90% Of Businesses To Utilize The Private Cloud Network In The Next Decade

Andre Smith

Public clouds (e.g., Google Cloud, Amazon Cloud Drive) are financially efficient, easy to manage, pay-as-you-go cloud services available to all members of the public, either for free or for a small monthly cost. The public cloud has given individuals and businesses, big and small, resources for storing and sharing data.

PMC Telecom, trading since 1991, has noticed considerable demand for cloud-based services. Luke Cropper, head of hosted, says PMC Telecom’s customers have always required phone systems; but they are no longer happy with simple plug-and-play handsets. They want services available only through cloud-based services, such as the freedom to use any device to answer a call. New technology such as hosted VoIP enables customers to advance their telecom solutions in a way that traditional systems cannot rival.

The public cloud has paved the way for the future of telecommunications and data technology and has the benefit of being available to multiple businesses and members of the public, but it’s limited by being a one-size-fits-all model. As the cloud-based technology hype dies down and it is no longer seen as an exciting, innovative novelty, businesses are beginning to request more to suit the needs of their specific company.

The private cloud – much like the public cloud – offers numerous benefits, including scalability, flexibility, and security, with the added bonus of being solely dedicated to one specific company or business. This means that companies can take full advantage of a tailor-made cloud service.

Businesses can gain by utilizing the private cloud network through faster ROI, offsite backup, complete mobility, and higher data security.

A global survey conducted by cloud solutions provider QualiSystems revealed that 30% of workplace cloud data usage is managed through private cloud systems, with a further 10% predicted to switch from public to private in the next year.

The initial cost of using a private cloud network is higher than that of its public counterpart. However companies can save up to 50% on long-term costs by opting to go private, with operating expenses often significantly lower than public cloud costs (as seen in this case study in the International Journal of Computer Science & Information Technology).

The capital expenditure on switching to a private cloud service is high compared to the initial switch to public cloud, which is often free of charge. However, as the case study above shows, the operating expenses of a private cloud network over a three-year period are nearly a quarter of the costs of public cloud operating expenses, bringing the three-year total cost of using the private cloud to almost half of the cost of using the public cloud.

Cost is a huge influence when it comes to decision making for big businesses, however the leading drawback of using a public cloud service is the security risk potential that comes with a shared environment. Logically, a private network is far more security efficient that a shared public one. Therefore, more big businesses with sensitive data are making the switch to private in order to tighten security of their data.

The requirements of the ever-growing development and operations field are becoming greater all the time, with cloud providers struggling to keep up. The QualiSystems survey revealed that cloud service providers don’t have the ability to meet the demand of IaaS (infrastructure as a service) within an efficient timescale.

Seventy-five percent of those questioned fail to deliver IaaS within the same day that it is required; with the majority of companies needing almost a week to meet the requirements of their users.

Over 90% of businesses now use a type of cloud-based service for their company needs, an impressive statistic considering that the cloud only really became popular in 2002 thanks to Amazon Web Services and furthered by Amazon Elastic Compute Cloud in 2006. Its popularity is unsurprising since the technology comes with so many benefits that companies would be foolish not to adapt their systems to maximize business potential. The private cloud is simply the new wave of technology that is heavily weighted with numerous benefits.

From this, its predictable that (just like with the first generation of cloud-based services), 90% of businesses will be utilizing a private cloud network in the next decade.

IoT and Industry 4.0 may have more impact on the future of your business than anything else on earth. Learn what the experts this means for business in Myth-Busting: The Networked Economy.

Comments

About Andre Smith

Andre Smith is an Internet, marketing, and e-commerce specialist with several years of experience in the industry. He has watched as the world of online business has grown and adapted to new technologies, and he has made it his mission to help keep businesses informed and up to date.

The Cloud Is Here With Plenty of Growth Coming [Slides]

Lindsey (LaManna) Makela

SAP recently performed a study, entitled Cloud Computing: Usage, Relevance and Satisfaction (slideshare), to evaluate today’s cloud adoption and decision makers’ perceptions of cloud computing.  Their findings, which I will discuss below, are compelling.

SAP found that almost 60% of companies are already in the cloud and an additional 20% are planning to do so within the next 12 months.  Therefore, cloud is already a reality in the business world and there is plenty of growth potential.

Relevance of Cloud Computing for the company’s business success

What’s driving them to adopt?  According to the study, the need for reduced operating costs, improved operational efficiency and increased flexibility are the top cloud investment drivers.

goals with cloud computing

There exists a myth that cloud computing is purely an IT matter.  However, results showed that it was considered to be important, not only for IT, but for business success.

  • 79% see cloud computing as important for the company’s business success – 35% even think it is critical.  Only 7% see no direct contribution
  • 85% of the IT decision makers are convinced of the importance of cloud computing

However, cloud computing is considered more relevant by IT decision makers, the U.S., service industries and financial services.  Germany attributed lower relevance to cloud computing.

Adopters of cloud computing expressed satisfaction, despite its early stage. Study respondents provided positive feedback on the solutions, with 70% of cloud computing users showing a high satisfaction with used cloud solutions and 22% ‘completely satisfied.’  Again, IT decision makers were the most positive regarding cloud solutions (78% of the IT decision makers are very satisfied or completely satisfied).

Companies are also investing heavily in cloud computing, such that 20% of companies expect 50% or more of their IT budget to be spent for cloud software solutions within the next 36 months.  Brazil demonstrated the highest potential cloud investments, as did the manufacturing industry.

But which cloud services are companies using and investing in most?  SAP found that SaaS (the longest established cloud service) is the most frequently used.  However, US and Brazil organizations showed similar openness to the different services, like IaaS (Infrastructure as a Service) and PaaS (Platform as a Service). Germany was found to be much more conservative with respect to all cloud services.

Lastly, the biggest obstacles when it comes to cloud are security concerns and costs.  However, surprisingly security and costs are also seen as main benefits of cloud computing, besides the ability to access data and services from everywhere.  In addition, these top barriers and benefits were the same across countries, target groups and industries.

Cloud Computing barriers and benefits

I know that’s a lot of information, so here are my top take-aways from this  enlightening study:

  1. Cloud adoption is already high and is continuing to grow
  2. Cloud is seen as important and relevant for a company’s business success, not just IT
  3. Satisfaction is high amongst cloud adopters
  4. Businesses are investing a significant portion of their IT budgets in cloud
  5. SaaS is the most used cloud service
  6. Companies’ goals in implementing cloud solutions are to reduce costs and increase efficiency and flexibility
  7. Financial and security aspects are critical both as pros and cons

SAP commissioned TNS Infratest to conduct a survey of over 600 Technology and “Line of Business” decision makers and software users across organizations with at least 500 employees in the US, UK, Germany and Brazil. The survey was completed in April 2012.

Comments

Joseph Msays

About Joseph Msays

Joseph Msays is an experienced IBM global executive, currently serving as Vice President and Global Managing Partner for NextGen Enterprise Cloud Applications Center of Excellence. In this role, he is pioneering new ways of engaging CxOs in their digital reinvention agendas, and building and migrating new cloud-based business applications. Joseph has experience managing many IBM professional services units and large strategic systems, integration and outsourcing relationships, and has lived and worked in virtually every major market across the globe.

The Cloud Is Here With Plenty of Growth Coming [Slides]

Lindsey (LaManna) Makela

SAP recently performed a study, entitled Cloud Computing: Usage, Relevance and Satisfaction (slideshare), to evaluate today’s cloud adoption and decision makers’ perceptions of cloud computing.  Their findings, which I will discuss below, are compelling.

SAP found that almost 60% of companies are already in the cloud and an additional 20% are planning to do so within the next 12 months.  Therefore, cloud is already a reality in the business world and there is plenty of growth potential.

Relevance of Cloud Computing for the company’s business success

What’s driving them to adopt?  According to the study, the need for reduced operating costs, improved operational efficiency and increased flexibility are the top cloud investment drivers.

goals with cloud computing

There exists a myth that cloud computing is purely an IT matter.  However, results showed that it was considered to be important, not only for IT, but for business success.

  • 79% see cloud computing as important for the company’s business success – 35% even think it is critical.  Only 7% see no direct contribution
  • 85% of the IT decision makers are convinced of the importance of cloud computing

However, cloud computing is considered more relevant by IT decision makers, the U.S., service industries and financial services.  Germany attributed lower relevance to cloud computing.

Adopters of cloud computing expressed satisfaction, despite its early stage. Study respondents provided positive feedback on the solutions, with 70% of cloud computing users showing a high satisfaction with used cloud solutions and 22% ‘completely satisfied.’  Again, IT decision makers were the most positive regarding cloud solutions (78% of the IT decision makers are very satisfied or completely satisfied).

Companies are also investing heavily in cloud computing, such that 20% of companies expect 50% or more of their IT budget to be spent for cloud software solutions within the next 36 months.  Brazil demonstrated the highest potential cloud investments, as did the manufacturing industry.

But which cloud services are companies using and investing in most?  SAP found that SaaS (the longest established cloud service) is the most frequently used.  However, US and Brazil organizations showed similar openness to the different services, like IaaS (Infrastructure as a Service) and PaaS (Platform as a Service). Germany was found to be much more conservative with respect to all cloud services.

Lastly, the biggest obstacles when it comes to cloud are security concerns and costs.  However, surprisingly security and costs are also seen as main benefits of cloud computing, besides the ability to access data and services from everywhere.  In addition, these top barriers and benefits were the same across countries, target groups and industries.

Cloud Computing barriers and benefits

I know that’s a lot of information, so here are my top take-aways from this  enlightening study:

  1. Cloud adoption is already high and is continuing to grow
  2. Cloud is seen as important and relevant for a company’s business success, not just IT
  3. Satisfaction is high amongst cloud adopters
  4. Businesses are investing a significant portion of their IT budgets in cloud
  5. SaaS is the most used cloud service
  6. Companies’ goals in implementing cloud solutions are to reduce costs and increase efficiency and flexibility
  7. Financial and security aspects are critical both as pros and cons

SAP commissioned TNS Infratest to conduct a survey of over 600 Technology and “Line of Business” decision makers and software users across organizations with at least 500 employees in the US, UK, Germany and Brazil. The survey was completed in April 2012.

