Three Pillars of a Working Cloud Model


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presented at SAP Virtualization and Cloud Week, April 2012 by Maik Schmalstich, Global Head Virtualization & Cloud Management Services

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  • Add future outlook slide at the end. Current hybrid, future is 100% cloud
  • Cloud Maturity
  • Airport analogy/ story tellingAirport ticket desks/ departures monitors- on-premise systemsAirliner pilot dashboard- cloud systemsAir traffic control- governance/ enablement
  • Monitoring and managementHandling multiple systemsFailover proceduresBusiness continuityStandardizationHarmonization is the key for efficiency and speedPerformance and availabilitySize of the landscape implicationsBigger landscape correlates with increased risk/cost for virtualizingImplement the pool and share concept The first step in virtualization seems simple. You’re going to break up the one-to-one relationship between the software and the hardware. Basically, you trick the software into thinking it’s running on a specific piece of hardware by substituting virtual hardware for real hardware. You create virtual CPUs, virtual disk drives, and virtual networks. There are a number of flavors. Sharing resources so that multiple virtual servers can be run on the same hardware.Aggregating resources so that applications can be scaled up without worrying about installing them on new servers.Using shared or aggregated resources to emulate servers so that applications can be isolated from each other in virtual environments.
  • What we see now with virtualization is that you are able to bring the responsibility, the control of how the resources are being used, to the application owner. You can, for instance, implement a “pool and share” concept. You can provide a resource pool of say 50,000 staff to your SAP Basis team, and they can manage that on their own, to provide the services they want.
  • In the traditional approach scenario, each application is tied to a piece of hardware, so over time every hardware / software combination tends to become different. Very difficult to standardize maintenance, support, provisioning, etc. Very difficult to automate.Virtualization separates software from hardware and levels the playing field, much easier to standardize everything. You can standardize hardware even if you need multiple operating systems, versions and environments.You can standardize and streamline the basic elements of infrastructure operations, like server builds and system copies. And once you standardize, you can industrialize, you can automate, you can make plug-and-play components, you can optimize. A fundamental and often underestimated shift in how we think of IT.
  • Insert photograph of tv watching or similarConsider integration, security, criticality of processAnalogy- selecting a telecom provider. Easy to change provider but still depends on criticality of having those servicesOne has more availability, geographic availability etc
  • Left side- biz processesRight hand product typePillar two- use on demand slideUse pic of LOB point solutionsEasy to consumeBiz processes are focusedEasy adoption
  • Change to Cloud Enablement4 topics- accelerationGovernance complianceSourcingscalability
  • You’ve got this new virtual environment. It’s only incidentally for operations; really what you’ve built is a big, safe, scalable development laboratory, an infinite expandable series of sandboxes for trying out new applications, new IT-based services and business models …Remember what you traditionally had to do if you wanted to set up a test system… purchase hardware, set it up on a network, integrate it into the data center, copy and configure applications, maybe negotiate a license, etc. Days, weeks, or months, just to try one application out.With the help of virtualization, you can do this in minutes or hours; you’re just roping off a new sandbox in a virtual environment. You’re got capabilities that come from virtualization, like loading and snapshotting, to provide additional development systems, test systems in a much shorter period of time. The applications themselves can be treated as experimental resources without a big upfront investment. Whether you’re talking about a Software As Service product, like SAP’s Business by Design, or more traditional enterprise applications, like an ERP or Supply Chain Management solution, running in the cloud, if you can purchase it on demand from the cloud then you’ve lowered the barrier to experimentation and prototyping.
  • In our work with a wide variety of companies over the last few years, what we most often see is that provision of services has been in a push direction. Because the underlying infrastructure is fixed, it sets the definitions for what and how services can be provided. If you’ve installed an SAP solution on one physical server, you’re not very able to react to changes in terms of providing more resources, serving more users. It’s very static.
  • Cloud is more than a technology play- it is a service modelKeep black phrases in the early slide, use slide again at the end as a solution and include white phrasesWhy is cloud relevant for our customers?What do customers expect? Today!Cloud solves some of the critical business challenges customers had and still have when running their business with our softwareCustomers have been challenged with the operations of our softwarethis is not their core expertise – they want to focus on their business!Cloud helps to focus them on their business – and not the operations of SAP software!
  • Cloud orchestrations become a big opportunity for cloud service providers.C2C integrationData and process consistencyBackup and recoverySecurity and complianceLicensing and billingAvailability and performanceUsers need a single access point.Subscribe/unsubscribe via corporate app stores.Multicloud single sign-on (on-premises/in the cloud)The new CIO task: dynamic sourcingSourcing decision are getting much more dynamic.The rise of the cloud broker (from the CIO to new business models)Sources: Artsology (; Business, Money, and Trading Blog (; Econ Info ( bullets to notes
  • Need to create graphic- staircase? For cloud maturity model staircase
  • Three Pillars of a Working Cloud Model

