Value of Amazon Web Services

The Business Value of Implementing SAP Solutions on
the Amazon Web Services Cloud Webcast
February 11th, 2014

Agenda
Introductions
•

Saul Cunningham – ANZ Centre of Excellence, Database and Technology

AWS / SAP Overview
Business Case and Benefits
•

Brent Paterson, Global ISV Manager, APAC, Amazon Web Services

GPT – Why and How they moved to AWS
 Chris Burling, IT Enterprise Architect, The GPT Group
SAP on AWS User Cases
 Brent Paterson, Global ISV Manager, APAC, Amazon Web Services
SAP Solutions and Best Practices on AWS
 Nam Je Cho, SAP Solutions Architect, APAC, Amazon Web Services
Application Management Services from SAP
 Phil Watts, SAP Managed Services, APJ
Cloud Application Library and Questions
 Saul Cunningham
© 2014 SAP AG or an SAP affiliate company. All rights reserved.

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Agenda – Amazon Web Services

Who is Amazon Web Services?
Why do Customers use Amazon Web Services?
The GPT Group – SAP Deployment Experience

SAP on AWS Customer Examples
SAP on AWS Best Practice
SAP on AWS Summary


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Who is Amazon Web Services (AWS)?


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Who is Amazon Web Services?

E-commerce

Sell on Amazon

Tens of millions of active
customer accounts

Fulfillment Services

Eight countries:
US, UK, Germany, Japan,
France, Canada, China,
Italy


Amazon Webstore

Cloud computing
infrastructure for hosting
web-scale and
enterprise applications

Payment Solutions

Started in 2006

Advertise on Amazon

Hundreds of thousands
of customers in over 190
countries

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What is Amazon Web Services?
Amazon Web Services is a complete set of infrastructure and application
services that enable customers to run virtually
any application in the cloud: from enterprise applications and big data
projects to social games and mobile apps
Hundreds of thousands of businesses in 190 countries around the world
and across all industries are taking advantage of the many benefits
provided by Amazon Web Services
Deployment & Administration
Application Services
Compute

Storage

Database

Network

AWS Global Infrastructure

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AWS Platform
Customer Applications
AWS Marketplace
Deployment &
Management

Identity & Access
AWS IAM

Administration
Interface

Monitoring
Amazon CloudWatch

Management Console

Deployment &
Automation
AWS Elastic Beanstalk
AWS CloudFormation

Search

Workflow

Amazon CloudFront

Elastic MapReduce

Amazon SWF

Queuing

Notifications

Email

Libraries & SDKs

Amazon SQS

Amazon SNS

Amazon SES

Java, PHP, Python,
Ruby, .NET

Compute
Foundation
Services

Parallel Processing

Amazon CloudSerach
Application
Services

Content Delivery

Storage

Database

Networking

Amazon EC2
Auto Scaling
Amazon EMR
Elastic Load Balancing

Amazon S3
Amazon Glacier
Amazon EBS
AWS Storage Gateway
AWS Import/Export

Amazon RDS
Amazon DynamoDB
Amazon Elasticache
Amazon Redshift

Amazon VPC
Elastic Load Balancing
Amazon Route 53
AWS Direct Connect


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Why do Customers use
Amazon Web Services?

1. Pay For Infrastructure as you Need it, Not Up Front

On-Premises
$0 to get started

Pay as you go
OPEX not CAPEX
Resource in Minutes

Start using AWS with no up-front cost or
commitment and only pay for what you use


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2. Lower Total Cost of IT

Scale allows us to constantly
reduce our costs

We are comfortable running a high
volume, low margin business

We pass the savings along to
our customers in the form of
low prices

Benefit from AWS’s economies of scale
and efficiencies. Only pay for what you
use.


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3. You Don’t Need to Guess Capacity

AWS
Actual demand

Actual demand
Customer
Dissatisfaction

Self
Hosting
Waste

Predicted Demand

Rigid

Elastic

Scale resources automatically up or down
as needed. Both vertical and horizontal
scaling

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4. Increase Innovation: Low Cost means Low Risk

On-Premises

$ Millions

Nearly $0
Experiment Infrequently

Cost of Failure Tends Toward $0

Failure is Expensive

Experiment Often

Less Innovation

Increased Innovation

Provision new infrastructure and SAP
systems in minutes vs. days, weeks or
months


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5. Get Rid of Undifferentiated Heavy Lifting
We take care of it…
Data Centers
Power
Cooling
Cabling
Networking

Racks
Servers
Storage
Labor

So you don’t have to …
Buy and install new hardware
Setup and configure new software
build or upgrade data centers

Free internal resources from the
undifferentiating tasks of managing
infrastructure
Stop having to plan and manage hardware
refreshes every 3-5 years

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7. Go Global in Minutes


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10 Regions
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


Northern VA
Northern CA
Oregon
GovCloud US
Ireland
Singapore
Tokyo
Sydney
Sao Palo
Beijing*

25 Availability Zones
51 Edge Locations
http://aws.amazon.com/about-aws/globalinfrastructure


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AWS Security and Certifications
Physical Security
Amazon has many years of experience in
designing, constructing, and operating largescale data centers. The AWS data centers are
secured with a variety of physical controls to
prevent unauthorized access.

