Listen to the replay session to explore the various options for technical deployment of SAP S/4HANA. We will demystify the options from the S/4HANA cloud editions (SaaS options) to the hyperscaler and on-premise options. Topics we will examine include cost benefits, flexibility, and ability to respond to the business. SAPinsider webinar series.
Swan(sea) Song – personal research during my six years at Swansea ... and bey...
SAP S/4HANA cloud editions or On Prem? Demystifying the options and cost benefits
1. Your Journey and Deployment to S/4 HANA
May 2020
Michael Ryan, PMP®
IBM Distinguished Engineer
IBM Global Business Services
2. Deployment
What are the major deployment options available?
On Premise On Cloud
Tailored DataCenter
Integration
(TDI)
Certified
Appliances
Leverage
Infrastructure
investments
Hardware Vendor of
your Choice
Build it yourself with
new or existing
Hardware
Preconfigured HANA
DB and Hardware
Appliances sold by
Certified Infrastructure
Vendors
SAP Workloads hosted
by major cloud vendors
like Azure, AWS,
Google, IBM
Bring Your own HANA
Licenses to the public
cloud. IBM will do a
SaaS-like offering
leveraging Partner
Managed Cloud or IBM
Global Financing.
S/4HANA OP Edition
on Public Cloud
Infrastructure
S/4HANA OP Edition
on Private Cloud
Infrastructure
S/4HANA OP Edition
on HANA Enterprise
Cloud (HEC)
S/4 HANA Cloud
Edition
Managed hosting sold
by partners and
providers
Built on Hardware from
Select Hardware
Vendors (e.g. IBM).
IBM will do a SaaS-like
offering leveraging
Partner Managed Cloud
or IBM Global
Financing.
Managed hosting sold
by partners and
providers
Built on Hardware from
Select Hardware
Vendors (e.g. IBM)
Available as Software
As a Service (SaaS)
Available as Extended
(Single Tenant) and
Essentials (Multi
Tenant) options.
The Multi-cloud Reality. By 2020, 75% of organizations will have adopted a multi-
cloud or hybrid cloud model.*
3. YOUR JOURNEY, YOUR PATH
Your journey to SAP S/4HANA can take you down multiple paths. IBM is positioned to guide you through selecting the proper path based on
your organization and what you value
IBM Confidential
FACTOR A: YOUR TRANSFORMATION CAPACITY
FACTOR B: YOUR APPROACH TO TRANSFORMATION
TECHNICAL
CONVERSION
COPY, TRANSFORM
AND DEPLOY
ADOPT S/4HANA
BEST PRACTICE
COGNITIVE & DIGITAL
ENTERPRISE
Conversion Re-Implementation
Rapid
Move Hybrid /
4. Architectural Decision - S/4 Build Approach
Type Approach Available for Purpose
System
Conversion
(Technical upgrade)
New Implementation
(IBM IMPACT)
IBM Rapid Move
(Copy, Transform, Deploy )
Reusing
byin-place
conversion
Bringing the business processes to the new platform
§ A complete technical in-place conversion of an existing ERP
software system in SAP Business Suite to SAP S/4HANA
§ Adoption of new innovations at the client’s own speed
§ Probably no business transformation
New implementation/reimplementation
§ Reengineering and process simplification based on latest innovations
§ Implementing innovative business processes with preconfigured
content on a new platform
§ Performing initial data load
§ Retiring old landscape
Value-driven data migration to the new platform
§ More than master data and open items needed, such as transactional data,
complete or selected by a time slice
§ Migrate a selection of data (such as by organizational units), or migrate
data from more than one system, or migrate application-related data into
an SAP S/4HANA–based solution landscape
Standardized
Customer
tailored
Reengineering
withdatamigration
ECC S/4HANA
DB HANA
ECC S/4HANA
DB HANA
ECC S/4HANA
ECC S/4HANA
Data conversion
ECC ECC
SHELL
S/4HANA S/4HANA
DB DB HANA HANA
ECC S/4HANA S/4HANAECC
Shell
5. YOUR Journey, YOUR Approach
Your journey to SAP S/4HANA can occur many ways. Its sometimes not as simple as “green, blue, brown”…
Scenario Description What you See
Greenfield
“I don’t have SAP today. I might as well implement the newest technology
platform”
Re-Implement
“I have SAP today. I don’t want to drag 20 years of best practices into the
future. We’ll stay inside-the-box this time”
Straight Migration
“I’ve tried to stay close to standard over the years. I should be able to upgrade
and migrate my data pretty easily”
Contract-the-Core
“I want to have less in-the-box when I get to S/4. I’d like a new model that
includes cloud applications”
Hybrid/Rapid Move
“I’m happy with my business processes, and don’t want to get into business
transformation all over again. That said, we can’t do a ‘light switch’ upgrade….”
