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Value Proposition for SAP as a Service Ajay Kumar Uppal

SAP on pay as you go model

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Page 1: SAP on pay as you go model

Value Proposition for SAP as a Service

Ajay Kumar Uppal

Page 2: SAP on pay as you go model

One Portfolio Release 1.6

Scope

Executive Summary Highlights

Use Cases – When? Service Levels?

Numbers that matter in the real world …..

Challenges & interesting options

• What is DS4S ?

• Why ?

• Dynamic Services for SAP

• T-Systems

• Where ?

• References

• Market, Competition….

• How ? – Technology & Architecture

• Sales Kit – including ready Non Binding Price-to-Go Tool

Portfolio Development

Agenda ---Flow

Page 3: SAP on pay as you go model
Page 4: SAP on pay as you go model

Pioneer of cloud computing

http://www.t-systems.de/tsip/en/803866/home/solutions/t-systems-core-beliefs/dynamic-net-centric-sourcing/cloud-solutions

Page 5: SAP on pay as you go model

One Portfolio Release 1.6

Scope

Executive Summary Highlights

Use Cases – When? Service Levels?

Numbers that matter in the real world …..

Challenges & interesting options

• What is DS4S ?

• Why ?

• Dynamic Services for SAP

• T-Systems

• Where ?

• References

• Market, Competition….

• How ? – Technology & Architecture

• Sales Kit – including ready Non Binding Price-to-Go Tool

Portfolio Development

Agenda ---Flow

Page 6: SAP on pay as you go model

The basic idea of Dynamic Services for SAP Solutions and SAP’s Adaptive Computing is to have

any service,

any time

on any server.

This is achieved by a

high degree of virtualization of hardware resources like servers, storage and network and additional industrialized and standardized Services.

Solution Lower number of incidents and problems

(in case of DHL – reduced from ~400/ annum to 50 odd a year)

Modular & extremely flexible infrastructure permitting on-the-fly addition/ reduction of computing power

Flexible, automated provision of resources (storage, networks, servers, applications)

Standardised Services

Vendor independence

Rapid ramp up & down

Worldwide availability

Unique Selling Proposition

What is DS4S? Dynamic Services for SAP

®

Page 7: SAP on pay as you go model

Syste

m

Deploym

ent

Sept’12 Oct’12 Nov’12 Dec’12

When ?Business Flexibility, Business Continuity &

Capacity Management of SAP Production Instances

Flexible provision of scalable IT resources, in line with changing business needs.

Jan’13

Year -End Operation

2 to 4 Weeks Additional Capacity

to cope with

Month-End Operations

5-10 Days

Contracted Baseline Capacity

Revised

Contracted

Baseline

Capacity

New functionality ,

enhancements

and additional

users

Page 8: SAP on pay as you go model

When?Rapid and Temporary Provisions

for SAP Projects, Development & Quality Assurance

Contracted Baseline Capacity for

Development & Quality Assurance Environments

Syst

em D

eplo

ymen

t

2011 2012 2013 2014

Additional Capacity for Project

3-day provision

of info system

for annual

shareholders‘

meeting

1-month

provision

of sandbox

system

2-week provision of

training system

Performance upgrades for

quarterly reports

available on a day-to-day

basis

1-month

provision

of

sandbox

system

The customer requires temporary IT resources for a specific project.

Rapid provision of IT resources without investment risk for the customer. Invoicing based on resources provided

2015

Page 9: SAP on pay as you go model

T-Systems DS4S Benefits for Typical Customers Flexibility & productivity of Dynamic Services architecture helps in reducing SAP footprint (

by 50% ) compared to existing footprint based on classic environments.

Very low downtime & reduced number of incidents due to highly reliable infrastructure & productive resources.

USA Patriot Act does not apply to T-Systems European &UK Data Centres (i.e. USA law cannot demand the export of data to the USA).

Co-location of various instances and environments of customers SAP Landscape will drive economies of scale and improved performance of interfaces, integration and file transfers.

Based upon past experience, T-Systems Dynamic Services centric solution result in lower number of tickets for SAP Hosting.

Better turnaround times for Incidents, Disaster Recovery, Storage & Backups

Smaller ICT footprint with in-built resilience, information security, adaptive computing & capacity management compared to conventional /classic hosting.

Green IT - Up to 75% reduction in CO2 emissions (less cooling, heating, power )

Better hardware utilisation through virtualisation

Fast, flexible scaling of IT resources inline with ongoing requirements

Consulting for shaping ICT Strategy, Roadmaps & Governance

Provision of value-added services- business process, batch monitoring, analysis & corrective actions

T-Systems complies with SOX404 for financial controls and SAS70 for operational controls.

Page 10: SAP on pay as you go model

Dynamic Services for

SAP® Solutions

Application Operations for SAP® Solutions.Overview Packages.

SAP Basis for DS for SAP® Solutions

OE 1SAP Infrastructure for DS for

SAP® Solutions

OE 2SAP Storage for DS for SAP®

Solutions

OE 3

SAP Implementation Services

OE 5SAP Transition and

Transformation Services

OE 10

Classic Services for

SAP® Solutions

AC Linux Yearly Office for DS for SAP® Solutions

BUNDLE 1AC Linux Yearly FT HA for DS

for SAP® Solutions

BUNDLE 2AC Linux Yearly FT HA DR for

DS for SAP® Solutions

BUNDLE 3CC Linux Yearly Office

for DS for SAP® Solutions

BUNDLE 4CC Linux Yearly FT HA DRfor DS for SAP® Solutions

BUNDLE 6CC Linux Yearly FTHA

for DS for SAP® Solutions

BUNDLE 5

SAP Basis for Classic Services

OE 4

Server Installation Dedicated

OE 1

Server Operations Dedicated

OE 2Computing Power Building

Block x86

OE 3

Storage Capacities Dedicated

OE 4

Backup / Restore

OE 5

Computing Power Building Block Unix

OE 3

Dynamic Services for

SAP® Projects

Add-on Services

for SAP

Dynamic Services for SAP®

Projects

OE 11

SAP Extension Services

OE 6

SAP Job Management Services

OE 7

SAP Expert Services

OE 9

SAP Archive Services

OE 8

SAP Implementation Services

OE 5

SAP Transition and Transformation Services

OE 10

Firewall

OE 12

Load Balancer

OE 13

Service Desk

OE 14

Page 11: SAP on pay as you go model

Scope of Standard OfferingDynamic Services for SAP® Solutions.