    1. Three Pillars of a Working Cloud ModelMaik Schmalstich, Global Head Virtualization & Cloud Management Services
    2. Shift in Perceived Benefits of Cloud Computing Silo’d Cloud Hybrid 100% Applications Environment Cloud Cost Speed Innovation and and and scalability agility collaboration 2007 2010 2013 Source: Upcoming ―The Collaborative Cloud — Cloud Computing Shifts From Resource Sharing To Business Innovation‖ Forrester report© 2011 SAP AG. All rights reserved. 2
    3. Agenda• The past, present, and future of Cloud• A Working Cloud Model for IT Innovation• Multi-Cloud Environments• Cloud Maturity Model
    4. The Working Cloud Model On-Premise Governance and Cloud Systems Compliance Applications IT INNOVATION© 2011 SAP AG. All rights reserved. 4
    5. Synchronizing with systems in the Cloud
    6. Pillars of a Working Cloud Model On-Premise Governance and Cloud Systems Compliance Applications 1. Flexible Deployment Solutions 2. Pool and Share 3. Standardization 4. Virtualization© 2011 SAP AG. All rights reserved. 6
    7. Considerations• Standardization• Harmonization is the key for efficiency and speed• Performance and availability• Size of the landscape implications • Evaluate TCO implications • Implement the pool and share concept
    8. Flexible Deployment OptionsDevelop your strategy based on your landscape andbusiness objectives. public cloudphysical servers virtual servers private cloud
    9. Pool and Share Access Application CPU Storage Network© 2011 SAP AG. All rights reserved. 9
    10. Standardization is the key Access Application OS CPU Storage Network© 2011 SAP AG. All rights reserved. 10
    11. Pillars of a Working Cloud Model On-Premise Governance and Cloud Systems Compliance Applications 1. Considerations 2. Complement to Existing Assets 3. Cloud Applications (Software as a Service)© 2011 SAP AG. All rights reserved. 11
    12. Considerations• Integration• Security• Criticality of process
    13. Complement Existing Assets with Innovation Insights and New collaborative decision support processes Real-time New customer processes engagement Sourcing Production Logistic Sales Service Social Increase user Reach new media flexibility Seasonal users scalability Virtual reality Mobile Compliance devices© 2011 SAP AG. All rights reserved. 13
    14. Cloud Applications (Software as a Service) ERP Line-of-Business Collaboration© 2011 SAP AG. All rights reserved. 14
    15. Pillars of a Working Cloud Model On-Premise Cloud Cloud Systems Enablement Applications 1. Acceleration 2. Governance and compliance 3. Sourcing 4. Scalability© 2011 SAP AG. All rights reserved. 15
    16. Accelerate Prototypes and pilots Try out applications on demand Loading and snapshotting Set up a test system in an hour© 2011 SAP AG. All rights reserved. 16
    17. Governance & Compliance Organizational Operational constraints: Technical constraints: constraints:  Monitoring  Virtualizing  Responsibilities  Diagnostics  Security  Team setup  Business instead of  Performance  Competencies technical continuity  Support  Economics© 2011 SAP AG. All rights reserved. 17
    18. The ―Right-sourced‖ Cloud Traditional Private Managed Outsourced Public IT Environment Cloud Private Private Cloud Cloud Cloud Sourcing Optionsowner-operated operated by external(on premise) (in cloud) But what it the best approach for me?  Decide on:  Do not decide on:  Business criticality  Technical platform  Integration needs  Database size  Data flow  Number of servers
    19. Static to Dynamic Access Application CPU Storage Network© 2011 SAP AG. All rights reserved. 19
    20. Cloud : A ―More than Technology‖ Play Holistic cloud model: ■ Cloud readiness Self service: Pull instead ■ Organizational Maturity Usage based push reporting ■ Business case Capacity ■ Usage scenarios Role based as needed access ■ Cloud adoption Virtualization ■ Sourcing strategies Copy, Instant clone, ■ Roadmap provisioning snapshot Pay on usage
    21. No. 1: Multicloud becomes the normFuture: Multi-Cloud Environment What it means: Cloud customers will use many different solutions from different vendors. Source: Forrester 2012© 2011 SAP AG. All rights reserved. 21
    22. Implications of Multi-Cloud Environments Orchestration End users require a CIO’s are tasked becomes an single access point with dynamic opportunity for cloud sourcing providers© 2011 SAP AG. All rights reserved. 22
    23. A Cloud Maturity Model –Step with individual pace A well governed, well manageable, interconnected cloud model Focus on speed and efficiency Focus on quick functional adoption using through Virtualization & Cloud On-Demand offerings Management© 2011 SAP AG. All rights reserved. 23
    24. Thank You!Maik SchmalstichGlobal Head Virtualization & Cloud ManagementDatabase and Technology Services | SAP ConsultingSAP Deutschland AG & Co. KG | Rosenthaler Str. 30 | 10178 Berlin | GermanyT +49 30 41092 730 | F +49 6227 78-42798 | E maik.schmalstich@sap.comVirtualization Services Inbox: