Transitioning enterprise ERP systems like SAP to the cloud brings forth a myriad of choices and considerations. For organizations evaluating the move, understanding the distinctions between certified public cloud providers and community clouds—along with the potential risks and costs of each—becomes vital. Let’s explore these crucial differences, benefits, drawbacks, and strategic recommendations to help SAP customers make informed decisions.
Cost and Risk Considerations
Certified Public Cloud Providers
Certified public cloud providers such as Amazon Web Services (AWS), Microsoft Azure, IBM Cloud, Google Cloud, Oracle Cloud, Alibaba Cloud, and Huawei Cloud are SAP-approved entities capable of hosting SAP workloads. These platforms meet rigorous SAP certification standards, ensuring compatibility, performance, and stability. By adhering to specific configuration and VM standards, these providers ensure SAP’s support and seamless operational efficiency. However, despite robust performance guarantees, certified public cloud providers come with higher upfront costs compared to other hosting options. Enterprises must weigh these initial expenses against the long-term benefits of reduced operational disruptions and assured support from SAP.Enterprises that opt for certified public cloud providers benefit from a well-supported and highly reliable environment. These platforms have been scrutinized under SAP’s certification process, ensuring that they meet necessary benchmarks, which translates to fewer operational hiccups and greater stability. These advantages are particularly crucial for organizations heavily dependent on continuous access to SAP systems for their business operations. Thus, while the initial onboarding costs may seem steep, the reliability and scalability offered by these certified providers often counterbalance the initial investments, making them a judicious choice for long-term sustainability and operational efficiency.Community Cloud Providers
Community cloud providers offer another alternative, often at a lower upfront cost. Unlike certified public cloud providers, community clouds lack formal SAP certification, which can introduce hidden risks and incremental costs. Gartner’s research highlights that the absence of SAP’s formal support for shared infrastructure may compel customers to switch to a dedicated tenant to resolve certain issues, leading to unexpected cost increments. Organizations choosing community clouds also face potential operational disruptions that can delay resolutions and necessitate costly reconfigurations. Despite these risks, community clouds may be suitable for non-critical workloads or smaller businesses seeking budget-friendly solutions.Community cloud providers may seem attractive initially due to their lower costs, but enterprises must tread cautiously. The absence of SAP certification means these environments are prone to greater operational risks. For instance, when issues arise, SAP might mandate that customers replicate these issues on a certified independent tenant setup, leading to redundant work and increased costs. Despite these drawbacks, community clouds still hold value for specific use cases, such as legacy data storage without high-performance requirements. For smaller organizations with tight budgets, this approach might provide a feasible balance between cost and functional adequacy, although the risks must be carefully weighed to avoid long-term complications.Operational Performance: Benefits and Drawbacks
Public Cloud Performance and Stability
Certified public cloud providers guarantee a robust and performance-optimized environment for SAP workloads. The certification ensures adherence to SAP’s stringent standards, mitigating the risk of unforeseen operational issues and ensuring SAP’s full support. This reliability is essential for enterprises that rely on continuous, high-performance system operations. Furthermore, certified public clouds offer extensive scalability, seamlessly handling fluctuating workload demands without compromising performance. These attributes make certified public clouds a preferred choice for large enterprises and mission-critical applications requiring consistent, high-level performance.The benefits of certified public clouds extend beyond just stability and performance. Given their robust infrastructure, certified public cloud providers often come with advanced security features that protect SAP workloads from potential threats. Their scalable nature allows enterprises to expand and adapt resources on-the-fly, an essential feature for organizations facing varying workload requirements throughout the business cycle. Large enterprises and critical operations departments can derive considerable operational efficiency, knowing that their systems are supported by SAP and hosted on platforms designed to meet rigorous industry standards, further justifying the initial investment in certified public cloud providers.Community Cloud Operational Considerations
On the other hand, community clouds may not offer the same performance and stability levels. While these environments can host SAP workloads, they fall short of SAP’s rigorous certification standards, potentially leading to operational inefficiencies. Customers might experience performance lags and delayed support resolutions due to the shared infrastructure model. However, community clouds can serve specific use cases effectively, such as maintaining historical data for compliance or supporting workloads with minimal performance demands. For small and medium-sized enterprises with budget constraints, community clouds may present an appealing option despite the inherent risks.Community clouds, though less expensive, demand keen scrutiny and cautious deployment strategy. These platforms may suffice for secondary operations, such as archival storage for compliance or non-critical applications that do not require high performance. However, the intrinsic risks associated with uncertified infrastructures, such as latent support lag and potential performance degradation at peak times, could result in higher operational costs over the long term. For SMEs, the lower entry barrier of community clouds could be advantageous, yet this should come with the preparedness to manage potential downtimes and operational disruptions that the less stringent infrastructure standards might introduce.Simplifying Cloud Transitions with RISE