Business Process Management

Strategic Consulting Business Proc. Management Introduction of new Applications (ERP, SCM, …) POSH SAPHarmonization Business Case Development SLA Development End to End Monitoring (Dynamic Services for SAP Application)

Application Management & Modernisation

Application Assessment Transformation Services (Change-Mgmt, Applications) Transition Services (Change Mgmt., Applications, People, Knowhow, Assets, Documentation) Change & Optimization Services Service Support (Incident Management, Release Management, ChangeManagement, Configuration Management) Services Delivery (Change Management, Release Management) Consolidation & Migration Services

SAP Basic Operations Monitoring Reporting Startup/Shutdown Database Management Interface Management Setup Correction& Transport System Early Watch Batch Jobs Changes

Unix/Linux/Windows OS OperationsMonitoring Startup/Shutdown Backup and Recovery Patch Management Security Basis Service Capacity Management Provisioning of OS licenses and base software (exception Microsoft licenses) Device Management

Hardware Platform/Data Center InfrastructureMonitoring Provisioning and operation of system hardware Maintenance contract Provisioning Energy,climate, building security, Data Center LAN

Firewalls (in T-Systems Data Center)Monitoring Hardware Support Software Support Creation of Security Concept Definition of firewall rulesReaction to alerts Monitoring of unusual activities

Connectivity / NetworkMonitoring Hardware Support Software Support Redundant Data Center connectivity Configurationof access network Definition of customer VPN IP address Management

Provision and maintenance of Data Centre Infrastructure, Network, Servers and Storage

Operations of HW, OS, DB, Storage/Backup, SAP Basis, network access, ITIL

SAP Basis Operation

System Startup/Sundown

Adapt Performance

SAP and DB-Upgrade

Apply Support packages

System-, DB- and Client Copies

Job Management

Data Archiving

Other Add-on Services

Page 12: SAP on pay as you go model

Extended Offering at a glance.

Approved operating model

Startup-Activities

Provision of DC-infrastructure,climate, security

Hardware/Software, selection and provision Installation/Transformation Project Management …

To do‘s at regular operation

Operate SAP Basis System and DB, administration, monitoring and reporting

Service Level Agreement Service and Delivery Management Recovery Services – backup and recovery 1st, 2nd and 3rd Level Support …

Optional additional services

ICTO Implementation services Migrations e.g. DB and OS Job Management Archiving Solutions Business Objects Business Process Monitoring Expert Services for SAP Release Upgrades Integration SAP, Customizing, Application

Management and Modernization Services Consolidation/Harmonization Connectivity/ Network…

Page 13: SAP on pay as you go model

A fully managed service –from Data Centre to SAP BASIS operations

Page 14: SAP on pay as you go model

Scope of add-on services – DHLInternal

SAP Products:

SAP R/3 Enterprise 4.7

SAP ERP 5 / 6

SAP Netweaver Business Intelligence 7.0

SAP CRM 7.0

SAP Netweaver Process Integration 7.0 / 7.1

SAP Netweaver Enterprise Portals

SAP Netweaver Composition Environment 7.1

SAP Netweaver Adobe Document Services

SAP Convergent Charging 2.0

osted Services:

System Operation in detail:

SAP Service delivery since 2002

SAP ERP / ECC with core modules FI / CO / HR / MM

SAP Netweaver Process Integration with decentral Adapter Engine in a 3rd party network and additional adapters like Seeburger

SAP Netweaver Enterprise Portals for ERP and BI Integration with Search and Classification Engine (TREX)

Largest system with a database size of approx. 6 TB and 25.000 SAPs

Hosting of non-SAP Interface components and 12 ERP Archive Systems

If applicable, providing of a secure Internet access for the Systems

Hosting of a high availability Central Interface Infrastructure, SAPRouter, Print and File Server services

Hosted Services:Hosted Services:

Page 15: SAP on pay as you go model

One Portfolio Release 1.6

Scope

Executive Summary Highlights

Use Cases – When? Service Levels?

Numbers that matter in the real world …..

Challenges & interesting options

• What is DS4S ?

• Why ?

• Dynamic Services for SAP

• T-Systems

• Where ?

• References

• Market, Competition….

• How ? – Technology & Architecture

• Sales Kit – including ready Non Binding Price-to-Go Tool

Portfolio Development

Agenda ---Flow

Page 16: SAP on pay as you go model

Highlights DS4S satisfies all…

Different positive messages for different audiences

Page 17: SAP on pay as you go model

Highlights T-Systems ---Market leader

T-Systems positioned as Leader for the second time in a row.

Reasons for being Leader

T-Systems' improved international footprint and portfolio strategy, driven by advanced industrialized services.

Thanks to its continuous pushing of utility and cloud services, T-Systems has increased its visibility as one of the relatively few successful converged telecom and IT providers.

TSI clients praised the availability of its data center service, its focus on using standardized methodologies, and its flexibility and efficiency in relationship and escalation management.

Points of differentiation

HP's approach to cloud services has been conservative to date with an immediate focus on enterprise clients' private cloud environments that may lead to managed services or technology deals.

Clients reported that HP could improve its agility in terms of implementation and problem solving, its focus on improving service delivery through innovation, and its performance in transition management.

… IBM does not appear to be actively promoting industrialized utility services to clients.

Magic Quadrant for Data Center Outsourcing & Utility Services, Europe

As of July 2011

Abili

ty to

exec

ute

Niche players Visionaries

Challengers Leaders

Completeness of vision

Gartner Market InsightMQ for Data Center Outs. & IUS, Europe

IBM

HP

CSC

Fujitsu

Capgemini

Atos Origin

Siemens ITSolutions and Services

HCL Technologies

Orange Business Services

TelefonicaSteria

Logica

T-Systems

Page 18: SAP on pay as you go model

Highlights T-Systems- one of leading SAP Services Provider

Page 19: SAP on pay as you go model

Highlights Service Delivery Reporting.....