Certifications

Secure Services
Each of the services within the AWS cloud is
architected to be secure and contains a number
of capabilities that restrict unauthorized access
or usage without sacrificing the flexibility that
customers demand.

Data Privacy
AWS enables customers to encrypt their data
within the AWS cloud and publishes backup
and redundancy procedures for services so that
customers can gain greater understanding of
how their data flows throughout AWS.

AWS Security Center http://aws.amazon.com/security

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• $5.2B retail business

AWS adds enough server

• 7,800 employees

capacity to power that whole

• A whole lot of servers

$5B enterprise…

Every Day…


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Magic Quadrant for Cloud IaaS 2011-2013

CIO Article
“Amazon Web Services has put so much distance between itself and its
cloud service provider competition that Gartner had to redraw the
dimensions of its Magic Quadrant. Skepticism persists, of course, but the
reality is that enterprises dismissing AWS increasingly do so at their own
peril”
Bernard Golden, Senior Director of Cloud Computing, Dell


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Trusted by Enterprises Around the World


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Used by Government Agencies & Educational
Institutions Worldwide


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Australia & New Zealand Customer Examples…
… Over 14,000 Customers


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GPT – Why and How they
moved to AWS

GPT AWS - SAP Case Study
Chris Burling, Enterprise Architect
2013

Project Context

2012 IT Opex Budget
vs.
2013 IT Opex Budget

Data Centre Contract
Expiration


20%

Sept ‘13

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Benefits – Cost Savings
Comparison of Cost Categories

AWS

On-premise

0%

Servers

20%

Storage&Backup

40%

Data Centre


60%

80%

Data Centre Interconnect

100%

120%

Support
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Benefits - Capability

 Rapid

Infrastructure Proof of Concepts

 Ability

to continually optimise costs

 "Show-back”
 The

visibility of costs

ability to offload commodity work and focus on “value-add”

 Leverage

more AWS capabilities and new services as they are

released.


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Lesson Learned - Reliability
 Server Reliability

Good

 Maintaining System Architectures

Possible

 Storage Performance

Good but Watch out,
Measure & Test

 Storage Volume Preparation

Watch out!

 Network performance

Good

 Application Reliability

Needs Tuning

 Underlying issues masked by higher
performing infrastructure

Watch out!

Summary: AWS has always performed to the stated
specifications. Applications often require tuning.

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SAP Hybrid Deployment on AWS
Background
Lionsgate manages one of the most prestigious and
prolific libraries in the entertainment industry with
nearly 13,000 titles, a diverse portfolio of
businesses, and an exciting, commercially potent
feature film slate of approximately 12 to 15 releases
per year.
Challenges:
 Expanding infrastructure and costs
 Increased enterprise application workloads
 Lack of data center space
 Needed ability to rapidly provision servers
 Desire for cost efficient disaster recovery & high
availability solutions

 Saved an estimated $1M+ over

three years since starting with
AWS in 2010.
 Successful creation / integration
of SAP Landscape in the Cloud
 Successful Integration of SAP
Instances with Local
Applications

The solution:
 Performed an initial POC to evaluate the viability of
the AWS cloud for hosting their SAP systems
 Successfully migrated their DEV and QAS
landscapes to AWS US-West region
 Currently planning the migration of their PRD
landscape to AWS

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SAP Business Suite
Background
Hoya specializes in advanced optical technology and
their finance department was serving about 100
subsidiaries WW. Hoya began looking for a cost
effective, elastic and high performance environment to
support their business and their current “private” cloud
environment could not deliver this.
Additional Criteria:
 Security, SLA’s clearly defined, external audits in
place, global footprint , highly reliable infrastructure
The Implementation:
 Cloud provider Selection: 0.5 months
 DR environment set-up, test and run : 1 month
 Migration of production system: 48 hours
Customer Stated Benefits:
Speed and agility: rapid response to business
requirements including M&A
Cost: 50-60% cost reduction, but when Hoya
considered TCO they estimate about a 80-90% cost
saving versus “private” cloud

