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Costing SAP Instance

Consolidation
The average operational costs of running a
single instance of SAP are 2540% lower than
running multiple instances
The Future of SAP Report, 2013

The Problem
A single-instance ERP strategy is seen
by many executives as a key driver
of operating efficiencies and process
standardization.
- Gartner
It is absolutely clear that instance consolidation
delivers material operational savings. Equally, if
an organization is ever planning to migrate to
Suite on HANA, this will necessitate instance
consolidation.
Recent research has shown that on average,
large enterprises could save more than $6m per
annum by consolidating their SAP footprint while
simultaneously unlocking business efficiency
savings that could be many times that figure.

How CAN HCL help?


Today, many organizations that have
embarked on instance consolidation are
spending tens to hundreds of millions of
dollars effectively re-implementing their
existing SAP solution without properly
considering how they use their current
systems and in particular what works
and what needs to be improved.
HCL has developed a series of
automated tools to extract and analyze
this information, allowing us to not only
fast-track the design of the future single
instance, but by transferring the bulk
of the build and migration activities
offshore, we have demonstrated that
our approach can reduce the cost of
instance consolidation by over 35%.

Our Proposition
We believe that organizations running multiple
SAP instances should understand the costs
associated with this model and the savings that
are available as a result of instance consolidation.
In our experience these include:
IT operational cost savings associated
with supporting a single design
Reduced infrastructure costs as a result
of operating fewer landscapes
The opportunity to rationalize their SAP
license base and potentially reduce
maintenance costs
Positioning the environment for a low
cost migration to Suite on HANA.
HCL has already helped many clients consolidate
their SAP footprints. We invite you to find out
just how big the cost reduction opportunity is for
your business.
Operating Cost Analysis
HCL has developed a comprehensive set of
benchmarks from more than 250 global SAP
Large Enterprise customers. They relate to
the scope, age, fragmentation and operational
costs associated with their SAP footprints,
as well as their plans to adopt and leverage
new disruptive technologies such as HANA,
Mobility and collaboration.
Through a high-level analysis of your SAP
operational costs, we can rapidly gauge where
your business sits relative to other similarly
sized enterprises as well as the cost reduction
opportunity associated with rationalizing your
SAP landscape.

Legacy SAP System Analysis


At HCL we think that instance
consolidation projects should consider the
huge wealth of knowledge and information
embedded within existing SAP systems,
information which can short circuit the
design and implementation of a new
consolidated, single instance.
Allow us to demonstrate how our legacy
SAP analysis tools can provide insight
into your current SAP environments
highlighting:
Which configured processes, code
blocks and custom developments are
actually being used
How efficient are the existing SAP
processes, e.g.: How much manual
intervention is required or what is OnTime in Full Process Completion rate
What Master Data is actually being used
How far away the configured SAP
processes are from standard SAP.
The results of the analysis are presented
in a format designed to highlight which
configuration is close to vanilla and can be
readily migrated to a single instance and
where there are beneficial opportunities for
process redesign.
This not only gives you the opportunity to
validate our approach, but will deliver a
data driven plan for instance consolidation
in your organization.

The Next Step


To help you discover the opportunity for SAP cost reduction for your
organization, HCL are offering to conduct a no cost* benchmarking
assessment. As part of this assessment we will:
Conduct a high-level review of your global SAP landscape
Benchmark your landscape with those of over 250 similar organizations
Analyze one SAP instance using our tools to demonstrate their value in
planning instance consolidation programs
Share insights on the new SAP technologies and how these might be
leveraged as part of a consolidation program.
The outcome will be a report, in clear, no-nonsense language that
provides an overview of the high-level business case for consolidating
your SAP landscape. This will include observations as to potential process
improvements as well as discrete next steps for building a detailed
instance consolidation plan.
*Offer is limited to 15 organizations who will be selected purely at HCLs discretion.

About HCL
HCL is a leading technology
organization with revenues
of $6.4bn and 92,000
employees operating from 31
countries around the world.
HCLs Enterprise Application
Services (EAS) division helps
clients transform, sustain
and evolve their businesses
through the effective
deployment of enterprise
technology. Focused on
creating best run businesses,
EAS primarily utilizes
SAP, Oracle and Microsoft
technology in achieving
these goals.

HCLs EAS practice is


a leader in disruptive
enterprise technologies
including cloud, mobility,
social media, big data &
analytics and engineered
systems.
True Global Delivery
HCL operates as a single
global organization allowing
us to deploy consulting
teams which leverage proven
industry and solution best
practices from our offices
and delivery centers around
the world.

HCL and sap


HCL has been a certified
partner in the SAP Ecosystem
for over 17 years. The HCL
and SAP relationship delivers
value to our customers
through industry focused
excellence, innovation, and
orchestrated innovation
through diverse resources.
Our global delivery team of
over 6,000 SAP experts are

recognized as being the most


experienced SAP consultants
in the market and combine
the best local SAP business
transformation expertise
with world class offshore
SAP factory services. HCL is
ranked in the top 4 SAP SIs
by Forrester, Gartner and
IDC. We are regularly ranked
#1 for client satisfaction.

For more information, email: hcleas@hcl.com

www.hcltech.com
Published by: HCL Enterprise Application Services
2013 HCL Technologies Limited

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