Performance Reporting

Page 20: SAP on pay as you go model

Highlights

Online Portal and Reporting Cockpit

Total SAPS Data in the cockpitupdated daily for accurate cost monitoring

Visibility into billing, capacity planning and services with the opportunity to scale these up or down – at any time.

SAPS per instance per system Storage volume per system

Database size per system

Named users per system (in detail)

Can be activated for even Pre-Prod, Dev and QA

environments

Page 21: SAP on pay as you go model

Highlights Technical and procedural benefits Dynamic vs.

Conventional.

Example Conventional Services Dynamic Services

Scale up resources

Additional training system

Additional application server

New systems, project hardware

Re-activation of decommissioned systems

Additional hardware for peak loads statements)

Provision of parallel hardware for upgrades and

Three (3) weeks to two (2) months(depending on hardware

Two (2) hours to five (5) days

Scale down resources

Switch-off or deactivation of systems

Systems downsizing/rightsizing

At the end of depreciation period One (1) day to one (1) month

No reduction in costs Small Flat fee for change

Back-up Ad-hoc backup

Duration of a backup

Depends on architecture:Tape: up to one (1) day

Immediately

Depends on volume: hours/daysApprox. ten (10) min. / onlinematter of minutes

Restore Restore last or penultimate production backup

Restore archived backup (up to thirty30 days)

Depends on infrastructure, e.g. tape: approx. 50 GB/h

Depends on architecture: run-time = matter of mintechnology

Depends on infrastructure,e.g. tape: approx. 50 GB/h

Approx. 200 GB per hourfrom backup storage

Database copy

Copy production database to a test systemDepends on architecture:Tape: on average twelve (12) hours(copy + follow--up tasks)

Ninety (90) minutes to one (1) day, min for database copy , eighty (80) min for follow-up

Page 22: SAP on pay as you go model

Highlights Strong Partner of SAP

SAP Pinnacle Award 2011 „Run SAP Partner of the Year”

SAP® Certified in Cloud ServicesSAP Global Partner

SAP® Certified in Hosting Services

SAP® Certified in Application Management Services

SAP® Certified in Run SAP Operations

SAP® Certified in Run SAP Implementation

SAP Channel Partner in 12 Countries

Customers worldwide benefit from our accumulated competence and the intensive relationship with SAP.

T-Systems is working on co-development projects

with SAP

like SAP on Mobile Telephony

Page 23: SAP on pay as you go model

Enhanced IT Security

(nRuns)(Service Management)

Highlights T-Systems Certified Processes.

DIN EN ISO 9001:2008

(Information Technology)

ISO 27001

(Information Security)

For the SAS70–Type II report, T-Systems and Ernst & Young deve-loped a methodology that ensures that data center operation is SOX-compliant.

For „system and convergence solutions of information technology and telecommunications“.

Certified information security management system for T-Systems, including data centers.

ITIL ISO 20000 ISO 14001

(Environment, Health & Safety)

Operations and service management processes based on IT Infrastructure Library (ITIL).

SOXSAS 70 − Type II(Financial Controls)

HSE management system based on both an environment & a labor and health protection manage-ment system.

SAS 70 has changed to ISAE 3402

Page 24: SAP on pay as you go model

Highlights Key Figures – SAP Overall Worldwide.

SAP Application Consultants 2,359

SAP Basis Consultants 1130

Certified SAP Basis Consultants > 630

2,517 TB Database Volume

53TB Largest Database

806 GB Average Database Size

7,350,250 Named SAP User

3,634,716 Named SAP Users productive

88,643 user Largest SAP System

2,618 user Average SAP SystemSAP Installations 3,854

SAP Installations productive 1.285

Total number of installed SAPS 27,636,875

Total number of SAP customers 507

SAPS (SAP Application Performance Standard) is a hardware-independent unit of measurement that describes the performance of a system configuration in the SAP environment. It is derived from the Sales and Distribution (SD) benchmark, where 100 SAPS is defined as 2,000 fully business processed order line items per hour.

This throughput is achieved by processing 6,000 dialog steps (screen changes), 2,000 postings per hour in the SD Benchmark, or 2,400 SAP transactions.

•T-Systems uses concept of Slices where 1 Slice ~ 80 SAPS

• 1 Slice also equals 2137 Transactions per minute , 512 MB RAM..

Page 25: SAP on pay as you go model

Highlights Success stories & references

Dynamic Services for SAP Solutions.Key Figures – worldwide.

2,214,089Named SAP Users productive:

17,328,000Installed SAPS:

3,300SAP Components:

125Number of customers:

New accounts - SHELL, ESSAR, PHILIPS, Linde, MAN..

Page 26: SAP on pay as you go model

One Portfolio Release 1.6

Scope

Executive Summary Highlights

Use Cases – When? Service Levels?

Numbers that matter in the real world …..

Challenges & interesting options

• What is DS4S ?

• Why ?

• Dynamic Services for SAP

• T-Systems

• Where ?

• References

• Market, Competition….

• How ? – Technology & Architecture

• Sales Kit – including ready Non Binding Price-to-Go Tool

Portfolio Development

Agenda ---Flow

Page 27: SAP on pay as you go model

When ? Variety of Service Level Agreements to choose from

Service level Office Full time Office HA Full time HA Full time HA-DROperating times Monday to Sunday, 24x7 Monday to Sunday, 24x7 Monday to Sunday, 24x7 Monday to Sunday, 24x7 Monday to Sunday, 24x7

Service times Monday to FridayAttended operations7:00 a.m. to 7:00 p.m.

Monday to FridayAttended operations7:00 a.m. to 7:00 p.m.

extended to 24x7 by on call

Monday to FridayAttended operations7:00 a.m. to 7:00 p.m.

Monday to FridayAttended operations7:00 a.m. to 7:00 p.m.

extended to 24x7 by on call

Monday to FridayAttended operations7:00 a.m. to 7:00 p.m.

extended to 24x7 by on call

Maintenance window One Sunday per year 12:00 p.m. to 8:00 p.m.

One Sunday per year 12:00 p.m. to 8:00 p.m.

One Sunday per year 12:00 p.m. to 8:00 p.m.

One Sunday per year 12:00 p.m. to 8:00 p.m.

One Sunday per year 12:00 p.m. to 8:00 p.m.

Response time (service)15 minutes 15 minutes 15 minutes 15 minutes 15 minutes

Availability (of service) per month

98% 98% 99.5% 99.5% 99.5%

Maximum downtime within service times

8 hours 8 hours 2 hours 2 hours 2 hours

System response time for standard SAP R/3 and SAP ERP

90% of all standard dialogue steps in less than 1 second

90% of all standard dialogue steps in less than 1 second

90% of all standard dialogue steps in less than 1 second

90% of all standard dialogue steps in less than 1 second

90% of all standard dialogue steps in less than 1 second

Page 28: SAP on pay as you go model

DHL - Overall Operating figures

Hosted SAP Systems:

21 SAP Systems with Fulltime SLA

13 SAP Systems with Fulltime HA SLA

74 SAP Systems with Office SLA

approx. 280.000 hosted SAPs

Application Storage:

approx. 70.000 GB hosted storage

approx. 39.000 GB database storage

Backup Volume:

approx. 290.000 GB written backups

approx. 382.000 GB stored backups

Performance figures:

99,974 % average availability in the last 12

months

0,78 sec average system response time

Hosted Services:

USP - Lowered incidents and problems from almost 400 per annum to 50 odd a year.

Page 29: SAP on pay as you go model

Reference: Shell One-stop ICT solution.

New Account - ESSARDer KundeThe customer.

The benefits.The solution.The challenge.

Transfer of data centers and 12,000 servers/storage systems in US, NL, UK, Malaysia and other locations to T-Systems

Consolidation of data centers, SAP and non-SAP applications

Transfer of over 900 IT professionals transferred to T-Systems

Migration of 80% of applications to Dynamic Services

Agility and flexibility through the scalable Dynamic Services platform, which is, according to Shell, three to four years ahead of the competition

Fixed operating expenses replaced by variable costs as a result of a transparent, pay-as-you-go pricing model

Provide standardized services of consistent quality for Shell’s global organization

Deliver end-to-end ICT services to globally embargoed countries

Partner with two outsourcing suppliers in a multi-sourcing environment

Shell is a global energy and petrochemicals company with around 102,000 employees in more than 100 countries and territories.

Page 30: SAP on pay as you go model

Reference: Vorwerk. Cost-optimisation solutions.

Der KundeThe customer.

The benefits.The solution.The challenge.

Dynamic Services for SAP for the demand-driven provision of SAP resources

Transition to T-Systems dynamic data center in Frankfurt

WAN connection for multiple sites via MPLS

27 systems, 123,732 SAPS

ICT resources based on demand

Scalable access to up to 50 percent more computing power

Cost savings of 30 percent, use what you need, pay for what you use model

Provide ICT resources based on demand

Provide up to 50% more resources when required

Significantly reduce costs while retaining level of security and availability

Vorwerk specializes in the development and manufacture of products for the home.

The company employees over 23,000 staff and 500,000 freelance agents in 60 countries around the world. Additional business fields include HECTAS commercial cleaning, akf financing and leasing, and Vorwerk carpets.

Page 31: SAP on pay as you go model

Comfort Break

Page 32: SAP on pay as you go model

Be Positive

http://www.t-systems.com/tsip/en/214542/home/abouttsystems/company/media-center/452-sap-und-tsystems

Message from Top Guns…..

Page 33: SAP on pay as you go model

One Portfolio Release 1.6

Scope

Executive Summary Highlights

Use Cases – When? Service Levels?

Numbers that matter in the real world …..

Challenges & interesting options

• What is DS4S ?

• Why ?

• Dynamic Services for SAP

• T-Systems

• Where ?

• References

• Market, Competition….

• How ? – Technology & Architecture

• Sales Kit – including ready Non Binding Price-to-Go Tool

Portfolio Development

Agenda ---Flow

Page 34: SAP on pay as you go model

Norms and Tools ……Internal

DS4S Costs and Prices

Bare Minimum Contract Term for DS4S 12 Months

Baseline Contracted Capacity Atleast 1000 SAPS

Additional capacity over and above Baseline Capacity Multiples of 100 SAPS

Non-Binding Indicative Price-to-go worksheet for quick

calculation s.

PS: These prices should be given verbally ,,,,,,,

UK Standard Rate Card for additional items, capacity and services

over Baseline Contract

PS: This is for buying additional services only. It is not to be used

for reduction purposes if a customer wants to offload capacity or

services

Page 35: SAP on pay as you go model

35

Dynamic Services Charging InternalOverview

Dynamic

Standard

DR

Storage

SAPS

SLA Instance

yearly

daily

Office

FT-HA-DR

...

monthly

Page 36: SAP on pay as you go model

Commercial Model. Internal

Cost elements.

SAPS

SLA class

GB

SAPS

SLA class

GB

GB

SLA class

SAPS

Operations Usage

OperationsBasic

Storage

TestSystem

DevelopmentSystem

PredefinedServices

ProductiveSystem

DB-Patch Set

SAP Supp. Packs

SAP Client Trans

SAP Cl. Cp loc.

SAP DB Upgr.

SAP DB Copy

SAP Sys Copy

SAP Upgrade

On requestServices

RegularServices

WAN, service organization

D

ynam

ic

Dynam

ic

D

ynam

ic

Page 37: SAP on pay as you go model

One Portfolio Release 1.6

Scope

Executive Summary Highlights

Use Cases – When? Service Levels?

Numbers that matter in the real world …..

Challenges & interesting options

• What is DS4S ?

• Why ?

• Dynamic Services for SAP

• T-Systems

• Where ?

• References

• Market, Competition….