Comments

Vaag Durgaryan

About Vaag Durgaryan

Vaag Durgaryan is the commercial finance director for SAP in the Middle East and North Africa, which comprises of over 20 countries. Starting in 2017, he oversees a multinational team that provides finance expertise, knowledge, and strategy outlook for finance sales support in the region. Prior to that, Vaag was chief of staff for the CFO for SAP Global Field Finance and co-drove global transformation initiatives with focus on process simplification and people enablement. He holds an Executive MBA degree from ESSEC Business School and Mannheim Business School. Vaag has a passion in digitalization and learning culture.

The Cloud Is Here With Plenty of Growth Coming [Slides]

Lindsey (LaManna) Makela

SAP recently performed a study, entitled Cloud Computing: Usage, Relevance and Satisfaction (slideshare), to evaluate today’s cloud adoption and decision makers’ perceptions of cloud computing.  Their findings, which I will discuss below, are compelling.

SAP found that almost 60% of companies are already in the cloud and an additional 20% are planning to do so within the next 12 months.  Therefore, cloud is already a reality in the business world and there is plenty of growth potential.

Relevance of Cloud Computing for the company’s business success

What’s driving them to adopt?  According to the study, the need for reduced operating costs, improved operational efficiency and increased flexibility are the top cloud investment drivers.

goals with cloud computing

There exists a myth that cloud computing is purely an IT matter.  However, results showed that it was considered to be important, not only for IT, but for business success.

  • 79% see cloud computing as important for the company’s business success – 35% even think it is critical.  Only 7% see no direct contribution
  • 85% of the IT decision makers are convinced of the importance of cloud computing

However, cloud computing is considered more relevant by IT decision makers, the U.S., service industries and financial services.  Germany attributed lower relevance to cloud computing.

Adopters of cloud computing expressed satisfaction, despite its early stage. Study respondents provided positive feedback on the solutions, with 70% of cloud computing users showing a high satisfaction with used cloud solutions and 22% ‘completely satisfied.’  Again, IT decision makers were the most positive regarding cloud solutions (78% of the IT decision makers are very satisfied or completely satisfied).

Companies are also investing heavily in cloud computing, such that 20% of companies expect 50% or more of their IT budget to be spent for cloud software solutions within the next 36 months.  Brazil demonstrated the highest potential cloud investments, as did the manufacturing industry.

But which cloud services are companies using and investing in most?  SAP found that SaaS (the longest established cloud service) is the most frequently used.  However, US and Brazil organizations showed similar openness to the different services, like IaaS (Infrastructure as a Service) and PaaS (Platform as a Service). Germany was found to be much more conservative with respect to all cloud services.

Lastly, the biggest obstacles when it comes to cloud are security concerns and costs.  However, surprisingly security and costs are also seen as main benefits of cloud computing, besides the ability to access data and services from everywhere.  In addition, these top barriers and benefits were the same across countries, target groups and industries.

Cloud Computing barriers and benefits

I know that’s a lot of information, so here are my top take-aways from this  enlightening study:

  1. Cloud adoption is already high and is continuing to grow
  2. Cloud is seen as important and relevant for a company’s business success, not just IT
  3. Satisfaction is high amongst cloud adopters
  4. Businesses are investing a significant portion of their IT budgets in cloud
  5. SaaS is the most used cloud service
  6. Companies’ goals in implementing cloud solutions are to reduce costs and increase efficiency and flexibility
  7. Financial and security aspects are critical both as pros and cons

SAP commissioned TNS Infratest to conduct a survey of over 600 Technology and “Line of Business” decision makers and software users across organizations with at least 500 employees in the US, UK, Germany and Brazil. The survey was completed in April 2012.

Comments

About Richard Howells

Richard Howells is a Vice President at SAP responsible for the positioning, messaging, AR , PR and go-to market activities for the SAP Supply Chain solutions.

The Cloud Is Here With Plenty of Growth Coming [Slides]

Lindsey (LaManna) Makela

SAP recently performed a study, entitled Cloud Computing: Usage, Relevance and Satisfaction (slideshare), to evaluate today’s cloud adoption and decision makers’ perceptions of cloud computing.  Their findings, which I will discuss below, are compelling.

SAP found that almost 60% of companies are already in the cloud and an additional 20% are planning to do so within the next 12 months.  Therefore, cloud is already a reality in the business world and there is plenty of growth potential.

Relevance of Cloud Computing for the company’s business success

What’s driving them to adopt?  According to the study, the need for reduced operating costs, improved operational efficiency and increased flexibility are the top cloud investment drivers.

goals with cloud computing

There exists a myth that cloud computing is purely an IT matter.  However, results showed that it was considered to be important, not only for IT, but for business success.

  • 79% see cloud computing as important for the company’s business success – 35% even think it is critical.  Only 7% see no direct contribution
  • 85% of the IT decision makers are convinced of the importance of cloud computing

However, cloud computing is considered more relevant by IT decision makers, the U.S., service industries and financial services.  Germany attributed lower relevance to cloud computing.

Adopters of cloud computing expressed satisfaction, despite its early stage. Study respondents provided positive feedback on the solutions, with 70% of cloud computing users showing a high satisfaction with used cloud solutions and 22% ‘completely satisfied.’  Again, IT decision makers were the most positive regarding cloud solutions (78% of the IT decision makers are very satisfied or completely satisfied).

Companies are also investing heavily in cloud computing, such that 20% of companies expect 50% or more of their IT budget to be spent for cloud software solutions within the next 36 months.  Brazil demonstrated the highest potential cloud investments, as did the manufacturing industry.

But which cloud services are companies using and investing in most?  SAP found that SaaS (the longest established cloud service) is the most frequently used.  However, US and Brazil organizations showed similar openness to the different services, like IaaS (Infrastructure as a Service) and PaaS (Platform as a Service). Germany was found to be much more conservative with respect to all cloud services.

Lastly, the biggest obstacles when it comes to cloud are security concerns and costs.  However, surprisingly security and costs are also seen as main benefits of cloud computing, besides the ability to access data and services from everywhere.  In addition, these top barriers and benefits were the same across countries, target groups and industries.

Cloud Computing barriers and benefits

I know that’s a lot of information, so here are my top take-aways from this  enlightening study:

  1. Cloud adoption is already high and is continuing to grow
  2. Cloud is seen as important and relevant for a company’s business success, not just IT
  3. Satisfaction is high amongst cloud adopters
  4. Businesses are investing a significant portion of their IT budgets in cloud
  5. SaaS is the most used cloud service
  6. Companies’ goals in implementing cloud solutions are to reduce costs and increase efficiency and flexibility
  7. Financial and security aspects are critical both as pros and cons

SAP commissioned TNS Infratest to conduct a survey of over 600 Technology and “Line of Business” decision makers and software users across organizations with at least 500 employees in the US, UK, Germany and Brazil. The survey was completed in April 2012.

Comments

About Stefan Guertzgen

Dr. Stefan Guertzgen is the Global Director of Industry Solution Marketing for Chemicals at SAP. He is responsible for driving Industry Thought Leadership, Positioning & Messaging and strategic Portfolio Decisions for Chemicals.

The Cloud Is Here With Plenty of Growth Coming [Slides]

Lindsey (LaManna) Makela

SAP recently performed a study, entitled Cloud Computing: Usage, Relevance and Satisfaction (slideshare), to evaluate today’s cloud adoption and decision makers’ perceptions of cloud computing.  Their findings, which I will discuss below, are compelling.

SAP found that almost 60% of companies are already in the cloud and an additional 20% are planning to do so within the next 12 months.  Therefore, cloud is already a reality in the business world and there is plenty of growth potential.

Relevance of Cloud Computing for the company’s business success

What’s driving them to adopt?  According to the study, the need for reduced operating costs, improved operational efficiency and increased flexibility are the top cloud investment drivers.

goals with cloud computing

There exists a myth that cloud computing is purely an IT matter.  However, results showed that it was considered to be important, not only for IT, but for business success.

  • 79% see cloud computing as important for the company’s business success – 35% even think it is critical.  Only 7% see no direct contribution
  • 85% of the IT decision makers are convinced of the importance of cloud computing

However, cloud computing is considered more relevant by IT decision makers, the U.S., service industries and financial services.  Germany attributed lower relevance to cloud computing.

Adopters of cloud computing expressed satisfaction, despite its early stage. Study respondents provided positive feedback on the solutions, with 70% of cloud computing users showing a high satisfaction with used cloud solutions and 22% ‘completely satisfied.’  Again, IT decision makers were the most positive regarding cloud solutions (78% of the IT decision makers are very satisfied or completely satisfied).

Companies are also investing heavily in cloud computing, such that 20% of companies expect 50% or more of their IT budget to be spent for cloud software solutions within the next 36 months.  Brazil demonstrated the highest potential cloud investments, as did the manufacturing industry.

But which cloud services are companies using and investing in most?  SAP found that SaaS (the longest established cloud service) is the most frequently used.  However, US and Brazil organizations showed similar openness to the different services, like IaaS (Infrastructure as a Service) and PaaS (Platform as a Service). Germany was found to be much more conservative with respect to all cloud services.

Lastly, the biggest obstacles when it comes to cloud are security concerns and costs.  However, surprisingly security and costs are also seen as main benefits of cloud computing, besides the ability to access data and services from everywhere.  In addition, these top barriers and benefits were the same across countries, target groups and industries.

Cloud Computing barriers and benefits

I know that’s a lot of information, so here are my top take-aways from this  enlightening study:

  1. Cloud adoption is already high and is continuing to grow
  2. Cloud is seen as important and relevant for a company’s business success, not just IT
  3. Satisfaction is high amongst cloud adopters
  4. Businesses are investing a significant portion of their IT budgets in cloud
  5. SaaS is the most used cloud service
  6. Companies’ goals in implementing cloud solutions are to reduce costs and increase efficiency and flexibility
  7. Financial and security aspects are critical both as pros and cons

SAP commissioned TNS Infratest to conduct a survey of over 600 Technology and “Line of Business” decision makers and software users across organizations with at least 500 employees in the US, UK, Germany and Brazil. The survey was completed in April 2012.

Comments

Andy Hirst

About Andy Hirst

Andy Hirst is vice president of Banking Solutions, SAP Banking Industry Business Unit, at SAP. He is responsible for driving the success of the SAP go-to-market strategy in Line of Business Cloud Applications and Analytics in Financial Services. Previously, Andy was responsible for Capital Markets solutions for banking. Andy is an expert in Big Data and analytics use cases in financial services and has been involved in many digital banking initiatives for banks.

