Beyond TCO: The Real Value Of The Cloud

Tim Minahan

Ask ten people what the Cloud is and you’ll probably get ten different answers. The Cloud is fastClouds, Heaven becoming the defacto standard for deploying and managing technology. But there’s still a lot of confusion about what the Cloud actually is and what it can do for business. Here are the top five myths about the cloud…and the reality behind them:

Myth: The Cloud is all about IT and Total Cost of Ownership

Reality: The Cloud is about driving new levels of process efficiency, collaboration, and insight. Line-of-Business (LoB) executives are embracing Cloud to accelerate business transformation. In fact, IDC predicts that by 2016, line-of-business (LoB) executives will be involved in 80% of all new IT investments and will function as the lead decision makers in more than half of those investments.

And, while the Cloud certainly offers a cost advantage, the real benefit the Cloud brings to business comes in two flavors: innovation and agility.  With easy configuration and advanced development platforms, the Cloud gives companies the agility they need to quickly adapt processes to capitalize on changing market dynamics and stay ahead of the competition. More importantly, businesses are tapping the Cloud to enable new processes, gain new insights, and unlock new value. According to IDC, “Over the next several years, the primary driver for cloud adoption will shift from economics to innovation as leading-edge companies invest in cloud services as the foundation for new competitive offerings.”

Myth: You’re either on premise or in the Cloud. You can’t be both.

Reality: The Cloud is no longer an either/or proposition. It’s not even an “and” proposition. It’s an “and better” one. The Cloud gives businesses both flexibility and choice. And with the right vendor, you can mix public cloud applications and services, private cloud managed services, and on-premise technology to meet your company’s specific needs. In fact, a Wakefield Research study found that more than two-thirds of CIOs have adopted hybrid Cloud models – i.e., extending their on-premise applications and infrastructures with the Cloud. In other words, you can get your cloud, your way and extend your existing infrastructure or apps to enable new processes, gain new insights, and unlock new value for your enterprise.

Myth: The Cloud isn’t a proven platform for business

Reality: The Cloud has transformed the very nature of business and engagement. Just as consumers use social tools and networks to shop, share and consume better, companies are leveraging cloud-based apps and business networks to collaborate more efficiently, connecting and interacting with ever-expanding communities of customers, suppliers and peers. Businesses of all sizes – from Fortune 10 to SMBs – are using the Cloud not only to accelerate process efficiency and productivity but to gain new insights, engage customers and partners in new ways, and, even, to unleash a new operating and business models that drive profitability and advantage in today’s ultra-competitive marketplace. In fact, Saugatuk projects that by 2016, 75 percent of new IT expenditures will be for cloud or hybrid systems.

Myth: The Cloud isn’t secure

Reality: Leading cloud applications are developed with the same security mindset as on-premise software and maintained with frequent updates to ensure that the latest security standards are always in place. Leading Cloud service providers ascribe to international security standards, such as SAS-70 Type II, ISO 27001, SSAE, PCI, and more. They also employ measures to prevent attacks from the Internet and attempted theft of customer data, including physical security.

Cloud solutions are in use by some of the most security-conscious organizations in the world – from government and military to R&D and financial institutions. And many companies have found that the Cloud can provide an even more secure and up-to-date application and transaction environment than they could maintain on their own. According to IDC, “a cloud-based solution can deliver consistent, universal security policies for users wherever they are located — inside the office, at home, or in a hotel room — at any time.”

Myth: The Cloud Can’t Adapt to My Business

Reality: The beauty of the Cloud lies in its scalability and flexibility. With easy configuration, public and private delivery options, and advanced development platforms, the Cloud gives companies the ability to innovate quickly and design and deploy new applications and business processes that meet their unique requirements even faster to capitalize on changing market dynamics and stay ahead of the competition.

Some companies view the Cloud as just another deployment option. But savvy organizations see it for what it really is: a requirement for success in today’s fast-moving world where agility and innovation determine winners and losers.


About Tim Minahan

Tim Minahan is CMO, SAP Cloud



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13 Scary Statistics On Employee Engagement [INFOGRAPHIC]

Jacob Shriar

There is a serious problem with the way we work.

Most employees are disengaged and not passionate about the work they do. This is costing companies a ton of money in lost productivity, absenteeism, and turnover. It’s also harmful to employees, because they’re more stressed out than ever.

