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SOD zur SIS Cloud Computing Strategie

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    SOD zur SIS Cloud Computing Strategie SOD zur SIS Cloud Computing Strategie Document Transcript

    • Bright IT Services: Statement of Direction for the Siemens IT Solutions and Services Cloud Computing Strategy Version 1, May 31, 2010 Siemens IT Solutions and Services Contents The purpose and contents of the document ……………….........…...…….....…......... 2 Management summary …………........……..................................................……….. 3 Cloud Computing terminology ……..................................................................... 6 Cloud Computing reference architecture ……..................................................... 7 Siemens IT Solutions and Services’ Bright IT Services portfolio ……..........……… 14 Security services ……......................................................................................…… 15 Infrastructure as a Service (IaaS) portfolio ............................................................ 21 Platform as a Service (PaaS) portfolio ……………………………..……...............…......... 24 Software as a Service (SaaS) portfolio …………..........................................……..….. 28 The concept of Community Clouds ...................................................................... 42 Bright IT Services Consulting portfolio ................................................................. 46 Bright IT Services business environment …............................................................ 49 Operational Framework for Cloud Services ................................................................ 49 Strategy and future outlook ……..................................................................…… 52 Appendix – Glossary ......................................................................................... 57 Author information and Links ........................................................................... 60
    • Siemens IT Solutions and Services 1. The purpose and contents of the document The IT trend “Cloud Computing”, which is currently often discussed with our custom- ers, is being marketed by Siemens IT Solutions and Services under the name “Bright IT Services”. This document discusses the strategic Cloud Computing direction of Siemens IT Solutions and Services, and sets out the main components of a hybrid Cloud Computing solution. It represents the framework document – or master document – for a series of topic-specific white papers that will ultimately make up the scope of the “Bright IT Services” portfolio. The following subjects will be covered: • Infrastructure as a Service (IaaS) – virtualization, desktop and data-center services, • Platform as a Service (PaaS) – development and runtime environment for hybrid Cloud Computing applications and middleware product portfolio of our partners. • Software as a Service (SaaS) – e.g. Content & Collaboration as a Service. • Community Clouds, e.g. Media Cloud and Healthcare Cloud. • Security services, such as Identity and Access Management, and Enterprise Rights Management. • Cloud Computing Consulting and Business Services. • Operational Framework for Bright IT Services. The Statement of Direction (SOD) describes where Siemens IT Solutions and Services is going with its “Bright IT Services” in the medium and long term, and it shows what solution approaches, and what added value we are already able to offer to our customers with regard to this innovative subject. Attention is drawn here to existing strategy papers and publications by Siemens IT Solutions and Services, such as, for example the Cloud Computing white paper entitled “Cloud Computing: Business models, value-added dynamics, and customers benefits”, and to various press releases. Please follow the link at the end of this document to our official Internet Web Site. 2
    • 2. Management summary Advantages of Cloud Computing from the customer’s perspective Even if confidence in Cloud-based solutions with respect to the necessary security has to be built up initially, many of our customers are giving a great deal of thought to the subject of Cloud Computing, principally for economic reasons. The advantages are obvious. In future, our customers will no longer need to have their own perma- nent hardware and software infrastructure for their applications; and they will conse- quently save procurement and administration costs, and the cost of updating and maintaining software. They will be able to book the required IT resources ad hoc via a Web interface, and they can pay for the services actually required, as incurred and according to use (pay-per-use). Furthermore, when testing new, innovative applica- tions, and during peak load periods (e.g. during fiscal year-end closing), they will be able to access the necessary IT resources dynamically and with almost unlimited scal- ability. In the current economic situation, the associated shift from capital expendi- ture (CAPEX) to operational expenditure (OPEX) is very opportune. Hand in hand with this goes the trend towards the standardization of IT services, which can result in further cost advantages. Adaptation of the Siemens IT Solutions and Services business model As an IT service provider, Siemens IT Solutions and Services is required to adjust its busi- ness model (e.g. for IT outsourcing) to the prevailing circumstances. In this respect, Cloud Computing involves both opportunities and risks. Thus, for example, the financial risk (the setting up of a virtualized, scalable, and multi tenant capable IT infrastructure) and the technological risk (system failures and software errors) are borne by Siemens IT Solutions and Services. As we act in many cases as the prime contractor, we are respon- sible for the service level agreements that have been reached with our customers. This applies in particular when we ourselves make use of the IT services and Cloud services of partners. The careful selection of our partners – e.g. Microsoft, Oracle, and VMware – is therefore a decisive factor in ensuring success. Partners as well as customers provide confirmation to us of our recognized strength in the market, covering the entire value-added chain – starting with Consult, including Design and Build, and ending with Operate – with the ability to integrate the business processes of our customers, and to provide general end-to-end solutions all of a piece. Because of this strength, we are 3
    • Siemens IT Solutions and Services considered capable of setting up, monitoring, and operating hybrid Cloud Computing solutions (the integration of IT services from various sources), in which tasks we act not only as a competent consultant, but as an integrator, mediator, and aggregator as well. For Siemens IT Solutions and Services, Cloud Computing is only promising if it succeeds in reaching a critical mass as quickly as possible, in order to achieve econo- mies of scale. For this purpose, we need a broad and balanced portfolio of “Bright IT Services” that stands out clearly and over the long term from the portfolio of our competitors. In addition, we must inform the market (analysts, vendors, and potential new customers), as well as our established regular customers, about our Bright IT Services portfolio, ensuring that we do this comprehensively and in a suitable way (via MarCom). The aim is to establish ourselves as a “Trusted Business Advisor” in the Cloud Computing market – an advisor who generates sustained added value for customers. Siemens IT Solutions and Services’ unique selling points with Bright IT Services In the “Bright IT Services” portfolio, Siemens IT Solutions and Services is not just restricted to consulting and provision of IaaS-based, PaaS-based, and SaaS-based solutions. We will set ourselves apart from our competitors – in particular by means of the following unique selling points: • Security services – e.g. Identity and Access Management and Enterprise Rights Management. In this area, we benefit from the very high requirements and capabilities of the Siemens group with regard to IT security and compliance; and, in numerous projects, we have acquired the necessary security expertise at all levels. With our DirX portfolio, there is a separate world-class product suite available for Identity and Access Management. • System integration – this means consulting and the implementation of hybrid sourcing solutions (mixed forms of on-premise applications and partner applica- tions from the Cloud) within the context of customer-specific system-integration projects. Siemens IT Solutions and Services has extensive knowledge and wide- ranging experience in the implementation of all types of system-integration pro- jects; and, over the years, it has built up a toolbox of prefabricated components, thus enabling it to carry out customer projects quickly, cost-effectively, and flexibly, using as a basis different technologies such as, for example, SAP, Java, .NET, Open Source, SOA / BPM, and Web 2.0. 4
    • • Community Clouds – By making use of the above-mentioned unique selling points, and by supplementing these capabilities with our knowledge of various industries, we are able to set up and operate so-called “Community Clouds” that are specific to certain sectors (e.g. for healthcare, for the media, and for the public sector). Our cooperation with the Siemens Sectors strengthens this approach, especially in the energy, healthcare, and industry sectors. • Consulting – Our vendor-independent consulting, and our considerable experi- ence in consulting relating to – and in implementing – system-integration projects and IT outsourcing projects, supplemented by our Cloud Computing Consulting offering consisting of Cloud Awareness Workshop, Cloud Quick Check and Cloud Assessment, Business Case Calculation, and Architecture Consulting, together with ready-made templates for dealing with contractual, legal, and billing-related ques- tions, in many cases speed up the efficient implementation of Cloud projects for our customers. Figure 1: Overview of the main components of the “Bright IT Services” of Siemens IT Solutions and Services. We see ourselves as a trend- setter with a convinc- ing architecture and message. The Siemens IT Solutions and Services strategic direction for Cloud Computing is as follows: to market “Bright IT Services” actively, and to fully exploit and continue developing the unique selling points described above so that, in addition to providing our IT outsourcing offerings, we will also be able to offer our customers attractive Cloud services with the best price / performance ratio on the market. 5
    • Siemens IT Solutions and Services 3. Cloud Computing terminology The following of IT or business trends is often linked with a mass of new concepts and slogans, which, to begin with, everyone interprets differently and uses for his or her own business strategy, until recognized organizations responsible for standardi- zation – e.g. the “National Institute of Standards and Technologies (NIST)” – ensure a uniform terminology. To make certain that we put out uniform statements – and that we mean the same thing when doing so – in our dealings with the outside world (marketing) and in discussions with analysts, partners, and customers, it is enor- mously important that we settle on a common language and common terminology. As far as possible, Siemens IT Solutions and Services uses the Cloud Computing terminology of the “National Institute of Standards and Technologies (NIST)”. The main Cloud Computing terms are listed and explained in the appendix. Further information can be found under the following link: http://csrc.nist.gov/groups/SNS/cloud-computing/cloud-def-v15.doc 6
    • 4. The Cloud Computing reference architecture The generally valid basic version of the Siemens IT Solutions and Services Cloud Computing reference architecture is illustrated and described below. Versions derived from this for the detailed representation of, for instance, Community Cloud or security subjects are advisable, and they will have project-specific features and/or building blocks. Figure 2: The basic version of the Cloud Computing reference architec- ture of Siemens IT Solutions and Services. The Cloud Computing reference architecture illustrated here has the following characteristics: • It follows the basic principles of the TOGAF model (The Open Group Architecture Framework), and maps the “Information System Architecture” component. • It represents the characteristic of a generally valid Cloud Computing reference architecture specific to Siemens IT Solutions and Services (such as can be found in a similar form in the case, for example, of the National Institute of Standards and Technology), and it describes the planned target situation. • It is set up as a layer model, which means that an upper layer is dependent on the one below, or is based on its functionality. • It is based in general on the characteristics of a service-oriented architecture, e.g. loose coupling, and it accesses via standard service interfaces the individual service blocks, which are themselves self-contained. 7
