SAP Cloud Infrastructure Strategy @ Virtualization Week

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  • When discussing “cloud”, we use a simple definition of “anything IT delivered over a network when the customer demands it”. We have identified a simple framework of applications and infrastructure deployed On Premise or On Demand and four main value propositions for our customers and SAP, or “cloud use cases”:1.) On the infrastructure side, we strive to lower the TCO of our customers by utilizing modern infrastructure On Demand. We are working with the leading technology manufacturers and service providers to ensure that our products run well on the next generation infrastructure. Together with our partners, we are also driving standardization in the area of cloud APIs to ensure our customers a choice of available products and services for private and public clouds.2.) Offering complementary solutions On Demand, thereby also increasing the value of our current On Premise solution. The On Demand solutions can be anything from business services like address verification through tools like BI On Demand and Constellation to complete applications. Our customers will be able to experience a unified Suite independent of the deployment model of each component.As for “stand alone” On Demand applications, these come in three categories:a.) A full, integrated suite (ByDesign)b.) LOB applications (LE OD)c.) Tools and point solutions (BI OD, Constellation…)3.) Designing the next generation network solutions that are hybrid solutions, natively utilizing the cloud as part of the architecture4.) Extending the reach of SAP systems through cloud based access. Customers and partners already do this today.
  • There are 3 trends behind Cloud ComputingIndustrialization of IT: standardizing and automating manual processes in the IT BusinessUtility Computing: from inflexibile and long-term contracts to metering of resource usage and payment based on usageOn Demand Fullfillment: from long running customer projects to immediate fulfillment of customer needsThis results in value-It increases R&D Efficiency as Software & Hardware provisioning does not require planning any more. It increases agility of R&D-These new capabilities allow defining an entirely new consumption experience of SAP solutions-In addition the high degree of efficiency in the Cloud Computing principles result in massive cost reduction for SAP, customers and Partners
  • When used 24/7, Amazon EC2 costs <50% Traditional HostingMost important the curve is linear.When used for days or hours at a time, costs drop very dramatically: e.g., to 15% for a typical work week.
  • Standardized Cloud API, Allowing Innovation on Massive Scale on providing Software SolutionsThe great successes of Standardization: USB, DirectX
  • Cloud ControllerCloud ManagementGlobal Cloud ServicesRevenue Share with Content and Service ProvidersUsage tracking for everythingService Registry, everybody can accessInsight:SLA tracking for achieving transparence in SLAs globallyReviews
  • SAP Cloud Infrastructure Strategy @ Virtualization Week

    1. 1. Frank Stienhans<br />on Behalf of oCTO<br />SAP<br />frank.stienhans@sap.com<br />April 6th 2010<br />SAP Cloud Infrastructure StrategyVirtualization Week Presentation<br />Ingo Sauerzapf<br />Office of the CTO<br />SAP<br />ingo.sauerzapf@sap.com<br />© SAP 2008 / Page 1<br />
    2. 2. More than<br />92,000 customers in 120 countries<br />1,5 million developers & experts<br />47,000 SAP employees<br />Run their business on more than<br />2 million machines<br />© SAP 2008 / Page 2<br />
    3. 3. Enabling SAP solutions for Cloud Infrastructures<br />© SAP 2008 / Page 3<br />SAP Global Cloud Services<br />Licensing<br />Usage Metering<br />Appliances<br />Consume<br />Share<br />Consume<br />Share<br />Consume<br />Share<br />Customer ITNetwork<br />SAP IT Network<br />Appliances<br />Appliances<br />Appliances<br />Cloud Controller<br />Multi-Tenant<br />Cloud Controller<br />Cloud Controller<br />Run<br />Run<br />Run<br />Run<br />Run<br />External Cloud<br />Internal CloudInfrastructure<br />Internal CloudInfrastructure<br />External Cloud Infrastructure (IaaS)<br />Private<br />Private<br />Public<br />