The Cloud Is Here With Plenty of Growth Coming [Slides]

Lindsey (LaManna) Makela

SAP recently performed a study, entitled Cloud Computing: Usage, Relevance and Satisfaction (slideshare), to evaluate today’s cloud adoption and decision makers’ perceptions of cloud computing.  Their findings, which I will discuss below, are compelling.

SAP found that almost 60% of companies are already in the cloud and an additional 20% are planning to do so within the next 12 months.  Therefore, cloud is already a reality in the business world and there is plenty of growth potential.

Relevance of Cloud Computing for the company’s business success

What’s driving them to adopt?  According to the study, the need for reduced operating costs, improved operational efficiency and increased flexibility are the top cloud investment drivers.

goals with cloud computing

There exists a myth that cloud computing is purely an IT matter.  However, results showed that it was considered to be important, not only for IT, but for business success.

  • 79% see cloud computing as important for the company’s business success – 35% even think it is critical.  Only 7% see no direct contribution
  • 85% of the IT decision makers are convinced of the importance of cloud computing

However, cloud computing is considered more relevant by IT decision makers, the U.S., service industries and financial services.  Germany attributed lower relevance to cloud computing.

Adopters of cloud computing expressed satisfaction, despite its early stage. Study respondents provided positive feedback on the solutions, with 70% of cloud computing users showing a high satisfaction with used cloud solutions and 22% ‘completely satisfied.’  Again, IT decision makers were the most positive regarding cloud solutions (78% of the IT decision makers are very satisfied or completely satisfied).

Companies are also investing heavily in cloud computing, such that 20% of companies expect 50% or more of their IT budget to be spent for cloud software solutions within the next 36 months.  Brazil demonstrated the highest potential cloud investments, as did the manufacturing industry.

But which cloud services are companies using and investing in most?  SAP found that SaaS (the longest established cloud service) is the most frequently used.  However, US and Brazil organizations showed similar openness to the different services, like IaaS (Infrastructure as a Service) and PaaS (Platform as a Service). Germany was found to be much more conservative with respect to all cloud services.

Lastly, the biggest obstacles when it comes to cloud are security concerns and costs.  However, surprisingly security and costs are also seen as main benefits of cloud computing, besides the ability to access data and services from everywhere.  In addition, these top barriers and benefits were the same across countries, target groups and industries.

Cloud Computing barriers and benefits

I know that’s a lot of information, so here are my top take-aways from this  enlightening study:

  1. Cloud adoption is already high and is continuing to grow
  2. Cloud is seen as important and relevant for a company’s business success, not just IT
  3. Satisfaction is high amongst cloud adopters
  4. Businesses are investing a significant portion of their IT budgets in cloud
  5. SaaS is the most used cloud service
  6. Companies’ goals in implementing cloud solutions are to reduce costs and increase efficiency and flexibility
  7. Financial and security aspects are critical both as pros and cons

SAP commissioned TNS Infratest to conduct a survey of over 600 Technology and “Line of Business” decision makers and software users across organizations with at least 500 employees in the US, UK, Germany and Brazil. The survey was completed in April 2012.

Comments

Tina Gunn

About Tina Gunn

Tina Gunn is the content marketing manager for the Enterprise Americas team at SAP Concur. Tina earned her degree in Journalism from the University of Washington and brings her experience in content strategy and digital marketing to SAP Concur. When she’s not creating thought leadership and sales enablement content, Tina writes fiction and screenplays of the horror and sci-fi genres.

The Cloud Is Here With Plenty of Growth Coming [Slides]

Lindsey (LaManna) Makela

SAP recently performed a study, entitled Cloud Computing: Usage, Relevance and Satisfaction (slideshare), to evaluate today’s cloud adoption and decision makers’ perceptions of cloud computing.  Their findings, which I will discuss below, are compelling.

SAP found that almost 60% of companies are already in the cloud and an additional 20% are planning to do so within the next 12 months.  Therefore, cloud is already a reality in the business world and there is plenty of growth potential.

Relevance of Cloud Computing for the company’s business success

What’s driving them to adopt?  According to the study, the need for reduced operating costs, improved operational efficiency and increased flexibility are the top cloud investment drivers.

goals with cloud computing

There exists a myth that cloud computing is purely an IT matter.  However, results showed that it was considered to be important, not only for IT, but for business success.

  • 79% see cloud computing as important for the company’s business success – 35% even think it is critical.  Only 7% see no direct contribution
  • 85% of the IT decision makers are convinced of the importance of cloud computing

However, cloud computing is considered more relevant by IT decision makers, the U.S., service industries and financial services.  Germany attributed lower relevance to cloud computing.

Adopters of cloud computing expressed satisfaction, despite its early stage. Study respondents provided positive feedback on the solutions, with 70% of cloud computing users showing a high satisfaction with used cloud solutions and 22% ‘completely satisfied.’  Again, IT decision makers were the most positive regarding cloud solutions (78% of the IT decision makers are very satisfied or completely satisfied).

Companies are also investing heavily in cloud computing, such that 20% of companies expect 50% or more of their IT budget to be spent for cloud software solutions within the next 36 months.  Brazil demonstrated the highest potential cloud investments, as did the manufacturing industry.

But which cloud services are companies using and investing in most?  SAP found that SaaS (the longest established cloud service) is the most frequently used.  However, US and Brazil organizations showed similar openness to the different services, like IaaS (Infrastructure as a Service) and PaaS (Platform as a Service). Germany was found to be much more conservative with respect to all cloud services.

Lastly, the biggest obstacles when it comes to cloud are security concerns and costs.  However, surprisingly security and costs are also seen as main benefits of cloud computing, besides the ability to access data and services from everywhere.  In addition, these top barriers and benefits were the same across countries, target groups and industries.

Cloud Computing barriers and benefits

I know that’s a lot of information, so here are my top take-aways from this  enlightening study:

  1. Cloud adoption is already high and is continuing to grow
  2. Cloud is seen as important and relevant for a company’s business success, not just IT
  3. Satisfaction is high amongst cloud adopters
  4. Businesses are investing a significant portion of their IT budgets in cloud
  5. SaaS is the most used cloud service
  6. Companies’ goals in implementing cloud solutions are to reduce costs and increase efficiency and flexibility
  7. Financial and security aspects are critical both as pros and cons

SAP commissioned TNS Infratest to conduct a survey of over 600 Technology and “Line of Business” decision makers and software users across organizations with at least 500 employees in the US, UK, Germany and Brazil. The survey was completed in April 2012.

Comments

Rushenka Perera

About Rushenka Perera

Rushenka is Head of Marketing at SAP ANZ.

The Cloud Is Here With Plenty of Growth Coming [Slides]

Lindsey (LaManna) Makela

SAP recently performed a study, entitled Cloud Computing: Usage, Relevance and Satisfaction (slideshare), to evaluate today’s cloud adoption and decision makers’ perceptions of cloud computing.  Their findings, which I will discuss below, are compelling.

SAP found that almost 60% of companies are already in the cloud and an additional 20% are planning to do so within the next 12 months.  Therefore, cloud is already a reality in the business world and there is plenty of growth potential.

Relevance of Cloud Computing for the company’s business success

What’s driving them to adopt?  According to the study, the need for reduced operating costs, improved operational efficiency and increased flexibility are the top cloud investment drivers.

goals with cloud computing

There exists a myth that cloud computing is purely an IT matter.  However, results showed that it was considered to be important, not only for IT, but for business success.

  • 79% see cloud computing as important for the company’s business success – 35% even think it is critical.  Only 7% see no direct contribution
  • 85% of the IT decision makers are convinced of the importance of cloud computing

However, cloud computing is considered more relevant by IT decision makers, the U.S., service industries and financial services.  Germany attributed lower relevance to cloud computing.

Adopters of cloud computing expressed satisfaction, despite its early stage. Study respondents provided positive feedback on the solutions, with 70% of cloud computing users showing a high satisfaction with used cloud solutions and 22% ‘completely satisfied.’  Again, IT decision makers were the most positive regarding cloud solutions (78% of the IT decision makers are very satisfied or completely satisfied).

Companies are also investing heavily in cloud computing, such that 20% of companies expect 50% or more of their IT budget to be spent for cloud software solutions within the next 36 months.  Brazil demonstrated the highest potential cloud investments, as did the manufacturing industry.

But which cloud services are companies using and investing in most?  SAP found that SaaS (the longest established cloud service) is the most frequently used.  However, US and Brazil organizations showed similar openness to the different services, like IaaS (Infrastructure as a Service) and PaaS (Platform as a Service). Germany was found to be much more conservative with respect to all cloud services.

Lastly, the biggest obstacles when it comes to cloud are security concerns and costs.  However, surprisingly security and costs are also seen as main benefits of cloud computing, besides the ability to access data and services from everywhere.  In addition, these top barriers and benefits were the same across countries, target groups and industries.

Cloud Computing barriers and benefits

I know that’s a lot of information, so here are my top take-aways from this  enlightening study:

  1. Cloud adoption is already high and is continuing to grow
  2. Cloud is seen as important and relevant for a company’s business success, not just IT
  3. Satisfaction is high amongst cloud adopters
  4. Businesses are investing a significant portion of their IT budgets in cloud
  5. SaaS is the most used cloud service
  6. Companies’ goals in implementing cloud solutions are to reduce costs and increase efficiency and flexibility
  7. Financial and security aspects are critical both as pros and cons

SAP commissioned TNS Infratest to conduct a survey of over 600 Technology and “Line of Business” decision makers and software users across organizations with at least 500 employees in the US, UK, Germany and Brazil. The survey was completed in April 2012.

Comments

Jennifer Horowitz

About Jennifer Horowitz

Jennifer Horowitz is a journalist with over 15 years of experience working in the technology, financial, hospitality, real estate, healthcare, manufacturing, not for profit, and retail sectors. She specializes in the field of analytics, offering management consulting serving global clients from midsize to large-scale organizations. Within the field of analytics, she helps higher-level organizations define their metrics strategies, create concepts, define problems, conduct analysis, problem solve, and execute.

The Cloud Is Here With Plenty of Growth Coming [Slides]

Lindsey (LaManna) Makela

SAP recently performed a study, entitled Cloud Computing: Usage, Relevance and Satisfaction (slideshare), to evaluate today’s cloud adoption and decision makers’ perceptions of cloud computing.  Their findings, which I will discuss below, are compelling.

