Sap On Cloud

316 views
281 views

Published on

Leader in Cloud about the Cloud

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
316
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
17
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Sap On Cloud

  1. 1. 0 1 0 1 0 1 0 0 0 1 1 10 1 0 1 0 1 1 0 0 1 0 10 1 0 0 0 1 0 0 1 1 00 0 1 1 0 0 1 0 1 0 0 10 0 1 0 0 0 1 1 0 1 0 10 1 0 0 0 1 0 0 1 1 1 01 0 1 0 1 0 0 1 1 0 0 10 1 1 0 0 1 0 1 0 1 0 00 1 1 1 0 1 0 1 0 1 1 00 1 0 1 0 1 0 0 0 1 0 01 1 0 0 0 1 1 0 0 1 0 10 0 1 0 0 1 0 0 0 1 0 10 1 0 1 0 0 0 1 0 0 11 1 0 1 0 1 0 1 0 0 1 10 0 1 0 1 1 0 0 1 0 1 01 0 0 0 1 1 1 0 1 0 10 1 1 0 0 1 0 1 0 1 0 00 1 0 0 1 1 0 0 0 1 1 00 1 0 1 0 0 1 0 0 1 0 0 Roadmap to Cloud Success: How to Get There?0 1 1 0 1 0 1 0 1 0 0 01 0 0 1 1 1 0 1 0 1 0 10 0 1 1 0 0 1 0 1 1 0 01 0 1 0 1 0 0 0 1 1 1 01 0 1 0 1 1 0 0 1 0 1 0 “Mastering The Cloud in Eight1 0 0 0 1 0 0 1 1 0 0 0 Easy Steps: Top Strategies to1 1 0 0 1 0 1 0 0 1 0 Rocket Your Company’s Growth”0 1 0 0 0 1 1 0 1 0 1 01 0 0 0 1 0 0 1 1 1 0 10 1 0 1 0 0 1 1 0 0 1 01 1 0 0 1 0 1 0 1 0 0 01 1 1 0 1 0 1 0 1 1 0 01 0 1 0 1 0 0 0 1 0 0 11 0 0 0 1 1 0 0 0 1 0 01 0 0 1 0 0 0 1 1 0 1 01 0 1 0 0 0 1 0 0 1 1 10 1 0 1 0 1 0 0 1 1 0 01 0 1 1 0 0 1 0 1 0 1 00 0 1 1 1 0 1 0 1 0 1 10 0 1 0 1 0 1 0 0 0 1 00 1 1 0 0 0 1 1 0 0 10 1 0 0 1 0 0 1 0 0 0 11 0 1 0 1 0 1 0 0 0 1 00 1 1 1 0 1 0 1 0 1 0 01 1 0 0 1 0 1 1 0 0 1 01 0 1 0 0 0 1 1 1 0 1 01 0 1 1 0 0 1 0 1 0 1 00 0 1 0 0 1 1 0 0 0 1 10 0 1 0 1 0 0 1 0 0 1 00 0 1 1 0 1 0 1 0 1 0 00 1 0 0 1 1 1 0 1 0 1 0
  2. 2. 0 1 0 1 0 1 0 0 0 1 1 1 0 1 0 1 0 1 1 0 0 10 1 0 1 0 0 0 1 0 0 1 1 0 0 0 1 1 0 0 1 0 10 0 1 0 0 1 0 0 0 1 1 0 1 0 1 0 1 0 0 0 1 00 1 1 1 0 1 0 1 0 1 0 0 1 1 0 0 1 0 1 1 0 01 0 1 0 1 0 0 0 1 1 1 0 1 0 1 0 1 1 0 0 1 01 0 1 0 0 0 1 0 0 1 1 0 0 0 1 1 0 0 1 0 1 00 1 0 0 1 0 0 0 1 0 1 0 1 0 1 0 0 0 1 0 0 11 1 0 1 0 1 0 1 0 0 1 1 0 0 1 0 1 1 0 0 1 01 0 1 0 0 0 1 1 1 0 1 0 1 0 1 1 0 0 1 0 1 01 0 0 0 1 0 0 1 1 0 0 0 1 1 0 0 1 0 1 0 0 10 0 1 0 0 0 1 1 0 1 0 1 0 1 0 0 0 1 0 0 1 1 Roadmap to Cloud Success:1 0 1 0 1 0 1 0 0 1 1 0 0 1 0 1 1 0 0 1 0 1 How to Get There?0 1 0 0 0 1 1 1 0 1 0 1 0 1 1 0 0 1 0 1 0 10 0 0 1 0 0 1 1 0 0 0 1 1 0 0 1 0 1 0 0 1 0 This paper accompanies Part 5 of the eight-part SAP0 1 0 0 0 1 1 0 1 0 1 0 1 0 0 0 1 0 0 1 1 1 Webinar series: “Mastering The Cloud in 8 Easy0 1 0 1 0 1 0 0 1 1 0 0 1 0 1 1 0 0 1 0 1 0 Steps: Top Strategies to Rocket Your Company’s Growth.”1 0 0 0 1 1 1 0 1 0 1 0 1 1 0 0 1 0 1 0 1 00 0 1 0 0 1 1 0 0 0 1 1 0 0 0 1 0 0 1 0 0 1 You’ve heard about the cloud, but you’re wondering what it means to you and your business. Attend this0 0 0 1 1 0 1 0 1 0 1 0 0 0 1 0 0 1 1 1 0 1 FREE Webinar series to learn everything you need0 1 0 1 0 0 1 1 0 0 1 0 1 1 0 0 1 0 1 0 1 0 to know to master the cloud and grow your company0 0 1 1 1 0 1 0 1 0 1 1 0 0 1 0 1 0 1 0 0 0 including:1 0 0 1 1 0 0 0 1 1 0 0 1 0 1 0 0 1 0 0 1 00 0 1 1 0 1 0 1 0 1 0 0 0 1 0 0 1 1 1 0 1 0 What’s Really in the Cloud?1 0 1 0 0 1 1 0 0 1 0 1 1 0 0 1 0 1 0 1 0 00 1 1 1 0 1 0 1 0 1 1 0 0 1 0 1 0 1 0 0 0 1 What’s In It for You?0 0 1 1 0 0 0 1 1 0 0 1 0 1 0 0 1 0 0 1 0 00 1 1 0 1 0 1 0 1 0 0 0 1 0 0 1 1 1 0 1 0 1 How to Get There?0 1 0 0 1 1 0 0 1 0 1 1 0 0 1 0 1 0 1 0 0 01 1 1 0 1 0 1 0 1 1 0 0 1 0 1 0 1 0 0 0 1 0 Is the Sky the Limit?0 1 1 0 0 0 1 1 0 0 1 0 1 0 0 1 0 0 1 0 0 01 1 0 1 0 1 0 1 0 0 0 1 0 0 1 1 1 0 1 0 1 01 0 0 1 1 0 0 1 0 1 1 0 0 1 0 1 0 1 0 0 0 1 Click here to register for the Webinars.1 1 0 1 0 1 0 1 1 0 0 1 0 1 0 1 0 0 0 1 0 01 1 0 0 0 1 1 0 0 1 0 1 0 0 1 0 0 1 0 0 0 11 0 1 0 1 0 1 0 0 0 1 0 0 1 1 1 0 1 0 1 0 10 0 1 1 0 0 1 0 1 1 0 0 1 0 1 0 1 0 0 0 1 11 0 1 0 1 0 1 1 0 0 1 0 1 0 1 0 0 0 1 0 0 1 This white paper was made possible by SAP,1 0 0 0 1 1 0 0 1 0 1 0 0 1 0 0 1 0 0 0 1 1 a leader in the cloud.0 1 0 1 0 1 0 0 0 1 0 0 1 1 1 0 1 0 1 0 1 00 1 1 0 0 1 0 1 1 0 0 1 0 1 0 1 0 0 0 1 1 10 1 0 1 0 1 1 0 0 1 0 1 0 1 0 0 0 1 0 0 1 10 0 0 1 1 0 0 1 0 1 0 0 1 0 0 1 0 0 0 1 1 01 0 1 0 1 0 0 0 1 0 0 1 1 1 0 1 0 1 0 1 0 01 1 0 0 1 0 1 1 0 0 1 0 1 0 1 0 0 0 1 1 1 01 0 1 0 1 1 0 0 1 0 1 0 1 0 0 0 1 0 0 1 1 00 0 1 1 0 0 1 0 1 0 0 1 0 0 1 0 0 0 1 0 1 01 0 1 0 0 0 1 0 0 1 1 1 0 1 0 1 0 1 0 0 1 10 0 1 0 1 1 0 0 1 0 1 0 1 0 0 0 1 1 1 0 1 01 0 1 1 0 0 1 0 1 0 1 0 0 0 1 0 0 1 1 0 0 01 1 0 0 1 0 1 0 0 1 0 0 1 0 0 0 1 1 0 1 0 1