Federate
“I think a new deployment model makes sense. I’d like to isolate major
processes and move them at different timings”.
Platform First
“I’m going to first convert to the HANA database and maybe use the new HCP
technology as my first step”.
Pain-point Proof
“I want to use HANA technology to address some very specific pain points (I can
use that success to build support)
HANA Side Car
Central Finance
CEC
Master Data
Order Mgmt
*** Many of the above can be combined into new scenarios ***
6. Transition from Legacy ERP to the Intelligent Enterprise Based on a Digital Core
LEGACY SAP ERP PLATFORM
Custom applications
Custom Data
Classic extensions
Legacy SAP ERP
Business Suit
CRM
Legacy
Systems
HR /
Payroll
Mobile
App
SRM
BI
Applications, custom data, and
integrations are contained within
the SAP ERP
SAP S/4HANA PLATFORM
Evolving business process and point-to-point
integrations in the core ERP become challenges
A decoupled architecture supports a standard core ERP system and enables
transform and grow the core with scaling in the Intelligent Enterprise
Customer
Experience
AI / Machine
Learning
FINANC
E
ERP CORE
Assets &
Supply Chain
7. Cloud Extensions – Pros and Cons
CLASSIC IN APP SIDE BY SIDE
SOLUTION
ABAP Customization occurring within the standard
application. Sits on business application layer.
Customization occurring in the outer application layer
using common tools for Developers/ Super Users and
whitelisted APIs
Customization occurring in the cloud landscape using wide variety of
development tools and whitelisted APIs. Changes don’t impact core
business logic.
PROS
• Classical way developing WRICEF applications
• Provides development flexibility to enable non-
standard functionality to support process related
competitive advantage
• Keep business value driven customizations
• A proven approach, popular among developers
• Moderate initial migration and implementation cost
• New way developing WRICEF applications
• Common tools for Developers and Super Users
• Minimize business disruptions during upgrades by
using Whitelisted APIs only
• S/4HANA lifecycle management provides structured
low risk approach
• No initial migration
• Low implementation, maintenance and future
migration costs
• New way developing WRICEF applications
• Addresses complex requirements using Multiple Runtime
environments (eg ABAP, Java, Node.js) and allows for use of
innovation services (IoT, Blockchain and AI)
• More scalable allowing extension and growth of digital core
while scaling in new technologies
• No initial migration
• Moderate implementation and maintenance costs
• Low future migration cost
CONS
• High maintenance and future migration costs
• No use of whitelisted/published APIs
• Unable to use other innovation services (eg IoT,
Blockchain, AI, etc.)
