You are driving around in your old faithful car that has never failed you and you see through the corner of your eyes a bright red, shiny, flashy car and it whooshes right past you. SAP on premise deployment is your faithful car that you drive to work every day and took your wife out to your first date. The red shiny car is Partner managed cloud, efficient fast and what you need to get rid of your mid-life crisis.
Partner managed cloud provides traditional SAP solutions Hosted on an SAP partner’s private cloud on a subscription basis as compared to the high upfront capital required for an on premise deployment of SAP.
Key benefits of Partner Managed Cloud
- Strategic : Decreased response times for changes in business processes and new requirements
- Financial: 30% lower Total cost of ownership in a span of 5 years and an optimised positive cash flow.
- Operational: Better utilization of resources towards better functionality of SAP than system maintenance.
The primary drivers of the low Total ownership cost are the result of the key components of Partner managed cloud.
- Scalability: Increase or decrease of resources according to demand and proper utilization of the Sap Landscapes.
- Flexibility: Quick deployment of changes in business processes.
- Speed: Fast deployment of the service to customers leading to less down time.
- Pooled Resources: Expertise is spread across multiple customers hence more profitable use of resources , also the customers do not have to invest in dedicated SAP resources
On Premise Deployments require more cash Up front, almost 31 % of the investment in the first year while Partner Managed cloud has an evenly distributed cash flow of about 20 % per year for a period of 5 years.
Partner managed cloud services are more in tune to the needs of Small and Medium scale industries which need an efficient ERP to streamline all their business processes without having to break the bank.
Discover more on how ITChamps helps to deploy SAP on Cloud services.
Author: Gervasis Paracka – MM Consultant (ITChamps Software Private Limited)