 Saved 50-60% on a cost basis
 Estimated to save 80-90% on a

TCO basis
 Migrated production systems in
48 hours
 Entire process from going to
market for a cloud provider to
full production about less than
two months including testing
and migration

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AWS Partner Network

APN partners provide a variety of services on top of the AWS
platform

Consulting Services
 SAP Implementation

 AWS Onboarding

 SAP OS/DB Migrations

 SAP POCs

 SAP Sizing

 Architecture Planning

 SAP Evaluations

 Performance Tuning

 SAP High Availability

 SAP Hosting

 Backup & Recovery

 Account Management

 Disaster Recovery

 DB Administration

 SAP BASIS

 24/7 Help Desk

 OS Admin & Patching

 SAP Upgrades

Managed Services


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AWS and Managed Services Options

“Infrastructure
Hosting”

“Fully Managed
Hosting”

SAP Deploy &
Operations
SAP Installation /
Patching / Upgrades /
Monitoring / HA

SAP Deploy &
Operations
SAP Installation /
Monitoring / HA

SAP Deploy &
Operations
SAP Installation /
Monitoring / HA

Infrastructure
Services
OS Admin / OS
Patching / Network
Admin / Security /
Backup & Recovery

Infrastructure
Services
OS Admin / OS
Patching / Network
Admin / Security /
Backup & Recovery

Infrastructure
Services
OS Admin / OS
Patching / Network
Admin / Security /
Backup & Recovery

Infrastructure

Infrastructure

Infrastructure

“Customer
Managed”

•
•
•
•

= Customer

Facility
Servers
Storage
Network

= Service Provider


•
•
•
•

Facility
Servers
Storage
Network

= Solution Integrator

•
•
•
•

Facility
Servers
Storage
Network

= AWS
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Actual ASEAN Example – Media Company

54%
reduction in
unit costs
Margin
Growth

-10%
price drop
in S3

-20%
RI purchase

-22%
DB Migration

-18%
Price drop in
S3 of 25%


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SAP Solutions and Best
Practices on AWS

AWS & SAP Partnership

 AWS is an SAP Global Technology Partner & a certified Global
Cloud Services Partner
 As of today, AWS is the only public IaaS provider that is certified
to run SAP production - SAP Note 1380654


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How Are SAP Customers Using AWS Today

Extend Existing IT Infrastructure to the AWS Cloud
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
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


Run SAP Test, Training, Demo, POC and Sandbox systems on AWS
Migrate SAP DEV and QAS landscapes to AWS
SAP Document and Data Archiving to AWS Cloud Storage
Temporary infrastructure for SAP upgrades and OS/DB migrations
DR site for on-premises SAP production environments

Host Complete SAP Environments on the AWS Cloud
 Migrate SAP DEV, QAS & Production landscapes to AWS
 Greenfield implementations from project initiation to go-live


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SAP Products Certified on AWS
SAP Solutions
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

SAP Business Suite (ERP, CRM, SCM, PLM & SRM)
SAP NetWeaver (BW, PI, Portal, PO, BPC & CE)
SAP Business All-in-One (A1)
SAP Business One (B1)
SAP Business Objects BI Solutions
SAP HANA One (Developer & Pay-per-Use Licenses)
SAP HANA Platform (Up to 1.2TB Memory on Bring Your Own License)
SAP Sybase Afaria
SAP LVM 2.0 to support automated system copy to AWS

Databases
 IBM DB2 Version 9.7 or higher
 SAP MaxDB Version 7.x or higher
 Microsoft SQL Server 2008 R2 or
higher
 Sybase ASE 15.7.0.013 or higher

Operating Systems
 SUSE Linux Enterprise Server (SLES) 11 SP1
or higher
 Red Hat Enterprise Linux (RHEL) 5.5 and 6 or
higher
 Microsoft Windows Server 2008 R2 or higher

SAP deployments use a “Bring Your Own License” (BYOL) licensing model
*Note – Oracle DB can be used for non-production systems (Test/Demo/POC/Training.)