    4. 4. Harnessing the CloudFor the Benefit of our Customers<br />Extend the reach of SAP systems through cloud based access, ultimately reaching everybody everywhere in entirely new ways<br />?<br />Co-Existence<br />Harmonization, Adaptation, Integration, Unified Lifecycle Mgmt<br />Offer a portfolio of valuable On Demand applications, ultimately leading to the next generation Networked Solutions with hybrid deployment models<br />On Demand<br />BusinessApplications &<br />Services <br />On Premise Business Applications <br />and Services <br />Virtualization<br />Dedicated<br />Resources <br />Shared <br />Resources<br />Cloud<br />Leverage cloud infrastructure to increase the business agility and to lower the TCO of our customers, ultimately enabling new types of applications<br />
    5. 5. Agenda<br /><ul><li>Harnessing the Cloud
    6. 6. Cloud Introduction
    7. 7. SAP Solutions in Cloud Infrastructures
    8. 8. SAP Cloud Infrastructure Strategy</li></ul>© SAP 2008 / Page 5<br />
    9. 9. Cloud Computing Definition<br />Application Providers<br />Platform Providers<br />Infrastructure Providers<br />Service Providers<br />400,000 Developers + ISVs<br />Definition from Consumer Perspective<br />Trends<br />Cloud Computing allows On Demand Software Provisioning with Zero-Installation & <br />Automatic Configuration at low cost and immediate access in Scalable Data Centers.<br />Selected Cloud Consumers & ISVs<br />© SAP 2009 / SAP World tour / Page 6<br />
    10. 10. Abstraction<br />+<br />Elasticity<br />Concepts of Clouds<br />
    11. 11. Trends and Value of Cloud Computing<br />Increase Business Agility, Increase R&D Efficiency <br />Utility Computing<br />On Demand Fulfillment<br />Industrialization of IT<br />From inflexible and long-term contracts to payment of metered usage<br />From long running customer projects to immediate fulfillment of customer needs<br />From Manufacturing to <br />Automation and Standardizationof IT Business<br />Value<br />Breakthrough Consumption Experience of SAP Solutions<br />Reduce IT Costs/CAPEX for SAP, Customers and Partners<br />© SAP 2009 / SAP World tour / Page 8<br />
    12. 12. Traditional Hosting vs. Amazon CloudHosting Costs of ERP for Development<br />Traditional Hosting<br />© SAP 2009 / SAP World tour / Page 9<br />
    13. 13. Cloud ScalabilityAmazon Customer: Animotohttp://blog.animoto.com/<br />On April 14th 2008 Animoto provided a new plugin for facebook …<br />External Clouds for dynamic workloads<br />Internal Clouds for constant workloads<br />© SAP 2009 / SAP World tour / Page 10<br />
    14. 14. Cloud Use Cases<br />Non-Mission CriticalUse Cases: Current Potential<br />Description<br /><ul><li> Development / Patching / Customizing
    15. 15. Testing (Manual, Automated, Scalability)
    16. 16. Training
    17. 17. Demo / Workshops / Events
    18. 18. Trial / Evaluation</li></ul>Cloud Computing is a maturing approach<br />Description<br /><ul><li> Integration with customer IT: Network, Operations, Billing
    19. 19. Service Level Agreements: Security, High Availability, Performance</li></ul>Mission Critical Use Cases: Future Potential<br />Description<br /><ul><li> Disaster Recovery, …
    20. 20. On Premise: Provisioning of productive landscapes
    21. 21. On Demand: Provisioning of productive services</li></ul>75% of all systems<br />50% of all costs<br />© SAP 2009 / SAP World tour / Page 11<br />
    22. 22. Agenda<br /><ul><li>Harnessing the Cloud
    23. 23. Cloud Introduction
    24. 24. SAP Solutions in Cloud Infrastructures
    25. 25. SAP Cloud Infrastructure Strategy</li></ul>© SAP 2008 / Page 12<br />
    26. 26. Lock-in Danger<br />Situation Today<br /><ul><li>Private and Public Cloud Infrastructures are a dominant trend
    27. 27. No single Cloud Infrastructure today is ideal for all use cases (SLAs, Integration, Costs)
    28. 28. Every Cloud Infrastructure so far has significant proprietary elements in their interface, creating lock-in effect for consumers