SAP found that almost 60% of companies are already in the cloud and an additional 20% are planning to do so within the next 12 months.  Therefore, cloud is already a reality in the business world and there is plenty of growth potential.

Relevance of Cloud Computing for the company’s business success

What’s driving them to adopt?  According to the study, the need for reduced operating costs, improved operational efficiency and increased flexibility are the top cloud investment drivers.

goals with cloud computing

There exists a myth that cloud computing is purely an IT matter.  However, results showed that it was considered to be important, not only for IT, but for business success.

  • 79% see cloud computing as important for the company’s business success – 35% even think it is critical.  Only 7% see no direct contribution
  • 85% of the IT decision makers are convinced of the importance of cloud computing

However, cloud computing is considered more relevant by IT decision makers, the U.S., service industries and financial services.  Germany attributed lower relevance to cloud computing.

Adopters of cloud computing expressed satisfaction, despite its early stage. Study respondents provided positive feedback on the solutions, with 70% of cloud computing users showing a high satisfaction with used cloud solutions and 22% ‘completely satisfied.’  Again, IT decision makers were the most positive regarding cloud solutions (78% of the IT decision makers are very satisfied or completely satisfied).

Companies are also investing heavily in cloud computing, such that 20% of companies expect 50% or more of their IT budget to be spent for cloud software solutions within the next 36 months.  Brazil demonstrated the highest potential cloud investments, as did the manufacturing industry.

But which cloud services are companies using and investing in most?  SAP found that SaaS (the longest established cloud service) is the most frequently used.  However, US and Brazil organizations showed similar openness to the different services, like IaaS (Infrastructure as a Service) and PaaS (Platform as a Service). Germany was found to be much more conservative with respect to all cloud services.

Lastly, the biggest obstacles when it comes to cloud are security concerns and costs.  However, surprisingly security and costs are also seen as main benefits of cloud computing, besides the ability to access data and services from everywhere.  In addition, these top barriers and benefits were the same across countries, target groups and industries.

Cloud Computing barriers and benefits

I know that’s a lot of information, so here are my top take-aways from this  enlightening study:

  1. Cloud adoption is already high and is continuing to grow
  2. Cloud is seen as important and relevant for a company’s business success, not just IT
  3. Satisfaction is high amongst cloud adopters
  4. Businesses are investing a significant portion of their IT budgets in cloud
  5. SaaS is the most used cloud service
  6. Companies’ goals in implementing cloud solutions are to reduce costs and increase efficiency and flexibility
  7. Financial and security aspects are critical both as pros and cons

SAP commissioned TNS Infratest to conduct a survey of over 600 Technology and “Line of Business” decision makers and software users across organizations with at least 500 employees in the US, UK, Germany and Brazil. The survey was completed in April 2012.

Comments

Patrick Crampton-Thomas

About Patrick Crampton-Thomas

Patrick Crampton-Thomas is Vice President of Supply Chain Solution Management at SAP, with global responsibility for the response and supply orchestration portfolio, based in the UK. This includes the strategy and go-to-market for existing and new supply chain solutions including integrated business planning solutions, supply chain control tower, and supply chain collaboration.

The Cloud Is Here With Plenty of Growth Coming [Slides]

Lindsey (LaManna) Makela

SAP recently performed a study, entitled Cloud Computing: Usage, Relevance and Satisfaction (slideshare), to evaluate today’s cloud adoption and decision makers’ perceptions of cloud computing.  Their findings, which I will discuss below, are compelling.

SAP found that almost 60% of companies are already in the cloud and an additional 20% are planning to do so within the next 12 months.  Therefore, cloud is already a reality in the business world and there is plenty of growth potential.

Relevance of Cloud Computing for the company’s business success

What’s driving them to adopt?  According to the study, the need for reduced operating costs, improved operational efficiency and increased flexibility are the top cloud investment drivers.

goals with cloud computing

There exists a myth that cloud computing is purely an IT matter.  However, results showed that it was considered to be important, not only for IT, but for business success.

  • 79% see cloud computing as important for the company’s business success – 35% even think it is critical.  Only 7% see no direct contribution
  • 85% of the IT decision makers are convinced of the importance of cloud computing

However, cloud computing is considered more relevant by IT decision makers, the U.S., service industries and financial services.  Germany attributed lower relevance to cloud computing.

Adopters of cloud computing expressed satisfaction, despite its early stage. Study respondents provided positive feedback on the solutions, with 70% of cloud computing users showing a high satisfaction with used cloud solutions and 22% ‘completely satisfied.’  Again, IT decision makers were the most positive regarding cloud solutions (78% of the IT decision makers are very satisfied or completely satisfied).

Companies are also investing heavily in cloud computing, such that 20% of companies expect 50% or more of their IT budget to be spent for cloud software solutions within the next 36 months.  Brazil demonstrated the highest potential cloud investments, as did the manufacturing industry.

But which cloud services are companies using and investing in most?  SAP found that SaaS (the longest established cloud service) is the most frequently used.  However, US and Brazil organizations showed similar openness to the different services, like IaaS (Infrastructure as a Service) and PaaS (Platform as a Service). Germany was found to be much more conservative with respect to all cloud services.

Lastly, the biggest obstacles when it comes to cloud are security concerns and costs.  However, surprisingly security and costs are also seen as main benefits of cloud computing, besides the ability to access data and services from everywhere.  In addition, these top barriers and benefits were the same across countries, target groups and industries.

Cloud Computing barriers and benefits

I know that’s a lot of information, so here are my top take-aways from this  enlightening study:

  1. Cloud adoption is already high and is continuing to grow
  2. Cloud is seen as important and relevant for a company’s business success, not just IT
  3. Satisfaction is high amongst cloud adopters
  4. Businesses are investing a significant portion of their IT budgets in cloud
  5. SaaS is the most used cloud service
  6. Companies’ goals in implementing cloud solutions are to reduce costs and increase efficiency and flexibility
  7. Financial and security aspects are critical both as pros and cons

SAP commissioned TNS Infratest to conduct a survey of over 600 Technology and “Line of Business” decision makers and software users across organizations with at least 500 employees in the US, UK, Germany and Brazil. The survey was completed in April 2012.

Comments

Timo Elliott

About Timo Elliott

Timo Elliott is an Innovation Evangelist for SAP and a passionate advocate of innovation, digital business, analytics, and artificial intelligence. He was the eighth employee of BusinessObjects and for the last 25 years he has worked closely with SAP customers around the world on new technology directions and their impact on real-world organizations. His articles have appeared in publications such as Harvard Business Review, Forbes, ZDNet, The Guardian, and Digitalist Magazine. He has worked in the UK, Hong Kong, New Zealand, and Silicon Valley, and currently lives in Paris, France. He has a degree in Econometrics and a patent in mobile analytics. 

Data Management and Retention Requirements

Irfan Khan

In his annual state of the union speech last month President Barack Obama made a passing reference to the need for the U.S. to train more people in data management to supply the needs of companies. A little later in the speech he talked about how some new, targeted government regulations would benefit honest businesses while rooting out the bad apples. Maybe he was thinking that those newly trained data managers would be able to help companies with the advanced data management techniques his undefined regulations would require.

Don’t get me wrong. I’m not against all regulations. And I’m certainly not opposed to giving tuition credits to students wanting to study the art of data management. But, as the politicians like to say, “let’s be perfectly clear”: modern government regulations require IT professionals to implement new data management policies to prove they are in compliance with changes in the law.

For example, in 2006 the European Union issued a directive to communications carriersforcing them to hold on to subscriber usage data for six to 24 months. That’s so the companies can quickly respond to legal authorities who need to access data for criminal investigations. While some operators may already keep the information, it’s often stored offline. In the case of the EU directive, the information must be able to be accessed without delay by authorities armed with a warrant.

The way the EU directive was written means that wire line, wireless, and ISP operators must retain 15 categories of data. And because the time periods vary, the amount of data to be stored is unpredictable. As you can imagine, the EU also imposed some hefty data security demands as well as unique access requirements. For example, some legal authorities may send their warrants by FAX, e-mail, or even letters via the postal service.

Needless to say, the regulations don’t spell out exactly how carriers should implement the data retention policy. They simply need to do so.

It’s not just the EU creating rules affecting corporate data management. Japan is now considering revising its strict data protection policyfor consumers. The U.S. is in a political battle between those that want tighter Internet controls for copyright holders. And many other nations are designing new laws that affect how companies manage their data.

As I’ve argued here before, having a chief data officer would give enterprises a huge competitive advantage by being able to anticipate the impact new regulations would have on an organization’s data management strategy. In fact, it is increasingly paramount for large multinational companies to have a C-level data officer. Without one, the enterprise lacks a critical resource to compete in today’s global markets.

I agree with President Obama. Data management is, indeed, an excellent career choice for young people. After all, companies need smart people who understand its strategic importance and know how to react quickly when the politicians change the rules on data management for business. Again. And again.

Comments

Joseph Msays

About Joseph Msays

Joseph Msays is an experienced IBM global executive, currently serving as Vice President and Global Managing Partner for NextGen Enterprise Cloud Applications Center of Excellence. In this role, he is pioneering new ways of engaging CxOs in their digital reinvention agendas, and building and migrating new cloud-based business applications. Joseph has experience managing many IBM professional services units and large strategic systems, integration and outsourcing relationships, and has lived and worked in virtually every major market across the globe.

Tags:

Awareness

Data Management and Retention Requirements

Irfan Khan

In his annual state of the union speech last month President Barack Obama made a passing reference to the need for the U.S. to train more people in data management to supply the needs of companies. A little later in the speech he talked about how some new, targeted government regulations would benefit honest businesses while rooting out the bad apples. Maybe he was thinking that those newly trained data managers would be able to help companies with the advanced data management techniques his undefined regulations would require.

Don’t get me wrong. I’m not against all regulations. And I’m certainly not opposed to giving tuition credits to students wanting to study the art of data management. But, as the politicians like to say, “let’s be perfectly clear”: modern government regulations require IT professionals to implement new data management policies to prove they are in compliance with changes in the law.

For example, in 2006 the European Union issued a directive to communications carriersforcing them to hold on to subscriber usage data for six to 24 months. That’s so the companies can quickly respond to legal authorities who need to access data for criminal investigations. While some operators may already keep the information, it’s often stored offline. In the case of the EU directive, the information must be able to be accessed without delay by authorities armed with a warrant.