    • Siemens IT Solutions and Services Public Cloud and Private Cloud In order to indicate that Siemens IT Solutions and Services supports hybrid Cloud Computing variants (e.g. on-premise and off-premise applications and services linked to each other), a “Private Cloud”, shown in blue, and a “Public Cloud”, shown in white, have been placed under the reference architecture. For illustrative purposes, the two “clouds” are shown next to each other. In fact, however, they come one behind the other; i.e. both “clouds” can include all the components shown – one being developed by the Public Cloud provider, and one being developed by Siemens IT Solutions and Services, as required by our Bright IT Services portfolio and the customer scenario concerned. Siemens IT Solutions and Services has no direct influence on the form of the Public Cloud. Although we know the geographical location of the server farms / containers belonging to the provider / partner concerned, we have no direct influence on the operation of the data centers or the hardware that is used. There are, however, various certifications for Public Cloud providers, such as Safe Harbor, Cyber Trust, and ISO / IEC 27001, which we carefully check within the context of our partner strategy. For the implementation of hybrid Cloud solutions, we make use of the service interfaces that are provided by the Public Cloud provider in the layer concerned. Functional description of the individual layers and components: • Web browser, virtual desktop, smart client In general, a distinction can be made in this context between three different end- user interaction interfaces for stationary and mobile devices: firstly, a conventional standard Web browser, such as Internet Explorer, Mozilla Firefox, or Google Chrome; secondly, a virtualized desktop that runs on a server, and that presents the user interface (browser content) remotely (remote presentation); and thirdly, a fully developed smart client that uses local user interface plug-ins, such as, for ex- ample, Microsoft SilverLight. The smart client communicates with the Cloud appli- cations in the backend over a network (LAN, Internet, or mobile network), which is not shown in the above layer model. The smart client must support particular char- acteristics and functional properties, such as, for example, automated configuring (for instance, collecting software updates from the server), automated deploy- ment, intelligent user interaction mechanisms (such as Flash applications, complex 8
    • tables, high-quality graphics / animations (including in 3D), and asynchronous plausibility checks e.g. during form inputs), and, above all, an offline capability as well. This is achieved by having the data managed in a sandbox provided by the operating system. A sandbox is a security mechanism belonging to the operating system. In the sandbox, the user has full scope for taking action by means of the Web browser; but he or she may not, for instance, access other resources managed by the operating system (e.g. a DVD drive). Web 2.0, Asynchronous JavaScript over XML (AJAX), HTML5, mashups, Simple Object Access Protocol (SOAP), Really Simple Syndication (RSS feeds), Representational State Trans-fer (REST) Protocol, and JSON (JavaScript Object Notation) are technologies that help implementing these characteristics and functional properties. A fully developed smart client is not always necessary for most hybrid Cloud solutions; a commercial Web browser is often sufficient. A portal or a market-place application specific to Siemens IT Solutions and Services or to a customer can, of course, be launched via the Web browser, so that, for example, Cloud resources (e.g. pure storage, SaaS application, or even a complex hybrid cloud application) can be ordered, set up, and launched direct from there. Further, an overview of called-up services can be procured, and these can be paid for via this self-service portal. • Identity and Access Management (IAM) and Auditing As a cross-sectional function, this service layer takes care of authorization (user / roles / rights management, access rights, single sign-on, and so on), authentication (Public Key Infrastructure, Smart Card, certificates, encryption, etc.), Federated Identity Management (OpenID, access to resources in trusted domains), and log- ging for the complete tracking of all changes to data and transactions that have been carried out (in accordance with compliance rules). Enterprise Rights Manage- ment (ERM) also comes under this service block. ERM is a technology in which a policy is provided along with a file, service, or e-mail, setting out who may do what with the file, service, or e-mail concerned. Further details can be found in the sec- tion 5.1 “Siemens IT Solutions and Services’ security services”. • Management and provisioning services These are general services that are necessary for operation, and are supported by the underlying platform. They are used for monitoring the applications and the Cloud IT infrastructure, for supporting the deployment and dynamic instantiation of services, and for checking compliance with service level agreements. Further- 9
    • Siemens IT Solutions and Services more, they support the characteristics that are familiar from autonomic comput- ing, such as “self-healing”, “self-configuring”, “self-protection”, and “self-optimiza- tion”. The following are some of the most important management services that are available via a specified interface: - Service ordering functions (e.g. Shopping Cart) to order Bright IT Services, - Policy services for the storage and active use of statutory, company-specific, or customer-specific rules. In the case of complex, hybrid Cloud applications, it is possible to envisage the following scenario. During runtime, the Cloud application asks the Policy Service Manager which resources it may use from the on-premise environment and / or from the Public Cloud, and how it has to deal with sensitive customer data (storage location, persistence level, security classification, etc). If necessary, Enterprise Rights Management services can be used for implementation, - A metering service that is needed for measuring the use of resources (low-level resources such as computing time, storage volumes, and network bandwidth). This service obtains its data from the virtualized IaaS layer. Among other things, it supplies basic data for the Billing Service. It is also needed for producing statistics and preliminary calculations, and for determining the basic load that can be used to provide customers with a suitable billing model (usage-related billing or flat rate), - A logging service for monitoring operation (error and event logging in order to be able to initiate fallback, recovery, and compensation transactions, etc.). - A monitoring service that checks the availability and behavior of applications and network resources during operations going on at the time. • Cloud applications and services Siemens IT Solutions and Services provides complete, immediately useable Software as a Service (SaaS) solutions, such as “Project Server on Demand”, and “Content & Collaboration (C&C)” solutions based on OpenText Livelink and Microsoft SharePoint, “Software Asset Management as a Service”, and much more besides. The respective detailed descriptions can be found in section 5.4 “Software as a Service portfolio (SaaS) of Siemens IT Solutions and Services”. 10
    • • Cloud middleware and core services These are typical “Platform as a Service” aspects, such as the development of a hybrid Cloud solution in an integrated development environment, and the execu- tion of this solution in a secure runtime environment. Here, Siemens IT Solutions and Services will use and support the complete Java and Microsoft .NET Stack (application development tools, application server, integration server, etc.). In addition, a series of core services will be made available for functions that are needed again and again, and which are linked to them when required. In this respect, core services such as “Billing” and “SLA Reporting” have a high customer / tenant reference. The most important services are: - Software Lifecycle Management (version control of applications and services, patch management, service update by a staging concept, etc.). - Billing Service – This service is customer-process-related or application-related. A hybrid Cloud application calls this service via a programming interface. Depend- ing on the business SLAs, the Billing Service will have to determine during run- time which resources (e.g. the storage of a document in SharePoint) have actually been used, both in the Public Cloud and in the Private Cloud. This requires com- prehensive uniform cross-Public/Private-Cloud system management. If necessary, different billing variants (of the Public Cloud providers) will have to be mapped / converted to a billing model specific to Siemens IT Solutions and Services. The Billing Service must be able to produce usage-dependent billing of all the resources of a client that have been used, and it must then forward this billing to the customer via a payment service. The Payment Service has interfaces to a SAP R/3 billing module, or to an online payment service, in which the customer pays by credit card over the user portal for the services it has used. - SLA Reporting: This service is used to check how far the agreed service-level parameters have been met for each client. Raw data that is provided by other management services, such as Metering, Monitoring, or Logging, is compiled into clearly set-out management reports. Analyses and statistics can be used as a marketing tool, in order to demonstrate how efficiently the system is designed in terms of performance and costs. - Archive, Backup: These are services that are used for data backup and long-term archiving. In some cases the backup functions can be supported by a Hierarchical Storage Manager concept. 11
    • Siemens IT Solutions and Services - Business Process Management (BPM) including Business Activity Monitoring (BAM) and Workflow support, including a BPEL engine (Business Process Execution Language) and a service repository / registry. - Hybrid Resource Manager: This is one of the most important components. If nec- essary, it will have to be developed in cooperation with a partner, such as Micro- soft. The Hybrid Resource Manager acts not only as runtime supervisor, but also as a resource dispatcher as well. It monitors the processes of the hybrid Cloud so- lution (intra-Cloud and inter-Cloud), ensures cross-Cloud dynamic SLA-controlled allocation of resources (elasticity), carries out scaling at runtime (“scale-out”), and, in conjunction with the policy services, makes certain that the service level agreements (business SLAs) are complied with. In close coordination with the runtime environment (application server), it also takes care of persistence, so that the current status of a distributed Cloud application will always be securely saved. Working on the assumption that many Cloud applications are composite appli- cations or Enterprise mashups, no resources must be blocked, and the communi- cation behavior of the individual components and Web services will, in general, have to be implemented asynchronously by means of queuing technologies. Another component of the hybrid resource manager is a Storage Management Service, which decides at runtime where which items of data are to be stored. For example, in a Healthcare-Cloud application, the strictly confidential patient data (master data, diagnostic data, physician’s report, etc.) can be saved in a relational on-premise database, and X-rays can be kept as so-called “blobs” in a low-cost Cloud store. With the storage variants, a distinction is made between “Simple Cloud Storage (corresponding to a file system)”, “Simple Database Service (corre- sponding to an entity (key / value) memory)”, and “Relational Database Service” (i.e. hosted databases). - Service Bus (in the sense of an Internet Service Bus, not to be confused with an Enterprise Service Bus): The Service Bus works internally with Cloud Gateway Services, which, among other things, ensure that only outbound connections can be set up during interprocess communication. This is necessary so that it will be possible to access services in the Public Cloud or on-premise applications of part- ners and customers, securely and in a permissible way, across firewall boundaries. Further characteristics and functions of an (Internet) service bus include broad- casting, service naming / registration, event control, content-based routing, 12
    • publish / subscribe, transparent service mediation, and automated protocol optimization. In future, the Service Bus will support technologies such as VPN tunnels, IPsec, and IPv6, so that they can be used to define so-called “overlays”. An overlay specifies all the components of a hybrid Cloud solution, combines them into a logical unit, and makes possible the secure communications of all components that are defined in the overlay, such as smart clients, virtualized resources, and Cloud services and applications. Siemens IT Solutions and Services is evaluating the relevant technology roadmaps of our partners (e.g. Microsoft), and is checking that they will be implemented in good time. By means of EAI adapters – such as those provided by the Microsoft BizTalk Server or within Oracle Fusion Middleware – the Service Bus is also able to access application functions of SAP R/3. • Cloud IT Infrastructure This service layer is used to provide a virtualized, multi tenant capable IT infra- structure (virtual servers, computing resources, grids), virtual storage (RAM disks, cache, hard disks), and virtual network (VPN, DMZ, routers, gateways, etc.) as services (IaaS). In this area, Siemens IT Solutions and Services uses proven, highly available virtualized resources (servers, storage), with hardware redundancy via failover clusters and RAID disks. • Hardware This includes non-Cloud-specific hardware, such as servers, disks, network, routers, and so on, together with “Cloud-in-a-Box” components, such as those provided by Cisco or IBM. The use of Intel- or AMD-based hardware is recommended, since Intel and AMD support virtualization in their processor architectures. 13
