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SAP Cloud Computing

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Dear SCN community, Dear all,

A new release of SAP Cloud Appliance Library was made available to the public on May 15 providing more features to enhance usability for customers.

 

SAP Cloud Appliance Library (CAL) is an SAP hosted on-demand SAP HANA Cloud powered solution that designed to deliver SAP applications, e.g. business suite content as preconfigured appliances directly into the cloud accounts of existing SAP customers: Our library of preconfigured SAP solutions can be deployed instantly in the cloud. You can spend your time on the evaluation and innovation and not worry about the hassle of setting up and configuring your SAP solution.

 

Currently 9 appliances – one free trial solution, some plain systems, some with preconfigured RDS content - are available. This includes a HANA Platform Edition that is up and running in less than 30 minutes and several SAP ERP solutions that are ready for consumption in about 60 minutes. The current offering can be reviewed here.


Watch this video to learn how SAP IT leverages SAP Cloud Appliance Library:

http://www.youtube.com/watch?v=aORHL8KJjTw

 

Watch this video to learn more how to use SAP Cloud Appliance Library:

https://scn.sap.com/docs/DOC-37932


With CAL 1.5 we now offer 2 different free trial options:

  1. a free trial of SAP CAL - absolutely free (no cloud provider signup/costs associated). Limited to 8hrs runtime after initial logon as well as some disabled features inside CAL. It will however give you a good impression what SAP is able to do
  2. a free trial on an SAP system (SAP ERP 6.0 with EhP5) within SAP CAL - no costs from SAP are associated, you only have to pay the cloud provider for the consumed infrastructure. Usage of the SAP ERP system is limited to 30 days - but SAP CAL has no limitation, you get access to the full fledged product. As SAP Cloud Appliance Library is for free anyway - give it a shot.

 

Find both offerings here: http://www.sap.com/cloudappliance -> then navigate to the [Trial] tab

 

With the next release we are plan to publish of a bunch of new solutions, mainly the new SAP NetWeaver 7.40 on MaxDB and HANA as well as SAP Business Suite on HANA as well.

 

Stay tuned and subscribe for updates - SCN speak: "Follow" the SAP Cloud Appliance Library homepage.

 

Best Regards,

  Hannes

 

 

Best Regards / Freundliche Grüße / 敬具 / 此致敬礼 / Поздрави

Hannes Kuehnemund | Product Owner - SAP Cloud Appliance Library
SAP Labs, LLC - USA |
http://www.sap.com

The SAP Cloud Appliance Library provides an easy to consume delivery of SAP business suite content as software appliances directly into the cloud accounts of existing business suite customers: The library of preconfigured SAP solutions can be deployed instantly in the cloud. You can spend your time on the evaluation and innovation and not worry about the hassle of setting up and configuring your SAP solution.

 

Sounds quite well for some marketing campaign, but you as an SCN power user want to see the real thing instead. I'm happy to announce that we have created two trial offerings from which you can choose. The first one offering is limited to 8 hours run time and all you need is an SCN user - no account at a cloud provider, no SAP license at all! The second offering is limited to 30 days - which gives you more time for the evaluation. In order to subscribe for it, you need an S-User or SCN User, an valid SAP ERP license as well as an cloud provider account. The benefit of the second trial is, there is no limitation in the functionality of SAP Cloud Appliance Library.

 

Visit our sap.com page to learn more on the free trial offerings.

 

Let me know your thoughts, comments, feedback. Our SCN homepage is http://scn.sap.com/docs/DOC-33187

I recently received some very positive feedback from some customers using SAP Business ByDesign on a new concept I've been working on for our how-to demo videos. I wanted to show them what I believe is an interesting new way to present learning videos to our users. The problem I saw with our videos in past was that not only is the content admittedly not the most exciting to watch—they are learning videos, after all, and are meant to show users how to perform their daily tasks—but also the visual presentation and the language used to give the instructions was very dry. Everything in our new Cloud world is fresh and exciting, and to me, our how-to demos didn’t fit that image yet. 

 

 

 

 

 

 

 

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The first thing that had to be changed was the visual presentation of the demos. I started by utilizing a better HD video format and adding some of the great SAP branding elements prepared by our marketing team. I’m also now using full-screen recording to focus on the product without showing browser toolbars, and motion recording give a better feel for how our product actually works, rather than just a series of screenshots as we did in the past. I also removed the text from the screen, which was the exact same as what was being spoken.