The way the EU directive was written means that wire line, wireless, and ISP operators must retain 15 categories of data. And because the time periods vary, the amount of data to be stored is unpredictable. As you can imagine, the EU also imposed some hefty data security demands as well as unique access requirements. For example, some legal authorities may send their warrants by FAX, e-mail, or even letters via the postal service.

Needless to say, the regulations don’t spell out exactly how carriers should implement the data retention policy. They simply need to do so.

It’s not just the EU creating rules affecting corporate data management. Japan is now considering revising its strict data protection policyfor consumers. The U.S. is in a political battle between those that want tighter Internet controls for copyright holders. And many other nations are designing new laws that affect how companies manage their data.

As I’ve argued here before, having a chief data officer would give enterprises a huge competitive advantage by being able to anticipate the impact new regulations would have on an organization’s data management strategy. In fact, it is increasingly paramount for large multinational companies to have a C-level data officer. Without one, the enterprise lacks a critical resource to compete in today’s global markets.

I agree with President Obama. Data management is, indeed, an excellent career choice for young people. After all, companies need smart people who understand its strategic importance and know how to react quickly when the politicians change the rules on data management for business. Again. And again.

Comments

Vaag Durgaryan

About Vaag Durgaryan

Vaag Durgaryan is the commercial finance director for SAP in the Middle East and North Africa, which comprises of over 20 countries. Starting in 2017, he oversees a multinational team that provides finance expertise, knowledge, and strategy outlook for finance sales support in the region. Prior to that, Vaag was chief of staff for the CFO for SAP Global Field Finance and co-drove global transformation initiatives with focus on process simplification and people enablement. He holds an Executive MBA degree from ESSEC Business School and Mannheim Business School. Vaag has a passion in digitalization and learning culture.

Tags:

Awareness

Data Management and Retention Requirements

Irfan Khan

In his annual state of the union speech last month President Barack Obama made a passing reference to the need for the U.S. to train more people in data management to supply the needs of companies. A little later in the speech he talked about how some new, targeted government regulations would benefit honest businesses while rooting out the bad apples. Maybe he was thinking that those newly trained data managers would be able to help companies with the advanced data management techniques his undefined regulations would require.

Don’t get me wrong. I’m not against all regulations. And I’m certainly not opposed to giving tuition credits to students wanting to study the art of data management. But, as the politicians like to say, “let’s be perfectly clear”: modern government regulations require IT professionals to implement new data management policies to prove they are in compliance with changes in the law.

For example, in 2006 the European Union issued a directive to communications carriersforcing them to hold on to subscriber usage data for six to 24 months. That’s so the companies can quickly respond to legal authorities who need to access data for criminal investigations. While some operators may already keep the information, it’s often stored offline. In the case of the EU directive, the information must be able to be accessed without delay by authorities armed with a warrant.

The way the EU directive was written means that wire line, wireless, and ISP operators must retain 15 categories of data. And because the time periods vary, the amount of data to be stored is unpredictable. As you can imagine, the EU also imposed some hefty data security demands as well as unique access requirements. For example, some legal authorities may send their warrants by FAX, e-mail, or even letters via the postal service.

Needless to say, the regulations don’t spell out exactly how carriers should implement the data retention policy. They simply need to do so.

It’s not just the EU creating rules affecting corporate data management. Japan is now considering revising its strict data protection policyfor consumers. The U.S. is in a political battle between those that want tighter Internet controls for copyright holders. And many other nations are designing new laws that affect how companies manage their data.

As I’ve argued here before, having a chief data officer would give enterprises a huge competitive advantage by being able to anticipate the impact new regulations would have on an organization’s data management strategy. In fact, it is increasingly paramount for large multinational companies to have a C-level data officer. Without one, the enterprise lacks a critical resource to compete in today’s global markets.

I agree with President Obama. Data management is, indeed, an excellent career choice for young people. After all, companies need smart people who understand its strategic importance and know how to react quickly when the politicians change the rules on data management for business. Again. And again.

Comments

About Richard Howells

Richard Howells is a Vice President at SAP responsible for the positioning, messaging, AR , PR and go-to market activities for the SAP Supply Chain solutions.

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Awareness

Data Management and Retention Requirements

Irfan Khan

In his annual state of the union speech last month President Barack Obama made a passing reference to the need for the U.S. to train more people in data management to supply the needs of companies. A little later in the speech he talked about how some new, targeted government regulations would benefit honest businesses while rooting out the bad apples. Maybe he was thinking that those newly trained data managers would be able to help companies with the advanced data management techniques his undefined regulations would require.

Don’t get me wrong. I’m not against all regulations. And I’m certainly not opposed to giving tuition credits to students wanting to study the art of data management. But, as the politicians like to say, “let’s be perfectly clear”: modern government regulations require IT professionals to implement new data management policies to prove they are in compliance with changes in the law.

For example, in 2006 the European Union issued a directive to communications carriersforcing them to hold on to subscriber usage data for six to 24 months. That’s so the companies can quickly respond to legal authorities who need to access data for criminal investigations. While some operators may already keep the information, it’s often stored offline. In the case of the EU directive, the information must be able to be accessed without delay by authorities armed with a warrant.

The way the EU directive was written means that wire line, wireless, and ISP operators must retain 15 categories of data. And because the time periods vary, the amount of data to be stored is unpredictable. As you can imagine, the EU also imposed some hefty data security demands as well as unique access requirements. For example, some legal authorities may send their warrants by FAX, e-mail, or even letters via the postal service.

Needless to say, the regulations don’t spell out exactly how carriers should implement the data retention policy. They simply need to do so.

It’s not just the EU creating rules affecting corporate data management. Japan is now considering revising its strict data protection policyfor consumers. The U.S. is in a political battle between those that want tighter Internet controls for copyright holders. And many other nations are designing new laws that affect how companies manage their data.

As I’ve argued here before, having a chief data officer would give enterprises a huge competitive advantage by being able to anticipate the impact new regulations would have on an organization’s data management strategy. In fact, it is increasingly paramount for large multinational companies to have a C-level data officer. Without one, the enterprise lacks a critical resource to compete in today’s global markets.

I agree with President Obama. Data management is, indeed, an excellent career choice for young people. After all, companies need smart people who understand its strategic importance and know how to react quickly when the politicians change the rules on data management for business. Again. And again.

Comments

About Stefan Guertzgen

Dr. Stefan Guertzgen is the Global Director of Industry Solution Marketing for Chemicals at SAP. He is responsible for driving Industry Thought Leadership, Positioning & Messaging and strategic Portfolio Decisions for Chemicals.

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Awareness

Data Management and Retention Requirements

Irfan Khan

In his annual state of the union speech last month President Barack Obama made a passing reference to the need for the U.S. to train more people in data management to supply the needs of companies. A little later in the speech he talked about how some new, targeted government regulations would benefit honest businesses while rooting out the bad apples. Maybe he was thinking that those newly trained data managers would be able to help companies with the advanced data management techniques his undefined regulations would require.

Don’t get me wrong. I’m not against all regulations. And I’m certainly not opposed to giving tuition credits to students wanting to study the art of data management. But, as the politicians like to say, “let’s be perfectly clear”: modern government regulations require IT professionals to implement new data management policies to prove they are in compliance with changes in the law.

For example, in 2006 the European Union issued a directive to communications carriersforcing them to hold on to subscriber usage data for six to 24 months. That’s so the companies can quickly respond to legal authorities who need to access data for criminal investigations. While some operators may already keep the information, it’s often stored offline. In the case of the EU directive, the information must be able to be accessed without delay by authorities armed with a warrant.

The way the EU directive was written means that wire line, wireless, and ISP operators must retain 15 categories of data. And because the time periods vary, the amount of data to be stored is unpredictable. As you can imagine, the EU also imposed some hefty data security demands as well as unique access requirements. For example, some legal authorities may send their warrants by FAX, e-mail, or even letters via the postal service.

Needless to say, the regulations don’t spell out exactly how carriers should implement the data retention policy. They simply need to do so.

It’s not just the EU creating rules affecting corporate data management. Japan is now considering revising its strict data protection policyfor consumers. The U.S. is in a political battle between those that want tighter Internet controls for copyright holders. And many other nations are designing new laws that affect how companies manage their data.

As I’ve argued here before, having a chief data officer would give enterprises a huge competitive advantage by being able to anticipate the impact new regulations would have on an organization’s data management strategy. In fact, it is increasingly paramount for large multinational companies to have a C-level data officer. Without one, the enterprise lacks a critical resource to compete in today’s global markets.

I agree with President Obama. Data management is, indeed, an excellent career choice for young people. After all, companies need smart people who understand its strategic importance and know how to react quickly when the politicians change the rules on data management for business. Again. And again.

Comments

Andy Hirst

About Andy Hirst

Andy Hirst is vice president of Banking Solutions, SAP Banking Industry Business Unit, at SAP. He is responsible for driving the success of the SAP go-to-market strategy in Line of Business Cloud Applications and Analytics in Financial Services. Previously, Andy was responsible for Capital Markets solutions for banking. Andy is an expert in Big Data and analytics use cases in financial services and has been involved in many digital banking initiatives for banks.

Tags:

Awareness

Data Management and Retention Requirements

Irfan Khan

In his annual state of the union speech last month President Barack Obama made a passing reference to the need for the U.S. to train more people in data management to supply the needs of companies. A little later in the speech he talked about how some new, targeted government regulations would benefit honest businesses while rooting out the bad apples. Maybe he was thinking that those newly trained data managers would be able to help companies with the advanced data management techniques his undefined regulations would require.

Don’t get me wrong. I’m not against all regulations. And I’m certainly not opposed to giving tuition credits to students wanting to study the art of data management. But, as the politicians like to say, “let’s be perfectly clear”: modern government regulations require IT professionals to implement new data management policies to prove they are in compliance with changes in the law.

For example, in 2006 the European Union issued a directive to communications carriersforcing them to hold on to subscriber usage data for six to 24 months. That’s so the companies can quickly respond to legal authorities who need to access data for criminal investigations. While some operators may already keep the information, it’s often stored offline. In the case of the EU directive, the information must be able to be accessed without delay by authorities armed with a warrant.

The way the EU directive was written means that wire line, wireless, and ISP operators must retain 15 categories of data. And because the time periods vary, the amount of data to be stored is unpredictable. As you can imagine, the EU also imposed some hefty data security demands as well as unique access requirements. For example, some legal authorities may send their warrants by FAX, e-mail, or even letters via the postal service.