    • Siemens IT Solutions and Services 5. Siemens IT Solutions and Services’ Bright IT Services portfolio This section gives a detailed description of the following for every Cloud Computing stream: • our specific deliverables (our available offerings). • our unique selling points (USPs), and the advantages for customers. • our medium-term strategic direction (one-year horizon setting out what we are planning, in the sense of a roadmap). By making our existing portfolio – above all, our so-called “Push” portfolio – “Cloud- capable”, we are more and more becoming a wide-ranging provider of Cloud solutions. The following diagram provides a rough overview of our Cloud Computing Pipeline (as of April 2010), showing the Cloud Computing components that are either already available, or that are undergoing evaluation or development. Figure 3: Overview of the Bright IT Services of Siemens IT Solutions and Services that are either already available, or are undergoing evalua- tion or development. 14
    • 5.1 Siemens IT Solutions and Services’ Security services When Cloud services are being provided, the IT resources of a company are exposed to both well-known and new threats. Siemens IT Solutions and Services has analyzed these threats systematically, and has segmented them within the framework of a Cloud Computing security reference architecture. As part of this, suitable counter- measures (controls) have been defined for most of the Cloud-specific threats, using as a basis the existing security frameworks (NIST, ISO 2700x, etc.). As the situation is at present, some of the new challenges in the area of security cannot be satisfactorily countered. These so-called “control challenges” in multi tenant IT solutions include security monitoring and the ability to ensure that data is reliably deleted. Altogether, there are currently about ten known Cloud-specific weak points that come under the heading of “control challenges”. This need not necessarily lead to the conclusion that Cloud solutions are in principle unsuitable from a security point of view. After all, even traditional IT environments do not have a complete high level of security throughout. The decisive issue here is to decide what security architecture is economically appro- priate with reference to each specific case in view of the risks involved. Figure 4: Security consulting offerings of Siemens IT Solutions and Ser- vices make it possible to control complex, secure Cloud solutions. In addition to the technical aspects, legal and organizational aspects also have to be taken into account when Cloud services are being used. There are legal complexities 15
    • Siemens IT Solutions and Services involved when services are being provided with the aid of distributed and virtualized IT infrastructures. Because of this, new contractual models, as well as compliance and data-protection requirements, pose new challenges for both user and provider alike. As part of the Cloud Security Consulting offering (see section 5.6), customers are given comprehensive advice about all Cloud-related security domains – starting with the requirements of the business processes concerned and helping the custom- ers methodically to choose suitable provisioning models. The paradigm shift in the provision of IT services that is associated with Cloud Com- puting, however, also requires general rethinking regarding the conception of security mechanisms. Instead of concentrating on shielding one’s own IT as comprehensively as possible against the outside world, the new protection concepts focus on the information itself, with the aim of protecting it against unauthorized use outside the company’s IT system as well. A paradigm shift is carried out: instead of the use of the conventional perimeter approach, the information itself is now protected: Perimeter approach Information-centric protection Threat Denial of services, viruses, Theft of intellectual property, Attacks from outside Attacks from inside Approach Firewall, protection against Enterprise Rights Management, penetration attempts, Role-based access protection Antivirus programs Solution Protection of the infrastructure Protection of information These include, for instance, role-based Identity and Access Management for users and roles, and protective mechanisms for data objects and data encryption. One point to be borne in mind is that passing on roles and access rights is particularly im- portant in hybrid Cloud environments. Role-based Identity and Access Management solutions must make reliable provision for this. 16
    • User Resource REQUEST Figure 5: Web/Application Infrastructure ser- REQUEST Service ACCESS vices for identity and Security Plugin/Proxy security. Federation (trust) with other Identity Authentication + Authorization Infrastructures Certificate Public Key Services Identity Management Access Control Services Authentication Trust Local Registry Provisioning Meta-Directory Single Sign Authorization Center Authority Self-Service Synchronization On Federation Identity Data ...Identity Data Identity Data Policy Data Identity & Policy Stores Identity & Security Infrastructure Services In order to support a particularly secure use of Cloud services, Siemens IT Solutions and Services provides not only the Cloud Security Consulting offer, but also other services that link these key technologies with the convenient “on-demand” business models of Cloud Computing. Enterprise Rights Management as a Service (ERMaaS) Traditional IT security concepts that are based as components, for example, on fire- walls and encrypted transmission paths, have their limits. In these purely perimeter- oriented security solutions, the focus is first and foremost on authorized access to corporate infrastructures such as networks, databases, and applications, and on the secure transport of corporate data. However, once the user has possession of the information, the company, as the owner of the data concerned, no longer has any control over how it is used or passed on. The only remedy is to have a security concept that is directed at the data that is to be protected, and that protects this data from unauthorized access over its entire life cycle. Enterprise Rights Management (ERM) offers precisely this document-related protection, and it provides, as it were, a security envelope for data that can only be opened by users who have a suitable digital key. In addition to being restricted to the authorized subject, access to digital contents can also be restricted with regard to other characteristics. 17
    • Siemens IT Solutions and Services Figure 6: The Enterprise Rights Management (ERM) concept. Although the added value of ERM is recognized in practice, introducing this innovative approach is a great challenge for many companies, and it has not yet been imple- mented on a widespread basis. Up to now, there has been a lack of implementation methods, operating models, and standard (technical) market solutions that would make it possible for ERM to be introduced easily and at a favorable price. Using its sound ERM experiences and its skills as an IT integrator, Siemens IT Solutions and Services is currently developing an ERM solution (based on the Microsoft’s Rights Management Server) as a Cloud service that will provide companies with an invest- ment option and low-risk way of implementing ERM for selected scenarios – starting with SharePoint and Microsoft Office documents. This offer will probably be available from May 2010. In a subsequent version, a solution based on Microsoft Global File Protection and Information Vault (IVault) technology will also be made available in fall 2010. The use of these new technologies will then make it possible to protect any object formats. 18
    • Unique selling points for Enterprise Rights Management: Siemens IT Solutions and Services has many years of experience in consulting relating to security solutions, and in implementing and operating such solutions for both internal and external customers. We combine profound knowledge of the sector with ERM expertise and technological knowledge of the ERM solutions currently available. Siemens IT Solutions and Services is one of the first providers of an “ERM as a Service” solution on the market. Identity and Access Management on Demand An intelligent Identity and Access Management (IAM) system effectively and effi- ciently guarantees access to, and use of, business-critical data. It also makes it possible to control and check such data in conformity with compliance regulations. IAM is therefore one of the main pillars of Cloud services in general, and of ERM in particular. The constantly increasing number and complexity of identities and authorizations that have to be managed are facing many companies with new and sometimes insoluble challenges: • The increase in security and productivity through the prompt granting or prompt withdrawal of rights. • The transparent way in which rights are granted and monitored on the basis of roles. • The rapid handling of increasing user numbers. • The simplification of access to a variety of applications through single sign-on. • The incorporation and handling of external partners by means of federation concepts. • The optimization of compliance with statutory regulations (regulatory compliance). With its DirX product family, Siemens IT Solutions and Services, as a recognized specialist in IAM services and solutions, provides everything that is needed for the explicit standardization, centralization, optimization, and automation of existing IAM customer solutions. The entire range of knowledge and technical products of Siemens IT Solutions and Services will shortly be available – probably from June 2010 – including a flexible “on demand” service. 19
    • Siemens IT Solutions and Services Figure 7: Overview of the DirX portfolio of Siemens IT Solutions and Services. Unique selling points for Identity and Access Management (IAM): Siemens IT Solutions and Services has many years of experience in successful consulting relating to IAM projects, and in carrying out such projects, and it has already gained more than 300 customers. Analysts assess us as being one of the leading vendors of IAM solutions, and they recommend the use of our DirX product family. Because of the close dovetailing with our ERM solution, a comprehensive security solution can be provided from the Cloud. 20
    • 5.2. Siemens IT Solutions and Services’ Infrastructure as a Service (IaaS) portfolio The purpose of the IT infrastructure is to meet the basic requirements of applications with regard to computing capacity and memory, and to utilize them through desk- tops and by connecting to internal and external networks. Conventional concepts involve high levels of investment, limits on capacity imposed by hardware, and considerable expenditure when configurations that have already been set up have to be changed. Virtualization and, to a much greater extent, the Cloud models are aimed at reducing these cost drivers. Instead of limiting them, the basic components of the infrastructure serve the applications accessing them in a flexible, usage- oriented, and cost-optimized way. In this respect, Infrastructure as a Service solu- tions focus on Siemens IT Solutions and Services Private Cloud scenarios that involve specific requirements in the Enterprise environment – e.g. security in general and the security of data. Server on Demand Our customers are provided with virtual servers for the Windows or Linux operating systems in a highly automated environment. The focus here is on a Private Cloud environment, and the main target is therefore Enterprise customers who have the relevant requirements with regard to: • security • management of the environment • availability • recoverability. Specified standard configurations can be selected via an order and configuration portal. This is based on our “T-shirt size models”, which cover a wide range of different requirements with regard to computing capacity. These are specified combinations of processor performance and memory. Owing to the fact that all the components involved are consistently automated, fast provision times can be achieved – something that in future will enable customers to enjoy a great deal of flexibility in the dynamics of the demands that they place on a modern IT infrastructure. 21