RISE with SAP: An Overview
RISE with SAP aims to simplify cloud transitions by offering a single point of contact that manages engagements with cloud providers, consultancies, and system integrators. This approach reduces the complexity enterprises face when coordinating multiple service relationships, potentially streamlining operations and enhancing overall efficiency. RISE offers a consolidated service package that combines infrastructure, SAP software, and support, all bundled into one contract. This integrated approach is appealing for organizations seeking a comprehensive solution that simplifies vendor management and minimizes administrative overhead.RISE with SAP promotes simplified vendor management by providing a unified platform where all components necessary for a smooth cloud transition are managed under a single contract. This aids organizations in reducing the administrative burden of juggling multiple vendors and contracts, thereby fostering a more efficient operational workflow. For businesses looking to migrate seamlessly without the complexities associated with multi-vendor coordination, RISE presents a cohesive ecosystem, encapsulating essential services such as infrastructure, software, support, and advisory under one umbrella, thus making the entire process appear less daunting and more streamlined.Flexibility vs. Rigidity
Despite RISE’s benefits, its rigid structure might limit operational flexibility compared to other managed service providers (MSPs). Organizations requiring a more tailored approach may find RISE’s one-size-fits-all model restrictive. Alternative MSPs might offer greater customization and adaptability, aligning more closely with specific organizational needs and operational strategies. While RISE provides a degree of protection and predictability, customers must carefully assess whether its structure aligns with their long-term goals and operational requirements. Balancing the benefits of simplified vendor management with the need for operational flexibility is crucial for optimal outcomes.The rigidity inherent in the RISE model, although simplifying many aspects of cloud migration, might not cater to businesses with highly specific or unique operational needs. Certain sectors require bespoke solutions and greater flexibility than what a standardized package like RISE can offer. Alternative MSPs might be better suited for these cases, providing the necessary customization tailored to unique operational demands. Enterprises must weigh the streamlined experience offered by RISE against the potential need for more personalized and adaptable services. Both approaches have their merits, but the ultimate decision hinges on the specific requirements, long-term goals, and operational dynamics of the organization.Gartner’s Strategic Recommendations
Thorough MSP Analysis
Gartner underscores the importance of performing a thorough analysis before finalizing any MSP. Enterprises should evaluate the MSP’s track record and capability to manage SAP workloads effectively on public cloud platforms. Understanding the MSP’s experience, support structure, and service level agreements (SLAs) is critical to ensuring reliable SAP operations post-migration. Enterprises must also assess the MSP’s financial stability and scalability, ensuring they can support growth and evolving business requirements over time. An MSP with a robust track record and scalable solutions can provide the necessary support for long-term success.A comprehensive evaluation of MSPs should focus on their historical performance in managing SAP workloads on public cloud platforms. This involves looking into their service-level agreements (SLAs), support mechanisms, and customer testimonials to ensure they can deliver on their promises. Additionally, enterprises must consider the financial health and scalability of the MSP to gauge whether they can support future growth and evolving business needs. This due diligence ensures that the chosen MSP will not only provide reliable SAP operations but also remain a sustainable partner in the dynamic landscape of cloud technology.Agility and Adaptability
Transitioning enterprise ERP systems like SAP to the cloud involves numerous options and critical factors to consider. Organizations contemplating this shift must grasp the key differences between certified public cloud providers and community clouds, alongside the potential risks and costs associated with each. Certified public clouds, offered by major providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, deliver robust, scalable, and secure environments. They come with compliance certifications and extensive support but can be costly. Community clouds, on the other hand, cater to specific industries or groups with shared interests, prioritizing collaborative benefits and tailored solutions. While potentially more cost-effective, they might lack the extensive resources of larger public cloud providers. Weighing the advantages and disadvantages of each option is essential. This knowledge is crucial in making strategic decisions that align with organizational goals, helping SAP customers navigate the complexities of cloud migration effectively and efficiently. Making informed choices ensures a smoother transition and maximizes the benefits of cloud technology.
