#UNIT 2017: Cloud Computing

Erik Lüngen
COO & Cloud Services Industry Cloud
CLOUD – your choice?
Patrick Gruhn
SVP
© 2017 SAP SE / replex - All rights reserved.

2
What is cloud? The analyst’s view
Cloud computing is a style of computing in
which scalable, IT-enabled capabilities are
delivered as a service to customers using
Internet technologies.
“
”

3
What is cloud? The consumers’ view
Doesn’t work? Stop
using and replace!
“
”There is no one else between you and your consumers
You have to be always on and always there (24*7)!© 2017 SAP SE / replex - All rights reserved.

4
What is cloud? – Characteristics and Qualities (1/2)
Cost efficient operation and hardware utilization  Low cost of service
All Scenarios are exclusively accessed via the
internet
Web access only
(No VPN)
All customers are on the same version of the
software
 One Code line
Trial-systems can be ordered and tested instantly  Out of the box
Customer decides, which features
to activate / to use
 Pay as you use
System behaves scalable  Elastic cloud

5
Customer grade User Experience (incl. social)  Easy to use
Simple and powerful adoption mechanisms by
key-user
Flexible, extensible,
configurable
Simplified, standardized, efficient customer
processes
Next level of
standardization
Openness for integration by customer  Easy to fit in
Easy consumption of innovation  Regular innovation
High service quality, Provider takes over
responsibility for running patching and monitoring
the system
Positive customer
business case
What is cloud? – Characteristics and Qualities (2/2)

6
What does this mean to me?
• Proof your Business Case
(Who will pay the bills and when?)
• Proof your cloud service with customers (POC)
• Speed is key
(growth, user adaption,…)
• Ensure efficient cloud / hardware utilization

7
What does this mean to me?
Install &
Configure
Replace
Run &
Use
Customer
Vendor
Yesterday
Deploy Terminate
Run
Customer
Vendor
Today
Configure &
Use

888
KPIs – what cannot be
measured, cannot be
fixed!
“
”

9
KPIs, KPIs, KPIs…
Deploy Terminate
Run
Customer
Vendor
Configure &
Use
Commitments on KPIs often
become part of contracts
KPIs are available for
customers in real time
During definition phase
specific KPIs for
performance, scalability,
etc. need to be defined
The specific KPIs need to be the leading
paradigms for software architecture.
KPI measurement needs to be an integral
part of the service.
Testing service needed to meet KPIs
before release of service to customer.
KPIs are monitored continuously.
Recommended actions (or better
automated steps) for threshold
passing are available.
Learnings will lead to new
requirements for development.

10
Again - What is cloud?
Be prepared for
surprises.
“
”So if you expect 10
plan for 0 and for 100
!© 2017 SAP SE / replex - All rights reserved.

111111
Automate – wherever
possible… Robots don’t
get bored.
“
”(…and don’t make human errors)

12
Low
Risk
Fast
ROI (return on investment)
Continous Delivery and its benefitsChange
Time
Change
Big changes, deployed rarely Small changes, deployed frequently
High
Risk
$ Lost
Output
… and better workload balancing, less stress
Output
Time

13
EFFICIENCY IS EVERYTHING

14
CloudPhysics Global State of the Data Center Report Q4 2016
$54.7B
FINANCIAL IMPACT OF WASTED
IT RESOURCES

15
CloudPhysics Global State of the Data Center Report Q4 2016
GDP of
114 Countries
FINANCIAL IMPACT OF WASTED
IT RESOURCES
$54.7B

16
Stranded capacity
things that are paid for, but not really used …
IT leaders should learn to focus not just on uptime and availability,
but also on capacity, utilization and density
Top 10 Technology Trends Impacting Infrastructure & Operations - Smarter With Gartner

17
CAPEX VS OPEX
PHYSICAL VS CLOUD© 2017 SAP SE / replex - All rights reserved.

18
18
IT STARTS WITH YOU
(COOL … BUT WHY?)

19
19
EFFICIENT CLOUD
=
LOWER COSTS
=
HIGHER PROFIT MARGINS
=
HIGHER EVALUATIONS

20
20
THE GROWTH TRAP
Funding
Customers
Growth
Costs „WHO CARES (just make it work)“

21
21
SOUNDS GOOD:
BUT WHAT CAN I DO ?

22
22
CAPACITY VS UTILISATION
MONITOR, MONITOR, MONITOR, MONITOR and oh did I mention MONITOR?

23
23
CLOUD INSTANCES
Do you really need this size instance?
Can you downsize
your instances?

26
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FINAL WORDS:
COMPLEXITY IS
INCREASING

Erik Lüngen
COO & Cloud Services Industry Cloud
Thank you!
Patrick Gruhn
VP Market Development

#UNIT 2017: Cloud Computing

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