• How ? – Technology & Architecture

• Sales Kit – including ready Non Binding Price-to-Go Tool

Portfolio Development

Agenda ---Flow

Page 38: SAP on pay as you go model

Lets look at alternatives……

Page 39: SAP on pay as you go model

Cloud Convergence

Page 40: SAP on pay as you go model
Page 41: SAP on pay as you go model
Page 42: SAP on pay as you go model

One Portfolio Release 1.6

Scope

Executive Summary Highlights

Use Cases – When? Service Levels?

Numbers that matter in the real world …..

Challenges & interesting options

• What is DS4S ?

• Why ?

• Dynamic Services for SAP

• T-Systems

• Where ?

• References

• Market, Competition….

• How ? – Technology & Architecture

• Sales Kit – including ready Non Binding Price-to-Go Tool

Portfolio Development

Agenda ---Flow

Page 43: SAP on pay as you go model

Professional – no limitation on IT skills and capacities

Fast – save customer time & efforts

Flexible in service period & scope – better support for business needs

Better TCO – cheaper and reasonable

Reliable service levels – you get what you paid for

Responsible provider – Operation risk managed

No investment – release capital

Easy to plan cost – transparent IT cost for business

Evergreen concept – better support business changes and needs

No problems with ERP-IT – concentrate on the core business

Set free liquid capital for additional investment (alternative cost)

Scalable – can grow with your business

Operating cost – cost of service, not of asset

Lets look at reasons for outsourced hosting….

Page 44: SAP on pay as you go model

Major drivers for finding an alternative to in-house classic / conventional SAP hosting

SAP – Systemanalyse und Programmentwicklung ("System Analysis and Program Development")[

Page 45: SAP on pay as you go model

Dynamic Services “In the cloud”

What is Dynamic Services?It is a SAP hosting model....

Kind of Cloud offering under IaaS umbrella....

In-house solution/conventional outsourcing

Capacity designed to handle peak load

Fixed period of usage

Long lead time for new resources

“Conventional” Paradigm shift: From system-driven to service-driven IT

Dynamic Services Platform

Page 46: SAP on pay as you go model

Why Dynamic Services ?Rise to the challenge with scalable resources.

Business flexibility

Growth

Expansion/internationalization

Insourcing/outsourcing

Mergers and acquisitions

Price and cost pressures

Scaling down of capacity

Fluctuating workload

Innovation/multisourc

Drivers

Infrastructure/networks

Processing power

Operating systems, databases

End-user devices

Applications (SAP®, Navision, Oracle®, etc.)

Application Management Services

Manpower

Resources

Page 47: SAP on pay as you go model

http://www.t-systems.com/tsip/en/707788/home/abouttsystems/company/media-center/300-ao4sap-experten

How ?

Dynamic Services in a nutshell.

Page 48: SAP on pay as you go model

Dynamic Computing ServicesScalability at all levels - YOU are in control

LotusExchange VoiceSAP Web servicesOracle Archiving Workplace

Application Management Services

Network (DC-LAN)

CPU, Storage

… …

Dynamic Computing

Services from T-Systems

Page 49: SAP on pay as you go model

Why invest in Dynamic Services rather than Classic… ?

Benefits associated with Dynamic Services..

Parameters Conventional Dynamic

Services

Business-driven flexibility – you want it NOW

Rapid resource scalability – Its Month End

Low investment risk – T-Systems reduces risk

Standardisation – Minimal Customisation

Cost savings – Up to 30%

Innovation – We are way ahead of the field

Low complexity – We make complex , simple

Page 50: SAP on pay as you go model

Why invest in Dynamic Services ?Comparison of lead times

Conventional Dynamic Services

Additional Training / Application Server weeks / months Hours

Provision of hardware for Upgrades/Load Testingweeks / months Hours

Additional hardware for Peak loads weeks / months Hours

Switch off or decommisioning of SystemsAt the end of the month 1 Day

Ad-hoc backup Up to 1 Day Immediately

Ad-Hoc Backup – TIME REQUIRED Hours/Days Approx 10 Min / Online

Page 51: SAP on pay as you go model

Resource PoolingApplicationController

Why T-Systems DS4S? Highlights

Business flexibility.

Scales up and down – in line with your changing business requirements.

Page 52: SAP on pay as you go model

Benefit from T-Systems: Treading approved paths.

Today (CMO) Transition/Transformation Tomorrow (FMO)

Grown, heterogeneous system landscape

Distributed structures

Customer requirements and strategies

T-System‘s Best Practice

Industrialized ICT (Factory):

Centralized

Consolidated

Standardized

Modular

Dynamic

Consolidation

SLAs

Growth

Consolidation

New technologies

Replacement purchase

Global services

Cost reduction

Collaboration

Standardizedplatform

Optimisation potential: 20 – 40 %

StandardisationCentralisation

Page 53: SAP on pay as you go model

Reach of T-Systems SAP Services

Brazil

South Africa

USA

Mexico

Slovakia

Germany

Czech Rep.

HungaryFrance

UK

Switzerland

Spain

Italy

Netherlands

Austria

China

Japan

Belgium

Singapore

MalaysiaIndia

Page 54: SAP on pay as you go model

Some More Credentials…..

Page 55: SAP on pay as you go model

One Portfolio Release 1.6

Scope

Executive Summary Highlights

Use Cases – When? Service Levels?

Numbers that matter in the real world …..

Challenges & interesting options

Portfolio Development

What is DS4S ?

Why ?

Dynamic Services for SAP

T-Systems

Where ?

References

Market, Competition….

How ? – Technology & Architecture

Sales Kit – including ready Non Binding Price-to-Go Tool

Agenda ---Flow

Page 56: SAP on pay as you go model

One Portfolio Release 1.6

Scope

Executive Summary Highlights

Use Cases – When? Service Levels?

Numbers that matter in the real world …..

Challenges & interesting options

• What is DS4S ?

• Why ?

• Dynamic Services for SAP

• T-Systems

• Where ?

• References

• Market, Competition….

