Designing Cloud Computing Solutions for Integration with SAP

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Orlando, Florida | May 15-18, 2011

Designing Cloud Computing Solutions for

Integration with SAP

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Learning Points



Understanding cloud solutions and considerations for

implementing them



Designing cloud solutions to integrate with SAP Products

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Agenda



Fundamentals of Cloud Computing



What is the Cloud



Key Benefits



Evaluating Cloud Solutions



Integration with SAP Products



Landscape



Bridge Program & Interfaces



Data Consistency & Validations



Implementation Experiences & Lessons Learned

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What is the Cloud?

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Cloud Solutions for Businesses

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Key Benefits of Cloud Computing

Scalable On

Demand

Faster

Deployments

Lower Cost

of Ownership

Predictable

Costs

Direct Vendor

Support

Automatic

Upgrades

Cloud

Computing

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Costs

Factors to Take into Consideration

 Lower start-up and implementation costs

 Usage based cost structure

 Internal costs despite cloud solution

Implementation Timeframe

 Faster implementation

 No customization; configuration only

Scalability & Performance

 Scalable solutions

 Performance metrics

 OS/Browser support

Security & Data Privacy

 Access methods

 Security of data with service provider

 Data exchange security

 Data privacy agreements

Support & Improvements

 Service provider support

 Integration/Internal support

 Implementation of additional functionality

 Automatic upgrades/patches and their timing

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When do Companies Look at Cloud Solutions?



Most companies have SAP or another ERP system in

place, that would not be replaced by a cloud solution

anytime soon.



Companies typically consider cloud solutions or

alternatives when:



Solutions with specific required functionality are available



Replacement of outdated systems is more beneficial than

upgrading existing systems



There is a preference to shift costs towards operating

expenses instead of upfront capital investments

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Case Study: Cloud Based Travel & Expense System



Implementation of a Travel & Expense Solution for a

company with multiple divisions having their own separate

back end Financials and HR/Payroll systems

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Landscape – Integration with Multiple Systems

File Encryption File Decryption

T&E Cloud

Solution

File Decryption File Encryption

SAAS DATA CENTER

INTERNAL NETWORK

Middleware/Bridge Program

SAP

Payroll

HR System

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Bridge Program and Interfaces

Bridge Program



Single point of interaction

with the cloud solution



Encryption/Decryption of files



Data translation



Additional data validations



Business logic not handled by cloud

solution



Data transformation based on other

internal systems



Interface monitoring and error

handling

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Bridge Program and Interfaces (cont’d)

Interfaces



The format and type is mostly governed by what the

solution provider supports.



If possible real time web services should be employed:

 Help keep the source and target much more in sync by having a closed loop process

 Provide better traceability and monitoring capabilities



Obtain a clear understanding of the standard interface

format under different use cases

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Data Consistency



Use automated feeds to ensure that the data in the cloud

solution is updated with the latest Organizational and

Master data from SAP and other downstream systems



Full updates or delta loads can be used. Full updates are

easier to manage, but the data volume could pose a

hindrance.



Real time interfaces are preferable as batch

processes involve delays in such updates



To reduce translation requirements

utilize SAP data in the new cloud

based system



Organizational Data

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Data Consistency (cont’d)



Upfront validation of data in the cloud solution will

minimize errors during interface runs. Possible solutions

include:



Drop down lists for user entry and back end

validations based on master data feeds



Format, length and data type validations

can be employed where data feeds are not

possible (E.g. very large master data set)



If web services are enabled, real time

checks in SAP can be performed E.g.

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Implementation Lessons Learned

Project Prep

Business

Blueprint Realization Final Prep

Go Live & Support

Design

 Solution provider typically performs the configuration design

 As the knowledge within the client organization is low at this stage, it is essential to ask for alternatives and implications; An integrator can help navigate this step with lessons learned from prior engagements  Flexibility for future changes should be built into the configuration

rather than just ease of maintenance and associated consolidation  Standard interface specifications are typically

provided by the service provider. These should be clearly understood

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Implementation Lessons Learned (cont’d)

Project Prep

Business

Blueprint Realization Final Prep

Go Live & Support

Configuration

 As the cloud environment is configured by the solution provider, the client should thoroughly unit/string test the configuration and even insist on testing results from the solution provider

 Configuration documentation should be thorough and in a form that can be updated in the future

 The data exchange mechanisms and

encryption should be setup early, to avoid delays during interface testing

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Implementation Lessons Learned (cont’d)

Project Prep

Business

Blueprint Realization Final Prep

Go Live & Support

Testing

 Configuration related permutations and data validations should be thoroughly tested

 Back up connectivity should be tested (fail over)

Cutover

 Cutover rehearsals should be performed like dress rehearsals, maturity of migration tools for the cloud solution should be

understood and appropriately managed

 Internal client cutover steps should be part of the rehearsal, even if the solution provider does not focus on it

 A common cutover plan should be prepared and managed across all parties

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Implementation Lessons Learned (cont’d)

Project Prep

Business

Blueprint Realization Final Prep

Go Live & Support

Support

 While the service provider is responsible for the cloud application, several support functions and tasks fall to the client support

organization and should be planned for:  End user how-to’s and master data setup

 Escalating issues received from end users to the service provider

 Interface monitoring and error resolution

 Downstream interface issues in client’s internal systems

 Service provider SLAs should be closely monitored and escalations performed per the contract

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Managing Future Changes



As the cloud solution cannot be customized, some desired

functionality might not be available. Some options exist:



Build into bridge program if possible



Send enhancement requests to the service provider through

their designated method. These are used by the service

provider to develop functionality for future releases



Managing releases and improvements



Obtain the release schedule and associated downtime to

perform the appropriate internal notifications



Issues can crop up after a release by the service provider,

and so end user calls should be closely monitored during

this period

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Key Learnings

 Cloud solutions can provide several benefits, but a number of factors should be considered before creating the business case  Implementing cloud solutions requires careful planning and

execution

 Integration with internal systems should be addressed during design to build a hands-free system as far as possible

 Internal support requirements for cloud solutions should not be underestimated

 Cloud solutions can be very

beneficial and can be designed to integrate with your SAP solution

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

Thank you for participating.

SESSION CODE: 1007

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