaster recovers, backups, and restoring.

End-to-end processes with monitoring: Companies want to clarify how an SAP landscape can be operated in the cloud. End-to-end integration of processes and the associated system monitoring play a central role in these examinations.

Technical direct comparison: If parties want to select the best- performing public cloud infrastructure that optimally suits their own requirements, it is a good idea to perform a technical direct com-parison. Such scenarios often involve comparisons of performance, interoperability, and the creation of system copies and other house-keeping activities.

the expertise needed to answer different questions and take all requirements into consideration. Typical questions

Companies using SAP and interested parties address these questions and similar ones in the second phase:

• Where do change requests regarding business processes also necessitate fundamental changes in the IT landscape?

• To what extent is the customer reorganizing (internally) – what are the future roles of business and the IT department in the future?

• How can we avoid (additional) shadow IT?• How can we design our landscape for cloud operation?• How can we organize the interaction of the hybrid components?• Which self-services do we need for IT management?• Which migration and transformation services do we need?• Which SLAs are we expecting from the cloud infrastructure, and

how will we harmonize the SLAs from different suppliers?• Which governance model do we want to use, and how will we

optimize the order channels for cloud resources?• How do we safeguard network accesses?• What level of availability do we need?• Which sizing will we choose at the beginning?• What has to be done by the customer (e.g. network, security, ...)

so that systems can be addressed?• Do we want to separate the responsibilities between SAP operation,

the operating system, and server operation?• How do we expand competencies for new tools and changed tasks?

We could add to this list; it is not complete. Our expert teams can help answer these questions. 

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POSITIONING PAPER OPENING SAP LANDSCAPES FOR CLOUD SOLUTIONS

Sample projects and typical scenarios

First introduction of SAP S/4HANA®: Fraport Brasil has decided to implement SAP S/4HANA® as an intelligent Enterprise Resource Planning (ERP) solution that will optimally support its business processes. SAP S/4HANA® was successfully implemented within only two and a half months based on the Greenfield approach. The recipe for success combined SAP best practices with accelera-tors from T-Systems.

Business in real time: Outdated IT systems and processes incur enormous costs and a lack of transparency:For instance, the production process was controlled manually, and business decisions were made based on hypothetical figures. Grupo Schettino decided to implement SAP S/4HANA®. By creating and implementing an individual transformation roadmap based on the market-leading Cloudifier transformation approach and subse-quently implementing SAP S/4HANA® based on SAP best practices, it standardized and optimized current core business processes, including those for procurement, production planning, and finances.This made it possible to integrate the end-to-end business pro-cesses into the overall landscape.

Provide transparency: The SAP infrastructure of a German airline company has grown organically over many years. The outdated SAP landscape the customer used out of habit no longer allows them to react flexibly and quickly enough to current business requirements, and the operating and maintenance costs are too high. Using the Cloudifier method, T-Systems helped the company move towards a modern SAP landscape: from analyzing the system to defining the optimum target landscape and transforming them into the cloud and SAP S/4HANA® to operating the IT systems and applications running in the cloud. Tool-supported analyses like Quick Check, 360-degree scans, and AMM Maturity Benchmark give the customer a quick and detailed overview of their current situation and possible ways of optimizing it.

The most innovative logistics processes: In the scope of the Smart People’s Port program, Transnet is improving the efficiency and throughput in its ports. Optimizing the monitoring of people, goods, and vehicles is the most important. Various IoT components form the basis of this process, such as unmanned drones for air and water, sensors, and teleinformatics components. The definition of the target landscape and the development of a harmonization and consoli-dation roadmap for both systems and business processes create maximum transparency in the operative control center. Through intel-ligent interaction of KPI dashboards, GEO maps, data analytics, data visualizations, and SAP HANA® data views.

LEVEL 3: IMPLEMENTING THE CLOUD STRATEGY

Implementing the cloud strategy is pure project work. It involves work-ing through the roadmap, cleanly connecting customers and systems, and decommissioning systems that are no longer needed. People who have worked in outsourcing projects will discover many parallels here.

This project work can be compared to open-heart surgery: the old processes need to keep functioning, and IT needs to put new processes into operation. Everything needs to happen quickly and without interruptions. Each mistake costs money immediately and entails a high level of potential damage.

A Big Bang switch to the cloud comes into question only for very small landscapes or isolated systems, if at all. In strongly networked landscapes, the main complexity is caused by a large number of vastly different interfaces (messaging, IDoc, XML, and others) among the connected systems. The transition to the cloud is a long-term process in that case; depending on its complexity, it can take months or years.

Relying on standard procedures and experienced teams, experts, and providers who have already carried out comparable tasks hundreds of times has proven to be a good method of managing risks and guaranteeing success. Governance is another important success factor.

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POSITIONING PAPER OPENING SAP LANDSCAPES FOR CLOUD SOLUTIONS

DECISION CRITERIA FOR AN APPROPRIATE CLOUD INFRA STRUCTURE PARTNER

Choosing a cloud infrastructure partner is a longer-term commitment to a provider that should be given great consideration. Companies need to consider the following points when making a decision:

• Howgoodistheproviderʼsconsultingexpertiseinorganization and new operating models? The changes in the IT organizations have many levels – some of them are radical – and will continue to become more dynamic. A partner who knows these change processes and can guide how they are structured is a valuable resource. This concerns not only cloud infrastructure usage but also new operating models and the change towards agility and DevOps.

• How well are end-to-end SAP processes supported? Digitalization functions only with universal processes – in particular, regardless of which systems and operating models are used. A provider that offers the greatest possible level of interoperability and prefabricated interfaces certainly has advantages.