    • Siemens IT Solutions and Services The service will be available from the second quarter of 2010, and it will be developed step by step. It will also include further flexible billing models, up to and including a purely usage dependent model. The basic IaaS architecture is likewise the basis for Cloud offerings superimposed on it – e.g. SAP and Desktop. The solution is based largely on the VMware virtualization platform. In future, it will be possible to use the architecture to map Private Cloud scenarios throughout the world via our “Global Production Center”. Figure 8: The IaaS architecture in the context of a general Cloud Com- puting architecture design. In the next development stages of the service, variable access to the entire memory and computing capacity of the global data centers will open up further ways of making full use of capacity – e.g. for the purpose of covering peak-load periods. Storage on Demand Our customers are provided with memory capacity based on usage. This capacity is available in various performance / availability classes, and is appropriate to the business-process requirements of the customer concerned. Because of the highly automated environment, fast provision times are achieved. Storage on Demand enables customers to have the greatest possible flexibility, both in their regular planned business, and when they need to adjust capacity to changing requirements. 22
    • The focus here is on a Private Cloud environment, and the main target is therefore Enterprise customers who have the relevant requirements with regard to: • security • management of the environment • availability • recoverability. Specified performance and availability options can be selected via an order and configuration portal. The various storage capacities are provided in virtual and dedi- cated environments. The service will be available from the second quarter of 2010, and it will gradually be developed into tailor-made, application-specific standard storage solutions. Desktop as a Service In general, the term “Desktop as a Service” means the provision of a desktop “on demand” – i.e. in a highly flexibly way and in accordance with requirements. Siemens IT Solutions and Services is already able to offer solutions in this area. These provide, for example, server-based Windows 7 on platforms belonging to the partners VMware, Microsoft, and Citrix. Because they are provided centrally from a data center, these desktops can be used in a highly flexibly way. They are also quickly available, and they can be billed precisely to the minute within a “pay-per-use” model. In the next few years, therefore, the “Desktop as a Service” service will replace the classic monthly flat-rate models used for providing a desktop. With this service, companies are able to book desktops flexibly to meet their requirements and in accordance with their workload, and they can pay for them precisely to the minute. This is an unbeatable advantage in today’s highly flexible working world. This model is realized by the completely flexible use of virtualized desktops from a data center belonging to Siemens IT Solutions and Services. So-called “virtual machines”, which users access over a network, are operated on servers with the platforms of our partners. The users have the same user experience and usability as they have previously had on their local PC. If a user logs off, the virtual machine will be “frozen”, and physical resources such as CPU and memory will be released for 23
    • Siemens IT Solutions and Services other applications or for another desktop. Customers only pay for the number of hours they have worked, and they therefore become highly flexible with regard to the proportion of the IT costs that they pay for desktops. 5.3. Siemens IT Solutions and Services’ Platform as a Service (PaaS) portfolio For a wide variety of reasons (e.g. data security, the protection of intellectual property, etc.), end-to-end solutions and support for cross-company processes from the Cloud are predominantly implemented through the use of Community Clouds, which repre- sents a hybrid Cloud model. Business-critical processes and applications continue to be operated “on premise” in your own data center, and they are linked via suitable Cloud platforms with services from the Cloud to form Enterprise mashups. The integration is carried out over standard Web services interfaces. As described in the management summary above, Siemens IT Solutions and Services is ideally set up for designing, implementing, and operating hybrid Cloud solutions. Siemens IT Solutions and Services has many years of experience in carrying out integration projects in heterogeneous system environments on .Net, Java, and Open Source partner platforms. To implement hybrid Cloud solutions, and in Community Clouds, Siemens IT Solutions and Services uses standard Cloud PaaS platforms belonging to its partners, such as: • Microsoft Windows Azure and Windows AppFabric, • Oracle Fusion Middleware Cloud Platform, • VMware vSphere Platform and vCloud Initiative. As part of the Bright IT Services initiative, solutions and services are developed, made available, and executed on these PaaS platforms. 24
    • Microsoft Windows Azure Apart from the disadvantage that Windows Azure is only available in data centers hosted by Microsoft itself, the Microsoft platform has one particular advantage – namely, that the same functionality that is provided in Windows Azure in the Microsoft Public Cloud will be made available via Windows AppFabric “on premise” in the long run. This will make it possible to develop and integrate services very efficiently, either locally or in the Cloud. A distribution service based on Windows Azure is currently being developed by Siemens IT Solutions and Services. This will make it possible to distribute data packets via the Cloud to different terminals from a supply system that generates the orders and provides the data packets that are to be distributed. The terminals can be in different locations, and they will need an agent that connects them with the distribution service. This will report the result of the data transfer to the supply system via a feedback mechanism. One application scenario for customers is the distribution of software packages and virus patterns. This service will be available from the beginning of August 2010, and it will be possible to use it in different sce- narios. Preparations are under way to expand the distribution service by adding further functionalities. The following diagram shows the main Windows Azure components, together with a possible integration and interoperability scenario involving the Microsoft Public Cloud and a Private Cloud, such as can be provided and operated by Siemens IT Solutions and Services. Figure 9: Integration of Micro- soft Azure Services with “on-premise” IT. 25
    • Siemens IT Solutions and Services Oracle Cloud platform The Oracle Cloud platform based on Oracle Fusion Middleware (OFM) is the platform with the most comprehensive functionality. It includes a BPEL engine (Business Process Execution Language) that can be used to model business processes, and SOA components that make it possible to connect to services in the Cloud over standard interfaces. In addition, the platform provides a separate, fully integrated identifi- cation and access management environment. The Oracle Cloud platform is based on an Oracle-specific virtualization environment (Oracle VM), but it can also run in a VMware environment. Using Oracle Fusion Middleware as a basis, an offer is being drawn up for the provi- sion of a test and development Cloud. Depending on what the customer requires, test and development tools can be flexibly configured and made available. The offer is intended to facilitate standardization when test and development tools are being used in projects. The offer is expected to be available from the beginning of June 2010. An evaluation of whether further services should be provided on the Oracle Cloud platform is currently being carried out. Figure 10: Oracle PaaS platform based on Oracle Fusion Middleware (OFM). The main components of OFM are shown. 26
    • The VMware Cloud platform VMware is one of the leading providers of virtualization technology for storage and servers. Through the acquisition of SpringSource, and as a result of integration into the existing product line, it has extended its range to a PaaS stack. Further function- alities for the provision and billing of services will be available from the beginning of Sept. 2010. A City Cockpit service that offers the existing City Cockpit solution from the Cloud is provided on the basis of the VMware Cloud platform. The City Cockpit solution provides data and analyses for a wide variety of different uses (e.g. CO2 emissions at an inner-city intersection) that have been specified by customers in a Web portal in the form of a cockpit. The offer will be available from the beginning of Sept. 2010, and it will be made available within the framework of a development partnership with VMware. Using the VMware Cloud platform as a basis, an offer is also being drawn up for the provision of a test and development environment from the Cloud. Depending on what the customer requires, test and development tools can be flexibly configured and made available. The offer is intended to facilitate standardization when test and development tools are being used in projects. The offer is expected to be available from the beginning of Sept. 2010. An evaluation of whether further services should be provided on the VMware Cloud platform is currently being carried out. Figure 11: The VMware PaaS platform based on vSphere. 27
    • Siemens IT Solutions and Services 5.4. Siemens IT Solutions and Services’ Software as a Service (SaaS) portfolio According to an assessment by Gartner, the world’s SaaS market from 2008 to 2013, given a growth rate of 32% (CAGR), will be worth about 20.2 billion US dollars. The research company “Saugatuck Technology” believes that the development of SaaS solutions is already in the area of “mainstream adoption”. It is assumed that SaaS will become an integral part of the IT infrastructure, of the application development environment, and of the application environment of users in 2014. In its Bright IT Services portfolio, Siemens IT Solutions and Services is already offering a large number of “Software as a Service” solutions that are at different stages of develop- ment. These are described below. The specific deliverables are also shown, and our unique selling points are highlighted. 5.4.1 Dynamic PLM Service (DPS) Dynamic PLM Service (DPS) is a bundled Product Lifecycle Management solution of Siemens IT Solutions and Services including operation, services, as well as a pre-configured, ready to use PLM application. Modules and variants of the service are selectable as options, and billing is based on use (pay-per-use model). The current focus is the Manufacturing Industry. It is planned to tailor DPS to differ- ent industry branches in the future. The service is preconfigured, but it can, within certain limits, be adapted to suit customer’s needs. DPS enables our customers to manage the life cycle of their products effectively, and, because of the usage based price model, it will provide a great deal of flexibility. In addition, the main advantages for customers is that they no longer need to invest a lot of money in IT and implementation; they achieve rapid availability with fewer risks associated with introduction; they enjoy a high quality of service; and, not least, they are able to utilize the enormous experience of Siemens. 28
    • Dynamic PLM Service is based on Teamcenter. With Teamcenter, Siemens PLM Software is providing a suite of PLM modules that leads the market. The Siemens Industry sector serves as the basis for a proven best-practice implementation of Teamcenter for Discrete Manufacturing. In addition to these elements, Siemens IT Solutions and Services adds its various strengths; including excellent operations and service; and the necessary know-how to make this implementation Cloud capable. This perfect combination is a unique selling point of Siemens IT Solutions and Ser vices in the context of the Dynamic PLM Service. Characteristics of the Dynamic PLM Service: • Flexible drawing up of contracts: Usage-oriented, monthly payment; short notice periods / contractual tie-in; guaranteed, comprehensive service in accordance with service level agreements. • Easy commissioning: Industry-specific or business-specific configurations; standard capabilities for integration into CAD and ERP applications; combining individual solution components into a complete package by Siemens IT Solutions and Services. • PLM-specific topics: Use of a flexible file-storage model (in the data center belonging to Siemens IT Solutions and Services, operated in the customer’s network, or provided by the customer itself). The following diagram shows the envisaged functional modules of the Dynamic PLM Service: Figure 12: Overview of the envisaged functional modules of the Dynamic PLM Service. 29