    29. 29. SAP, Customers and Partners are interested in Standardization of Cloud APIs</li></ul>SAP Employee<br />SAP Employee<br />Metering<br />Provisioning<br />Configuration<br />SAP Solution<br />SAP Cloud Enabling Services powered by SAP NetWeaver CE<br />!<br />!<br />Cloud Infrastructure<br />Configuration<br />Metering<br />Virtualization<br />© SAP 2009 / SAP World tour / Page 13<br />
    30. 30. Cost Characteristics of Cloud InfrastructuresReal World Examples of using one SAP ERP SystemUpdate November 1st 2009<br />© SAP 2009 / Page 14<br />Monthly Consumption<br />Customer Demo incl. 1 week Development<br />7.5%<br />Local Development<br />10h / Workday<br />30.0%<br />Central Systems<br />24h / 7 days<br />100%<br />Workshop 1 day <br />1.4%<br />
    31. 31. Cloud Production Chain<br />SAP MII<br />SAP NetWeaver<br />Deploy<br />Deploy<br />SAP<br />NetWeaver<br />SAP<br />MII<br />OS<br />Create Appliance<br />Create Appliance<br />Instantiate<br />Instantiate<br />Instantiate<br />OS + SAP NetWeaver<br />OS + SAP NetWeaver + SAP MII<br />SAP<br />Partner / Customer<br />New <br />Content<br />Cloud <br />Instances<br />Virtual<br />Appliance<br />Library<br />Operating System<br />© SAP 2009 / SAP World tour / Page 15<br />
    32. 32. Effect<br />Automated Functional Tests(SAP Internal)<br />Parallelize test case execution via Cloud Computing at <br />No additional cost<br />Allocated machines<br />Automated Test Controller<br />Cloud Services<br />External<br />Cloud<br />Internal Cloud<br />T<br />T<br />T<br />T<br />T<br />T<br />T<br />T<br />Legend<br />Test Case<br />time<br />Machine<br />8 night hours<br />© SAP 2009 / SAP World tour / Page 16<br />
    33. 33. Hardware Utilization with System LandscapesToday’s Situation<br />Challenge<br /><ul><li>Avg. Utilization is <=10% with SAP Customers</li></ul>Conclusion<br /><ul><li>Resource Consumption should follow usage in Real Time</li></ul>Outage<br />Utilized Machines<br />Waste<br />Sizing<br />Source: Amazon AWS<br />© SAP 2009 / SAP World tour / Page 17<br />
    34. 34. Cloud Landscape: Dynamic SAP NetWeaver Cluster<br />Load Monitoring Service<br />Dynamic Provisioning Controller<br />Provisioning Service<br />SAP NetWeaverCluster<br />SAP NetWeaver Web Dispatcher<br />SAP NetWeaverDialog Instance<br />SAP NetWeaverCentral Instance<br />SAP MaxDB Instance<br />Amazon Web Services<br />© SAP 2009 / SAP World tour / Page 18<br />
    35. 35. External Cloud Systems per MonthMarch 2008 – March 2010<br />© SAP 2008 / Page 19<br />
    36. 36. External Cloud System Hours per MonthMarch 2008 – March 2010<br />© SAP 2008 / Page 20<br />
    37. 37. Use Cases for AWS within SAPApril 2010<br />© SAP 2008 / Page 21<br />
    38. 38. Agenda<br /><ul><li>Harnessing the Cloud
    39. 39. Cloud Introduction
    40. 40. SAP Solutions in Cloud Infrastructures
    41. 41. SAP Cloud Infrastructure Strategy</li></ul>© SAP 2008 / Page 22<br />
    42. 42. Mission<br />Bring on Premise Solutions as near to the IT characteristics of On Demand Services as possible without requiring significant changes for existing SAP Solutions and define architectural implications for new SAP solutions.<br />On Demand IT characteristics include<br />Low Business Solution TCO<br />High Business Agility allowing immediate reaction to changing business needs<br />Self Service Approach with immediate fulfillment for all general IT processes<br />Immediate consumption ability of SAP/partner solutions/services<br />Foster Network Effect for consumers and providers<br />Create a win5 situation for customers, SI partners, solution providers, cloud providers, SCN community<br />© SAP 2008 / Page 23<br />