• More difficult to address complex requirements
(Restricted development options/commands)
• Limited prior implementations (Not a well proven
approach)
• Programming language is restricted ABAP only
• S/4HANA lifecycle management slows down
innovation delivery
• Relatively new platform
• Security and lifecycle management require additional effort
SAP S/4HANA
Application
Database
UI
ClassicExtensions
In-AppExtensions
SAP S/4HANA
Application
Database
UIClassicExtensions
SAP S/4HANA SAP Cloud Platform
UI
Application
Database
UI
Application
Database
Integration Workflow
Machine
Learning
Blockchain
In-AppExtensions
ClassicExtensions
Side-By-Side Extensions
…
APIs /
Business Events
View
Replication
Mobile
UI/Launchpad
8. Example Solution Reference Architecture
+ Expansion
Global
Template
SAP WebDispatcher
SAP Enterprise Portal
SAP Fiori Front-endServer/ Gateway
SAP SLT
SAP Master Data
Governance
SAP
BusinessObjects
SAP Data
Services
SAP Enterprise HANA
SDI/SDQ/SDA
Load Balancer
Global Template SAP Applications
Legacy Applications
Other SAP
Systems
SAP ECC
Systems
3rd Party
Systems
3rd Party Applications
Legacy ECC System
Data Replication
Data Integration and Transformation
Planning, Reporting,
Query and Analysis
Real-time/Scheduled Data
Replication from ECC
SAP Governance,
Risk and
Compliance
SAP Process
Orchestration
Adobe
Document
Services
PDF Document
Conversion
3rd Party Inbound/Outbound
Interfaces
Reverse Proxy / Software Load Balancer
SAP Middleware Application
LegacyInbound/Outbound
Interfaces
HTML / OData Requests
Hardware Load Balancer
ConcurAriba
EnableNowIBP
Impact
Development
HANA Cloud Integration
Real Time
Process
Integration
Read Time
Data
Integration
SAPGUI Transaction iView
Common Data Framework
Trusted RFC
SAP Solution
Manager
Legend
One-way initiated connection by
Users for System Logon
Global Template SAP
Applications
Global Template Common
Data Framework Applications
Two-way initiated connection
between systems
One-way initiated connection
between systems
Global Template Users
SAP Roles/User
Provisioning
Data Extracts
from S/4
SAP Application Lifecycle
Management System
SAP HANA Information
Management Services
(Smart Data Integration)
Data Loads into Enterprise HANA
S/4HANAInbound/Outbound
Interfaces
Data Quality
Metadata Management
TPM on HANA
BW on HANA
Web Browser Traffic
Single Sign-On
CARAB on HANA
SDI
CPI-DS
Cloud
Connector
9. Instance Strategy is a Foundational Item
Your choice of instance strategy will set operational and business precedents for the next 10-15 years. While migration approach “comes
and goes”, instance strategy remains for the duration….
What is a
single instance
strategy?
These are all single
instance
strategies…..
S/4
Enterprise
Data Center
Platform
Single instance of one SAP
application (as in R/3)
Enterprise
Data Center
Virtualized
Platform
Single instance of many
applications, each providing part
of a global template
Ariba
C/4
BW
GTS
IBP
MDG
S/4
Data Center 1
Virtualized
Platform
Partitioned deployment by business
process with each process having a
single global instance
BW MDG
S/4
Supply
Chain
Enterprise
CFIN S/4
Order Mgmt
Virtualized
Platform
Data Center 2
Many
variations
are
possible..
Many
variations
are
possible..
Finance
SaaS Tenant
SaaS Tenant
10. There is no single, ”right”, answer
Different instancestrategiesfitdifferentcorporationsinmuchthesamewayasdifferentmigrationapproaches do
If the business processes are constrained by business unit, geography, client structure, or other deployment
impediment to global, enterprise-wide, data and process visibility; then its not a single instance.
C/4
C/4
C/4
C/4C/4
C/4
C/4
C/4
C/4
C/4
C/4
C/4
S/4
S/4
S/4
S/4
S/4
S/4
S/4
S/4
S/4
/ Finance
“Single Global
Instance”
is but one way to
go…
It is the simplest,
but can have
complexities as
well
11. Deployment Points to Ponder
Keeptheseinmindasyouplanyourapproach….
1. Many customers want to eliminate large data center and licensing expenses and a move to
cloud based infrastructure and applications provides an effective answer. Most deployments
are both hybrid and multi-cloud, tailored specifically towards a given enterprise.
2. Migration approach is largely based upon your views on transformation and how much you
are willing to take on.
3. Instance strategy will be with you for years. Put some thought into it.
4. Your choice of migration approach and instance strategy will drive (at least in part) the cost &
duration of your migration, the ongoing TCO, and the extent to which the business will be
impacted.
5. IBM RAPID DISCOVERY services can provide you with options and answers as you prepare for
S/4 HANA migration and taking the next step in your enterprise ERP journey.