• How ? – Technology & Architecture

• Sales Kit – including ready Non Binding Price-to-Go Tool

Portfolio Development

Agenda ---Flow

Page 57: SAP on pay as you go model

MarketCompetition

Page 58: SAP on pay as you go model

58

Confidential -Evaluation of T-Systems’s DS4S - Gartner

Page 59: SAP on pay as you go model

59

Confidential - Key findings of T-Systems’s DS4S -Gartner

Page 61: SAP on pay as you go model

IaaS is the lowest level of the cloud technology stack.

IaaS provides operating system support, storage and processing.

IaaS will shift from public clouds to virtual private clouds.

While adoption remains high, the size of the market will shrink and public cloud services will cost less in the future because the cost of inputs will continue to decline.

MarketFuture & Size of IaaS

Page 62: SAP on pay as you go model

Competitive Advantage - DS4S supported by

T-Systems International Service Desk

Service Desk Locations

7/24 – Service Desk Backbone, supporting the major languages

Optional/Add -on if required by customer situation

Our International Service Desks span across multiple continents: Europe, Americas, Africa and Asia Pacific

Service Desks in cooperation to provide support in all major spoken languages around the world.

Our strategic approach is to be present in all continents (proximity to our customers with respect to culture, language, time zones).

Single Point of Contact, coverage of complete service portfolio (incident-, order-, change-, problem management, user administration, system monitoring)

Umbrella Single Point of Contact according to ITIL for desktop, computing, telecommunication, applications and “How do I” requests

Characteristics International Service Desk

More than 2,400 T-Systems head count worldwide

T-Systems Service Desks handle > 10million calls /yearFacts & Figures

Page 63: SAP on pay as you go model

Lunch …….

Page 64: SAP on pay as you go model

One Portfolio Release 1.6

Scope

Executive Summary Highlights

Use Cases – When? Service Levels?

Numbers that matter in the real world …..

Challenges & interesting options

• What is DS4S ?

• Why ?

• Dynamic Services for SAP

• T-Systems

• Where ?

• References

• Market, Competition….

• How ? – Technology & Architecture

• Sales Kit – including ready Non Binding Price-to-Go Tool

Portfolio Development

Agenda ---Flow

Page 65: SAP on pay as you go model

Data Centre Tier

Tier

LevelRequirements

1

•Single non-redundant distribution path serving the IT equipment

•Non-redundant capacity components

•Basic site infrastructure guaranteeing 99.671% availability

2•Meets or exceeds all Tier 1 requirements

•Redundant site infrastructure capacity components guaranteeing 99.741% availability

3

•Meets or exceeds all Tier 1 and Tier 2 requirements

•Multiple independent distribution paths serving the IT equipment

•All IT equipment must be dual-powered and fully compatible with the topology of a site's

architecture

•Concurrently maintainable site infrastructure guaranteeing 99.982% availability

4

•Meets or exceeds all Tier 1, Tier 2 and Tier 3 requirements

•All cooling equipment is independently dual-powered, including chillers and heating,

ventilating and air-conditioning (HVAC) systems

•Fault-tolerant site infrastructure with electrical power storage and distribution facilities

guaranteeing 99.995% availability

Page 66: SAP on pay as you go model

Dynamic Services High Availability – DR Capabilities.

Major Architectural Features.

Access via storageIP address

Storage Network

NAS Filers

synch

mirrorsynch

mirror

Storage

Customer

Administration

Each server has independent network interfaces for storage network, administration network andcustomer network; there is no routing among these interfaces nor among the networks.

T-Systems Corporate Network

Administration Network

CustomerFirewall

First Site Second Site

Admin NetFirewall

Distance 10 - 20 km

CustomerNetwork

Access tocustomer

network(service IPaddresses)

Access toadministrationnetwork (server

IP addresses)A service IP address can exist only once in customer network

Each network transparentlyspans both sites

Metroclusters: Storage devices (filers) that span sites, each using a dedicated network connection to synchronously mirror data

(Encrypted access)

CustomerNetwork

Page 67: SAP on pay as you go model

Dynamic Services High Availability – DR Capabilities.

Schematic Diagram – Normal Application Operations.

Storage Network

NAS Filers

synch

mirror

synch

mirror

T-Systems Corporate Network

Administration Network

CustomerFirewall

First Site Second Site

Admin NetFirewall

Distance 10 - 20 km

CustomerNetwork

Service IP address in customer network mapped to service on a server at first site

Mirror not visibleto applicationswhenever primarystorage available.

(Encrypted access)

CustomerNetwork

Page 68: SAP on pay as you go model

Dynamic Services High Availability – DR Capabilities.

Schematic Diagram – Normal Application Operations.

Storage Network

NAS Filers

synch

mirrorNo

Mirror

T-Systems Corporate Network

Administration Network

CustomerFirewall

First Site Second Site

Admin NetFirewall

Distance 10 - 20 km

CustomerNetwork

Service IP address in customer network stillmapped to service, but on a server at second site

(Encrypted access)

CustomerNetwork

Page 69: SAP on pay as you go model

Customer access in primary datacenter

Dynamic Services for SAP® Solutions.Storage Qualities AppCom Normal.

2 separated fire prevention areas

Datacenter EIP

Datacenter Allach

PRD PRD*

Snapvault

Redologs*

Snapmirror

Redologsxbr archive

e.g. Munich AreaDistance 16/32 km

Page 70: SAP on pay as you go model

Customer access in primary and secondary datacenter

Dynamic Services for SAP®

2 separated fire prevention areas

Distance >=15 kmsDatacenter Primary

PRD PRD*

Snapvault

Redologs*

Snapmirror

PRDSyncmirror

RedologsRedologsSyncmirror xbr archive

Datacenter Primary

3rd

storag

e

for

DR

Page 71: SAP on pay as you go model

Dynamic Services for SAP® Solutions.Storage: Overview.

