Private And Managed: How Firms Move Past Cloud Uncertainty

Andy Greig

Part 3 of the “Cloud-Driven Competitive Advantage” series.

Fear, uncertainty, and doubt are characteristics of our human nature that keep us from making serious mistakes. We feel in our gut that we shouldn’t leap off a cliff without any preparation. We hear that little voice that tells us we don’t have the time and money to make an investment. And we freeze at the top of a pool slide, not knowing all the twists and turns on the way down.

We are all uncertain about something – and for small and midsize businesses, that “something” is most likely the cloud. What if jumping to the cloud could be the start of a transformational step towards future success? And what if the twists and turns are worth the final destination?

In the IDC InfoBrief “Using Cloud Capabilities for Competitive Advantage: How Small and Midsize Companies Worldwide Are Adopting Cloud Technology to Meet Key Business Goals,” sponsored by SAP, over three-quarters of surveyed executives from small and midsize companies worldwide are experimenting with  the cloud. However, concerns over cost, control, and security still linger – potentially stunting widespread cloud adoption and maturity.

Is fear of the cloud working against your firm’s best interests?

Whenever I first talk to business leaders from small and midsize companies, I hear pretty consistent thoughts about the pros and cons of cloud adoption. For the most part, firms recognize that the cloud delivers significant advantages by giving affordable access to technology once reserved for large companies with deeper pockets.  But on the other hand, they may not be sure whether the cloud is really right for their firm. Meanwhile, IT leaders are exercising caution due to perceived loss of control over architecture performance and reliability.

Maybe they’re right, and maybe they’re wrong. But often, I find that these observations depend on how businesses approach the cloud. For example, for most firms that have adopted a private managed cloud, the migration can be the start of greater effectiveness, higher savings in time and cost, more informed decision making, and immediate action. 

8 ways a private managed cloud help firms overcome cloud doubt

The beauty of a private managed cloud is the combination of the agility, scalability, and efficiency of a public cloud and the control and security of a single-tenant, dedicated environment. More important, experiencing this platform can empower businesses to dispel critical concerns.

  • Data security: By augmenting internal IT capabilities with experts from a cloud service provider, businesses can protect themselves with the latest best practices and technologies. Capabilities include threat and vulnerability management, 24×7 security monitoring, biometric access control, and data center fire detection and extinguishment.
  • Recurring cost of ownership: A range of options for subscription-based pricing moves IT costs from a large-sum, one-time capital expenditure to a predefined, incremental operational expenditure. For small and midsize businesses, this is an opportunity to access the innovations they need to grow and expand while staying within budget and managing cash flow with ease.
  • Service reliability: Reliance on dedicated technical support specialists that understand the help that business and IT need improve how infrastructure and operating systems are monitored and managed. Firms benefit from a level of expertise that ensures all backups, upgrades, and restorations are done properly – maintaining application integration and nondisruptive access.
  • Control over applications: By establishing a service-level agreement that covers an entire solution stack (infrastructure, operating system, in-memory computing database, and application layers), some managed cloud service providers can ensure 99.95% availability, 24×7 global support, and activity reports.
  • Access to more than one service provider: Subscription pricing gives small and midsize companies the flexibility to decide whether to stay with their current provider or enlist the services of another. Firms can also choose to purchase services from more than one provider or even a hybrid strategy of public and private clouds.
  • Compliance obligations: Governing bodies worldwide have certified many cloud providers as compliant with a variety of global, local, and industry regulations. Compliance requirements include International Standards Organization/British Standard (ISO/BS), system and organization control (SOC) reports, Payment Card Industry (PCI) data security standard, FISMA, Information Security Registered Assessors Program (IRAP), and Cloud Security Alliance Security, Trust, and Assurance Registry (CSA STAR) certification.
  • Software ownership: When it comes to owning software, it can be difficult to stay up to date. Technology changes so quickly that a software package can be outdated in months – and later become a lost investment. Private managed cloud helps firms keep their technology continuously current while maintaining integrations and smooth-running operations.
  • Flexibility and customization: A private managed cloud integrates seamlessly with existing systems. But more important, it allows customization of applications and the development of new innovations. Plus, firms have the flexibility to choose which processes run in the cloud and which remain on premises or in another cloud. 

Are you ready for the fastest, simplest way to benefit from the cloud’s promises?

Transforming a small and midsize business while unlocking the full value of all IT investments can present a range of challenges. The cloud offers a clear opportunity to overcome the risk of change while taking advantages of opportunities as they begin to emerge. However, not all clouds are the same.

