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Best Practice 17.1 – Evaluate your use of SAP managed service offerings - SAP Lens

Best Practice 17.1 – Evaluate your use of SAP managed service offerings

PDFRSS

Per the AWS shared responsibility model, the customer has the responsibility of managing their SAP workloads on AWS. Optionally, a service provider can be used to manage your SAP workloads on AWS. When evaluating a service provider, the responsibility of both upfront and ongoing cost management should be delegated appropriately and should be treated as an ongoing process.

Suggestion 17.1.1 – Evaluate and understand available managed service offerings

A number of AWS and SAP partners provide services for the deployment and operation of your SAP landscape. The scope and maturity of services provided varies across partners. These types of services can provide efficiencies, for example, centralized support, bundled licenses, or automated deployment services. These can reduce your overall costs and should be evaluated based on your specific business requirements. Evaluate partners for AWS competencies including those with the AWS SAP Competency or belonging to the AWS Partner Network (APN).

SAP offers RISE with SAP, a single-tenant, SAP-managed S/4HANA solution that also includes SAP Business Technology Platform (BTP) and other SAP software in a single contract. AWS supports customer choice and hosts many customers on the SAP RISE platform. SAP RISE can be hosted on AWS and combined with SAP BTP on AWS and other AWS workloads. When choosing AWS for RISE and BTP, you have options to simplify the architecture, improve connectivity, improve security, and reduce costs.

Suggestion 17.1.2 – Understand the roles and responsibilities related to cost control

Different managed service offerings have different cost models to cover infrastructure, licensing, and services. Decide where the responsibility for cost control lies. The following questions can be asked as part of this process.

  • Are the costs from the provider:

    • Based on a percentage of infrastructure spend?

    • Based on an agreed total cost of ownership (TCO)?

    • Variable (both up and down) according to changed business conditions?

  • T-shirt sized (small, medium, large)? Is there an appropriate change control process in place to ensure that costs are controlled and understood?

  • Is there sufficient visibility and transparency of the infrastructure costs?

  • Does cost governance limit innovation and flexibility?

Suggestion 17.1.3 – Agree on an approach to cost management and optimization with all parties

When evaluating the different managed service offerings available, understand the managed services partner’s approach to cost management. How can you work together to drive on-going cost optimization for your organization?

This evaluation should include a regular review process. It might also benefit from incentives, such as a shared reward model, that encourage the partner to take ownership so that both parties financially benefit from the cost savings achieved.

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