    • Siemens IT Solutions and Services 5.4.2 Software Asset Management as a Service (SAMaaS) The focus here is on license management of the next generation in the Cloud. Companies need software for their business. The relevant license costs can add up to a considerable amount. Siemens IT Solutions and Services now provides a simple, cost-effective way of managing these software assets via the Cloud. Thanks to “SAM as a service (SAMaaS)”, license compliance and cost reductions are only a click of the mouse away. Keeping an eye on software licenses is a laborious, but necessary, business – particularly in economically difficult times. Companies simply cannot afford to keep on paying license fees for software that is never used (keyword “under-utilization”), or to pay penalties for failing to comply with license contracts. Professional license management – also known as Software Asset Management (SAM) – is now indispensable to every medium-sized or larger company. Corporate SAM gives IT management a comprehensive overview of all digital assets in the organization, and it provides an accurate check of the results of the IT operation. Because SAM creates the required transparency, and therefore makes effective cost management possible, it is becoming a prerequisite of efficient software procurement. With the new “SAM as a service (SAMaaS)” service, Siemens IT Solutions and Services is providing license managers in a company with a flexible and outstanding analysis tool. At the same time, it can help avoid the security and process-related risks that result from the failure to comply with state regulations and laws – e.g. the Sarbanes Oxley Act (SOX) and the 8th EU Company Law Directive (“EuroSOX”). SAMaaS is based on the successful software platform Enterprise Compliance Manager (ECM) of ManageSoft – one of the leading companies in the field of Digital Asset Management. In contrast to many other tools that come from the technical world of system management, ManageSoft ECM is clearly orientated to the application and the needs of license managers – i.e. it is commercially oriented. The SAM application covers all aspects of software-license management – including the logistical, financial, and legal aspects – over the entire life cycle of the software, and it follows completely the relevant process concepts of ITIL SAM and ISO/IEC 19770-1. 30
    • SAMaaS is provided as a favorably priced Cloud service that the customer’s license managers can use easily via their Web browser, and without having to concern themselves with IT matters. The SAM application is operated and maintained for the customer (client) in a secure environment within a Siemens data center. License managers therefore always have the latest library available for automatic software recognition. They also have the latest list of unique software-package order numbers from the vendors, together with the license terms and conditions. They are thus able to guarantee that the installed software will be assigned automatically in the best possible way to the license that has been acquired. Companies that are only interested in a SAM solution do not need to conclude a comprehensive outsourcing contract for an IT infrastructure with Siemens IT Solutions and Services. The Workplace Services portfolio of Siemens IT Solutions and Services includes a classic managed service for SAM, in which Siemens can also take over license manage- ment tasks for the customer. The normal monthly billing of service charges is based on the number of work-place systems in the organization that are actually managed within the period concerned. Siemens IT Solutions and Services also provides its customers with a wide range of consulting services and professional services in the area of SAM. Its many years of experience in managing huge and complex stocks of licenses makes Siemens IT Solutions and Services an ideal partner for companies that have a unique selling point in relation to their competitors. This enables our customers to control the costs and risks associated with software licensing and Digital Asset Management: • The SAM application is uniquely aligned with the application and the needs of license managers. • The SaaS solution for SAM can also be marketed outside comprehensive desktop outsourcing contracts. • We have wide-ranging experience with advanced license management solutions in-house. • The entire service chain is covered, including consulting and professional services for SAM. 31
    • Siemens IT Solutions and Services In the medium term, the SAMaaS solution will be developed in the direction of extended configuration capabilities of the “Enterprise Compliance Manager (ECM)” software platform of ManageSoft. It will also be developed towards extended language support, which is currently only based on German and English. 5.4.3 Customer Relationship Management on Demand (CRMoD) The CRM on Demand solution consists of initial professional services components (Consulting, Customizing, and Integration) and operator components in the SaaS mode after setup. Siemens IT Solutions and Services covers the complete range, from sales and marketing solutions up to and including service and maintenance solutions. From the point of view of platforms, we currently support Oracle/Siebel CRM and Microsoft Dynamics CRM. The different concepts of these two software partners have direct effects on the service offering of Siemens IT Solutions and Services: Oracle/Siebel CRM Oracle follows a centralist on-demand concept. At present, all operator services are the responsibility of Oracle itself. In customer projects, Siemens IT Solutions and Services currently concentrates exclusively on the initial professional services element, and thus adjusts the solution to the customer processes. In addition, Oracle provides the “@customer” operation option (Oracle terminology), which can be used in specific cases. This option can also be made use of by Siemens IT Solutions and Services; but it requires individual cost calculation and agreement. Microsoft Dynamics CRM In this case, Siemens IT Solutions and Services provides the entire service, both the initial professional services component, and operation of the solution in the SaaS mode. Siemens IT Solutions and Services is currently in the process of embedding the Microsoft Dynamics CRM solution into a Cloud environment / operation. This will, above all, require integration into our TANGO Operational Framework (for ordering CRM services, SLA monitoring, usage-dependent billing, etc.), and the setting up of a Web-capable customer interface (portal). 32
    • CRM on Demand – added value for the customer, and unique selling points: • We provide both CRM on Demand and on-premise CRM – exclusively based on the products of leading software providers with whom we have extensive global / strategic partnerships. In the medium term, hybrid sourcing will also be possible in the CRM field. • Our data centers meet the highest security requirements, and they ensure a high level of service. • CRM projects are always IT integration projects as well. As Siemens IT Solutions and Services also has many years of experience with, for instance, ERP, BI, ECM, and SCM, we are an ideal partner for carrying out such tasks to the benefit of our customers. • Siemens IT Solutions and Services has more than ten years of experience in con- sulting relating to business-critical and complex CRM processes, and in introducing these processes as well. • With branches in more than 40 countries, Siemens IT Solutions and Services is able to carry out international projects anywhere in the world. Strategic direction / outlook: • An expansion of the Oracle / Siebel CRM on Demand service offering (takeover of operation and billing) is the subject of further discussions with Oracle. A suitable decision will be made as soon as technical and sales conditions have been met. • The details and effects of extending the Microsoft CRM Online Initiative (extended Business Productivity Online Suite portfolio) – including to cover standard CRM solutions – have not yet been determined. Siemens IT Solutions and Services is therefore concentrating on creating sector-specific CRM solutions in customer projects, and on reusing them in the SaaS mode. • SAP CRM on Demand is not the focus of our CRM on Demand business at present. 33
    • Siemens IT Solutions and Services 5.4.4 Content & Collaboration as a Service (C&CaaS) based on Microsoft SharePoint Using the Microsoft “out-of-the-box” product as a basis, Siemens IT Solutions and Services provides many expansions to the SharePoint standard. These are supplied from the Cloud, and are billed on the basis of only two parameters in the pay-as-you- go mode. The parameters concerned are the number of users, and the disk space used. Siemens IT Solutions and Services provides additional so-called “use cases” – which are templates for predefined cases of use – extended functionalities, and WebParts (e.g. Breadcrumb Navigation, and Global Site Directory (Yellow Pages)). Depending on the requirement and direction, extended search functionalities, integration into a SAP portal, or incorporation into a Microsoft Active Directory infrastructure can also be commissioned by the customer. In addition, customer-specific applications can also be integrated. Based on its many years of experience in operating the SharePoint infrastructure at Siemens AG, Siemens IT Solutions and Services also looks after the SharePoint instal- lation of external customers. Its current customer base comprises more than 220,000 users and 21 terabytes of data, and it is growing rapidly. Because of SharePoint as a bulk commodity – as it is also provided by Microsoft itself within the context of its online services – Siemens IT Solutions and Services will, in the near future, be concen- trating on supplying higher-value value-added services. This is particularly the case in view of the fact that the license fees that have to be paid to Microsoft already extend to the complete online Microsoft package. The transparent integration of these billing services into customer solutions, and the provision of value-added services on this platform, will be a challenge for the future. On the other hand, there is the potential here to develop further components that set us apart from the competition. 5.4.5 Content & Collaboration as a Service (C&CaaS) based on OpenText Livelink SaaS services based on OpenText Livelink are also provided by Siemens IT Solutions and Services as a second offering in the area of Content & Collaboration services. As in the case of the offering based on SharePoint, billing is also usage-dependent (pay-per-use model), being based on the number of users and on the disk space actually utilized. 34
    • The standard package already provides a wide range of functionalities for document, content, collaboration, and knowledge management. Siemens IT Solutions and Ser- vices meets additional individual customer requirements by incorporating add-on modules from OpenText or other third-party providers. These service options are implemented on request, and they are only billed after they have been provided. Siemens IT Solutions and Services has been operating the Livelink installation in its parent company, Siemens, for some years; but it also caters for the external market as well. With CSM, for instance, one of the customers of Siemens IT Solutions and Services is a Dutch company in the foodstuffs sector that is active all over the world. The user base looked after by Siemens IT Solutions and Services comprises more than 50,000 users throughout the world. In the short to medium term, Siemens IT Solutions and Services will be extending what it has to offer by adding an alternative to its present range of services. This will involve linking the SharePoint front end to a down- stream Livelink repository. A further addition to the range is planned; this is, namely, to complete our portfolio by integrating a transparent archiving solution that can also be used for e-mail archiving. This will gradually make it possible to develop a compre- hensive SaaS-based ECM suite, which, in the medium term, will also include records management and document imaging solutions. 5.4.6 Enterprise Project Management as a Service (EPMaaS) With EPMaaS, which is based on the Microsoft Office Project Server, Siemens IT Solu- tions and Services provides a standard, cross-company project-planning and collabo- ration platform, with integrated resource, risk, time, and cost management, that is available throughout the world. EPMaaS is based on Microsoft SharePoint technology. In the standard version, billing is based on the number of projects, the resources that are entered and actively logged in, and the amount of memory used. In addition, further add-ons e.g. Corporate Directory Synchronization, and Import Task Lists can also be integrated. The “Enterprise Integrated Reporting Cockpit” also has the advan- tage that customer-specific standard management reports can be produced, as it were, at the press of a button. The project managers or the customers’ project management office can add their own comments to these reports before they are finalized. 35
