Ian has been heavily involved in developing solutions and delivering many of HCL’s largest SAP transformation programs in both North America and Europe. Welcome to today’s Q&A on SAP instance consolidation as a cost reduction strategy.
I’m Natalie Miller, features editor of SAPinsider and insider PROFILES, and I’m happy to introduce today’s panelist, Ian Greenhalgh of HCL Technologies.
Ian Greenhalgh: Sizing for the HANA appliances will be key for running both the ECC and CRM systems on one HANA “instance.” While MCOD (multiple components in one database) is available, there are several other options for running MCOS (multiple components one system) and multi-tenancy options.
HANA SP11 will bring a great new functionality in this area and is scheduled for GA in the next couple of months.
Comment from Guest: Can you provide more details around the three, broad categories?
Ian Greenhalgh: In terms of benefits resulting from instance consolidation, typically we expect to see them in the following categories: IT operational cost reductions — Benefits in this category are associated with the move to simpler SAP solutions, returning to vanilla SAP and defining an SAP minimum viable product.
Studies show that the average operational cost of running a single SAP instance could be up to 30% lower than running multiple instances.By simplifying the solution and standardizing on a smaller set of processes and functionality, we typically find that we have a smaller user base running standard transactions more frequently.This change manifests itself in more experienced users, fewer support incidents, and lower costs.Moving back to standard SAP means that the available knowledge base of problems is greater, while the functionality is more robust than custom developments.Consolidating on a standard set of SAP processes has significant business benefits in that all areas of the business use consistent processes and technologies, which ensures an expanded user knowledge base, improved data consistency and accuracy, reduced manual reconciliation between systems, and earlier identification of emerging trends.The tools are able to identify opportunities for: Comment from Arne Maagaard: We currently have ECC 6.0 EHP5 and CRM 7.0 EHP2 as our two primary applications.We are currently planning a migration project to HANA where we expect to consolidate these two systems on one HANA instance.Comment from Guest: What are key things to look at when analyzing our existing SAP installations prior to starting a consolidation project?Ian Greenhalgh: We use a tools-based approach that seeks to identify several things, such as: This analysis gives us factual insight into what is actually being used rather than what was configured.In our view, the first question to ask is whether or not you, as an organization, are prepared to run either your non-production infrastructures in the public cloud.If the answer to that is yes, then the selection criterion takes a different tack.