 

 

 

 

 

 

But even with the better, more flowing presentation that came with the new visual style, I still had the feeling that I was sitting in grammar school when I watched our videos. We have so many people working hard to make our products great to use, it didn't seem right to have the learning videos - perhaps the first stop for many new users - give such a cold and unfamiliar feeling. I wanted to give the users a feeling of familiarity, the same one they would have if their colleague were showing them how they work with the system.

 

 

 

 

 

 

To do that, I had to make sure that we were talking to the users in the same way their trusted colleague would talk to them. I'm a member of a great team that produces roughly 40 how-to videos in 6 languages-English, German, Chinese, French, Spanish, and Italian-and every one of those languages except English has formal and informal second-person personal pronouns (ways of saying you). While we knew it wouldn't be appropriate to use informal language with our customers (in German: Du; in Spanish: tu; in Chinese ä½ ; etc.), the formal form gives a polite but also unfamiliar feeling to everything you say.

 

 

 

 

 

 

To change that impression, we decided to turn the language around and instead of telling the user what to do, we bring the narrator into the video as the person performing the task by using first-person language. This style also makes it easier when writing the demo scripts to tell the user what they can, should, and must do without giving them the feeling that we’re telling them how to do their job.

 

 

 

 

 

 

As this is something very different from what we did in the past, I was eager to see how our customers would react to hearing the videos presented to them in this way. I was able to set up three separate virtual meetings (via SAP Connect) with customers to show them a pilot video I prepared. Going into the meeting, I was already convinced that this was a good direction to take our demos, and I was very pleased when all three interviews went similarly—they all LOVED the new video. I asked them especially how they felt about the language of the video, and all three said they think it fits perfectly to the style of video. One customer said he didn’t even notice that the narrator was speaking in first-person at first, but after watching the video again we agreed that was a positive experience.

 

 

 

 

 

 

Based on the overwhelmingly positive feedback not only from customers, but also from other members of our KM team, we’ve decided to revise the language of all of our how-to demos to be more people-friendly, more familiar, and more interesting to watch. To see an example of this style, see the video below, and for comparison, that same demo in the style we’ve used up till now: Create a Customer Invoice.

 

We're working toward updating our how-to videos in SAP Business ByDesign in time for the August 2013 release.

- Christopher Gialloreto, Cloud Knowledge Management

 

 

 

 

 

 

Posted on behalf of David Ahrens ,Global Vice President Cloud Marketing.

 

I am excited to see so many of customers and partners at SAPPHIRE NOW in Orlando this week. As you’re walking around SAPPHIRE NOW, you’ll probably notice some changes in the way we’re talking about our some of our cloud solutions.

 

SAP’s Cloud applications are increasingly being adopted by existing as well as new customers and partners. The term “cloud” is resonating well with the market and provides not only a branding anchor but also a promise to our customers and prospects that the value of cloud technology will be available for their business, i.e. business velocity, faster time to market, speed of implementation, manageable cost structures and transparent security amongst others.

 

Therefore SAP has decided to consolidate the SAP Line of Business Cloud Applications around 4 pillars, namely People, Customer, Money and Supplier, and align the names of the SAP Cloud Applications accordingly (for now, name changes only apply to Customer and Money pillars). On the  SAP Line of Business Cloud Applications webpage, you have a quick reference guide to the 4 pillars, the solutions and some additional resources.

David Ahrens Blog Pic 3.GIF

For your reference, here is a list of some of the names which have changed:

 

Customer Cloud 

 

Formerly known as…

New name

SAP Customer OnDemand

SAP Cloud for Customer

SAP Sales OnDemand

SAP Cloud for Sales

SAP Service OnDemand

SAP Cloud for Service

SAP Social OnDemand

SAP Cloud for Social Engagement

SAP Social Media Analytics by Netbase

SAP Social Media Analytics
by Netbase

 

Money Cloud

 

Formerly known as…

New name

SAP Financials OnDemand

SAP Cloud for Financials

SAP Travel OnDemand

SAP Cloud for Travel

n/a

Invoice Pro (Ariba)

SAP Business One OnDemand

SAP Business One Cloud

SAP Business ByDesign

SAP Business ByDesign

SAP Sales & Operations Planning

SAP Sales & Operations Planning


In addition, SAP Cloud Applications studio  will replace both the SAP Customer OnDemand studio and the SAP Solutions OnDemand studio.

 

Please note that these name changes will have no impact on pricing or contractual relationships.  It may take a while for the naming changes to be reflected on all materials, but feel free to respond to this blog if there are any uncertainties.

 

All other product names will stay the same.


Let SAP’s Line of Business Cloud Applications help manage your people, money, customers, suppliers — even your entire business — with the most comprehensive, beautiful, and innovative cloud solutions on the market. Easily integrate with your on-premise investments and maximize agility — all at a lower cost.


