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By By Siva Velaga Siva Velaga Swapna Veldanda Swapna Veldanda Clouding Computing Adoption in SAP Technologies

Cloud computing adoption in sap technologies

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Cloud computing is emerging as an exciting trend in the ICT and with this presentation we tried to explore opportunities of adopting Cloud computing in SAP Technologies

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Page 1: Cloud computing adoption in sap technologies

ByBySiva VelagaSiva Velaga

Swapna VeldandaSwapna Veldanda

Clouding Computing Adoption in SAP Technologies

Page 2: Cloud computing adoption in sap technologies

AgendaAgenda

Trends in Storage MarketTrends in Storage Market

What is Cloud ComputingWhat is Cloud Computing

Cloud Computing CharacteristicsCloud Computing Characteristics

Layers of Cloud ComputingLayers of Cloud Computing

PredictionsPredictions

Case studiesCase studies

Relatedness to SAPRelatedness to SAP

Page 3: Cloud computing adoption in sap technologies

Trends in storage marketTrends in storage market There are a few prominent trends that are coming up today:There are a few prominent trends that are coming up today:

Virtualization: Virtualization: Both server and desktop virtualization are very hot today.Both server and desktop virtualization are very hot today.

Data center consolidation:Data center consolidation: It is very cheap for enterprises to build data It is very cheap for enterprises to build data

centers, especially small. However,  the cost for transport of data between centers, especially small. However,  the cost for transport of data between

data centers is very high. So companies are looking for data center data centers is very high. So companies are looking for data center

consolidation.consolidation.

Secure multi-tenancy in storage infrastructure: Secure multi-tenancy in storage infrastructure: This is going to be the This is going to be the

next big thing. Cloud provider will be able to put in 500 terabyte of storage next big thing. Cloud provider will be able to put in 500 terabyte of storage

and put many customers and those customers will be able to access only and put many customers and those customers will be able to access only

their floor with swipe cards.their floor with swipe cards.

Heterogeneous virtualization of storage:. Heterogeneous virtualization of storage:. That is already a huge hit That is already a huge hit

todaytoday

Going forward customers will demand the usage of a particular Going forward customers will demand the usage of a particular

infrastructure in data centers, unlike today.infrastructure in data centers, unlike today.

Page 4: Cloud computing adoption in sap technologies

What is Cloud ComputingWhat is Cloud Computing

““Cloud Computing," to put it simply, means "Internet Cloud Computing," to put it simply, means "Internet

Computing." The Internet is commonly visualized as Computing." The Internet is commonly visualized as

clouds; hence the term “cloud computing” for clouds; hence the term “cloud computing” for

computation done through the Internet. With Cloud computation done through the Internet. With Cloud

Computing users can access database resources via Computing users can access database resources via

the Internet from anywhere, for as long as they need, the Internet from anywhere, for as long as they need,

without worrying about any maintenance or without worrying about any maintenance or

management of actual resources. Besides, databases management of actual resources. Besides, databases

in cloud are very dynamic and scalablein cloud are very dynamic and scalable

Examples: Examples: Google Apps, Salesforce.com, AmazonGoogle Apps, Salesforce.com, Amazon

Page 5: Cloud computing adoption in sap technologies

Cloud Computing Definition from Cloud Computing Definition from Consumer perspectiveConsumer perspective

Trends

Cloud Computing allows On Demand Software Provisioning with Zero-Installation & Cloud Computing allows On Demand Software Provisioning with Zero-Installation & Automatic Configuration at low cost and immediate access in Scalable Data Centers.Automatic Configuration at low cost and immediate access in Scalable Data Centers.Cloud Computing allows On Demand Software Provisioning with Zero-Installation & Cloud Computing allows On Demand Software Provisioning with Zero-Installation & Automatic Configuration at low cost and immediate access in Scalable Data Centers.Automatic Configuration at low cost and immediate access in Scalable Data Centers.

Definition from Consumer PerspectiveDefinition from Consumer PerspectiveDefinition from Consumer PerspectiveDefinition from Consumer Perspective

Application Application ProvidersProviders

Application Application ProvidersProviders Platform ProvidersPlatform ProvidersPlatform ProvidersPlatform Providers Infrastructure ProvidersInfrastructure ProvidersInfrastructure ProvidersInfrastructure Providers Service ProvidersService ProvidersService ProvidersService Providers

400,000 Developers + ISVs

Selected Cloud Consumers & ISVsSelected Cloud Consumers & ISVsSelected Cloud Consumers & ISVsSelected Cloud Consumers & ISVs

Source: www.sap.com

Page 6: Cloud computing adoption in sap technologies

Cloud computing characteristics Cloud computing characteristics

Transparent scalabilityTransparent scalability

Usage-based billingUsage-based billing

Off-premises operationOff-premises operation

““Cloud computing can be thought of as the urge to stop Cloud computing can be thought of as the urge to stop

worrying about how the bits flow in an organization, in worrying about how the bits flow in an organization, in

order to focus on how the flow of bits can create order to focus on how the flow of bits can create

business value”business value”

Page 7: Cloud computing adoption in sap technologies

Layers of cloud computingLayers of cloud computing

The newest entrepreneurial excitement around the The newest entrepreneurial excitement around the

various layers of Cloud Computing. various layers of Cloud Computing.