To achieve unique, strategic goals, firms should consider a private managed cloud approach that addresses needs and complexity with the right level of support. Only then can companies realize the full potential of the cloud: accelerated growth and innovation, IT and business transformation, fast delivery of expected outcomes, and continuous compliance and security.

Find out how cloud technology is helping firms achieve their strategic goals and become a disruptive force in the marketplace. Read the IDC InfoBrief “Using Cloud Capabilities for Competitive Advantage: How Small and Midsize Companies Worldwide Are Adopting Cloud Technology to Meet Key Business Goals,” sponsored by SAP. And don’t forget to check every Tuesday for new installments to our blog series “Cloud-Driven Competitive Advantage” to explore the possibilities for your company.

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Andy Greig

About Andy Greig

Andy Greig is the Global Marketing Plan Lead, SAP HANA Enterprise Cloud, at SAP. His primary focus is to create marketing and social media campaigns to help customers realize the benefits and value of SAP Services.

Innovation Without Boundaries: Why The Cloud Matters

Michael Haws

Is it possible to innovate without boundaries?

Of course – if you are using the cloud. An actual cloud doesn’t have any boundaries. It’s fluid. But more important, it can provide the much-needed precipitation that brings nature to life. So it is with cloud technology – but it’s your ideas that can grow and transform your business.USA --- Clouds, Heaven --- Image by © Ocean/Corbis

Running your business in the cloud is no longer just a consideration during a typical use-case exercise. Business executives are now faced with making decisions on solutions that go beyond previous limitations with cloud computing. Selecting the latest tools to address a business process gap is now less about features and more about functionality.

It doesn’t matter whether your organization is experienced with cloud solutions or new to the concept. Cloud technology is quickly becoming a core part of addressing the needs of a growing business.

5 considerations when planning your journey to the cloud

How can your organization define its successful path to the cloud? Here are five things you should consider when investigating whether a move to the cloud is right for you.

1. Understanding the cloud is great, but putting it into action is another thing.

For most CIOs, putting a cloud strategy on paper is new territory. Cloud computing is taking on new realms: Pure managed services to software-as-a-service (SaaS). Just as legacy computing had different flavors, so does cloud technology.

2. There is more than one way to innovate in the cloud.

Alignment with an open cloud reference architecture can help your CIO deliver on the promises of the cloud while using a stair-step approach to cloud adoption – from on-premise to hybrid to full cloud computing. Some companies find their own path by constantly reevaluating their needs and shifting their focus when necessary – making the move from running a data center to delivering real value to stakeholders, for example.

3. The cloud can help accelerate processes and lower cost.

By recognizing unprecedented growth, your organization can embark on a path to significant transformation that powers greater agility and competitiveness. Choose a solution set that best meets your needs, and implement and support it moving forward. By leveraging the cloud to support the chosen solution, ongoing maintenance, training, and system issues becomes the cloud provider’s responsibility. And for you, this offers the freedom to focus on the core business.

4. You can lock down your infrastructure and ensure more efficient processes.

Do you use a traditional reporting engine against a large relational database to generate a sequential batched report to close your books at quarter’s end? If so, you’re not alone. Sure, a new solution with new technology may be an obvious improvement. But how valuable to your board will you become when you reduce the financial closing process by 1–3 days? That’s the beauty of the cloud: You can accelerate the deployment of your chosen solution and realize ROI quickly – even before the next full reporting period.

5. The cloud opens the door to new opportunity in a secure environment.

For many companies, moving to the cloud may seem impossible due to the time and effort needed to train workers and hire resources with the right skill sets. Plus, if you are a startup in a rural location, it may not be as easy to attract the right talent as it is for your Silicon Valley counterparts. The cloud allows your business to secure your infrastructure as well as recruit and onboard those hard-to-find resources by applying a managed services contract to run your cloud model

The cloud means many things to different people. What’s your path?

With SAP HANA Enterprise Cloud service, you can navigate the best path to building, running, and operating your own cloud when running critical business processes. Find out how SAP HANA Enterprise Cloud can deliver the speed and resources necessary to quickly validate and realize solid ROI.

Check out the video below or visit us at www.sap.com/services-support/svc/in-memory-computing/hana-consulting/enterprise-cloud-services/index.html.

Connect with us on Twitter: @SAPServices

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Michael Haws

About Michael Haws

Michael Haws is the Vice President of HANA Enterprise Cloud at SAP. His specialties include Enterprise Resource Planning Software & Services, Onshore, Nearshore, Offshore–Application, Infrastructure and Business Process Outsourcing.

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Consumers And Providers: Two Halves Of The Hybrid Cloud Equation

Marty McCormick

Long gone are the days of CIOs and IT managers freely spending money to move their 02 Jun 2012 --- Young creatives having lunch and conversation. --- Image by © Hero/Corbisexisting systems to the cloud without any real business justification just to be part of the latest hype. As cloud deployments are becoming more prevalent, IT leaders are now tasked with proving the tangible benefits of adopting a cloud strategy from an operational, efficiency, and cost perspective. At the same time, they must balance their end users’ increasing demand for access to more data from an ever-expanding list of public cloud sources.

Lately, public cloud systems have become part of IT landscapes both in the form of multi-tenant systems, such as software-as-a-service (SaaS) offerings and data consumption applications such as Twitter. Along with the integration of applications and data outside of the corporate domain, new architectures have been spawned, requiring real-time and seamless integration points.  As shown in the figure below, these hybrid clouds – loosely defined as the integration of data from systems in both public and private clouds in a unified fashion – are the foundation of this new IT architecture.

hybridCloudImage

Not only has the hybrid cloud changed a company’s approach to deploying new software, but it has also changed the way software is developed and sold from a provider’s perspective.

The provider perspective: Unifying development and operations

Thanks to the hybrid cloud approach, system administrators and developers are sitting side by side in an agile development model known as Development and Operations (DevOps). By increasing collaboration, communication, innovation, and problem resolution, development teams can closely collaborate with system administrators and provide a continuous feedback loop of both sides of the agile methodology.

For example, operations teams can provide feedback on reported software bugs, software support issues, and new feature requests to development teams in real time. Likewise, development teams develop and test new applications with support and maintainability as a key pillar in design.
After seeing the advantages realized by cloud providers that have embraced this approach long ago, other companies that have traditionally separated these two areas are now adopting the DevOps model.

The consumer perspective: Moving to the cloud on its own terms

From the standpoint of the corporate consumer, hybrid cloud deployments bring a number of advantages to an IT organization. Specifically, the hybrid approach allows companies to move some application functionality to the cloud at their own pace.
Many applications naturally lend themselves to public cloud domains given their application and data requirements. For most companies, HR, indirect procurement, travel, and CRM systems are the first to be deployed in a public cloud. This approach eliminates the requirement for building and operating these applications in house while allowing IT areas to take advantage of new features and technologies much faster.

However, there is one challenge consumers need to overcome: The lack of capabilities needed to extend these applications and meet business requirements when the standard offering is often insufficient. Unfortunately, this tempts organizations to create extensive custom applications that replicate information across a variety of systems to meet end user requirements. This development work can offset the cost benefits of the initial cloud application, especially when you consider the upgrades and support required to maintain the application.

What this all means to everyone involved in the hybrid cloud

Given these two perspectives, on-premise software providers are transforming themselves so they can meet the ever-evolving demands of today’s information consumer. In particular, they are preparing for these unique challenges facing customers and creating a smooth journey to a hybrid cloud.

Take SAP, for example. By adopting a DevOps model to break down a huge internal barrier and allowing tighter collaboration, the company has delivered a simpler approach to hybrid cloud deployments through the SAP HANA Cloud Platform for extending applications and SAP HANA Enterprise Cloud for hosting solutions.

Find out how these two innovations can help you implement a robust and secure hybrid cloud solution:
SAP HANA Cloud Platform
SAP HANA Enterprise Cloud

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Marty McCormick

About Marty McCormick

Marty McCormick is the Lead Technical Architect, Managed Cloud Delivery, at SAP. He is experienced in a wide range of SAP solutions, including SAP Netweaver SAP Portal, SAP CRM, SAP SRM, SAP MDM, SAP BI, and SAP ERP.

Human Skills for the Digital Future

Dan Wellers and Kai Goerlich

Technology Evolves.
So Must We.


Technology replacing human effort is as old as the first stone axe, and so is the disruption it creates.
Thanks to deep learning and other advances in AI, machine learning is catching up to the human mind faster than expected.
How do we maintain our value in a world in which AI can perform many high-value tasks?


Uniquely Human Abilities

AI is excellent at automating routine knowledge work and generating new insights from existing data — but humans know what they don’t know.

We’re driven to explore, try new and risky things, and make a difference.
 