    • Siemens IT Solutions and Services The open design structure and Web interface of the Microsoft Office Project Server, for example, also makes incorporation into an existing SAP landscape possible. This has been done, for instance, in Siemens and at BWI Informationstechnik, where it has been used successfully for a number of years. In future, the new version of the Microsoft Project Server will also completely cover the upstream processes in the direction of demand and portfolio management. The integration with other line-of-business solutions for the customer (e.g. SAP time recording and cost recording) will ensure that errors and duplicated entries are avoided. During introduction of this kind of solution, Siemens IT Solutions and Services provides additional consulting solutions, so that EPMaaS can be adapted to customer- specific requirements, and then integrated into the customer’s IT landscape. 5.4.7 Archiving as a Service (ARCaaS) Archiving as a Service (ARCaaS) meets the requirements that are imposed by com- pliance and other statutory provisions regarding the storage of business-relevant documents and data. In some cases, the period required can be up to thirty years. Steps must be taken to prevent the archived material’s being subsequently changed, and there must be a guarantee that the data in question can be accessed within an appropriate time. Providing this service from the Cloud – e.g. as a Software as a Service solution – is a new approach. It primarily has two advantages for the customer: firstly, there is no longer the need to spend money on setting up an appropriate infrastructure for archiving purposes; secondly, it is possible to base billing on actual use. The aim is for the customer to achieve lower operating costs by procuring a preconfigured bundled solution. Archiving as a Service – unique selling points: • Plug & Play: Archiving functionality in close conjunction with core applications, based on standard programming interfaces (embedding into the existing IT landscape). • Easy use of archive services at competitive prices. • On-premise archive services are combined with ARCaaS in a hybrid approach. 36
    • • Significant cost reduction on the customer side. • Comprehensive consulting and business process know-how, and proven experience in integration projects. 5.4.8 Analytics as a Service (AlaaS) In the case of Business Intelligence (BI), it is planned to provide the first service based on BI functionality from about the middle of 2010. The background to this is as follows. The Third European Money-Laundering Act is in force in all the countries of Europe. Business partners are required to check whether there is any suspicion of money laundering in cash transactions and in certain monetary transactions. The planned BI service will analyze all the relevant information (including information that is freely available on the Internet), and it will send the customer a rating when requested to do so (the customer’s name and type of business will be handed over). On the basis of this, it will be possible to make a decision about whether the transaction should be completed. The decisive factors are the completeness of the sources that have been checked, and the quality of the document analysis. Figure 13: Business Intelligence solution architecture from INTELLI+ for information analysis and business-partner check. Billing can take the form of various pay-as-you-go variants. These include the sporadic user who pays via PayPal, volume-dependent call models, and the flat rate. In order 37
    • Siemens IT Solutions and Services to be able to provide this service, Siemens IT Solutions and Services is working with its partner INTELLI+, which has extensive knowledge in the field of money launder- ing and in tracking down attempted fraud. Most of the INTELLI+ experts previously worked in managerial positions at Europol in The Hague, where they were tasked with tracking crimes involving money throughout the whole of Europe. And they still have an excellent international network. There are about twenty to thirty analysts working with the application’s research tool, and it is estimated that they analyze 100,000 to 200,000 text-based sources each day. This work is only possible with highly automated text-analysis and pattern-recognition tools, which are provided by Siemens. These innovative tools were developed by Siemens Corporate Research in Princeton / USA. At the moment, the service has unique selling points in terms of information content and with respect to the innovative analysis functionalities that are used, and it enables us to make a convincing entry into the market for service- oriented analysis tools. None of our competitors is currently able to provide this type of comprehensive SaaS-based service. A large number of further services are being planned or prepared for the near future. These will be based on the BI-specific application architecture that has been developed, and on the analysis tools that are in use, which are themselves being developed. These services will make it possible to carry out a statistical analysis of picture, video, and sound documents as well, and this will considerably extend how the analysis service can be employed. In general, the aim is to develop sector-specific SaaS-based analysis offers that focus on the Siemens sectors Industry, Energy and Environment, and Healthcare. 5.4.9 Messaging and other services including the Microsoft Business Productivity Online Suite (BPOS) Siemens IT Solutions and Services plans to provide four different SaaS variants, namely, Microsoft Exchange, Microsoft BPOS, Google Premium Apps, and an Open Source variant based on VMware’s Zimbra. Microsoft Exchange is delivered in on premise, dedicated and shared Private Cloud environments to be enhanced with BPOS-S as a Public Cloud solution to optimize the customer solution over the full range of delivery models. 38
    • As a part of the Microsoft Online Service Suite, Microsoft BPOS is attracting great inter- est among our customers (including Siemens), as well as at Siemens IT Solutions and Services. Today, Microsoft has migrated about one million Seats, and it already has two million under contract. Microsoft has therefore risen to become the third-largest service provider after HP / EDS and IBM. Siemens IT Solutions and Services is currently negotiating with Microsoft about partner status. The reason for this is that we first of all want to include Microsoft BPOS in our portfolio as an additional messaging variant alongside Microsoft Exchange and Google Premium Apps, and then to extend our range to other services (SharePoint, Office Communication Services, and LiveMeeting). With solutions based on Microsoft we provide a Premium Messaging service among the full IT service provisioning and high flexibility on customer requirements. As an additional recommended solution, Siemens IT Services and Solutions provide two All- in-One low-cost solutions, which also can cover the full range of delivery models, but restricted in the range of functionality and feature set. 5.4.10 Google Apps The partner strategy of Siemens IT Solutions and Services is based on close coopera- tion with technological market leaders. Google is the leader on the Internet market, and it occupies a leading position in the Cloud Computing field. For about eighteen months now, Google has also been operating an extremely aggressive pricing policy in the Enterprise market. Because of this, Siemens IT Solutions and Services is striving for a closer partnership with Google. As the first step, this is to include a resale status for the Google Apps Premium Edition. Siemens IT Solutions and Services wants to provide its own messaging services and solutions on the basis of this technology. In this way, the customer will be able to acquire from a single source an individually designed and integrated overall operating solution for its IT. Other possible fields of cooperation include Smart Grid and Real-Time Collaboration in the Cloud environment. In this con- nection as well, Siemens IT Solutions and Services is striving to integrate the Google technology with existing solutions from other providers, e.g. SAP. Siemens IT Solutions and Services would like to use Google’s innovative strength, and it is keen on integrat- ing the new technologies as soon as possible into its own services and solutions. 39
    • Siemens IT Solutions and Services 5.4.11 SAPaaS As far as its efforts with SAPaaS are concerned, the software company SAP is still in its infancy. The SAP Business ByDesign initiative of SAP that was launched about two years ago has come to a halt. This is an ERPaaS solution for small and medium-sized companies. At SAP there are two other SaaS initiatives in addition to the SAP Business ByDesign solution. They are Business Objects and proprietary SCM or CRMaaS solu- tions. From the market’s perspective, the SAP delay is unsatisfactory, and the desire to have SAPaaS solutions is increasing. The idea of replacing the high license costs and long-term maintenance contracts with favorably priced SaaS solutions is playing a particular role here. In principle, Siemens IT Solutions and Services depends on SAP AG’s being able to develop SaaS-capable solutions. With the products it has up to now, however, SAP is still a long way from doing this. Siemens IT Solutions and Services is faced with a demand for SAPaaS solutions from both existing and potential customers, and it must be able to make an adequate response. An initial, utility computing based offering from Siemens IT Solutions and Services are the “Dynamic Services for SAP” which are currently developed and which will be available in fall 2010. It is expected that an appropriate subscription-based model for small and medium-sized companies will be provided by SAP with “Business All in One” later in 2010. 5.4.12 Strategic direction with reference to Software as a Service (SaaS) It is foreseen that the SaaS provisioning model will develop further in the platform direction. Following the design of hosting or service-delivery platforms, development will include software market places. Afterwards, models such as the SaaS aggregator model will come into use (see section 6.0 Strategy and future outlook). The marketing and sales activities associated with SaaS – such as preparing and publishing white papers, organizing and running customer advisory boards and customer information workshops, training sales staff, etc. – will be constantly strengthened. By the way, this also applies to all Bright IT Services offers. 40
    • Figure 14: The future of SaaS from Siemens IT Solu- tions and Services’ standpoint. 41
    • Siemens IT Solutions and Services 5.5. The Siemens IT Solutions and Services’ concept of the Community Clouds Cloud services that have been available up to now have mainly focused on horizontal solutions, and they have paid hardly any attention to industry-specific requirements with regard to functionality and security. This is a major disadvantage for customers, since the advantages of Cloud-based IT services cannot be used in these cases. For instance, in various branches of industry, such as healthcare, and in the public sector, strict regulation limits prevent the use of Cloud Computing, even though the basic concept would be of great interest to many companies. To overcome these restrictions, Siemens IT Solutions and Services is developing so-called “Community Clouds”. This also provides positioning for our Cloud range, thereby helping us to align our strategy with vertical solutions that are being devel- oped and marketed in cooperation with the various Siemens divisions. Community Clouds are essentially bundles of Cloud-based services that are tailored to the common needs and requirements of a business community. Business communities belong typically to a specific branch of industry, e.g. healthcare. Community Clouds make it possible to implement collaborative business processes “in the Cloud”. At the same time, they provide a high level of security through the use of hybrid provi- sioning models. Non-critical information and processes can be dealt with or executed in the Public Cloud, whereas business-critical services are kept within the company or in a private Cloud environment of a trusted and established outsourcing partner, such as Siemens IT Solutions and Services. A pilot project in the media industry illustrates the characteristics and benefits of a Community Cloud. At present, media firms are looking for low costs, together with flexible and simple solutions, in order to improve the efficiency of their media production. Most media productions involve an extensive ecosystem of partners. This in turn involves logistical challenges. Above all, the secure transmission of audio-visual contents across geographical and / or organizational boundaries for the purpose of cooperation and decision-making is proving difficult. Current solutions are often based on physical copies of documents and video clips held on media such as DVD or tape, together with the use of couriers for transport. 42
    • This has great disadvantages in terms of costs, time, transparency, and security. The Media Community Cloud represents a secure and flexible platform for the real-time exchange of data-based digital media contents, and it makes configurable workflows possible for the purpose of supporting B2B cooperation (in particular the review and approval process). The solution has been implemented on the basis of Microsoft Windows Azure as the basic Cloud platform (Public Cloud); but individual components of the solution are operated either within the media companies them- selves, or in Siemens IT Solutions and Services data centers (Private Cloud). The following diagram illustrates the concept of a Community Cloud in the media environment. For media companies, it provides a process-oriented platform that can be accessed over the Internet by everyone who is involved in the process. Figure 15: Media Community Cloud: a uniform business process platform for the media environment. The benefits for users are many and varied. For example, the Web-based architecture makes it possible to produce a solution for an easy, cross-organizational exchange of information (firewall-compatible, browser-based, and without the need for the customer to install any software). Cross-organizational processes can be set up quickly and easily, without the requirement for any investment in one’s own hardware or software. In addition, the solution includes innovative and distributed security functions, together with federated Identity and Access Management with role-based access rights. 43