The thing that bothers me the most about it, is that it’s all so easy to fix. I can’t figure out why managers aren’t more proactive about this. Besides the human element of caring for our employees, it’s costing them money, so they should care more about fixing it. Something as simple as saying thank you to your employees can have a huge effect on their engagement, not to mention it’s good for your level of happiness.

The infographic that we put together has some pretty shocking statistics in it, but there are a few common themes. Employees feel overworked, overwhelmed, and they don’t like what they do. Companies are noticing it, with 75% of them saying they can’t attract the right talent, and 83% of them feeling that their employer brand isn’t compelling. Companies that want to fix this need to be smart, and patient. This doesn’t happen overnight, but like I mentioned, it’s easy to do. Being patient might be the hardest thing for companies, and I understand how frustrating it can be not to see results right away, but it’s important that you invest in this, because the ROI of employee engagement is huge.

Here are 4 simple (and free) things you can do to get that passion back into employees. These are all based on research from Deloitte.

1.  Encourage side projects

Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload. Let them explore their own passions and interests, and work on side projects. Ideally, they wouldn’t have to be related to the company, but if you’re worried about them wasting time, you can set that boundary that it has to be related to the company. What this does, is give them autonomy, and let them improve on their skills (mastery), two of the biggest motivators for work.

Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload.

2.  Encourage workers to engage with customers

At Wistia, a video hosting company, they make everyone in the company do customer support during their onboarding, and they often rotate people into customer support. When I asked Chris, their CEO, why they do this, he mentioned to me that it’s so every single person in the company understands how their customers are using their product. What pains they’re having, what they like about it, it gets everyone on the same page. It keeps all employees in the loop, and can really motivate you to work when you’re talking directly with customers.

3.  Encourage workers to work cross-functionally

Both Apple and Google have created common areas in their offices, specifically and strategically located, so that different workers that don’t normally interact with each other can have a chance to chat.

This isn’t a coincidence. It’s meant for that collaborative learning, and building those relationships with your colleagues.

4.  Encourage networking in their industry

This is similar to number 2 on the list, but it’s important for employees to grow and learn more about what they do. It helps them build that passion for their industry. It’s important to go to networking events, and encourage your employees to participate in these things. Websites like Eventbrite or Meetup have lots of great resources, and most of the events on there are free.

13 Disturbing Facts About Employee Engagement [Infographic]

What do you do to increase employee engagement? Let me know your thoughts in the comments!

Did you like today’s post? If so you’ll love our frequent newsletter! Sign up here and receive The Switch and Shift Change Playbook, by Shawn Murphy, as our thanks to you!

This infographic was crafted with love by Officevibe, the employee survey tool that helps companies improve their corporate wellness, and have a better organizational culture.


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Supply Chain Fraud: The Threat from Within

Lindsey LaManna

Supply chain fraud – whether perpetrated by suppliers, subcontractors, employees, or some combination of those – can take many forms. Among the most common are:

  • Falsified labor
  • Inflated bills or expense accounts
  • Bribery and corruption
  • Phantom vendor accounts or invoices
  • Bid rigging
  • Grey markets (counterfeit or knockoff products)
  • Failure to meet specifications (resulting in substandard or dangerous goods)
  • Unauthorized disbursements

LSAP_Smart Supply Chains_graphics_briefook inside

Perhaps the most damaging sources of supply chain fraud are internal, especially collusion between an employee and a supplier. Such partnerships help fraudsters evade independent checks and other controls, enabling them to steal larger amounts. The median loss from fraud committed
by a single thief was US$80,000, according to the Association of Certified Fraud Examiners (ACFE).

Costs increase along with the number of perpetrators involved. Fraud involving two thieves had a median loss of US$200,000; fraud involving three people had a median loss of US$355,000; and fraud with four or more had a median loss of more than US$500,000, according to ACFE.

Build a culture to fight fraud

The most effective method to fight internal supply chain theft is to create a culture dedicated to fighting it. Here are a few ways to do it:

  • Make sure the board and C-level executives understand the critical nature of the supply chain and the risk of fraud throughout the procurement lifecycle.
  • Market the organization’s supply chain policies internally and among contractors.
  • Institute policies that prohibit conflicts of interest, and cross-check employee and supplier data to uncover potential conflicts.
  • Define the rules for accepting gifts from suppliers and insist that all gifts be documented.
  • Require two employees to sign off on any proposed changes to suppliers.
  • Watch for staff defections to suppliers, and pay close attention to any supplier that has recently poached an employee.