Needless to say, the regulations don’t spell out exactly how carriers should implement the data retention policy. They simply need to do so.

It’s not just the EU creating rules affecting corporate data management. Japan is now considering revising its strict data protection policyfor consumers. The U.S. is in a political battle between those that want tighter Internet controls for copyright holders. And many other nations are designing new laws that affect how companies manage their data.

As I’ve argued here before, having a chief data officer would give enterprises a huge competitive advantage by being able to anticipate the impact new regulations would have on an organization’s data management strategy. In fact, it is increasingly paramount for large multinational companies to have a C-level data officer. Without one, the enterprise lacks a critical resource to compete in today’s global markets.

I agree with President Obama. Data management is, indeed, an excellent career choice for young people. After all, companies need smart people who understand its strategic importance and know how to react quickly when the politicians change the rules on data management for business. Again. And again.

Comments

Tina Gunn

About Tina Gunn

Tina Gunn is the content marketing manager for the Enterprise Americas team at SAP Concur. Tina earned her degree in Journalism from the University of Washington and brings her experience in content strategy and digital marketing to SAP Concur. When she’s not creating thought leadership and sales enablement content, Tina writes fiction and screenplays of the horror and sci-fi genres.

Tags:

Awareness

Data Management and Retention Requirements

Irfan Khan

In his annual state of the union speech last month President Barack Obama made a passing reference to the need for the U.S. to train more people in data management to supply the needs of companies. A little later in the speech he talked about how some new, targeted government regulations would benefit honest businesses while rooting out the bad apples. Maybe he was thinking that those newly trained data managers would be able to help companies with the advanced data management techniques his undefined regulations would require.

Don’t get me wrong. I’m not against all regulations. And I’m certainly not opposed to giving tuition credits to students wanting to study the art of data management. But, as the politicians like to say, “let’s be perfectly clear”: modern government regulations require IT professionals to implement new data management policies to prove they are in compliance with changes in the law.

For example, in 2006 the European Union issued a directive to communications carriersforcing them to hold on to subscriber usage data for six to 24 months. That’s so the companies can quickly respond to legal authorities who need to access data for criminal investigations. While some operators may already keep the information, it’s often stored offline. In the case of the EU directive, the information must be able to be accessed without delay by authorities armed with a warrant.

The way the EU directive was written means that wire line, wireless, and ISP operators must retain 15 categories of data. And because the time periods vary, the amount of data to be stored is unpredictable. As you can imagine, the EU also imposed some hefty data security demands as well as unique access requirements. For example, some legal authorities may send their warrants by FAX, e-mail, or even letters via the postal service.

Needless to say, the regulations don’t spell out exactly how carriers should implement the data retention policy. They simply need to do so.

It’s not just the EU creating rules affecting corporate data management. Japan is now considering revising its strict data protection policyfor consumers. The U.S. is in a political battle between those that want tighter Internet controls for copyright holders. And many other nations are designing new laws that affect how companies manage their data.

As I’ve argued here before, having a chief data officer would give enterprises a huge competitive advantage by being able to anticipate the impact new regulations would have on an organization’s data management strategy. In fact, it is increasingly paramount for large multinational companies to have a C-level data officer. Without one, the enterprise lacks a critical resource to compete in today’s global markets.

I agree with President Obama. Data management is, indeed, an excellent career choice for young people. After all, companies need smart people who understand its strategic importance and know how to react quickly when the politicians change the rules on data management for business. Again. And again.

Comments

Rushenka Perera

About Rushenka Perera

Rushenka is Head of Marketing at SAP ANZ.

Tags:

Awareness

Data Management and Retention Requirements

Irfan Khan

In his annual state of the union speech last month President Barack Obama made a passing reference to the need for the U.S. to train more people in data management to supply the needs of companies. A little later in the speech he talked about how some new, targeted government regulations would benefit honest businesses while rooting out the bad apples. Maybe he was thinking that those newly trained data managers would be able to help companies with the advanced data management techniques his undefined regulations would require.

Don’t get me wrong. I’m not against all regulations. And I’m certainly not opposed to giving tuition credits to students wanting to study the art of data management. But, as the politicians like to say, “let’s be perfectly clear”: modern government regulations require IT professionals to implement new data management policies to prove they are in compliance with changes in the law.

For example, in 2006 the European Union issued a directive to communications carriersforcing them to hold on to subscriber usage data for six to 24 months. That’s so the companies can quickly respond to legal authorities who need to access data for criminal investigations. While some operators may already keep the information, it’s often stored offline. In the case of the EU directive, the information must be able to be accessed without delay by authorities armed with a warrant.

The way the EU directive was written means that wire line, wireless, and ISP operators must retain 15 categories of data. And because the time periods vary, the amount of data to be stored is unpredictable. As you can imagine, the EU also imposed some hefty data security demands as well as unique access requirements. For example, some legal authorities may send their warrants by FAX, e-mail, or even letters via the postal service.

Needless to say, the regulations don’t spell out exactly how carriers should implement the data retention policy. They simply need to do so.

It’s not just the EU creating rules affecting corporate data management. Japan is now considering revising its strict data protection policyfor consumers. The U.S. is in a political battle between those that want tighter Internet controls for copyright holders. And many other nations are designing new laws that affect how companies manage their data.

As I’ve argued here before, having a chief data officer would give enterprises a huge competitive advantage by being able to anticipate the impact new regulations would have on an organization’s data management strategy. In fact, it is increasingly paramount for large multinational companies to have a C-level data officer. Without one, the enterprise lacks a critical resource to compete in today’s global markets.

I agree with President Obama. Data management is, indeed, an excellent career choice for young people. After all, companies need smart people who understand its strategic importance and know how to react quickly when the politicians change the rules on data management for business. Again. And again.

Comments

Jennifer Horowitz

About Jennifer Horowitz

Jennifer Horowitz is a journalist with over 15 years of experience working in the technology, financial, hospitality, real estate, healthcare, manufacturing, not for profit, and retail sectors. She specializes in the field of analytics, offering management consulting serving global clients from midsize to large-scale organizations. Within the field of analytics, she helps higher-level organizations define their metrics strategies, create concepts, define problems, conduct analysis, problem solve, and execute.

Tags:

Awareness

Data Management and Retention Requirements

Irfan Khan

In his annual state of the union speech last month President Barack Obama made a passing reference to the need for the U.S. to train more people in data management to supply the needs of companies. A little later in the speech he talked about how some new, targeted government regulations would benefit honest businesses while rooting out the bad apples. Maybe he was thinking that those newly trained data managers would be able to help companies with the advanced data management techniques his undefined regulations would require.

Don’t get me wrong. I’m not against all regulations. And I’m certainly not opposed to giving tuition credits to students wanting to study the art of data management. But, as the politicians like to say, “let’s be perfectly clear”: modern government regulations require IT professionals to implement new data management policies to prove they are in compliance with changes in the law.

For example, in 2006 the European Union issued a directive to communications carriersforcing them to hold on to subscriber usage data for six to 24 months. That’s so the companies can quickly respond to legal authorities who need to access data for criminal investigations. While some operators may already keep the information, it’s often stored offline. In the case of the EU directive, the information must be able to be accessed without delay by authorities armed with a warrant.

The way the EU directive was written means that wire line, wireless, and ISP operators must retain 15 categories of data. And because the time periods vary, the amount of data to be stored is unpredictable. As you can imagine, the EU also imposed some hefty data security demands as well as unique access requirements. For example, some legal authorities may send their warrants by FAX, e-mail, or even letters via the postal service.

Needless to say, the regulations don’t spell out exactly how carriers should implement the data retention policy. They simply need to do so.

It’s not just the EU creating rules affecting corporate data management. Japan is now considering revising its strict data protection policyfor consumers. The U.S. is in a political battle between those that want tighter Internet controls for copyright holders. And many other nations are designing new laws that affect how companies manage their data.

As I’ve argued here before, having a chief data officer would give enterprises a huge competitive advantage by being able to anticipate the impact new regulations would have on an organization’s data management strategy. In fact, it is increasingly paramount for large multinational companies to have a C-level data officer. Without one, the enterprise lacks a critical resource to compete in today’s global markets.

I agree with President Obama. Data management is, indeed, an excellent career choice for young people. After all, companies need smart people who understand its strategic importance and know how to react quickly when the politicians change the rules on data management for business. Again. And again.

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Patrick Crampton-Thomas

About Patrick Crampton-Thomas

Patrick Crampton-Thomas is Vice President of Supply Chain Solution Management at SAP, with global responsibility for the response and supply orchestration portfolio, based in the UK. This includes the strategy and go-to-market for existing and new supply chain solutions including integrated business planning solutions, supply chain control tower, and supply chain collaboration.

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Awareness

Data Management and Retention Requirements

Irfan Khan

In his annual state of the union speech last month President Barack Obama made a passing reference to the need for the U.S. to train more people in data management to supply the needs of companies. A little later in the speech he talked about how some new, targeted government regulations would benefit honest businesses while rooting out the bad apples. Maybe he was thinking that those newly trained data managers would be able to help companies with the advanced data management techniques his undefined regulations would require.

Don’t get me wrong. I’m not against all regulations. And I’m certainly not opposed to giving tuition credits to students wanting to study the art of data management. But, as the politicians like to say, “let’s be perfectly clear”: modern government regulations require IT professionals to implement new data management policies to prove they are in compliance with changes in the law.

For example, in 2006 the European Union issued a directive to communications carriersforcing them to hold on to subscriber usage data for six to 24 months. That’s so the companies can quickly respond to legal authorities who need to access data for criminal investigations. While some operators may already keep the information, it’s often stored offline. In the case of the EU directive, the information must be able to be accessed without delay by authorities armed with a warrant.

The way the EU directive was written means that wire line, wireless, and ISP operators must retain 15 categories of data. And because the time periods vary, the amount of data to be stored is unpredictable. As you can imagine, the EU also imposed some hefty data security demands as well as unique access requirements. For example, some legal authorities may send their warrants by FAX, e-mail, or even letters via the postal service.

Needless to say, the regulations don’t spell out exactly how carriers should implement the data retention policy. They simply need to do so.

It’s not just the EU creating rules affecting corporate data management. Japan is now considering revising its strict data protection policyfor consumers. The U.S. is in a political battle between those that want tighter Internet controls for copyright holders. And many other nations are designing new laws that affect how companies manage their data.