NetworkComputing

Control Storage

NetApp Network Attached Storage

Bound on Gigabit Ethernet, Protocol NFS v3 over TCP

No SAN/FC Infrastructure

Storage box provides filesystems, no local Volumemanager required

All Qualities are “RAID-protected” and “Backup-integrated”

2 possible Qualities AppCom Normal/High (BIS Standard, BIS High Availability DR)

Other NetApp References (beside T-Systems)

Oracle: „Collaboration Suite ‚Files Online‘ supports a singledatabase instance on NetApp of 5 TB and growing.“

SAP Hosting: ca 500 Terabyte

Hella: ca 22 Terabyte

Page 72: SAP on pay as you go model

Dynamic Services for SAP® Solutions.Storage: Backup Management.

Backup-Integrated Storage

Based on Snapshot-Technology (without CPU-Load on DB- or Application-Server)

30 snapshots on primary storage

30 snapshots on secondary storage / read-only

30 Days Offline Redologs on Primary and Secondary Storage

Asynchronously mirrored every 10 minutes to secondary storage / read-only

72 hourly snapshots on primary storage

Point-in-Time Recovery possible to any date/time within past 30 days

Optional

Project snapshot (event driven)

Backup to tape (due date related)

Page 73: SAP on pay as you go model

Dynamic Services for SAP® Solutions.Storage: I/O Performance.

Is „Network Attached Storage“ a potential bottleneck?

Involved Components:

Gigabit Network 13,000 IOPS

Server 13,000 IOPS (capped by Gigabit Network)

NetApp Filer cluster60,000 IOPS

Disc Subsystem 60 IOPS per Disc

Result

Each Server can create a load of 13,000 IOPS against the storage box (in case enough discs are receiving this I/O load).

This equals a load of about 26,000 up to 32,000 SAPS@46C in an active SAP System.

Page 74: SAP on pay as you go model

Dynamic Services for SAP® Solutions.Network: Network Structure.

NetworkComputing

Control Storage

T-Systems

Corporate Network

encrypted access

Customer-

Firewall

Access methods:

- Internet VPN

- MPLS

- Dedicated

NAS Filer

Admin-

FirewallServerpool

Traffic Separation

VLAN technology

NFS export to customer VLAN

Administration Network

Customer Network

Storage Network

Page 75: SAP on pay as you go model

How ? Dynamic Services in a nutshell.

Easy-to-sell-product with big success on the market.

Preliminary product with a high degree of automation and flexibility.

Open Systems Tec Base with availability of all major operating systems and processor platforms.

Network Tec Base with quick access over MPLS or Internet-VPN.

Procedures, enabling a high degree of agility from ordering to provisioning.

Tools focusing on secure, shared infrastructures and a service oriented architecture.

Flexible vendor sourcing and licensing.

x86 Sun IBM hp

storage

backup

archive

WAN LAN

third party

database

application

appl.op.

syst.op.

moni-toring

cus-tomer

product

Tec Base

preliminaryproduct

appl.op.

syst.op.

moni-toring

cus-tomer

sourcing

licensing

OS OS OS OS

Customer Vendor

appl. = applicationsyst.. = systemop. = operations

toolsprocedures

Page 76: SAP on pay as you go model

Dynamic Services for SAP® Solutions.Control: Automation Approach

User Interface

Orchestration /

technical Workflows

Administrator

NWAdminACC

Monitoring Service Center…

Delivery OrderManager

Reporting Delivery & Operation Portal

Policies OperationsProvisioning

Automation /device drivers

Network OS DatabaseData SAP ….Middle-

ware

HW/SWinfrastructur

e

Cisco … Linux, AIX, Solaris, HP-UX … VMware, Xen… EMC, Netapp … Oracle, MaxDB … Bea Weblogic, Webshere …

Enhanced Config DB

AssetCenter

CMDB

CMD

B In

terfa

ce

Page 77: SAP on pay as you go model

Delivery Manager/Operations

GUI

Deployment

Service Center

Workflow ToolProcessing orders within the lines

Workflow/Automat.Provisioning

Config Warehouse

Asset CenterExtended CMDBProviding information concerning existing assets (necessary for change orders or Cancellations)

OrdererSRM@SAP (Module SOM)

Order Front-End (OFE)

CO data loading

Changing order size based on Basis Catalogue

Handing over the CO data to SAP@CDS

After provision: Handing over to SAP@CDS for invoicing

Status reply done

Handing over the orderdata to Deployment

Dynamic Services for SAP.Industrialised & Automated Processes

The plan shows the basic order process at T-Systems – from purchasing to provisioning. Process optimization and automation, enabling a high degree of agility from ordering to provisioning.

SAP@CDS (FI/CO)

Screen cams:

FC

COM

Invoice

Data (providing Co-Order)

Adding order data

Support processes and KPIs

Service CenterINMPRMCHM

Asset CenterCFM

ITIL

Confirming statusthrough the DeM

Verifying & compilingCSS service orders

NetworkComputing

Control Storage

Page 78: SAP on pay as you go model

Portfolio DevelopmentTraceability Matrix

Dynamic Services for SAP - Traceability Matrix

Description of document

Document Lead

Where Used/ Last Reviewed By/On

Link / Location of Document Document/PDF

1 Elevator pitch (1)

Sales /Andrew Clinton (AC)

Reviewed by AK,AC,PV,SL

Also material in SPOT ON - (https://spot-on.telekom.de/#p=S8cd432de-ebe7-4c67-a614-

5675b8a57465&s=I3F397384-F273-4BE2-B6E1-228611436750&t=c)

UK sharepoint: http://q4ukldsy112/SiteDirectory/ssm/PnMMDT/Docs/Campaign%20Development%20Management/Dynamic%20SAP/Presentations/Customer%20Presentation%20Dynamic%20Services%20for%20Infrastructure_112010_EN.ppt http://q4ukldsy112/SiteDirectory/ssm/PnMMDT/Docs/Campaign%20Development%20Management/Dynamic%20SAP/Presentations/2011_e_aofsap_elevator_pitch.ppt

2 White papers (1)

Sales/ Andrew Clinton

Reviewed by AK,AC,PV,SL

http://download.sczm.t-systems.de/ContentPool/en/StaticPage/29/46/29466_WhitePaper_Dynamic-Services-ps.pdf?client=t-systems.com.sg Also material in SPOT ON - (https://spot-on.telekom.de/#p=S8cd432de-ebe7-4c67-a614-