  3. 3. Cloud Strategy and Roadmap:The case for cloud computing adoption sounds compelling. But how shouldcompanies make the move? What are the most important steps to get there?What should their cloud strategy and cloud roadmap look like?This white paper explains eight steps involved in successfully transitioningto the cloud, as follows: 1. Adopt a progressive mindset 2. Watch, learn, and experiment 3. Demonstrate quick wins 4. Develop a business case 5. Understand the risks 6. Analyze the current IT portfolio 7. Create a vision of the end-state 8. Develop and execute the roadmapStep 1:The first step in a cloud computing strategy and roadmap is for your com-pany—both management and employees—to adopt an open progressivemindset regarding application of new technologies to gain business benefits.The move to cloud computing also involves changing mindsets, cultural pat-terns, process patterns, and colleagues’ hearts so that they willingly adapt tonew approaches and technologies.Spearheading disruptive change in the organization will be the most dif-ficult part of the journey.“Use of the cloud in our industry is an exception rather than the norm. I think a lot of companies in more traditional, mature industries like ours are has to offer. I would encourage these companies to be open-minded and systems.” – CEO, manufacturing company Roadmap to Cloud Success: How to Get There? 1
  4. 4. Understanding the cloud’s power and potential is certainly important; butgetting mentally ready to take the plunge can be a stumbling block. Theunderlying reasons—perceived or real—are many:Machiavelli said this about change more than 500 years ago: or more uncertain in its success, than to take the lead in the introduction of a new order of things.”A company’s top management should drive change in order to ultimatelygenerate value for customers and shareholders. Transforming a company’sbusiness using cloud solutions is not just about technology adoption andimplementation. It also involves broader business and operational changesin several areas including governance, budgeting, contracting, regulatorycompliance, polices, people, and processes. Therefore, management needsto educate and convincingly explain to everyone in the company who willbe impacted by the change what the company is doing and why the newapproaches bring value to the company. Success in getting to the clouddepends on adapting to change.Step 2: Watch, Learn, and ExperimentEmbracing any new technology involves learning. Sand Hill’s 2010 “Leadersin the Cloud” research study (see Appendix A) found that companies typi-cally conduct experiments to see how the cloud really works and how it fitsor doesn’t fit into the requirements of the business. Through this process,companies became familiar with constraints, issues, and benefits of thetechnology.Many surveyed executives described this testing phase as similar to thatof adopting outsourcing services: experiment with nonstrategic projects toacclimate the company to a new way of doing business, evaluate selectedvendors, and assess business benefits. As their companies experiencedthe benefits and understood the technology, their outsourcing initiativesmatured successfully and gained a significant share of projects. Roadmap to Cloud Success: How to Get There? 2
  5. 5. Step 3: Demonstrate Quick WinsMany of the companies participating in the Sand Hill survey set up innova-tion sandboxes (a.k.a. Skunk Works projects) where their project teams wereallowed to work with the new technology within the context of a specificbusiness initiative.Here are some examples of such small, experimental projects that the com-panies in our study are executing in the cloud: business-driven projects on a public Infrastructure-as-a-Service (IaaS) cloud such as Amazon. Examples of these projects include a short- term marketing campaign, IT resources for offshore developers, and a new website for photo sharing. cloud such as