As I’ve argued here before, having a chief data officer would give enterprises a huge competitive advantage by being able to anticipate the impact new regulations would have on an organization’s data management strategy. In fact, it is increasingly paramount for large multinational companies to have a C-level data officer. Without one, the enterprise lacks a critical resource to compete in today’s global markets.

I agree with President Obama. Data management is, indeed, an excellent career choice for young people. After all, companies need smart people who understand its strategic importance and know how to react quickly when the politicians change the rules on data management for business. Again. And again.

Comments

Timo Elliott

About Timo Elliott

Timo Elliott is an Innovation Evangelist for SAP and a passionate advocate of innovation, digital business, analytics, and artificial intelligence. He was the eighth employee of BusinessObjects and for the last 25 years he has worked closely with SAP customers around the world on new technology directions and their impact on real-world organizations. His articles have appeared in publications such as Harvard Business Review, Forbes, ZDNet, The Guardian, and Digitalist Magazine. He has worked in the UK, Hong Kong, New Zealand, and Silicon Valley, and currently lives in Paris, France. He has a degree in Econometrics and a patent in mobile analytics. 

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Awareness

Hack the CIO

By Thomas Saueressig, Timo Elliott, Sam Yen, and Bennett Voyles

For nerds, the weeks right before finals are a Cinderella moment. Suddenly they’re stars. Pocket protectors are fashionable; people find their jokes a whole lot funnier; Dungeons & Dragons sounds cool.

Many CIOs are enjoying this kind of moment now, as companies everywhere face the business equivalent of a final exam for a vital class they have managed to mostly avoid so far: digital transformation.

But as always, there is a limit to nerdy magic. No matter how helpful CIOs try to be, their classmates still won’t pass if they don’t learn the material. With IT increasingly central to every business—from the customer experience to the offering to the business model itself—we all need to start thinking like CIOs.

Pass the digital transformation exam, and you probably have a bright future ahead. A recent SAP-Oxford Economics study of 3,100 organizations in a variety of industries across 17 countries found that the companies that have taken the lead in digital transformation earn higher profits and revenues and have more competitive differentiation than their peers. They also expect 23% more revenue growth from their digital initiatives over the next two years—an estimate 2.5 to 4 times larger than the average company’s.

But the market is grading on a steep curve: this same SAP-Oxford study found that only 3% have completed some degree of digital transformation across their organization. Other surveys also suggest that most companies won’t be graduating anytime soon: in one recent survey of 450 heads of digital transformation for enterprises in the United States, United Kingdom, France, and Germany by technology company Couchbase, 90% agreed that most digital projects fail to meet expectations and deliver only incremental improvements. Worse: over half (54%) believe that organizations that don’t succeed with their transformation project will fail or be absorbed by a savvier competitor within four years.

Companies that are making the grade understand that unlike earlier technical advances, digital transformation doesn’t just support the business, it’s the future of the business. That’s why 60% of digital leading companies have entrusted the leadership of their transformation to their CIO, and that’s why experts say businesspeople must do more than have a vague understanding of the technology. They must also master a way of thinking and looking at business challenges that is unfamiliar to most people outside the IT department.

In other words, if you don’t think like a CIO yet, now is a very good time to learn.

However, given that you probably don’t have a spare 15 years to learn what your CIO knows, we asked the experts what makes CIO thinking distinctive. Here are the top eight mind hacks.

1. Think in Systems

A lot of businesspeople are used to seeing their organization as a series of loosely joined silos. But in the world of digital business, everything is part of a larger system.

CIOs have known for a long time that smart processes win. Whether they were installing enterprise resource planning systems or working with the business to imagine the customer’s journey, they always had to think in holistic ways that crossed traditional departmental, functional, and operational boundaries.

Unlike other business leaders, CIOs spend their careers looking across systems. Why did our supply chain go down? How can we support this new business initiative beyond a single department or function? Now supported by end-to-end process methodologies such as design thinking, good CIOs have developed a way of looking at the company that can lead to radical simplifications that can reduce cost and improve performance at the same time.

They are also used to thinking beyond temporal boundaries. “This idea that the power of technology doubles every two years means that as you’re planning ahead you can’t think in terms of a linear process, you have to think in terms of huge jumps,” says Jay Ferro, CIO of TransPerfect, a New York–based global translation firm.

No wonder the SAP-Oxford transformation study found that one of the values transformational leaders shared was a tendency to look beyond silos and view the digital transformation as a company-wide initiative.

This will come in handy because in digital transformation, not only do business processes evolve but the company’s entire value proposition changes, says Jeanne Ross, principal research scientist at the Center for Information Systems Research at the Massachusetts Institute of Technology (MIT). “It either already has or it’s going to, because digital technologies make things possible that weren’t possible before,” she explains.

2. Work in Diverse Teams

When it comes to large projects, CIOs have always needed input from a diverse collection of businesspeople to be successful. The best have developed ways to convince and cajole reluctant participants to come to the table. They seek out technology enthusiasts in the business and those who are respected by their peers to help build passion and commitment among the halfhearted.

Digital transformation amps up the urgency for building diverse teams even further. “A small, focused group simply won’t have the same breadth of perspective as a team that includes a salesperson and a service person and a development person, as well as an IT person,” says Ross.

At Lenovo, the global technology giant, many of these cross-functional teams become so used to working together that it’s hard to tell where each member originally belonged: “You can’t tell who is business or IT; you can’t tell who is product, IT, or design,” says the company’s CIO, Arthur Hu.

One interesting corollary of this trend toward broader teamwork is that talent is a priority among digital leaders: they spend more on training their employees and partners than ordinary companies, as well as on hiring the people they need, according to the SAP-Oxford Economics survey. They’re also already being rewarded for their faith in their teams: 71% of leaders say that their successful digital transformation has made it easier for them to attract and retain talent, and 64% say that their employees are now more engaged than they were before the transformation.

3. Become a Consultant

Good CIOs have long needed to be internal consultants to the business. Ever since technology moved out of the glasshouse and onto employees’ desks, CIOs have not only needed a deep understanding of the goals of a given project but also to make sure that the project didn’t stray from those goals, even after the businesspeople who had ordered the project went back to their day jobs. “Businesspeople didn’t really need to get into the details of what IT was really doing,” recalls Ferro. “They just had a set of demands and said, ‘Hey, IT, go do that.’”

Now software has become so integral to the business that nobody can afford to walk away. Businesspeople must join the ranks of the IT consultants.

But that was then. Now software has become so integral to the business that nobody can afford to walk away. Businesspeople must join the ranks of the IT consultants. “If you’re building a house, you don’t just disappear for six months and come back and go, ‘Oh, it looks pretty good,’” says Ferro. “You’re on that work site constantly and all of a sudden you’re looking at something, going, ‘Well, that looked really good on the blueprint, not sure it makes sense in reality. Let’s move that over six feet.’ Or, ‘I don’t know if I like that anymore.’ It’s really not much different in application development or for IT or technical projects, where on paper it looked really good and three weeks in, in that second sprint, you’re going, ‘Oh, now that I look at it, that’s really stupid.’”

4. Learn Horizontal Leadership

CIOs have always needed the ability to educate and influence other leaders that they don’t directly control. For major IT projects to be successful, they need other leaders to contribute budget, time, and resources from multiple areas of the business.

It’s a kind of horizontal leadership that will become critical for businesspeople to acquire in digital transformation. “The leadership role becomes one much more of coaching others across the organization—encouraging people to be creative, making sure everybody knows how to use data well,” Ross says.

In this team-based environment, having all the answers becomes less important. “It used to be that the best business executives and leaders had the best answers. Today that is no longer the case,” observes Gary Cokins, a technology consultant who focuses on analytics-based performance management. “Increasingly, it’s the executives and leaders who ask the best questions. There is too much volatility and uncertainty for them to rely on their intuition or past experiences.”

Many experts expect this trend to continue as the confluence of automation and data keeps chipping away at the organizational pyramid. “Hierarchical, command-and-control leadership will become obsolete,” says Edward Hess, professor of business administration and Batten executive-in-residence at the Darden School of Business at the University of Virginia. “Flatter, distributive leadership via teams will become the dominant structure.”

5. Understand Process Design

When business processes were simpler, IT could analyze the process and improve it without input from the business. But today many processes are triggered on the fly by the customer, making a seamless customer experience more difficult to build without the benefit of a larger, multifunctional team. In a highly digitalized organization like Amazon, which releases thousands of new software programs each year, IT can no longer do it all.

While businesspeople aren’t expected to start coding, their involvement in process design is crucial. One of the techniques that many organizations have adopted to help IT and businesspeople visualize business processes together is design thinking (for more on design thinking techniques, see “A Cult of Creation“).

Customers aren’t the only ones who benefit from better processes. Among the 100 companies the SAP-Oxford Economics researchers have identified as digital leaders, two-thirds say that they are making their employees’ lives easier by eliminating process roadblocks that interfere with their ability to do their jobs. Ninety percent of leaders surveyed expect to see value from these projects in the next two years alone.

6. Learn to Keep Learning

The ability to learn and keep learning has been a part of IT from the start. Since the first mainframes in the 1950s, technologists have understood that they need to keep reinventing themselves and their skills to adapt to the changes around them.

Now that’s starting to become part of other job descriptions too. Many companies are investing in teaching their employees new digital skills. One South American auto products company, for example, has created a custom-education institute that trained 20,000 employees and partner-employees in 2016. In addition to training current staff, many leading digital companies are also hiring new employees and creating new roles, such as a chief robotics officer, to support their digital transformation efforts.

Nicolas van Zeebroeck, professor of information systems and digital business innovation at the Solvay Brussels School of Economics and Management at the Free University of Brussels, says that he expects the ability to learn quickly will remain crucial. “If I had to think of one critical skill,” he explains, “I would have to say it’s the ability to learn and keep learning—the ability to challenge the status quo and question what you take for granted.”

7. Fail Smarter

Traditionally, CIOs tended to be good at thinking through tests that would allow the company to experiment with new technology without risking the entire network.

This is another unfamiliar skill that smart managers are trying to pick up. “There’s a lot of trial and error in the best companies right now,” notes MIT’s Ross. But there’s a catch, she adds. “Most companies aren’t designed for trial and error—they’re trying to avoid an error,” she says.

To learn how to do it better, take your lead from IT, where many people have already learned to work in small, innovative teams that use agile development principles, advises Ross.