Remember to view the SAPPHIRE NOW sessions online if you are not attending in person.


Click here for the Online agenda: SAPPHIRE NOW from Orlando and choose which cloud sessions you to view in real time or the replays.

 

If you have any questions then please do not hesitate to contact schalk.viljoen@sap.com or respond to this post.

 

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We are facing Sapphire 2013 soon. SAP had an amazing year with SAP Cloud for Travel since last SAPPHIRE NOW Orlando and we have a lot of great stories to share.

We prepared a lot of different sessions giving you the opportunity to see from different perspectives what’s relevant for you with our Cloud Travel & Expense Program management solution. Existing customers are invited to gain some insight to the new functionally of our quarterly release.

 

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And best of all some of our great customers are here at SAPPHIRE NOW to present the benefits they earned by using SAP cloud for Travel and show you how easy and fast they implemented and connected it to their existing ERP Solution.

As we hear very often that our customers love our visionary focus we will show you a pilot version of how future payments will work and how this will help you to simplify business travelling even more.

Pick some of these sessions in your Agenda

 

Want to see more about SAP Cloud for Travel now? Click here to access our landing page with more info.

 

After headcount related expenses, Travel is one of the largest discretionary expenses for many companies.  Yet, many businesses have failed to implement comprehensive T&E strategies to successfully control expenses and improve their bottom lines.  Surprisingly, small and large companies alike still adopt antiquated T&E expense management processes that are paper-based or based on clunky legacy systems, ridden with loose financial controls, lacking spend analysis visibility and are extremely painful for road-warriors to embrace.  This issue gets further exacerbated for companies with a global presence, driven by international compliance requirements.

 

Other companies have successfully implemented an effective T&E strategy before, but are interested in taking it to the next level by further improving road-warriors productivity by leveraging mobility, integrating their Online-Booking Tool with their Expense Reporting Tool for a seamless End-to-End solution, accelerating the expense reporting cycle time, providing more insightful spend analysis to senior management and more.

 

The good news is that whatever the needs of your business, you can implement a highly comprehensive cloud-based T&E strategy within weeks rather than months, by adopting a SaaS model that scales with your needs and injects the Cloud DNA into your business with minimal up-front costs and immediate measurable results that drop right down to the bottom line.

 

As the Program Manager responsible for the deployment of the cloud-based SAP Travel OnDemand at SuccessFactors Inc., I’ll be discussing implementation considerations and strategies to improve your T&E expense management during our interactive Microforum at Sapphire: Enable More Productive Business Trips with Travel Management in the Cloud.  Also click here for a pre-view into the entire SAP Travel OnDemand program at Sapphire.

 

Join me at SAPPHIRE NOW if you are interested in learning more about these strategies and deploying SAP Travel OnDemand in your company!

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Today's blog post is an extended transcript of my presentation The Cloud Platform Play presented at JAX 2013 which deals with with three major topics:

 

  1. developers (as the primary users of PaaS),
  2. cloud platforms (as a means to make software development more agile and cost efficient),
  3. getting started (as a call to action to get familiar with PaaS).

 

 

Software engineering is a craft!

 

In his book "The New Kingmakers - How Developers Conquered the World" Stephen O'Grady from RedMonk explains why "developers are the most valuable resource in business." The rationale is simple: every business nowadays depends on software. Software has become a key enabler to do things in new ways or more efficiently in order to stay competitive. This will result in an increased demand for developers. In some locations, such as in the Silicon Valley, developers are already a scarce resource and it has become common practice to buy startups just to acquire the talent pool.

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It's about time the business finally acknowledges this! In the conversations I have with fellow software engineers it sounds like this has not yet happened on a broader scale though. The opposite! Typically, the development team is the last element in a complex process; and the one which has to compensate for all the mistakes made along the way like exaggerated customer expectations, poor requirements engineering - not to mention the always challenging timeline.

 

Software development has never been trivial, yet today's inter-connected world has made it even more complex to develop great solutions that meet the market's needs. It takes experience to learn how-to develop good software and it requires both a wide and a deep skill set to do it properly. Few developers directly program in assembler anymore, they rather use modern programming languages. There's a whole stack of APIs, frameworks and libraries used on top.

 

As Joel Spolsky once wrote in a great article called Leaky abstractions:

All non-trivial abstractions, to some degree, are leaky. 

 

Abstractions fail. Sometimes a little, sometimes a lot. There's leakage. Things go wrong. It happens all over the place when you have abstractions.