Force.com or Windows Azure. Because the platform was so easy to use and did not require any programming knowledge, one CIO of a manufacturing company developed a simple HR application in less than a week. He said this would have taken several months for a professional technical developer using traditional platforms. critical business process. An executive in a media company rolled out a cloud-based e-mail system to hundreds of users in less than a month. Based on high user satisfaction with this new e-mail system, the com- pany decided to roll out the e-mail system to all of its users.When the companies successfully completed these projects in much shortertime and with less effort than it would have normally taken, they thenpushed the results up the value chain and funded new pilot projects. TheSand Hill study found that many companies used the cloud to solve specificand tactical problems and, for the most part, achieved successful results.At the next stage of getting to the cloud, however, companies need todevelop a business-case-driven cloud strategy that is fine-tuned by findingsand value gained from the tactical projects. The emphasis needs to shift atthis stage from too much “how” to more of “what” and “why.” Otherwise,short-term, tactical projects will dominate the transition to a cloud-based ITreality, which won’t necessarily generate global business value or, evenworse, will end up with vendors driving the company’s agenda.Step 4:Companies should consider the following fundamental business driverswhen building a case for cloud computing: Identify how to apply cloud applications and plat- forms to the business, enabling better and faster competitiveness. Roadmap to Cloud Success: How to Get There? 3
  6. 6. Investigate how cloud solutions can lead to improved availability, reliability, and lower total cost of ownership (TCO), facilitating investing the savings back into the business. executed by line-of-business stakeholders. – CIO, healthcare companyLike any other emerging technology, the fundamental decision to embracecloud computing comes down to figuring out how the investment in thecloud will yield positive returns to the business at an acceptable risk level.If the company uses a public cloud for solving specific business problems, italso becomes an outsourcing decision—one where the company also looksfor value in solutions that are less expensive, safer, and better than what itcan create by itself.In the past few years, public cloud solutions have improved, becoming morerobust and also more compelling in quality, stability, and overall cost-to-benefit ratio.Many commodity services (e-mail, backup, archival, collaboration, etc.) arenow available as public cloud services. Commodity services now availablein the cloud also include the following standard business processes:For each business problem a company seeks to solve, it needs to look at acloud solution and compare it with alternative solutions from both return oninvestment (ROI) and TCO perspectives.Step 5: Understand the RisksLike any new technology that offers credible business value, there are alsorisk factors to consider. Risks around security, privacy, and governanceare major concerns for nearly every company. Sand Hill’s “Leaders in theCloud” 2010 research study found a broad range of attitudes about security,privacy, and governance.Security concerns vary greatly by company—depending on the followingfactors: Roadmap to Cloud Success: How to Get There? 4
  7. 7. Sand Hill’s survey of IT executives found large enterprises were moreconcerned about data privacy, security, and governance issues than smallercompanies (see Exhibit 1). Most of the small and midsize SME IT leaderswere emphatic that a cloud vendor’s security processes must be superior toany that their own company could provide. The reason: small companies’cost structures are such that they cannot afford to build secure infrastruc-tures that match those of large enterprises or the leading cloud vendors.Exhibit1: Comparison of large and small companies’ concerns about cloud computing Small and Large Midsize Enterprises EnterprisesData