SAP Cloud Infra Business Case

19 February 2020 PENNA CEMENT INDUSTRIIES LIMITED 1

 Agenda
• Objective

• Pain Points & Risks with the existing Infrastructure

• Why Cloud?

• In case of hardware refresh - On Premise Data Centre

• Key Service Responsibilities

• Infrastructure as Service

• Cost Analysis On Premise Vs Public Cloud for next 3 years

• Why CtrlS as a cloud partner for Penna

• CtrlS SAP Journey

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 Objective

• To meet all the expectations from the business and to influence the technology in the business growth
• To work on highly scalable state of the art infrastructure
• Say No to huge investments on the IT Infrastructure
• To meet all the compliance requirements for our IPO Project

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 Pain Points & Risks with the existing Infrastructure
• 8 years old legacy infrastructure (EOL), we are in extended support from OEM which will expire in the FY 2020

• Our Infra is scaled up to the maximum and we are unable to upgrade the infra further due to EOL

• The present infrastructure may become a stumbling block for the organization growth plans

• We are already started seeing performance issues in the regular transactions /reports and our average system response time
is not even near to the industry standard. (Our SAP average transaction response time is 2.5 Ms., but, the Industry Standard
is below 1Ms.)

• Huge Productivity loss due to the sluggish response from SAP at times while transacting from cloud applications like
Salesforce, Care, SCP etc..

• We are worried about the infra downtime if in case the servers go down at peak hours, which intern impact our business
targets

• Our present leased lines are signed with 99.5% SLA but there are planned downtimes which will not be covered in the said
SLA

• Continuous complaints from the business on the performance issues, we are unable to resolve them due to hardware
dependency
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 Why Cloud?
Description On Premise Cloud (IaaS)

Performance Depends on Hardware & Network Guaranteed Performance, Tier-4 Infrastructure

Availability Depends on installed hardware HA by H/W Failover, Power Failover , Cooling Failover

SLA Based on our infrastructure and support system 99.995% (Infra), 99.5% (App) -Tier-4 SLA

Security /Compliance No Specific Certifications PCI DSS, ISO 27001,SOC-1, SOC-2 (SSAE16),NIST (CSF)

Processes No Specific Process Followed ITIL, COBIT , ITSM, PMP, NIST, ISO, Six Sigma

Scalability Manual Scale-out Automated Scale-out

System Mgmt. Manual H/W set-up and Configuration Automated OS, S/W Installation and provision
Complexity Complex and need to follow-up with multiple teams Simple

Usability Requires on-site operation Coordination with Cloud team, Web based UI
Skilled and Certified Resources and no individual
Staff Dependency on one Skilled Resource
dependency
Investment High Capex No Capex, Only Opex

Deployment Speed With dedicated servers, the lead time is vey high Lead Time for Deployment is low

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 In case of hardware refresh - On Premise Data Centre
Description HP Dell

X86 Hardware which is suitable for next five years of Work load with 3 Years 24/7 Support ₹ 1,12,85,000.00 ₹ 1,20,15,000.00
Additional Charges for 6 CTR Support for 3 Years ₹ 35,00,000.00 ₹ 41,50,000.00
15 KVA UPS with Failover for Data Centre with 3 Years Support ₹ 10,00,000.00 ₹ 10,00,000.00
Air Conditioners ( 2 Ton X 2 ) with 3 years Support ₹ 1,50,000.00 ₹ 1,50,000.00
2 Numbers of L3 Core Switches with 3 years Warranty ₹ 7,20,000.00 ₹ 7,20,000.00
Total Expenses for Next 3 Years ₹ 1,66,55,000.00 ₹ 1,80,35,000.00
Net Cost per Annum ₹ 55,51,666.67 ₹ 60,11,666.67

Pros
We Will get an Asset Depreciation ( 16.66% per Annum)
We will get tax input one time (18 % GST)
With in our own Data Centre (No worry on data Security)
With in our LAN and completely in our control
Cons
No Committed SLA
Huge one time investment & We have a space issue in existing Data centre
Complete dependency on one single input power source
Manageability is bit challenging
Dependency on the single resource for managing infrastructure
Dependency on the multiple vendors to make the data Centre up & running
No Proper fire safety measures which may lead to data loss
Dependency on network SLA for cloud integrations ( Salesforce, SCP etc..)