    43. 43. Thinking DirectionCustomer / Partner Perspective<br />Deployment<br />OD: On DemandOP: On Premise<br />Cloud Management Tools <br />OD/OP<br />…<br />IBM<br />HP<br />BMC<br />Microsoft<br />Sol Man<br />Stratus<br />Cloud <br />Services<br />OD/OP<br />Cloud Service <br />& Content <br />Providers<br />Cloud Controller::REST, SOAP<br />Platforms<br />Appliances<br />Business<br />Events<br />Cloud ControllerLight weight, Throughput, Consumable, Open<br />OD/OP<br />SAP<br />Extensions<br />Business Processes<br />Patches<br />SLA Decision Engine<br />Security<br />Tier 1<br />Processes & <br />Threads<br />Upgrades<br />Utilization<br />…<br />Migration<br />Licensing<br />GCS::REST<br />Platform::REST<br />Tier 2<br />GCS::REST<br />Scalability<br />High Availability<br />Backup<br />Memory<br />Usage<br />> 1000<br />Tier 3 Partners<br />System Provisioning & Monitoring<br />IO<br />SLA Tracking<br />> 1 Mio<br />[SCN Members]<br />Cloud Infrastructure::REST<br />Services<br />> xxx Mio<br />[SAP Users]<br />Cloud Infrastructures<br />Reviews<br />[VMware ]based<br />[Xen]based<br />[Unix]based<br />…<br />Amazon<br />Microsoft<br />IBM<br />Terremark<br />T-Systems<br />AT&T<br />HP<br />Billing<br />Internal<br />External<br />
    44. 44. Summary<br />This cloud strategy will revolutionize the way we do Business with our customer and partners.<br />It will reduce TCO on all sides: customers, partner and for SAP itself.<br />SAP will leverage the cloud for providing additional service offerings by SAP and partners.<br />© SAP 2008 / Page 25<br />
    45. 45. Thank you!<br />© SAP 2008 / DKOM 08 / <Session ID> Page 26<br />© SAP 2009 / SAP World tour / Page 26<br />
    46. 46. SAP Partners<br />Integrating providers for<br />Management Tools / Service<br />Network Service / Infrastructure<br />Integration Service / Infrastructure<br />Backup Service / Infrastructure<br />Cloud Processing Service / Machines<br />Cloud Storage Service / Infrastructure<br />Virtualization Solution Providers<br />Security Enforcement Service / Infrastructure<br />GRC Service / Solution<br />DB Service / Software<br />IT Process Automation Service / Solution<br />Load Balancer Service / Infrastructure<br />Guest OS<br />Guest Hardware<br />a.s.o.<br />Permutations possible e.g. Storage Infrastructure with Backup Service<br />© SAP 2008 / Page 27<br />
    47. 47. What SAP can do<br />Only SAP can<br />Evolve SAP solutions to fully embrace virtualization and clouds <br />Evolve SAP Business Models towards dynamic cloud environments<br />Reduce SAP Solution footprint<br />Provide a new deployment channel for SAP solutions, which is highly automated and highly efficientleading to accelerated consumption of SAP and partner solutions<br />SAP can do best<br />Automate SAP based IT processes like landscape provisioning and upgrades<br />Provide guidance on offerings in the cloud / virtualization marketplace<br />Bring service providers closer to customersin a highly automated and highly efficient wayleading to acceleration of SAP related projects for customers<br />SAP can significantly contribute to <br />Reach SLA levels in the cloud / virtualized environment comparable to traditional hosting<br />Increase the utilization of Customer Data Centers<br />Standardization of interfaces to cloud and virtualization offerings<br />© SAP 2008 / Page 28<br />
    48. 48. What you can do today<br />What can you already do today:<br />Use virtualization technologies certified and provided by SAP<br />Virtualization technology provided by technology partners<br />SAP Lifecycle Management tools (Adaptive Computing Controller, SAP Solution Manager, …)<br />Plan for organizational implications which is flexible enough for a later cloud usage<br />Admin skills<br />Security concepts<br />Standardized processes<br />Financial implications (Accounting, …)<br />Be prepared for later cloud usage of On-Premise Apps<br />Implement Virtualization & Cloud task force in your company<br />An accounting model<br />Security Implications related to external cloud offering (prepare mid- and long-term strategy)<br />Observe offerings (cloud provider, security provider, …)<br />Check local legal requirements (PersonenbezogeneDaten, …).<br />Define a business case <br />Optimize organization alignment (business and IT) to get benefit from proactive peak management.<br />

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