For example, business managers must learn how to think in terms of a minimum viable product: build a simple version of what you have in mind, test it, and if it works start building. You don’t build the whole thing at once anymore.… It’s really important to build things incrementally,” Ross says.

Flexibility and the ability to capitalize on accidental discoveries during experimentation are more important than having a concrete project plan, says Ross. At Spotify, the music service, and CarMax, the used-car retailer, change is driven not from the center but from small teams that have developed something new. “The thing you have to get comfortable with is not having the formalized plan that we would have traditionally relied on, because as soon as you insist on that, you limit your ability to keep learning,” Ross warns.

8. Understand the True Cost—and Speed—of Data

Gut instincts have never had much to do with being a CIO; now they should have less to do with being an ordinary manager as well, as data becomes more important.

As part of that calculation, businesspeople must have the ability to analyze the value of the data that they seek. “You’ll need to apply a pinch of knowledge salt to your data,” advises Solvay’s van Zeebroeck. “What really matters is the ability not just to tap into data but to see what is behind the data. Is it a fair representation? Is it impartial?”

Increasingly, businesspeople will need to do their analysis in real time, just as CIOs have always had to manage live systems and processes. Moving toward real-time reports and away from paper-based decisions increases accuracy and effectiveness—and leaves less time for long meetings and PowerPoint presentations (let us all rejoice).

Not Every CIO Is Ready

Of course, not all CIOs are ready for these changes. Just as high school has a lot of false positives—genius nerds who turn out to be merely nearsighted—so there are many CIOs who aren’t good role models for transformation.

Success as a CIO these days requires more than delivering near-perfect uptime, says Lenovo’s Hu. You need to be able to understand the business as well. Some CIOs simply don’t have all the business skills that are needed to succeed in the transformation. Others lack the internal clout: a 2016 KPMG study found that only 34% of CIOs report directly to the CEO.

This lack of a strategic perspective is holding back digital transformation at many organizations. They approach digital transformation as a cool, one-off project: we’re going to put this new mobile app in place and we’re done. But that’s not a systematic approach; it’s an island of innovation that doesn’t join up with the other islands of innovation. In the longer term, this kind of development creates more problems than it fixes.

Such organizations are not building in the capacity for change; they’re trying to get away with just doing it once rather than thinking about how they’re going to use digitalization as a means to constantly experiment and become a better company over the long term.

As a result, in some companies, the most interesting tech developments are happening despite IT, not because of it. “There’s an alarming digital divide within many companies. Marketers are developing nimble software to give customers an engaging, personalized experience, while IT departments remain focused on the legacy infrastructure. The front and back ends aren’t working together, resulting in appealing web sites and apps that don’t quite deliver,” writes George Colony, founder, chairman, and CEO of Forrester Research, in the MIT Sloan Management Review.

Thanks to cloud computing and easier development tools, many departments are developing on their own, without IT’s support. These days, anybody with a credit card can do it.

Traditionally, IT departments looked askance at these kinds of do-it-yourself shadow IT programs, but that’s changing. Ferro, for one, says that it’s better to look at those teams not as rogue groups but as people who are trying to help. “It’s less about ‘Hey, something’s escaped,’ and more about ‘No, we just actually grew our capacity and grew our ability to innovate,’” he explains.

“I don’t like the term ‘shadow IT,’” agrees Lenovo’s Hu. “I think it’s an artifact of a very traditional CIO team. If you think of it as shadow IT, you’re out of step with reality,” he says.

The reality today is that a company needs both a strong IT department and strong digital capacities outside its IT department. If the relationship is good, the CIO and IT become valuable allies in helping businesspeople add digital capabilities without disrupting or duplicating existing IT infrastructure.

If a company already has strong digital capacities, it should be able to move forward quickly, according to Ross. But many companies are still playing catch-up and aren’t even ready to begin transforming, as the SAP-Oxford Economics survey shows.

For enterprises where business and IT are unable to get their collective act together, Ross predicts that the next few years will be rough. “I think these companies ought to panic,” she says. D!


About the Authors

Thomas Saueressig is Chief Information Officer at SAP.

Timo Elliott is an Innovation Evangelist at SAP.

Sam Yen is Chief Design Officer at SAP and Managing Director of SAP Labs.

Bennett Voyles is a Berlin-based business writer.

Read more thought provoking articles in the latest issue of the Digitalist Magazine, Executive Quarterly.
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Cloud Computing: Separating Myth From Reality

Misa Rawlins and Krishnakant Dave

Across industries, many enterprise leaders believe and understand that cloud computing is here to stay. Globally, public cloud services market revenue is projected to reach US$411 billion by 2020, compared with $260 billion in 2017, according to research firm Gartner, Inc. Cloud technology in all its forms—software, platform, or infrastructure as a service—is rapidly becoming essential to the needs of business today. With cloud computing, organizations can simplify IT, save costs, scale rapidly, drive standardization and user adoption, and start getting ahead of tomorrow’s needs when it comes to customer engagement, the supply chain, the workforce, a simplified finance function, and more.

Despite the short- and long-term advantages, some executives remain uncertain about the next steps or have lingering questions about the benefits of moving to the cloud. For many leaders, separating the cloud myths from the facts can prove daunting. Start here, with these insights that can help you bust big myths about the cloud and start moving confidently toward a cloud-enabled transformation of your organization.

Myth No. 1: Moving to the cloud is too costly. “Costly” is a relative term. The cloud can be costly – but costs should be weighed against benefit and return once requirements and migration plans are in place. Rapidly evolving business demands, for example, can dramatically alter cloud-related requirements. Meanwhile, new technologies are dramatically redefining the art of the possible with the cloud. Because migrating to the cloud is not a true “plug-and-play” proposition, and many enterprise leaders underestimate what a migration or implementation involves, some organizations can be surprised by the costs of a cloud transformation. Without a clear understanding of the potential benefits—without a clear business case for moving to the cloud—the focus on costs can overshadow the return on investment. Knowing the value that cloud solutions can bring—not just the costs—can help manage expectations.

Myth No. 2: The benefits of the cloud aren’t substantial enough. As vendors adopt a “cloud-first” stance for many solutions and product updates, organizations that move to the cloud may have a competitive advantage—no matter the size of the enterprise. Cloud solutions continue to offer abundant and increasing functionality. And with the help of an end-to-end solution provider, you can configure cloud solutions to the specific needs of your industry and your business. For larger organizations, rapidly deployable cloud solutions can help support growth or the unique needs of certain business units, such as new acquisitions or foreign subsidiaries, for example. For smaller organizations, the cloud can help you position your organization to tap new opportunities and tame growth challenges.

Myth No. 3: Cloud is too risky. All digital technologies and all business models come with inherent risk. In a hyperconnected world, no system is immune from cyber attacks, insider threats, data leakage, or related risks. No transformation project is a guaranteed success. Market changes, new competition, regulatory issues, and other factors can require you to change your cloud strategy overnight.

Because the risks are real, take advantage of resources and capabilities that can help reduce risk and ensure that your technology investments align tightly with clear business objectives. The maturity of the software goes a long way toward mitigating risk with cloud projects. You can add an extra layer of capabilities such as managed cloud services to provide active, hands-on oversight of cloud applications and infrastructure—helping you to avoid service interruptions and address issues proactively.

Myth No. 4: Cloud computing is still an immature technology. Like other evolving technologies, cloud is advancing every day. Those who wait for the next generation of cloud offerings may find themselves missing out on tangible benefits as competitors leverage cloud technology to sharpen their edge. Across industries, leading organizations are not waiting. Many view cloud technology as evolving but necessary, and they are leveraging it effectively today. Some, for example, are tightly integrating cloud software solutions to streamline supply chain processes, boost information transparency, and improve decision-making across the board—all the while tapping the cloud benefits of cost savings and scalability. Others are confidently turning to infrastructure solutions delivered and running solutions in a private or hybrid cloud. Still others are turning to cloud platform solutions to extend the power of existing applications, build modern analytics platforms, or support new Internet of Things business models. Turning the cloud to your advantage may depend less on the maturity of the technology and more on the power of your imagination.

Myth No. 5: Moving to the cloud will be easy. Cloud technology can help organizations streamline and simplify their IT landscapes and their business processes, reducing needs around capital expenses and infrastructure while helping to save costs. But migrating to the cloud requires more than simply plugging in technology. It requires an ability to address a host of considerations—data migration, the business-specific capabilities of solutions, change management, governance, systems integration, security, and more.

A cloud transformation is more than a plug-and-play project or a traditional system implementation. It requires progressive thinking and an ability to align technology with your business needs and processes— for today and for the future. Migrating to the cloud is a journey. Moving forward with the cloud will require a vision of your “to be” state—your destination—as well as a strategy for getting you there.

To learn more, and to find out what IDC thinks about the future of the cloud, please read this study that presents a strategic blueprint for enterprises on their digital transformation journey.

For more information on how to simplify innovation with cloud technology, learn more about SAP Cloud Platform.

Ready to reimagine the potential of the cloud? Contact us to get the conversation started.

Contact Krishnakant Dave at kdave@deloitte.com and follow him on Twitter: @kkdave

Contact Misa Rawlins at mrawlins@deloitte.com and follow her on Twitter: @misa_rawlins

www.deloitte.com/SAP

SAP@deloitte.com

@DeloitteSAP

This article originally appeared on Deloitte.com and is republished by permission.

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Misa Rawlins

About Misa Rawlins

As a senior manager and consultant in Deloitte’s SAP practice, Misa Rawlins enjoys helping her clients not only to figure out how to solve their current business problems, but also to envision how a modern cloud platform can transform their organizations moving ahead. Within the practice, she has specifically chosen to take a leadership role around the sales and delivery of SAP S/4HANA Cloud because she considers it the wave of the future. She has made it her mission to deeply understand this technology to better advise clients on what moving to a cloud infrastructure really means.

Krishnakant Dave

About Krishnakant Dave

As a principal in Deloitte’s global SAP practice, KK Dave is a consulting leader for Deloitte’s largest clients; part of the U.S. SAP leadership team where he spearheads Deloitte's cloud offerings; and leader of global go-to-market efforts in the wholesale distribution and manufacturing sector. In these roles, he assists clients in their business transformation journeys using the absolute latest SAP toolset, which presently comprises SAP S/4HANA, SAP Cloud Platform, and SAP S/4HANA Cloud, among other technologies.