5675b8a57465&s=I3F397384-F273-4BE2-B6E1-228611436750&t=c)

UK Share point http://q4ukldsy112/SiteDirectory/ssm/PnMMDT/Docs/Forms/AllItems.aspx?RootFolder=%2fSiteDirectory%2fssm%2fPnMMDT%2fDocs%2fCampaign%20Development%20Management%2fDynamic%20SAP%2fWhite%20papers%20%2d%20reference%20material&FolderCTID=&View=%7b97756054%2dB81F%2d4D29%2d9A4F%2d1F45EE021DA6%7d

29466_WhitePaper_Dynamic-Services-ps.pdf

3 Solution outline & brochure (1)

Sales /Andrew Clinton

Reviewed by AK,AC,PV,SL

Also material in SPOT ON - (https://spot-on.telekom.de/#p=S8cd432de-ebe7-4c67-a614-

5675b8a57465&s=I3F397384-F273-4BE2-B6E1-228611436750&t=c)

UK sharepoint http://q4ukldsy112/SiteDirectory/ssm/PnMMDT/Docs/Campaign%20Development%20Management/Dynamic%20SAP/White%20papers%20-%20reference%20material/Dynamic%20SAP%20Data%20Sheet_Final.pdf

4 Pre-qualification material (1)

Sales/ Andrew Clinton

Reviewed by AK,AC,PV,SL

UK sharepoint http://q4ukldsy112/SiteDirectory/ssm/PnMMDT/Docs/Campaign%20Development%20Management/Dynamic%20SAP/Campaigns/SAP%20questionnaire%20-%20v1.1.xls

Page 79: SAP on pay as you go model

Dynamic Services a tool for value addition

Page 80: SAP on pay as you go model

Traceability Matrix

http://t-systems.telekom.de/cms/tsi-d/en/surrogate-navigation/templateId=renderInternalPage/id=1170236.html

http://res5-4.telekom.de/de/Downloads/Portfolio-Release/Portfolio_EN_One%20Portf-1.6.pdf

http://www.t-systems.com/tsip/en/152230/home/partners/alliances/sap/1-partner-sap

http://www.sap.com/solutions/benchmark/sd3tier.epx

https://subscriptionbasedhosting.ssl-01.com/index.php

http://q4ukldsy112/SearchCenter/Pages/results.aspx?k=Appcom&s=All%20Sites

http://q4ukldsy112/searchcenter/Pages/results.aspx?k=DS4S&start1=11

http://en.wikipedia.org/wiki/Statement_on_Auditing_Standards_No._70:_Service_Organizations

http://t-systems.telekom.de/cms/tsi-d/en/news/templateId=renderInternalPage/id=1778114.html

https://systemsnet.telekom.de/cms/tsi-d/en/news/service/templateId=renderInternalPage/id=1428502.html

Documentation & Useful links……

Page 81: SAP on pay as you go model

Dynamic Services for SAP® Solutions.Network: Customer Network.

My environment: my operating systems, my servers, my network.

NetworkComputing

Control Storage

Page 82: SAP on pay as you go model

Dynamic Services for SAP® Solutions.Computing: Current Server List.

Intel / AMD platform (Linux SLES10-64) up to 11,520 SAPS@46c

HP Proliant DL 385 and 585 G4

FSC Primergy rx300 S5

Itanium platform (HP/UX 11.31) up to 12,800 SAPS@46c

HP rx6600

Power6 platform (AIX 5.3) up to 9,600 SAPS@46c

IBM pSeries p520

single server load

Page 83: SAP on pay as you go model

Dynamic Services for SAP® Solutions.Computing: Virtualization.

Intel / AMD platform (Linux SLES10-64)

VMWare ESX (3.5 and 4.0 , 32-bit and 64-bit support)

Itanium platform (HP/UX 11.31)

HP Integrity VM 4.0“

Power6 platform (AIX 5.3)

Advanced Power Virtualization“

Page 84: SAP on pay as you go model

Dynamic Services for SAP® Solutions.ADOP-T – AppCom Delivery and Operations Portal

NetworkComputing

Control Storage

Page 85: SAP on pay as you go model

Dynamic Services for SAP® Solutions.Network/Storage: Beyond AppCom standards Ia.

One Appcom “High IO” server acting as DB server is combined with Appcom standard components

Appcom “High IO” requires BIS-RDC storage

Appcom “High IO” can handle up to 20.000 IO per second

Feasible for Oracle and MaxDB

Up to ~40.000 SAPS total system performance

NetworkComputing

Control StorageExample Appcom „High IO“ with single DB server

SAPS figures based on 4.6c

Page 86: SAP on pay as you go model

Dynamic Services for SAP® Solutions.Network/Storage: Beyond AppCom standards Ib.

Oracle RAC distributes I/O, memory and cpu demands of the database to several nodes

SAP central services (message-server and enqueue-server) are running under cluster control

One Appcom “High IO” node can handle up to 20.000 IO per second

Appcom “High IO” requires BIS-RDC storage

Oracle 10g RAC

Up to ~120.000 SAPS total system performance

NetworkComputing

Control StorageExample Appcom „High IO“ with Oracle 10g RAC

SAPS figures based on 4.6c

Page 87: SAP on pay as you go model

Dynamic Services for SAP® Solutions.Storage: Snapshot.

Page 88: SAP on pay as you go model

Dynamic Services for SAP® Solutions.Network: Zones.

Admin-Network

Fast Ethernet

Administrative Access by TS ES, e.g. central Monitoring

Storage-Network

Gigabit Ethernet / 10 Gigabit Ethernet

Access to Filer

Connectivity between application components

Customer-Network

Fast Ethernet

Customer Access

Security

VLAN technology provides “traffic separation” between networks

Penetration tests by NRuns

Page 89: SAP on pay as you go model

Raid-DP (Double Parity)

typically 12 Data-Discs + 2 Parity-Discs

Initial State

Reconstruction after Double-Disc-Failures

Dynamic Services for SAP® Solutions.Storage: NetApp Raid Technology.

Page 90: SAP on pay as you go model

Thank You ……