Justifying the business case
Is there a business justification for migrating your SAP environment to the cloud? Can you build a model for financial savings for investing in a cloud-based SAP deployment?
Suresh Pathak, executive consultant IT-Economics Practice at IBM Asia Pacific, believes this is not only possible but vital to the core business values of any enterprise. A viable digital reinvention plan must align core business objectives with technical requirements and costs before the enterprise can make a financially-based IT decision.
Pathak suggested that sometimes the most obvious benefits of shifting IT environments are not necessarily the best. For example, acquisition costs for an on-premise deployment may appear lower in the short-term but over time, drive cost upwards as running costs escalate.
Conducting an IT Economics study would help enterprises examine and compare alternatives to determine the most cost-effective solution based on business value metrics, SLAs, ERP workload activity, the IT environment, and operating business and IT costs. Ultimately, the right financial model can help organisations focus on identifying efficiencies, cost reductions and increased business value.
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