About Lindsey LaManna

Lindsey LaManna is Social and Reporting Manager for the Digitalist Magazine by SAP Global Marketing. Follow @LindseyLaManna on Twitter, on LinkedIn or Google+.


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Innovation Without Boundaries: Why The Cloud Matters

Michael Haws

Is it possible to innovate without boundaries?

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

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

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

5 considerations when planning your journey to the cloud

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

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

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

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

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

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

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

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

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

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

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

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

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

Check out the video below or visit us at

Connect with us on Twitter: @SAPServices



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Five Reasons Why Social Collaboration Should Be Part Of Your Digital Transformation

Daisy Hernandez

Digital collaboration technology has revolutionized how we communicate and live our lives. The digital network – powered by search, social, and gamification technologies – has enabled the easy and rapid sharing of knowledge globally. Now it is easy to communicate and collaborate with others no matter their location, time zone, or geography.

In a business context, these same technologies are powering benefits across an organization. By connecting business areas, vital information needed to make critical decisions is no longer siloed and disjointed. Add to this the ability to incorporate business data, and decisions are now not only made collaboratively, but are informed by the latest business-critical information and data, whether it is back-end customer or financial data. This is where the real business benefits start to emerge.

Gartner predicts that 50% of large organizations will use internal social networks resembling Facebook by 2016. Thirty percent of these technologies will be considered to be as essential as email and telephones. Digital transformation is underway, and by using collaboration technology with integrated business data, businesses are starting to see staggering benefits.

Social collaboration: Going beyond information sharing

One of the most well-known benefits of social collaboration in a corporate environment is faster and tighter alignment during a project or process. However, a recent study conducted by Forrester Consulting indicates that the advantages run deep, and run throughout the enterprise. The following are five business benefits collaboration can deliver to your business today.

  1. Boost win rates and accelerate the sales cycle. The average sales deal requires a team effort, with individuals and knowledge that live outside the sales department. A Web-based network, accessible through any device, helps win new business and generate more revenue. By pulling expertise, information, and customer data together in one place, sales reps are able to collaborate within and outside of their organization to respond more quickly and accurately to incoming customer questions and needs.
  1. Improve the quality of onboarding and speed new hires’ time to productivity. Social solutions bring together people from across the organization as they collaborate on projects or teams. When a new hire joins the company, this community enables quick ramp-up as the new hire is able to quickly locate and connect to the experts and information they need to complete their job responsibilities. Add to this the fact that this solution houses the collective genius and lessons learned of the organization, and the result is a dynamic, continuous learning culture.
  1. Deliver unparalleled customer experience – every time. Whenever you can provide anyone on the front lines with the full customer story, everyone wins. Knowledge networks ensure that no matter who is interacting with the customer, they have the complete picture. Integrating backend data with real-time collaboration ensures that they are prepared with the latest data at their fingertips to understand the status of a current or prospective customer. For the customer, this means a seamless experience that is always informed, relevant, and meets their needs.
  1. Support business processes that are truly efficient, transparent, and accessible 24×7. Whether you are involved in marketing, IT, finance, or supply chain operations, it is not uncommon for employees to get lost in email chains and outdated spreadsheets and reports. If the ability to collaborate resides in a central location, existing business processes can be improved and supported. More important, taking this network into the mobile world helps ensure that employees have the information they need any time and anywhere.
  1. Create a future of work that appeals to young talent. Knowledge networks can be a cultural tool that not only serves the business, but also answers the needs of our youngest talent. For Millennials, operating in a digitally connected world is a normal part of life – and they could not imagine anything different in their workplace. In the Forrester report, one hiring manager stated, “Millennials would not like to work at [a] company that doesn’t have a collaboration tool. It’s unimaginable — we can’t hire without it.” Could you? Most likely not.

Now you can be part of shaping how organizations adopt and find value in social collaboration technology. Tell us what obstacles you are facing and the benefits you are reaping by taking part in this survey to help SAP develop our future perspective on social collaboration and how it affects us all as employees, managers, and businesses.


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