They include:They include:

Infrastructure as a Service, Infrastructure as a Service, IaaSIaaS

Platform as a Service, Platform as a Service, PaaSPaaS

Software as a Service, Software as a Service, SaaSSaaS

Page 8: Cloud computing adoption in sap technologies

Contd…Contd…

IaaSIaaS is called Utility Computing because the providers is called Utility Computing because the providers

own and rent out billions of bytes of data storage over own and rent out billions of bytes of data storage over

the Internet for paying subscribers to use, or massive the Internet for paying subscribers to use, or massive

computing power for paying subscribers to exploit with computing power for paying subscribers to exploit with

their own software. The simplest form of Cloud their own software. The simplest form of Cloud

Computing, IaaS is computer hardware online. Renters Computing, IaaS is computer hardware online. Renters

of this service have to be very sophisticated.of this service have to be very sophisticated.

Page 9: Cloud computing adoption in sap technologies

Contd…Contd…

PaaSPaaS is where a business combines the compute is where a business combines the compute

power and data storage with software development power and data storage with software development

tools for programmers to use in building software as a tools for programmers to use in building software as a

service. The PaaS provider hosts this software shares service. The PaaS provider hosts this software shares

the subscription revenue. The software can be the subscription revenue. The software can be

anything – games, word processing and business tools anything – games, word processing and business tools

are examples. PaaS involves multiple parties for are examples. PaaS involves multiple parties for

deployment and use, and the required level of deployment and use, and the required level of

sophistication varies, as does the quality of the sophistication varies, as does the quality of the

software.software.

Page 10: Cloud computing adoption in sap technologies

Contd…Contd…

IaaSIaaS is called Utility Computing because the providers is called Utility Computing because the providers

own and rent out billions of bytes of data storage over own and rent out billions of bytes of data storage over

the Internet for paying subscribers to use, or massive the Internet for paying subscribers to use, or massive

computing power for paying subscribers to exploit with computing power for paying subscribers to exploit with

their own software. The simplest form of Cloud their own software. The simplest form of Cloud

Computing, IaaS is computer hardware online. Renters Computing, IaaS is computer hardware online. Renters

of this service have to be very sophisticated.of this service have to be very sophisticated.

Page 11: Cloud computing adoption in sap technologies

Why Cloud ComputingWhy Cloud Computing

Anytime Anywhere AccessAnytime Anywhere Access

Cut Down in CostsCut Down in Costs

Pay as you use Pay as you use

Saving on Physical SpaceSaving on Physical Space

Corporations might save money on IT support. Corporations might save money on IT support.

Streamlined hardware would, in theory, have fewer Streamlined hardware would, in theory, have fewer

problems than a network of heterogeneous machines problems than a network of heterogeneous machines

and operating systems.and operating systems.

Features like Features like grid computinggrid computing can be exploited can be exploited

Page 12: Cloud computing adoption in sap technologies

Predictions about Cloud computing Predictions about Cloud computing

75 percent of organizations in Asia Pacific will increase their 75 percent of organizations in Asia Pacific will increase their

software as a service (SaaS) investments by 2010software as a service (SaaS) investments by 2010

Cloud services will create over 300,000 jobs over the next 5 Cloud services will create over 300,000 jobs over the next 5

years in India, says Zinnov Researchyears in India, says Zinnov Research

The overall computing market will reach $ 70 billion by The overall computing market will reach $ 70 billion by

2015. India, with its powerful ecosystem of over 1300 2015. India, with its powerful ecosystem of over 1300

independent software vendors (ISVs), 1.4 million developers independent software vendors (ISVs), 1.4 million developers

and more than 11000 system integrators (SIs and Custom and more than 11000 system integrators (SIs and Custom

software development organizations), is ideally poised to software development organizations), is ideally poised to

address this growing opportunityaddress this growing opportunity

Source : Gartner Survey

Page 13: Cloud computing adoption in sap technologies

Strategies of IT companiesStrategies of IT companiesFujitsu is setting up public clouds in various geographies and offering Fujitsu is setting up public clouds in various geographies and offering

vertical-specific solutionsvertical-specific solutions

TCS, Infosys, Wipro Typically running SMB enterprise systems on cloudsTCS, Infosys, Wipro Typically running SMB enterprise systems on clouds