• How good is the interaction with the SAP Cloud Platform? The SAP Cloud Platform is the main tool that SAP users utilize to couple on-premise with cloud components, incorporate customer- specific applications and quickly use innovations, such as Cloud Foundry, Cloud Elements, etc. Simple and well-performing access to the SAP Cloud Platform is thus absolutely necessary.

• Has the public cloud infrastructure been certified? Compliance with the standards on data protection, data safety, and interfaces are only a few of the prerequisites for cloud usage. An infrastructure certified by SAP will ensure that you are always on the safe side. There are many other SAP certifications whose availability may also need to be checked, such as Hosting Partner, Application Management Services (AMS), Cloud Operations, HANA Operations, and others.

• Which self services and automation options can be used? Customers can use the cloud as they see fit. Instructions on productive operations are helpful. Here, you need to check which self-services and automation options are offered because you are responsible for your own environment. • Is it possible to use cloud managed services? Where managed services are concerned, the provider is respon- sible for functions like backup, new systems, etc. in the cloud infrastructure and guarantees them via an SLA. The provider assures the quality of these services. Check whether they offer the services you need.

• Whichmigrationservicesandtransformationexpertisecan be used? If you do not want to migrate everything to the cloud yourself, it is a good idea to use the providerʼs migration services. Examine the providerʼs offers and expertise.

• Does the provider offer manufacturer independence? If you want to avoid being dependent on an infrastructure provider, such as Microsoft Azure, Google Cloud Platform GCP, Amazon Web Services (AWS), Open Telekom Cloud (OTC) etc., you need to check whether the provider offers their services independently of vendors and manufacturers. Only if they do so is it possible to switch the cloud infrastructure as needed without complications. And hybrid and multi-cloud models can be set up. This makes it possible to select the most suitable cloud and implement multi- vendor strategies.

• Whichsupportmodelsexistforthecloudoffers? Like Microsoft Azure, Google Cloud Platform, and Amazon Web Services (AWS), Open Telekom Cloud (OTC) is licensed and certified as an SAP public cloud infrastructure.

Support from the software manufacturer is essential so that productive SAP solutions can be operated in the cloud. In addition to the three large hyperscalers AWS, Azure, and GCP, Open Telekom Cloud (OTC) is now also offering official certification and support from SAP SE.

In the managed service operating model, T-Systems takes care of first-level and second-level support for all the supported clouds and coordinates third-level support with SAP SE and the infrastructure provider in the event of software and platform problems.

Customers who use Open Telekom Cloud (OTC) no longer need to consult with the support team of the external cloud provider. Responsibility below the application layer lies with one party, and it is clearly regulated. This simplifies and accelerates rectification of any incidents.

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POSITIONING PAPER OPENING SAP LANDSCAPES FOR CLOUD SOLUTIONS

According to a survey carried out by T-Systems and IT-Onlinemagazin in the summer of 2018, SAP customersʼ largest sources of concern are uncertainties in terms of data privacy and data safety, restricted individual adjustment options, and the complicated interfaces between the cloud and on-premise applications.

Proof of concepts generally do not confirm these con-cerns; instead, the results are very positive. Usage of a certified cloud infrastructure with self services, managed cloud options and migration services that are appropriate for practice make the public cloud infrastructure a real option in the SAP environment.

The SAP community confirms this assessment. Scal-ability, adaptability in the face of changing requirements and numbers of users, and higher agility – which is to say, shorter project, release, and innovation cycles – create great chances for the future.

Those who balk at the idea of cloud usage and the changing role of IT are certain to grow less important internally and experience competitive disadvantages.

Working with a partner with consulting competence in operating models, organization of IT departments and DevOps makes it possible to develop and implement the right cloud strategy for them.

CONCLUSION

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PUBLISHED BYT-Systems International GmbHHahnstrasse 43d60528 Frankfurt am Main, Germany

CONTACTE-mail: dynamic-services@t-systems.comInternet: www.t-systems.com

T-Systems Public Cloud for SAP The platform to use SAP applications flexibly and at any time. All appli cations are available as fully functional appliances – complete setups instead of individual Lego bricks. The predefined services are provided in the familiar operating quality on the SAP-certified T-Systems Public Cloud. More information ...

“Jump Start” offer It contains consulting services and SAP system provisioning from the cloud for a fixed price. Designed for quickly evaluating SAP cloud solutions.More information ...

About the authorHelge Sanden publishes the SAP community portal“IT-Onlinemagazin.de” and founded “Forum for SAP®”, the largest SAP group in XING with over 32,500 members. He has worked in the SAP world since 2002 – he is an insider in the field, an author, and a speaker. He received a degree in computer sciences, meaning he also understands technology very well. In his publications, he places great value on portraying complex issues in a simple manner and focusing not on technology itself, but rather its practical benefits.

About the sponsorT-Systems helped create this document. T-Systems is one of the worldʼs leading digital service providers. It is based in Europe and offers integrated solutions for business customers. The company uses a global infrastructure of data centers and networks to operate information and communication technology. As a leading end-to-end service provider for SAP® solutions, it covers the entire value-added chain of the SAP lifecycle. And it provides everything from a single source: from secure operation of existing systems and classic IT and telecommunications services to transformation to the cloud and SAP S/4HANA®, and from needs-based infrastructure, platforms, and software to new business models and innovation projects in the Internet of Things.

Further information is available at www.t-systems.com

This publication was written in collaboration with IT-Onlinemagazin.

www.it-onlinemagazin.de

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