privacy 63% 46%Governance (e.g., policies for control, security, 53% 36%monitoring and services)Developers/corporate culture 38% 28%Lack of practical experience with cloud computing 33% 47%Migration/interoperability 25% 25%Lack of standards 23% 19%Regulation 15% 7%Lack of development and monitoring of service-level 5% 18%agreements (SLAs)No barriers 0% 11%Don’t know 3% 2%“Large enterprises” refer to companies with $20 billion or more in revenue. “Small and midsize Enterprises” includes companies with less than $500 million in revenue.Source: Sand Hill Group Cloud Computing Survey 2010Among many examples of surveyed business executives from SME compa-nies who were pleased with the security of their cloud vendors is the follow-ing statement from a SME manufacturing company executive: password updates; and we audit usage patterns of our users to monitor – CEO, manufacturing company Roadmap to Cloud Success: How to Get There? 5
  8. 8. However, vendors could fail, as was the case with Amazon’s high-profilefailure in April 2011, which resulted from a configuration error. Whatwould happen to a customer’s data in that case? Would the provider returnthe data, or would it be lost forever? The good news is that companies thatproperly understood their cloud vendor’s offering made sure they includeddata backups and redundancies in their applications. They also conducteddue diligence to ensure they properly understood the vendor’s offer-ings, service level agreements (SLAs), and architecture. Such companiesremained unscathed and ran their operations without any interruptionduring the Amazon outage.Many vendors are getting certified to security standards such as SAS 70.Even if a vendor is certified, the most important question to ask is: does thecertification meet your specific security requirements? As one surveyedexecutive stated: company dealing with a smaller company and the risk to you is greater if you are a small or medium-sized business, your risk is much lower if – Principal consultant, leading security firmStep 6:Another important step in the roadmap of getting to the cloud is perform-ing an inventory of the company’s current IT systems and developing alogical model of the existing architecture including all relevant systems,data, applications, processes, functional components, and services. As partof this exercise, companies should ask the following questions and analyzethe systems from the following perspectives: Roadmap to Cloud Success: How to Get There? 6
  9. 9. This analysis not only provides a snapshot of the company’s current state ofIT but also delivers crucial information to help fine-tune its business casebased on the new architecture.Without doubt, the cloud deployment options in the architecture will drivedown cost inefficiencies and improve agility and scalability, among otherbenefits. Analyzing an existing IT portfolio in this manner typically takes nolonger than four to six weeks in a midsized company.Step 7: Create a Vision of the End-StateOnce the company has a clear understanding of the current state of its ITportfolio, the pain points, and the cost inefficiencies, it can then begin tomap out the vision of moving purposely to the end-state. That end-state willinclude a description of which architectural components, data, applications,systems, services, and processes will move to the cloud in what order, andhow much decoupling will be required to isolate the components. In design-ing the end-state vision, the company needs to design a reference platformthat leverages cloud technologies for highly scalable automation, low-costhardware, middleware, and application servers to connect new and existingapplications.Such an analysis will consider not just the technology piece but also thepeople, process, and the cost aspects including the most important areassuch as budgeting, TCO, service level agreements, governance, and compli-ance.The Sand Hill study found that, even if the cost of moving to the end-statefrom the current state is $5 million (for example), most small to midsize com-panies will move ahead with the initiative if the end-state generates