SAP hosting set to increase in UK

As SAP ERP user manufacturing businesses in the UK start increasingly to opt to make the transition up to the web portal-based mySAP.com, SAP IT hosting firm TDS Systemhouse says it expects to see many more deciding to use its hosting services rather than buying systems in the conventional fashion. Managing director Tim Foxlow says growth over the last quarter demonstrates that the move has already begun. “The number of enquiries is immense. It’s really kicking in now. People are wanting the new power [of mySAP.com] but they’re not wanting or able to invest in the additional infrastructure, hardware and people to make it happen.” And he adds: “We can save users up to 37% on cost of ownership; we guarantee them cost predictability; there’s no investment for them in hardware and infrastructure – that’s our problem. And they don’t have to invest in upgrades – again that’s down to us.” He also insists that with the problems for SMEs (small to mid size manufacturing organisations) recruiting and keeping good IT people, the service will be attractive since he contends that those people – at least at a detailed level – are no longer required when his company takes over. TDS Systemhouse started in the UK three years ago, although the parent company has been going in Germany for as long as SAP itself. Users in the UK to date in the manufacturing sector include Kingspan and Unilever. Most users, according to Foxlow, take the entire system in hosted fashion, with the exception of some of the ‘New Dimension’ applications. And he notes that whereas hitherto his company has been focusing on offering full ASP (application service provider) services, now the emphasis is back on tried and tested hosting. Running SAP systems remotely on its own servers in Germany, with connection by land lines or VPNs (virtual private networks), with fixed monthly fees, is proving more attractive. Chances are this is due to the huge chasm between consulting on and implementing systems – with all the requirements of industry expertise, consulting skills, project management and the rest – versus running existing systems set up by someone else! Incidentally, for those few he says he finds that aren’t comfortable with the hardware, applications and data being run out of house, as in the hosted service, Foxlow says his firm also offers SAP remote support services. If it is a few, that’s a surprise. Most manufacturers this journal talks to find hosting a hard pill to swallow – advantages or not. They’re not so concerned about remote management though, as long as the service level agreements (SLAs) match up. Either way, with TDS Systemhouse now fully certified in the UK as a mySAP hosting partner, here’s another way forward for those that do want to move up to mySAP.com but are worried about the implications.