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SAP HANA on AWS
HANA Offering

Description

HANA One
Developer Edition

•
•
•

16 to 64GB memory
Free SAP HANA license, restricted to demo/training
Deploy via SAP Community Network

HANA One
Business Edition

•
•
•

64GB memory
Pay per use SAP license, restricted to standalone scenarios
Deploy via AWS Marketplace

HANA Platform
Bring Your Own
License

•
•
•
•
•

256GB to 1.2TB memory
Bring your own license
Supports all scenarios including Business Suite & BW
Deploy via SAP HANA Marketplace
Currently available in US, Europe & Japan Regions.
Estimated to be available in Sydney & Singapore Regions
in Q1 2014


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Hybrid SAP IT Deployment – Customer Data Centre & AWS
Either on premise OR cloud is a false dichotomy
SAP Production landscape runs in
customer’s own datacentre

SAP Development & Quality
Assurance landscape runs on AWS

DEV

QAS

ECC

ECC

PRD

ECC

S3
Bucket
Backup

BW
Customer
Data Centers

SRM

BW

BW

SRM

SRM

VPN or
Direct Connect
Secure connectivity
between datacentre &
AWS

Virtual Private Cloud


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Full SAP Deployment on AWS

Customer runs DEV, QAS & PRD on AWS
Customer
LAN

DEV

QAS

PRD

ECC

ECC

ECC

BW

BW

BW

VPN or
Direct Connect

Secure connectivity
between LAN & AWS
network

Backup

S3
Bucket

SRM

SRM

SRM

Virtual Private Cloud


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Amazon Virtual Private Cloud – Secure Connectivity
Amazon Virtual Private Cloud (VPC) lets you provision a logically isolated section of the AWS
Cloud where you can launch AWS resources in a virtual network that you define.

VPN Connection

Secure connection from customer’s own network to Amazon VPC can be achieved using
VPN or Direct Connect.
VPN (via IPsec)

Direct Connect

Hardware VPN connection between your
Private, dedicated network connection
network and VPC
AWS Directbetween your network and AWS / VPC
Connect
Can create multiple VPN connections to
Can reduce your network costs, increase
one VPC
bandwidth throughput, and provide a
Fast and simple to setup
more consistent network experience
than a Internet VPN
Upto 10 Gbps ports

http://aws.amazon.com/vpc/


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AWS Enables Lower TCO for SAP Environments

Savings (5 Years)

vs. large ERP
vs. small ERP
(on(on-premises)
premises)

vs. small ERP
(outsourcing)

vs. SAP All-inOne
(on-premises)

% Savings in overall
TCO

16%

18%

15%

22%

% Savings on items that
AWS has an impact on

62%

63%

59%

71%

Industry research finds that running SAP applications on AWS provides
infrastructure cost savings of up to 71% compared to the same system
running on-premises.
AWS TCO Studies - http://aws.amazon.com/economics/


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SAP on AWS Pricing Example
SAP ECC Development System





1x AWS EC2 Instance:
Online M-F 8AM-8PM:
Storage:
Backup:

4 cores & 15 GB memory
240 hours p/month
200 GB
200 GB
Monthly
Cost

Component

AWS Resource

Quantity

Unit Cost

Virtual Machine

Suse Enterprise Linux

240 hours

$0.80

p/hour

Primary Storage

EBS volume & IO

200 GB

$0.25

p/GB p/month

$50

Backup Storage

S3 storage

200 GB

$0.10

p/GB p/month

$20

Network & IO

Data Transfer

$192

$18
Total Monthly Cost:

$US280*

* Pricing based on Sydney region as of 26/07/2013

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SAP Deployment Options

Standard SAP Installation
Primary option for deploying SAP applications on
Amazon EC2 is the standard SAP installation
procedure for the particular SAP solution.
The process to install an SAP solution on an
Amazon EC2 instance is very similar to the
process for any other physical or virtual server.

Pre-Built SAP Image
Some SAP solutions are available as prebuilt system images on Amazon EC2. A
pre-built SAP system image contains a
pre-installed and pre-configured SAP
solution that enables you to provision a
new SAP system by simply launching an
Amazon EC2 instance from the
system image.
Pre-built SAP system images are
available from the following sources:
•
•
•
•


AWS Marketplace
SAP Trial Systems
SAP Developer Images
SAP Cloud Appliance Library

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SAP Sizing on AWS

Sizing of SAP systems on AWS uses the standard SAP sizing procedure.
Information about SAP sizing can be found at http://service.sap.com/sizing

First step of any SAP sizing is to use the Use the SAP Quicksizer to determine
the SAPS needed to support your business requirements.
Once the required SAPS are determines you can then use the SAPS ratings of
the SAP-certified Amazon EC2 instance types listed in SAP note # 1656099 to
architect you SAP environment on AWS.


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SAP System Network Performance

Each Amazon EC2 instance type (virtual server) provides a certain level of I/O
performance. The type of SAP system and its I/O performance requirements will
determine which EC2 instance type should be used.
Standard Instances

EBS-Optimized Instances

Cluster Compute Instances

Standard Amazon EC2 instances
types use a shared interface for
network and I/O throughput.