    • Siemens IT Solutions and Services The principle illustrated by the example of Media Cloud is also applicable to many other processes and industries, such as healthcare and the public sector. Community Clouds are primarily suitable for customers who want to implement or optimize cross-organizational processes, or processes in which the participants involved are at different geographical locations. Their use is also of interest in those situations where requirements for resources such as computing capacity or memory fluctuate severely, and / or where in-house implementations of individual solutions are not feasible or are too expensive (because, for instance, of long lead times or the preliminary investment that is necessary). In addition, the concept makes it possible to bundle and integrate various solutions in order to reduce the complexity of sourcing for customers. Third-party providers can also be integrated so that an industry-specific network of user organizations and providers can be set up. The aim is to build up an industry- specific ecosystem in which Siemens IT Solutions and Services provides key functions and sets de facto standards. The Siemens IT Solutions and Services range of services includes system integration for the purpose of developing the solutions for the customer on the basis of a hybrid deployment model. Siemens IT Solutions and Services will provide comprehensive Cloud solutions, and it will therefore reduce the complexity of dealing with a variety of providers of Cloud-based services that would otherwise be the responsibility of the customer. Operation of the solution is distributed across different operators from the point of view of cost, availability, and security. Many elements of the Community Cloud infrastructure will remain with a partner (such as Microsoft) in the Cloud, while other parts will be operated in Siemens IT Solutions and Services data centers, or in data centers belonging to the customer itself. In the next few months, Community Clouds that are of importance to Siemens IT Solutions and Services – and, in particular, to the Healthcare, Industry, and Energy sectors, on which Siemens focuses – will be designed and developed. Siemens products and services will be incorporated into this concept. In this way, Siemens IT Solutions and Services will be utilizing the strength and extensive sector experience of Siemens, and it will be paving the way for the next step in the development of Cloud Computing. 44
    • The main unique selling points of this approach can be summarized as follows: 1. Community Clouds combine the advantages of Cloud Computing with extensive sector experience and Siemens process know-how. 2. As a vendor-neutral system integrator and an established outsourcing provider, Siemens IT Solutions and Services is not only able to develop Community Clouds and incorporate them into existing customer infrastructures and processes, but it can also provide the necessary operating services as well. 3. Siemens IT Solutions and Services has already gained experience in reference projects with leading partners such as Microsoft. These include, for example, platform technologies such as Microsoft Windows Azure, which, in future, will be one of the possible basic components of Community Clouds. 45
    • Siemens IT Solutions and Services 5.6. Siemens IT Solutions and Services’ Bright IT Services Consulting Portfolio Cloud Computing Consulting (CCCon) is a consulting service offering within the Go-To-Market theme “IT Consulting & Systems Integration” and is designed to comple- ment the current Siemens IT Solutions and Services’ Cloud Computing initiative. The first two modules of CCCon – the “Cloud Awareness Workshop” and the “Cloud Quick Check” are primarily intended to act as a door-opener for follow-up cloud business with Siemens IT Solutions and Services and its partner solutions. Figure 16: Cloud Computing Consulting (CCCon) building blocks. One major goal of the overall CCCon portfolio development is to acquire sufficient know-ledge, know how, market insight and delivery capabilities that will enable Siemens IT Solutions and Services to guide its target customers from the traditional on-premise/ dedicated IT organization to the innovative cloud sourcing concepts of the Siemens IT Solutions and Services Cloud Computing Framework. The CCCon value proposition is to provide expert advice on how to realize the benefits of cloud computing business models, while preserving, to the extent possible, previous investments, and easing security, continuity and compliance concerns by tailoring available cloud service offerings to specific needs of the customer. 46
    • Therefore Cloud Computing Consulting acts as pre-sales support and as an additional consultative sales channel for the Siemens IT Solutions and Services Bright IT services initiative. The objectives of Cloud Computing Consulting are: • Help customers to understand the benefits and pitfalls of the Cloud Computing business model and provide a structured methodology for identifying potential business areas. • Provide economic models for assessing the total cost of ownership of moving to clouds (e.g. for building private clouds, and/or moving data and applications off-site in a public or hybrid cloud model), thereby preparing a strong business case for Management buy-in. • Re-architecting and re-designing technologies and processes, to infuse security and shield against threats and vulnerabilities in the cloud. • Market Siemens IT Solutions and Services and partner cloud offerings (consultative selling) and pave the way for further consulting and high volume enterprise cloud implementation engagements (e.g. implementation of third-party SaaS systems, cloud migration, development of new cloud applications etc.). • Use “Cloud Computing” to win new customers and to present Siemens IT Solutions and Services to existing customers as a stable and reliable technology partner with an innovative edge. Consulting Approach Although Cloud Computing in general has reached the peak of its hype cycle, the technology / business model will continue to become the preferred sourcing concept for all commodity IT resources/services. 47
    • Siemens IT Solutions and Services Figure 17: Cloud Computing Consulting (CCCon): Initial situation and consulting approach. The key concept to steer the individual customer adoption process is to distinguish all IT resources into two categories - one that follows a standardization strategy and the other that supports the differentiation of the customer towards its competitors. Once this is clearly defined, all of the resources that are considered commodities or non-differentiators would generally be in scope for the new sourcing concepts of the cloud computing business model. Within this broader scope, individual applications or resources are briefly scanned against a set of parameters (e.g. security and legal constraints, mission criticality, previous investments, TCO and transformation cost/complexity estimations) and compared to a market database of mature cloud solutions – preferably of the Siemens IT Solutions and Services and partner business solutions. Based on the potential benefits realizable from each of the different focus areas, a roadmap for the individual adoption process can be formulated. The attractive areas are then evaluated in detail during the “Cloud Assessment” stage to develop a full-fledged business case, technical feasibility analysis and product / service recommendations. 48
    • 5.7. Siemens IT Solutions and Services’ Bright IT Services Business Environment To deliver Cloud solutions successfully, several organizational and technical conditions need to be in place, such as: • Contractual framework (contracts, terms and conditions) • Purchasing rules and processes for services from Cloud partners (Google, Apple, …) • Export, tax and legal issues for service delivery and customers in different countries • Technical and organizational solutions for delivering, servicing and operating of Cloud services (Operational Framework, Service Desk and Application Management). The Siemens IT Solutions and Services consulting departments, which are responsible for “Cloud Computing Consulting and Services” coordinate the development of solu- tions with regard to these topics. Results are (organizational) clarifications, examples and best-practices to enhance the efficiency (saving efforts and cost), avoid obstacles and enhance the quality of Cloud service developments. 5.8. Siemens IT Solutions and Services’ Operational Framework for Cloud Services An important prerequisite for providing our customers with mission-critical Cloud applications is the seamless integration of the associated order, tracking and billing processes in the Operational Framework of Siemens IT Solutions and Services, which we call TANGO. The Operational Framework is of utmost importance for all the services we provide, and will be appropriately extended in order to be able to develop and manage future Bright IT services on one comprehensive platform. This new platform “SieQuence” will be made available on an international basis. 49
    • Siemens IT Solutions and Services The Operational Framework has been designed in a modular way. It provides a portal- based customer interface and submitted orders are processed in a standardized and automated way. Solutions for customers who insist on using their own frameworks can be integrated in the Operational Framework of Siemens IT Solutions and Services as well, using a standardized interface. The automated provisioning of agreed ser- vices will be carried out by means of defined delivery interfaces. Processes for billing, reporting, and contract management are also provided. The Operational Framework is able to run the involved processes in an fully automated way, without any media inconsistencies, and eliminates manual processes like order entries based on e-mails, faxes or phone calls. One of the main tasks of the Operational Framework is the integration of existing tools and processes in order to reach a very high level of automation for all the operational processes involved. The most important functional elements of the Operational Framework TANGO are shown in the following diagram: Figure 18: Modular architecture of the Operational Framework TANGO. SieQuence is the branding for the new platform which will be made available using TANGO. To pave the way for providing Bright IT services in an automated, stable and con- trolled environment, Siemens IT Solutions and Services will extend the current version of the Operational Framework TANGO. Existing tools such as Operational Service Desk (OSD) and M.O.S.A.I.C. will be used as far as possible, will be extended if necessary, or will be replaced by other suitable tools. 50
    • The use of an Operational Framework like TANGO will result in the following benefits for our customers: • Reduction in costs – Significant cost savings in comparison with traditional transaction costs, improved productivity due to fewer downtimes, immediate availability of services via the order portal, and automated transparent cost control through integrated approval processes. • Transparency – Reporting on the services provided, based on facts and figures: quality (service level agreements and key performance indicators), quantities (the number of resources actually used), and costs (control). • Flexibility – Worldwide support is available round the clock, in several languages. • Change in behavior – Greater cost-awareness on the part of end users because the figures for the use of resources can be broken down to individual user level. Transparency and ease of handling lead to cost-conscious users. 51
    • Siemens IT Solutions and Services 6. Strategy and future outlook The business roadmap of Siemens IT Solutions and Services below shows how the Bright IT Services strategy is to be implemented in the short term: Figure 19: Siemens IT Solutions and Services’ Bright IT Services business roadmap at a glance. The Bright IT Services business roadmap at a glance – a new way for outsourcing through Cloud Computing Siemens IT Solutions and Services consistently develops a general Cloud Computing service portfolio, which it markets under the name “Bright IT Services”. The develop- ment is carried out in three sequential phases. These start with the marketing of existing Cloud solutions, such as Software Asset Management as a Service, CRM on Demand, Content & Collaboration as a Service based on Microsoft SharePoint and OpenText Livelink, Enterprise Project Management as a Service, Archiving as a Service, and many more. These solutions are already established on the market, and they have all the parameters and characteristics of fully developed Cloud solutions. In the second phase, which has already been launched, all Push portfolio elements of Siemens IT Solutions and Services are analyzed and assessed with regard to their 52
