One Global SAP Instance vs Multiple Regional Instances

As more and more companies are acquiring other companies with different and disparate databases there are complexities that come from merger and integration of the IT applications. Even in the organic growth, when a company grows across geographies, it is seen that multiple SAP systems may need to be merged.

In such situations, one major question that every CIO grapples with is should one have One Single SAP Global Instance or Separate Regional Instances.

TO properly evaluate, there are many things that need to think through. The pros and cons of the two different alternatives are a good startiing point for that evaluation and discussion.

Single Global Instance

Advantages

• Maximum utilisation of SAP Functional Integration
• Forces standardisation or commonality
• Lower cost of on-going maintenance
• Organisation-wide operational reporting is standard

Disadvantages

• Various technical constraints that have to be managed
• The online Transactional volume is heavy 24 hrs a day
• Response time considerations across global WAN
• Inability to accurately estimate client/server workload
• More Business Unit impact when system unavailable

Separate Regional Instances

Advantages

• Provides the greatest configuration flexibility between regions
• Allows diversity
• Reduces the issues with Technical Constraints

Disadvantages

• Multiple separate data bases
• SAP Functional Integration is limited
• Organisation-wide operational reporting is non-standard
• Cost of on-going maintenance is Higher
• Commonality is manually maintained and is not forced by the software

Areas of Integration Benefits
Note: These benefits are maximised with a Global Instance. Lesser benefits would be anticipated with separate Regional Instances.

Business Processes
Procedures and activities - both manual and high-level systems tasks - performed to satisfy a given job within an organisation

Business Organisation
Business organisational structure and definition of roles/responsibilities

Applications / Systems
System configuration commonality, integration, requirements, and application hierarchy

Data Management
Maintenance of system master data and establishment/maintenance of data reporting tools (including data warehousing)

Implementation Support
Post-implementation support structure for maintenance of System Configuration, ABAP development, promote-to-production, and emerging technologies

Technology / Operations
Post-implementation support, back-up and recovery, Disaster Recovery, WAN/LAN maintenance, Data Centres, SAP basis components