Certain standard instance types are
available as EBS-Optimized
instances. An EBS-Optimized
instance uses an optimized
configuration stack and provides
additional, dedicated capacity for
EBS I/O.

Like standard instances Cluster
Compute instances us a shared
interface for network and I/O
throughput. Cluster Compute
instances have very high I/O
performance using 10 Gigabit
Ethernet.

To ensure optimal I/O performance for SAP production systems, either EBS-Optimized or
Cluster Compute instance types should be used.


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Migrating an Existing SAP system to AWS

Standard SAP homogeneous / heterogeneous system copy procedure is the
recommended method to migrate an existing SAP system to AWS.
The high level steps to migrate an SAP system to AWS are:
1. Create export of the source system using Software Provisioning Manager
2. Copy or ship the export / DB backup data to AWS
3. Install new target system on Amazon EC2 using export of the source system

Two options to copy data to AWS:
Network Copy – For systems less than 1 TB. Consider high speed upload software
such as TsunamiUDP & Asperasoft.

AWS Import/Export – For systems greater than 1 TB
http://service.sap.com/sap/support/notes/1680045


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Backup & Recovery of SAP Systems on AWS

The SAP on AWS Backup and Recovery Guide provides an overview of how to backup
SAP systems running on AWS. The guide focuses on the essential differences in backing
up SAP systems on AWS as compared to traditional infrastructure.

Backup Options:
 Create Image

 EBS Snapshots
 Backup to EBS
 Backup directly to S3
 Third party backup software integration, eg Netbackup, CommVault


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Business Value Summary







Consume what you need when you need it
Reduce overall cost
Scale and Flexibility - don’t guess on capacity
Increase Innovation
Focus on the greatest business impact

WITH
• Industry leading products and solutions from SAP
• SAP Support and Certification
• All within your existing partner ecosystem (SAP or SI)

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Application Management
Services from SAP

SAP Cloud & Managed Services Offerings
Solution Reliability, Scalability and Accountability
Assessment &
Advisory

On Boarding &
Migration

 Review functional, technical
and organizational feasibility
 Identify business value from
functional and financial
perspective
 Define target architecture,
project plan, scope
 Evaluate use cases and
business scenarios

 Predefined Onboarding
service
 Predefined Migration Service
 Optional services to meet
customer specific
requirements (eg. minimized
downtime requirements)

One time fixed fee engagements

Managed Cloud
Services

 Platform as a Service
 Infrastructure as a Service
 World Class Security
 Enterprise Grade DCs
 Private Cloud management
On premise, Cloud & Hybrid
 24x7 365 days Reliability
 High Availability & DR
 Productive & Non-Productive
environments

Application Management
& Custom Services

 Level 1, 2 & 3 break fix
 Transition Management
 24x7 365 days Monitor/Admin
 Incident Management
 Innovation program
 Security services
 Pre-Assembly service
 Post Production Support
 Integration Management

Elastic, No lock in, Pay as you go engagements

Single Source engagements and contracts
Water tight Service Level Agreements
Flexible & tailored for your business


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SAP Managed Services – Get More !
Peace of Mind Support …











SAP Application Support & Administration,
Platform as a Service (Hardware, Operating System, Database),
Security, Reliability and Performance
24x7 SAP help desk & key user support,
SLA based incident & problem management,
Proactive system monitoring & optimization,
Around-the-clock monitoring, maintenance and safeguarding of your solution,
A Platform for Continuous improvement and change management,
Proactive Compliance, and Built in Quality & Risk Management
Design Thinking embedded to enable Innovation

… provided at a fixed monthly rate
with no lock-in and built in flexibility to consume as you require
Top Benefits












Reduced Cost of Capital
Single Source, no overhead managing multiple vendors
Pay as you go, with no lock in contracts
Security like Fort Knox ( inside & out )
Flatten & Optimize your Operational expenditures
Contract tight Service Level Agreements
Access to the best, SAP expertise
No need to attract and retain human capital
Design thinking embedded solving today’s & tomorrow's problems
Reliability, Scalability and Strength that only SAP can provide
Flexible & tailored for your business


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Cloud Application Library
and Questions

SAP Store

https://store.sap.com/sap/cpa/ui/resources/store/html/StoreFront.html?pcntry=AU&saplanguage=EN&_cp_id=id-1392000470049-0

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The Process


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Questions

Contact information:
Saul Cunningham
saul.cunningham@sap.com


Value of Amazon Web Services

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