 

Consequently, software development requires a solid understanding of the complete stack of abstractions used in order to remain in control! At the same time, the need for software is steadily growing driven by the demand to develop and roll out new features in shorter cycles.

 

The new reality: Software is eating the world*

 

In the industrial age the rules were simple: the big players dominated the market. They were able to produce at lower costs and higher volumes. They had the biggest distribution networks and consequently the broadest outreach. Smaller companies hardly stood a chance to become competitive.

 

Times have changed! In today's world, it's not about size anymore, it's about agility. Those who are the quickest to adopt to changing market needs and who are first to roll out new, innovative products are the ones who will win market share. Take Nokia for example, or Blackberry/RIM: they were the global leaders in their respective fields just a few years back.  These days they have to play catch-up to the ones of Apple and Android in a smartphone dominated mobile space. "Too big to fail!" has been replaced by "survival of the fittest!"

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In a recent article titled "Software is eating the world" published in The Wall Street Journal, Marc Andreessen (co-founder of Netscape) states that more and more traditional businesses are transformed through software. The most prominent examples he provides are Amazon, Apple iTunes and Skype: the world's biggest (book)seller, biggest music retailer and fastest growing telecom company respectively. These companies leveraged web technologies and software to outperform the competition and established themselves as the new dominating players.

 

Even more astonishing though is the fact that all these innovations are coming from the outside. It wasn't a big publisher who re-invented the way we buy and read books. It wasn't a big music label that finally solved the problem with DRM-free digital music. And it wasn't a traditional telecommunication company that changed the way we communicate via the web. Why is that the case?

 

Scaling and innovation

 

Looking at the economy today we see two major challenges for companies small and large: scaling and innovation.

 

Small companies and start-ups are in need to scale their business. They have the need to reach out to the market and acquire new customers. What they lack in reputation they make up with a "whatever it takes" attitude. They are agile and hungry to succeed and willing to try out new ways of doing things and pursuing new ideas.

 

Large enterprises on the other hand struggle due to their size. Decision-making takes time. There are well-established processes and individual lines of business (LoB) have to adhere to long-term global IT roadmaps. They simply lack the agility needed to adapt to changing market needs and inter-company politics are dominating the daily business. Middle management is risk-averse resulting in a "business as usual" mentality.

 

Small companies are looking for ways that help them go-to-market and scale on demand. Big enterprises are looking for ways to leverage innovate solutions without being subordinated to a global IT strategy.

 

Platform as a Service addresses both needs! Cloud platforms (such as SAP HANA Cloud) provides both the design and the runtime environment to build scalable solutions and it greatly simplifies the deployment, which results in unprecedented time-to-market time-to-impact.

 

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Before we dig deeper and discuss the value proposition of PaaS in more detail, let's have a closer look at the needs of all involved stakeholders of software: users, developers and the business.

 

Users want solutions that are easy to use (who reads a manual these days?) They want care-free applications: solutions they can access on-demand, on-the-go. Traditional software is getting a bad reputation due to the constant hassle it takes to keep it up-to-date via patches and upgrades. This is just one of the reasons why Software as a Service is gaining traction.

 

Developers are in need of better tooling and more efficient ways to develop software (see The Way of the Developer). They want tools that are easy to learn/master and support them in building solutions that are both maintainable and extensible. The last thing they want is an environment or tools that restrict them in any way or enforces a particular way of doing things. In short: they want a platform that supports them in their daily tasks yet allows them to use the programming languages, tools and the development environment they choose.

 

We already addressed the business's needs: being able to deliver innovative solutions in shorter timeframes, and make money.

 

PaaS to the rescue

 

So, what to do? How-to enable software engineers to build quality software in less time and with less costs?

 

This is the problem space that PaaS is addressing: to make software development more agile and cost-efficient.  This is achieved by utilizing a standardized runtime environment sitting on cloud infrastructure (IaaS), which provides services and APIs for commonly required features such as persistence and connectivity. This approach allows developers to concentrate on app-specific topics instead of worrying about lower-level non-functional requirements such as scalability, security, high-availability, backups etc.

 

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Usually PaaS offerings support more than just one programming language. Java is a very common option as are other JVM-based languages such as JRuby, Clojure or Scala. Server-side JavaScript runtimes like node.js are becoming more popular as well. Some PaaS providers also support more proprietary programming languages like ASP.NET. In general, the guiding principle is to support more than just one programming model in order to appeal to the broader developer community (this concept is sometimes referred to as BYOL: bring your own language.)