 
 
We deduce the existence of information we don’t yet know about.
 
 
 
We imagine radical new business models, products, and opportunities.
 
 
 
We have creativity, imagination, humor, ethics, persistence, and critical thinking.


There’s Nothing Soft About “Soft Skills”

To stay ahead of AI in an increasingly automated world, we need to start cultivating our most human abilities on a societal level. There’s nothing soft about these skills, and we can’t afford to leave them to chance.

We must revamp how and what we teach to nurture the critical skills of passion, curiosity, imagination, creativity, critical thinking, and persistence. In the era of AI, no one will be able to thrive without these abilities, and most people will need help acquiring and improving them.

Anything artificial intelligence does has to fit into a human-centered value system that takes our unique abilities into account. While we help AI get more powerful, we need to get better at being human.


Download the executive brief Human Skills for the Digital Future.


Read the full article The Human Factor in an AI Future.


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Dan Wellers

About Dan Wellers

Dan Wellers is founder and leader of Digital Futures at SAP, a strategic insights and thought leadership discipline that explores how digital technologies drive exponential change in business and society.

Kai Goerlich

About Kai Goerlich

Kai Goerlich is the Chief Futurist at SAP Innovation Center network His specialties include Competitive Intelligence, Market Intelligence, Corporate Foresight, Trends, Futuring and ideation.

Share your thoughts with Kai on Twitter @KaiGoe.heif Futu

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How Manufacturers Can Kick-Start The Internet Of Things In 2018

Tanja Rueckert

Part 1 of the “Manufacturing Value from IoT” series

IoT is one of the most dynamic and exciting markets I am involved with at SAP. The possibilities are endless, and that is perhaps where the challenges start. I’ll be sharing a series of blogs based on research into knowledge and use of IoT in manufacturing.

Most manufacturing leaders think that the IoT is the next big thing, alongside analytics, machine learning, and artificial intelligence. They see these technologies dramatically impacting their businesses and business in general over the next five years. Researchers see big things ahead as well; they forecast that IoT products and investments will total hundreds of billions – or even trillions – of dollars in coming decades.

They’re all wrong.

The IoT is THE Big Thing right now – if you know where to look.

Nearly a third (31%) of production processes and equipment and non-production processes and equipment (30%) already incorporate smart device/embedded intelligence. Similar percentages of manufacturers have a company strategy implemented or in place to apply IoT technologies to their processes (34%) or to embed IoT technologies into products (32%).

opportunities to leverage IoTSource:Catch Up with IoT Leaders,” SAP, 2017.

The best process opportunities to leverage the IoT include document management (e.g. real-time updates of process information); shipping and warehousing (e.g. tracking incoming and outgoing goods); and assembly and packaging (e.g. production monitoring). More could be done, but figuring out where and how to implement the IoT is an obstacle for many leaders. Some 44 percent of companies have trouble identifying IoT opportunities and benefits for either internal processes or IoT-enabled products.

Why so much difficulty in figuring out where to use the IoT in processes?

  • No two industries use the IoT in the same way. An energy company might leverage asset-management data to reduce costs; an e-commerce manufacturer might focus on metrics for customer fulfillment; a fabricator’s use of IoT technologies may be driven by a need to meet exacting product variances.
  • Even in the same industry, individual firms will apply and profit from the IoT in unique ways. In some plants and processes, management is intent on getting the most out of fully depreciated equipment. Unfortunately, older equipment usually lacks state-of-the-art controls and sensors. The IoT may be in place somewhere within those facilities, but it’s unlikely to touch legacy processes until new machinery arrive. 

Where could your company leverage the IoT today? Think strategically, operationally, and financially to prioritize opportunities:

  • Can senior leadership and plant management use real-time process data to improve daily decision-making and operations planning? Do they have the skills and tools (e.g., business analytics) to leverage IoT data?
  • Which troublesome processes in the plant or front office erode profits? With real-time data pushed out by the IoT, which could be improved?
  • Of the processes that could be improved, which include equipment that can – in the near-term – accommodate embedded intelligence, and then communicate with plant and enterprise networks?

Answer those questions, and you’ve got an instant list of how and where to profit from the IoT – today.

Stay tuned for more information on how IoT is developing and to learn what it takes to be a manufacturing IoT innovator. In the meantime, download the report “Catch Up with IoT Leaders.”

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Tanja Rueckert

About Tanja Rueckert

Tanja Rueckert is President of the Internet of Things and Digital Supply Chain Business Unit at SAP.