costsavings of more than, say, $10 million per year.Step 8:After creating a vision of the end-state, companies then need to determinewhich applications and data to move when, and where, before detailing thespecifics around how to move them. It is not necessary or practical to moveeverything all at once. Create a roadmap for a long-term perspective (say,three years) and map out how the architectural components will move overin a staged manner to a much more effective, efficient architecture. Thisroadmap exercise should not take more than a month to map out in a smallor midsized company; this includes a cost and benefit analysis for each stageof the roadmap.Typically, companies focus on the low-hanging fruit with the most busi-ness value and place them on the roadmap first. For example, companiesinitially select a relatively less-critical application that is currently notrunning cost-efficiently in house. Moving it to an external cloud quickly will Roadmap to Cloud Success: How to Get There? 7
  10. 10. create significant business value. As a next step, they then select the less-valuable and more risky systems that are still worth moving, and place themat the back end of the roadmap.Another consideration is to review the project portfolio and identify newand innovative revenue-generating projects that will benefit from a fastertime-to-market advantage using cloud technologies.For each of the identified applications, companies need to evaluate the ven-dor capabilities and the risks associated with the security, data privacy, andgovernance with each vendor. Compare different cloud provider offerings.They also need to evaluate the offering of cloud vendors to ensure that itmeets the security, scalability, reliability, and privacy needs of the enter-prise and meets established security and compliance (SAS 70, FISMA, ISO/IEC 27001, PCI, and HIPAA) standards. This evaluation includes: business risks, risks that typically may not be covered in standard SLAs. security procedures (if any) to adapt to the company’s risk, compliance, and business metrics. - mine workarounds as applicable. - tion against the above criteria.ConclusionTransitioning to the cloud is similar to a major change initiative and needstop management support, clear vision, and careful planning. The eight stepspresented here are sequenced in a logical order designed to yield maximumvalue. Typically, the more detailed activities of later steps provide addi-tional information that helps companies fine-tune and refine the results ofprevious steps. In this sense, this is an iterative and cyclical process thatcompanies can apply throughout the IT life cycle. Roadmap to Cloud Success: How to Get There? 8
  11. 11. APPENDIX ADuring January-February 2011, Sand Hill Group conducted a research studyto gauge software vendors’ cloud outlook for the coming year and beyond.The study utilized an online survey to gather executives’ impressions on thedirection of the cloud market, their cloud strategies, and customer readi-ness for adoption.A total of 100 software CEOs and senior executives responded to the24-question survey and provided insight about their cloud revenues todayand next year, customer attitudes and readiness, and which products andservices are gaining traction. Thirty-two percent of the respondents identi-fied themselves with titles of CEO/Presidents, and another 32 percent identi-The study also identified the long-term trends including which layers ofthe cloud stack will take hold in the next three to five years. In addition,researchers conducted in-depth telephone interviews with some executivesto gain more insight. Participants in the initial survey as well as the follow-up interviews were guaranteed that their identities would remain confiden-tial in order to protect the strategic nature of the corporate informationprovided.A broad cross-section of software companies participated in the survey.Nearly three-quarters of the respondents were from product companies.The executives represented primarily midsize and small companies. Thirty-seven percent were from companies with less than $10 million in revenues,and 28 percent have revenue of at least $10 million but less than $250 mil-lion. About 18 percent of the respondents were companies with greater than$1 billion in revenues.The findings of this study are intended to give software companies direc-tional insight as they make business decisions. Although efforts were takento survey a wide variety of software companies, the study is not necessarilya representative sample of U.S. software companies. Roadmap to Cloud Success: How to Get There? 9
