The business environment is changing fast. Speed is a competitive, strategic weapon, and companies are driving constant and uncompromising change into their business to expand, grow markets, develop new products, and so on.
For many years IT has been struggling to manage and trade off the impact of ever-increasing IT complexity with the growing expectations of the business. Demands for faster, bigger, and more flexible conflicted with the risk of ‘breaking’ something in an IT landscape that became increasingly more fragile with each new change.
To address these seemingly conflicting priorities and drivers, CIOs are examining ways to reinvent their operations and drive business value by:
- Core not context – Outsourcing SAP operations and application management to free-up resources that can then focus on core competencies such as creating business value and strategic advantage, rather than operations, management and maintenance.
- Business Relevant – Supporting the business’ needs for continuing innovation, change, expansion and growth. Everything the business does today is enabled by IT.
- Cost Reduction – Driving cost out of the IT landscape and operation is a huge concern and focus for today’s CIO
Strategy 1: Form true partnerships with companies like SAP to enable ‘Closed-Loop Support’, whereby the teams that develop, build and maintain the applications on which you depend, become an extension of your IT department – your virtual support organization.
Strategy 2: Implement ‘Leveraged Innovation’, whereby customers can test, and trial the latest innovations from SAP in a sandbox HEC environment, to ensure the best fit and the maximum innovation potential before they purchase. All of this, pre-integrated and linked to the full breadth and depth of SAP’s entire solution set including Ariba Network, Hybris WebChannel extension, API Management solutions, and so on to minimize complexity-driven risk and cost.
The HEC provides numerous sources of value for both ‘HEC for Projects’ and ‘HEC for Production’. These are outlined below:
Accelerate the Deployment of HANA – deliver the RTDP (Real Time Data Platform)benefits – analytics, process performance, mission-critical, etc.
Free-up Customer’s IT Resources – leverage the HEC and SAP’s Application Management Services (AMS) to free-up customer’s resource and IT staff to better drive value creation activities, focus on business innovation, and drive revenue
- Free-up IT staff
- Reduce the Investment Capital Required
- Reduce and Avoid Energy and Data Center Costs
Respond faster to the business’ need to innovate, change and deploy new systems Outside of the HANA deployment project already mentioned, the business will have literally hundreds of smaller projects each year – some large, some small. These can range from deploying a new system for a company that’s been acquired, to expanding an existing system to new geographies, groups of users, and so on. Separate topics that are integral to the ‘respond faster’ value driver are (i) agility and (ii) elasticity.
Agility refers to the capability of the IT department to best respond to the needs of the business by delivering the systems and hardware the business needs to drive revenue.
Elasticity is the term given to the customer’s IT landscape, and how easily to can expand and contract to meet the needs of the business. For example, if the business needs a new system stood-up for a new project or acquisition, does the existing hardware have sufficient capacity to enable that, is the data center big enough, what about wiring and cooling requirements? These are all factors in the elasticity equation.
CAPEX to OPEX – the ability for a CIO to be able to purchase HEC as an operating expenditure (OPEX) rather than as a capital item (CAPEX, CAPital EXpenditure) is a very significant win. The ability for a CIO to pay a monthly fee from their operating expense (Opex) budget means they won’t need to have capital approved – the process is far easier and has less all-round risk.
HEC is the Low-Risk Deployment Option – For both business and IT executives, choosing the right deployment is all about risk reduction and cost avoidance, and HEC enables customers to avoid ‘all or nothing’ decisions. With HEC, the customer could avoid both the capital cost and its resulting depreciation expense. This enables the financial risk to be avoided.
Learn more and discuss cloud topics in SCN (SAP Community Network), the social network for SAP professionals.
Cloud @ SCN >