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 Key Service Responsibilities
SAP HEC
+ Strategic GTM Partner

SAP App Consultation

SAP ECC /BW Service

SAP Implementation Service

PCIL Scope
Provide App Managed Services

SAP Basis management

DB management (Db2)

OS management (Linux & Windows)

Provide Infrastructure maintenance

Cloud Partner Scope
Provide HW & NW incl. setup

Provide DC facility

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 Infrastructure as a Service

Network
Core Router
Core Switches Our solution architects can help you create a
Load Balancer IAAS stack grounds-up by sizing the right BOM
01
based on your App benchmark
Security
02
UTM/ Firewall Helping you build your IT infrastructure stack
Pre-stocked Log Analyzer
infra VPN on a ‘Pay as you go’ model right from servers,
components network, security, storage etc.
and ready to
deploy IAAS
Compute Comprehensive review of our client adherence
CISC: X86 to various compliance standards and support
03 RISC: Power/ Sparc third party audit
EPIC: Itanium

Integrated IAAS Offerings covered under Single

Storage SLA for Transparency and Accountability.
Software
04 Tiered High/ Mid / Low IOPS
MS SQL/ MySQL/ Oracle/ Archive Storahe
Dynamics/ JBOSS / 06 05
Exchange SAP HANA/ HSM

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 Cost Analysis - On Premise Vs Public Cloud for next 3 years
Description FY 2019-20 FY 2020-21 FY 2021-22
X86 Hardware which is suitable for next five years of Work load with 3
Years 24/7 Support ₹ 1,12,85,000.00
Additional Charges for 6 CTR Support for 3 Years ₹ 35,00,000.00
15 KVA UPS with Failover for Data Centre with 3 Years Support ₹ 10,00,000.00
Air Conditioners ( 2 Ton X 2 ) with 3 years Support ₹ 1,50,000.00
2 Numbers of L3 Core Switches with 3 years Warranty ₹ 7,20,000.00
Power & Cooling Expenses for complete setup per Annum
Manpower /Resource Expenses per Annum
Total Expenses for Next 3 Years ₹ 1,66,55,000.00
Net Cost per Annum ₹ 55,51,666.67 ₹ 55,51,666.67 ₹ 55,51,666.67

Public Cloud (Infrastructure as a Service)

Description FY 2019-20 FY 2020-21 FY 2021-22

₹ 36,90,000.00 ₹ 36,90,000.00 ₹ 36,90,000.00

Fixed Cloud Hosting charges for complete SAP Infrastructure
One time Platform migration charges from HPUX to SUSE Linux ₹ 3,00,000.00 ₹ - ₹ -
Total Expenses ₹ 39,90,000.00 ₹ 36,90,000.00 ₹ 36,90,000.00
Net Savings ₹

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 Why CtrlS?
Criteria CtrlS Net Magic (NTT Group) Amazon EC2
Certifications Tyre 4 Data Centre Tyre 3 Plus Tyre 4 Data Centre
99.995% (Infra), 99.5% (App) -Tier-4 Less than 99.99% but equal to or greater
SLA 99.95% (Infra), 99.0% (App) -Tier-3 SLA
SLA than 99.0%

Bid Model Fixed Bid per Annum Fixed Bid Per Annum Variable based on the usage

Price Lock for 3

Agreed Agreed NA
years
Scalability Yes Yes Yes

Managed Services Yes part of the proposal Not Included in the Proposal NA

Ease to reach
Easy Bit Hard Easy
Support

SAP Skill Set Yes Yes NA

Our Rating 1 2 3

Final Price Offered 34 Lacks 40 Lacks Approx. 65 - 85 Lacks

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 CtrlS SAP Journey

Enabled Expansion to 22 Countries

Largest Global Partner including Tier-2
2nd Successful Countries
Implementatio
n in India Elevated
Journey as an Elevated
Begins Infrastructure as an Global
2012 Partner for Premium
India Partner
Y2012
Y 2019
1st Successful Y2013, 14 Y 2015, 16
Implementation
in India

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