  12. 12. APPENDIX BOverview of Sand Hill 2010 Cloud Research StudyIn 2010, Sand Hill Group released a landmark research study identifying thebusiness value realized by companies deploying cloud-computing initia-tives today. A two-phase interview study design uncovered both the in-depthinsight of specific customers and vendor experiences, and a quantitativemarket survey provided a snapshot of cloud initiatives and priorities at avariety of companies. The interviews and survey questioned respondentsabout their current cloud initiatives, current and planned use of specificcloud models, business benefits, organizational and technical challenges,and details of specific use cases.In order to gain an understanding of the cloud experience at a variety oftypes of companies, Sand Hill conducted a total of 40 one-hour, in-depth -tects, and technology directors at small, midsize, and large companies. Thisgroup of executives represented a variety of industries, including insuranceand finance, energy, telecom, manufacturing, healthcare, media, and tech-nology.To gain insight from leading software vendors, Sand Hill conducted eightinterviews with executive-level individuals who were responsible for cloudstrategy and products within their organizations. Again, a mixture of repre-sentatives from large and small software companies was included.As part of the study, Sand Hill Group conducted two Web-based quantitativesurveys in collaboration with McKinsey & Co. and Tech-Web. These surveysreceived a total of 511 qualified responses. Most respondents were CEOs,CIOs, or other senior IT executives at their companies, which ranged in sizefrom small businesses to global corporations.The combination of qualitative interviews and quantitative surveys presentfirst-hand accounts on the current state of cloud computing initiatives froman impressive cross-section of enterprises. However, the results may not bereliably projectable across the universe of American businesses. Therefore,the findings and implications in this report are intended to provide direc-tional guidance during product development. Roadmap to Cloud Success: How to Get There? 10
  13. 13. Sand Hill Group (http://www.sandhill.com) provides strategic management,investment and marketing services to emerging market leaders. Sand HillGroup is best known for its work in the $600-billion software and servicesmarket. As founder of the “Enterprise” and “Software” conference series,Sand Hill Group has been credited with uniting the software business eco-system of executives, entrepreneurs, investors and professionals. The firmis also the publisher of SandHill.com, the premier online destination forstrategic information on the software business. The site and its newslettersare read by thousands of top software industry executives every week. SandHill Group also funds primary research into key technology and businessmodel trends that impact the software business.The information contained herein has been obtained from sources believed to bereliable. Sand Hill Group disclaims all warranties as to the accuracy, completeness oradequacy of such information. The Sand Hill Group shall have no liability for errors,omissions or inadequacies in the information contained herein or for interpretationsthereof. The reader assumes sole responsibility for the selection of these materialsto achieve its intended results. The opinions expressed herein are subject to changewithout notice. Reproduction of this report in print or electronic form is strictly pro-hibited without written permission from Sand Hill Group. Roadmap to Cloud Success: How to Get There? 11

×