Wipro calls it 2-minute noodle approach and is targeting small firms in Wipro calls it 2-minute noodle approach and is targeting small firms in

different industries – textiles, gems & jewellery and healthcaredifferent industries – textiles, gems & jewellery and healthcare

Appirio, a much smaller firm, assures to save its customers a million Appirio, a much smaller firm, assures to save its customers a million

dollar if they migrate to clouddollar if they migrate to cloud

SAP has joined the Virtual Computing Environment (VCE) coalition SAP has joined the Virtual Computing Environment (VCE) coalition

floated by Cisco-EMC-VMwarefloated by Cisco-EMC-VMware

Capgemini is leveraging its relationship with SAP to create licensing Capgemini is leveraging its relationship with SAP to create licensing

optionsoptions

Source : Information Week

Page 14: Cloud computing adoption in sap technologies

SaaS Makes Enterprise Software Tools SaaS Makes Enterprise Software Tools Available to SMBsAvailable to SMBs

Why does on-demandWhy does on-demand make it easier for SMBs to acquire make it easier for SMBs to acquire

enterprise software?enterprise software?

– No need to buy or install expensive infrastructureNo need to buy or install expensive infrastructure

– No upfront investment No upfront investment

– Minimal burden on IT staff Minimal burden on IT staff

– Reduce technology riskReduce technology risk

– Eliminate the upgrade cycleEliminate the upgrade cycle

Page 15: Cloud computing adoption in sap technologies

Cloud Computing decision factors Cloud Computing decision factors

Uptime:Uptime:

Does this application require 100% uptime?Does this application require 100% uptime?

Integration:Integration:

How does it integrate with other existing applicationsHow does it integrate with other existing applications

Data security/confidentiality:Data security/confidentiality:

How critical is the data being trusted a third party with? How critical is the data being trusted a third party with?

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On Demand vs On Premises Deployment?On Demand vs On Premises Deployment?What is the best for me? What is the best for me?

Who will be the main users of this application? Who will be the main users of this application?

Will this Application handle sensitive, confidential or Will this Application handle sensitive, confidential or

regulatory data? regulatory data?

Are you looking to use this application in a standard or non-Are you looking to use this application in a standard or non-

standard way? standard way?

What kind of financial commitment are you looking to make What kind of financial commitment are you looking to make

with regard to this application?with regard to this application?

What is the size of your company? What is the size of your company?

What scale of deployment do you expect for this What scale of deployment do you expect for this

application? application?

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What technical SUPPORT resources are available ? What technical SUPPORT resources are available ?

What level of INTEGRATION do you think will be needed with What level of INTEGRATION do you think will be needed with

other IT systems currently used by your company? other IT systems currently used by your company?

What kind of SCALABILITY and elasticity needs will this What kind of SCALABILITY and elasticity needs will this

application have? application have?

Will this application need to handle heavy DATA TRANSFER?Will this application need to handle heavy DATA TRANSFER?

What is the current IT INFRASTRUCTURE status of your What is the current IT INFRASTRUCTURE status of your

company? company?

Contd…Contd…

Page 18: Cloud computing adoption in sap technologies

Key Drivers for On Demand or On Key Drivers for On Demand or On PremisesPremises

FunctionalityFunctionality

Sensitivity of informationSensitivity of information

Data LoadData Load

Implementation timingImplementation timing

Integration RequirementsIntegration Requirements

Deployment ScaleDeployment Scale

Page 19: Cloud computing adoption in sap technologies

Cloud Computing Evaluation checklistCloud Computing Evaluation checklistAvailability of ResourcesAvailability of Resources

Transparent communication in Business continuity Transparent communication in Business continuity

management and disaster recovery planmanagement and disaster recovery plan

Service Level AgreementService Level Agreement

Pricing model Pricing model

whether pricing is cased on per licensewhether pricing is cased on per license

Part capex model orPart capex model or

Part opex model Part opex model

Assurance on deliverablesAssurance on deliverables

Page 20: Cloud computing adoption in sap technologies

SAP Cloud Computing ArchitectureSAP Cloud Computing Architecture

Source: www.sapcloudcomputing.com

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Hardware Utilization with System Hardware Utilization with System Landscapes: Today’s SituationLandscapes: Today’s Situation

Source : Amazon AWS

Page 22: Cloud computing adoption in sap technologies

Traditional Hosting vs. Amazon CloudTraditional Hosting vs. Amazon CloudHosting Costs of ERP for DevelopmentHosting Costs of ERP for Development

in Term 500 € / hour month 0.30 € / hour in Term 500 € / hour month 0.30 € / hour Provisioning Time Min 1week 6 minProvisioning Time Min 1week 6 min

Source : www.sap.com

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Impact on SAP Business Solutions Impact on SAP Business Solutions and Technologyand Technology

Source : www.sap.com

Page 24: Cloud computing adoption in sap technologies

SAP Cloud Computing: SAP Cloud Computing: A case study from CrossgateA case study from Crossgate

Cross gate provides an EDI/B2B managed services hub in a Cross gate provides an EDI/B2B managed services hub in a

cloud computing environment that utilizes SAP technology cloud computing environment that utilizes SAP technology

including Net weaver PI.including Net weaver PI.