    • Cloud capability. These elements include, in particular, “Analytics as a Service” and “Storage on demand”. Projects have already been set up to ensure that a pioneering role can be played on the market in these areas. The Cloud offers that have been mentioned are still in the initial stage in terms of market penetration. Providers such as Oracle, IBM, and Microsoft can therefore also be expected to redouble their efforts in these areas. The Cloud-related subjects in our Push portfolio fulfill three further preconditions: firstly, they are of business-critical interest for the customers of Siemens AG; secondly, they comply with the industry DNA of Siemens AG; and thirdly, they are in keeping with the system-neutral IT integrator role of Siemens IT Solutions and Services in its capacity as an IT infrastructure provider. The IT integrator role of Siemens IT Solutions and Services is not just restricted to the hybrid sourcing approach in the infrastructure area. Hybrid sourcing means here that Siemens IT Solutions and Services hosts business-critical applications in its own highly virtualized and secure data centers, and that, in the case of non-business- critical applications, it covers the Public Cloud advantages by, if necessary, acquiring Public Cloud hosting capacity. For this purpose, Siemens IT Solutions and Services establishes strategic partnerships with efficient and proven partners, such as Microsoft or VMware. Highly virtualized data centers that can dynamically scale changes in load, and that generate Green IT effects, are based on the technical principle of virtualization: here, users are given an abstracted view, in the IaaS layer, of the hardware – i.e. of servers, mass storage devices, networks, etc. In Cloud Computing, however, virtualization is not just possible and necessary in the area of the infrastructure; it affects all three layers of Cloud Computing – i.e. IaaS, PaaS, and SaaS. As far as types of virtualization are concerned, a distinction is made between oper ating system virtualization (the “container” approach), platform virtualization (complete or para-virtualization), memory virtualization, network virtualization, and application virtualization. Virtualization is therefore a core component of IaaS, PaaS, and SaaS services, and it is essential for ensuring efficient Cloud Computing offers. 53
    • Siemens IT Solutions and Services In server virtualization, servers are consolidated in order to ensure a more efficient use of resources. The advantages from the point of view of the user are a reduction in operating costs (hardware, power consumption, and premises), fewer downtimes and greater availability, fewer interruptions because of maintenance, and rational- ized provision and scaling of resources. In the case of application virtualization in the form of centralized applications that are uncoupled from the operating system, the advantages are as follows: fewer conflicts between applications, fewer regression tests for applications, and centralized management of updates and patches. Desktop virtualization is carried out via devices belonging to an isolated desktop operating- system environment on servers or standard desktops. This therefore results in fewer conflicts between applications and the operating system, faster operating-system migration, and support for older applications under current operating systems. The aggregator model: Siemens IT Solutions and Services regards itself as a strategic aggregator of Cloud Computing services. This makes it possible to implement end-to-end designs, so that it will be possible to map general business processes with Cloud Computing services. This aggregator approach is based on the above-mentioned hybrid sourcing approach in all Cloud Computing layers (IaaS, PaaS, and SaaS). In this way, Siemens IT Solutions and Services is able to position itself in the market as a full-service Cloud Computing provider that covers the entire Cloud value-added chain by efficiently bundling its own and other services. When different Cloud Computing application services are acquired from different suppliers, integrating them into the existing IT landscape on the customer side is not the only challenge. In addition, contracts have to be drawn up with the individual suppliers, and these are often based on very complex contractual structures. Within the framework of the new IT service delivery model, customers frequently do not just acquire SaaS components, but PaaS and IaaS components as well. 54
    • Figure 20: The aggregator model from the viewpoint of Siemens IT Solutions and Services (SIS). The functions of the aggregation of services, and bundled provision for the customer over a single access point and only one contractual interface, are essential, particu- larly for the Community Clouds approach. The customer will then hold only one contract (Business SLA) with Siemens IT Solutions and Services as the aggregator, and it will obtain the “bundled” services in the Siemens IT Solutions and Services leasing model. In addition to the aggregation of standard SaaS applications to form “bundles or ensembles”, it is also conceivable that the standard Cloud services already established in the market will be enhanced by the addition of components developed by the aggregator itself, and which will themselves also be operated in Cloud mode. The range of services provided by these Cloud Aggregators will be such as to cover complete business processes by means of business services. Accordingly, an end-to-end business process will be operated in the form of consistent IT services from different providers. The different SaaS applications will be adminis- tered on the SaaS platform, and they will be hosted in the aggregator data center, and, if necessary, in the Public Cloud area of the aggregator (via strategic partnerships with public IaaS providers, which is the only way service bundles will be at all possible). In the medium term, Siemens IT Solutions and Services will move towards becoming a “full-service” Cloud Computing aggregator in the IT market. 55
    • Siemens IT Solutions and Services In addition to using a few of its own proprietary SaaS solutions, Siemens IT Solutions and Services will increasingly work with strategic and premier partners, such as Microsoft, Oracle, VMware, and SAP. These partnerships will not be restricted to a few margin-relevant reseller models. So that the entire value-added chain of Cloud Computing can be covered, partnerships will have to be formed with all important providers in the IaaS, PaaS, and SaaS areas. These partnerships should not be based on “reseller models”, “en-hanced reseller models”, or simple “hosting provider models”. It is rather a matter of going very early into partnership with software vendors, with the partnership then being able to develop from an instance of technological cooperation into a strategic alliance. Siemens IT Solutions and Services’ Partner and Technology Management is particularly in demand here, both as far as the business collaboration issues are concerned, and with respect to the technology foundation as well. It is necessary to establish use cases and carry out proof-of-concepts to check technological feasibility (e.g. integration of hybrid Cloud solutions when different vendor platforms are being used). It is foreseeable that two, but no more than three, de facto standard platforms will achieve acceptance in the market. These will then be the basis for SaaS and PaaS solutions of Siemens IT Solutions and Services. In the infrastructure area, Siemens IT Solutions and Services will prefer to use VMware vCloud. In the medium to long term, Siemens IT Solutions and Services will become a trusted business advisor in the field of Cloud Computing. The aggregator role will play an essential part in this. As a trusted Cloud Computing business advisor, Siemens IT Solutions and Services will develop from being an assembler of its own and other Cloud Computing services, to become an efficient Cloud aggregator that has a high degree of integration expertise, and that positions itself on the market with Community Clouds aligned to specific sectors. This form of the Cloud aggregator role will go hand in hand with the setting up of an efficient and diversified partner ecosystem. In the third phase of strategic positioning, Siemens IT Solutions and Services will orientate itself to the needs of the Siemens Sectors, and it will be setting up Cloud Computing pilot projects in 2010. 56
    • Appendix – Glossary For the purpose of internal and external communication, and for the sake of ensuring that there is a uniform official position, Siemens IT Solutions and Services uses the Cloud Computing technical terms of NIST (National Institute of Standards and Technologies) within the context of its “Bright IT Services” initiative. The main terms and concepts are listed below, and additional information is included with some of them: Software as a Service (SaaS) SaaS is a software application delivery model where a software vendor develops a Web-native software application and hosts and operates (either independently or through a third-party) the application for use by its customers over the Internet. Customers pay not for owning the software itself but for using it (pay-per-use model). SaaS has become the industry preferred term, generally replacing earlier terms, such as “Application Service Provision” (ASP), “Software On-demand” and “Utility Computing”. From a technology viewpoint SaaS applications must support multi-tenancy. The most prominent SaaS providers are Google, Salesforce and SuccessFactors. Platform as a Service (PaaS) PaaS is a software platform delivery model where a software vendor develops a software platform and hosts and operates (either independently or through a third-party) the platform for use by its customers over the Internet. Customers pay not for owning the platform itself but for using it. The PaaS provider offers a stable development and runtime platform consisting of middleware such as web server, application server, integration server etc and a whole bunch of proven development tools (integrated development environment) for the development and deployment of mission critical web-applications. The most powerful PaaS providers are Microsoft (Windows, .NET Framework, Visual Studio.NET) and Oracle (Oracle Fusion Middleware). 57
    • Siemens IT Solutions and Services Infrastructure as a Service (IaaS) IaaS is the provision of computer infrastructure as a service. Implementations typically include the following layered components: • Utility computing billing (e.g. per instance hour) • Platform virtualization environment for running highly standardized virtual machines • Computer hardware (Server and Storage – typically set up as a grid for massive horizontal scalability) • Computer network including firewalls, load balancing etc. • Internet connectivity IaaS key characteristics are: • Resources delivered as a service include servers, network equipment, memory, CPU, disk space, and data center facilities • Dynamic scaling of infrastructure which scales up and down based on application resource needs • Variable cost service using fixed prices per resource component • Multiple tenants typically coexist on the same infrastructure resources • Enterprise grade infrastructure allows mid-size companies to benefit from the aggregate compute resource pools. The most prominent IaaS providers are Amazon, IBM, Microsoft, HP, CISCO and VMware. 58
    • In addition, the “National Institute of Standards and Technologies” distinguishes between four different deployment models: Private cloud. The cloud infrastructure is operated solely for one organization. It may be managed by the organization or an IT service provider and may exist on premise or “off premise”. Community cloud. The cloud infrastructure is shared by several organizations and supports a specific community (e.g., media or healthcare) that has shared concerns (e.g., mission, security requirements, policy, and compliance considerations). It may be managed by the organizations or an IT service provider and may exist on premise or “off premise”. Public cloud. The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization (like Google) selling cloud services. Hybrid cloud. The cloud infrastructure is a composition of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting for load-balancing between clouds). In general, cloud software takes full advantage of the cloud paradigm by being service oriented with a focus on statelessness, low coupling, modularity, and semantic interoperability. 59
    • The Author: Winfried Grundner – Siemens IT Solutions and Services Portfolio and Technology Management In his role as “Platform Strategy Manager”, the author is responsible for the implementation of the Siemens IT Solutions and Services “Platform Strategy” and the definition of the Siemens IT Solutions and Services “Technology Direction”. Link to related information sources: For more information on Cloud Computing topics, the latest white papers for example, follow the link below: http://www.siemens.com/cloud-computing Siemens IT Solutions and Services GmbH Your contact: All hardware and software names used are brand names and/or Siemens IT Solutions and Services trademarks of their respective holders. Otto-Hahn-Ring 6 81739 Munich, Germany © Siemens IT Solutions and Winfried Grundner Services GmbH, 2010. Global Info Desk Right of modifications SIS PTM SIT Tel.: +49-1805-444713 reserved. Tel.: +49-89-636-47064 it-solutions@siemens.com winfried.grundner@siemens.com www.siemens.com/it-solutions