Crossgate configures an ERP profile (interface) which Crossgate configures an ERP profile (interface) which

integrates the SAP ERP (or other SAP applications) to integrates the SAP ERP (or other SAP applications) to

Crossgate's EDI/B2B exchange. Data can be moved in and Crossgate's EDI/B2B exchange. Data can be moved in and

out of the Crossgate exchange and translated into all the out of the Crossgate exchange and translated into all the

various EDI and B2B standards and custom B2B file formats various EDI and B2B standards and custom B2B file formats

required within your trading partner community. Crossgate required within your trading partner community. Crossgate

manages the deployment and trading partner manages the deployment and trading partner

implementations as part of their managed servicesimplementations as part of their managed services

Page 25: Cloud computing adoption in sap technologies

Cloud computing in SAPCloud computing in SAP

Cloud Infrastructures are a clear trend in IT, increasing the Cloud Infrastructures are a clear trend in IT, increasing the

business agility, decrease IT costs, and allow to consume business agility, decrease IT costs, and allow to consume

SAP solutions in new waysSAP solutions in new ways

Significant potential value in the domain of non-mission Significant potential value in the domain of non-mission

critical use cases exist todaycritical use cases exist today

SAP is exploring options to provide additional value in form SAP is exploring options to provide additional value in form

of product and/or service innovationof product and/or service innovation

Page 26: Cloud computing adoption in sap technologies

Trends and Value of Cloud ComputingTrends and Value of Cloud Computing

From Manufacturing to Automation and Standardizationof IT Business

Industrialization of ITIndustrialization of IT

From inflexible and long-term contracts to payment of metered usage

Utility ComputingUtility Computing

From long running customer projects to immediate fulfillment of customer needs

On Demand FulfillmentOn Demand Fulfillment

ValueValue

Increase Business Agility, Increase R&D Efficiency

Breakthrough Consumption Experience of SAP Solutions

Reduce IT Costs/CAPEX for SAP, Customers and Partners

Source : www.sap.com

Page 27: Cloud computing adoption in sap technologies

SAP’s cloud based project: 12sprintsSAP’s cloud based project: 12sprintsBeta version of 12sprints released by SAPBeta version of 12sprints released by SAP

12sprints is collaborative Decision making application that brings together 12sprints is collaborative Decision making application that brings together

people, information and methodspeople, information and methods

12sprints is the first and only 12sprints is the first and only SaaSSaaS of such application of such application

12sprints integrates components of the SAP®BusinessObjects™ Explorer 12sprints integrates components of the SAP®BusinessObjects™ Explorer

technology within 12sprints so users can analyze data and apply that analysis technology within 12sprints so users can analyze data and apply that analysis

to the decision-making framework of 12sprintsto the decision-making framework of 12sprints

A results-driven workspace designed to keep everyone on the same page, A results-driven workspace designed to keep everyone on the same page,

prompt action and help users achieve goals. prompt action and help users achieve goals.

““easy to try, buy and use” environment that is intuitive to business users. easy to try, buy and use” environment that is intuitive to business users.

Source : www.12sprints.com

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SAP Roadmap into Cloud ComputingSAP Roadmap into Cloud Computing

Focus on Pay-by-use software via self-service over the webFocus on Pay-by-use software via self-service over the web

Line of Business On-DemandLine of Business On-Demand

4 on-demand applications that are already available: CRM, E-Sourcing, BI and 4 on-demand applications that are already available: CRM, E-Sourcing, BI and

Carbon Footprint; Carbon Footprint;

2 on-demand applications in planning: SCM and Travel & Expense Management 2 on-demand applications in planning: SCM and Travel & Expense Management

1 on-demand application provided with a partner: HCM1 on-demand application provided with a partner: HCM

Business by DesignBusiness by Design

Business Objects On-DemandBusiness Objects On-Demand

Source : SAP Influencer Summit in Boston Dec 8/9

Forrester Blog

Page 29: Cloud computing adoption in sap technologies

Maintaining Security of SAP on CloudMaintaining Security of SAP on Cloud

Identity and Access ManagementIdentity and Access Management

BandwidthBandwidth

FirewallsFirewalls

AuditAudit

Page 30: Cloud computing adoption in sap technologies

Questions…Questions…