 

A runtime platform by itself is of little value and hence all the cloud platforms provide a set of core services and APIs that help to speed up the implementation of recurring patterns like database access, secure connectivity to other (on-premise) systems, identity management and messaging infrastructure (just to state a few).

 

These core services are considered basic platform capabilities and the feature-set offered by PaaS providers are very similar in this regard. Hence, most platforms also provide higher-level services and features to differentiate themselves from the competition. The SAP HANA Cloud for example provides additional portal capabilities and support for mobile scenarios via the SAP Mobile Platform Cloud Edition. There are more capabilities currently in development such as SAP HANA Cloud Integration services (middleware functionality in the cloud), Gateway as a Service and others in the area of analytics and social.

 

To make it easy to develop cloud applications PaaS vendors provide plug-ins for popular IDEs such as Eclipse, some also support cloud-based IDEs such as Orion or Cloud9. Command line support is a must-have in order to allow integration in DevOps scripts (we'll get back to this topic later-on!)

 

Last, but not least is the area of life-cycle management like source code management (e.g. integration with github) and continuous delivery (CD), which is a very important aspect of cloud computing. Some platforms also provide services that help with metering and billing customers or provide means to sell solutions directly via a central online store. In short, it is very similar to what we've seen happening in the mobile space (e.g. Apple's App Store or Google Play.)

 

Why choose Java?

 

With all those cool programming languages around, why choose Java? Critics say that Java has peaked long ago!

 

Be it as it may, I believe that Java is (still) a great choice for PaaS. First, there's a very active community of 10 million developers using Java and well, yes, it has been around for 18 years now.

 

I read a very interesting blog post from Zef Hemel called "Pick your battles", in which he describes Cloud9's approach to developing their cloud IDE based on "the hottest thing at the time: node.js" and the challenges they faced in doing so. I'd rather not spoiler here, but instead recommend reading his blog! However, let me share one of his findings:

 

"Build amazing apps with the most boring technology you can find. The stuff that has been in use for years and years."

 

And if not for the programming language Java itself, then there's still a lot of value in using the JVM as a runtime engine for a cloud platform as it allows developers to choose from a variety of (JVM-based) programming languages.

 

What are the concerns?

 

With all the benefits of PaaS at hand, how come that many companies still hesitate? What are the concerns? From the discussions I have with developers and IT decision makers alike I came to the understanding that the main concerns are threefold:

 

  • security and data privacy,
  • loss of control (aka vendor lock-in) and
  • inter-company politics.
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Security and Data Protection

 

It's a very important topic indeed, and a complex one as well! As such, I can barely scratch the surface here and instead have to refer you to some additional reading material. At the end of the day though it all boils down to trust. Whom do you trust with your data? Would you rather trust your own IT department or a company whose core business is to operate a secure cloud platform? Do you have your own data center or have you outsourced it already? Is it safer to put some of your systems into a DMZ yourself rather than running it in the cloud?

 

Fact is, running a data center is a very regulated business and there is a plethora of standards, guidelines and certificates that operators need to adhere to in order to ensure a maximum level of security. Same is true for data privacy. Here we face a much more fragmented field as the laws and regulations differ from region to region making it a non-trivial exercise to roll out a global solution dealing with personal data. Yet, initiatives like Safe Harbor and the planned reform of the EU's 1995 data protection rules are aiming to improve the status quo. Within the European economic area the German "Bundesdatenschutzgesetz" (Federal Data Protection Act) is one of the most extensive laws about data protection and regarded as a solid reference for an EU-wide regulation [Source].

 

Before we continue, let me recommend a good starting point for individuals and organizations thinking about adopting cloud computing provided by the European Network and Information Security Agency (enisa): a paper titled "Cloud Computing Risk Assesment".

 

Loss of Control

 

Another concern that is commonly expressed is the fear to loss control. People are not only worried about getting into the cloud, but also about what happens once they are in the cloud. What if they want to move from one platform to another? How easy is it to move the data? What happens to all those applications developed - are they portable? In short, they are afraid of vendor lock-in!

 

Here, the most important aspects to consider are open standards and open source. Companies are well-advised to carefully judge cloud platform providers from that point of view. The more proprietary a platform is the higher the total cost of ownership and the cost of development. Especially within the Java space there are a lot of standards for common features like persistence, security etc. and adhering to those ensures maximum portability while at the same time lowering the entry barrier for developers.

 

Open source-based platforms are especially appealing in this regard as they are backed by a huge community. De-facto standards (like Hibernate or the Spring framework for example) have gotten mass-adoption and hence have become very mature (= enterprise-ready). Thanks to great documentations and plenty of samples it is very easy to get started. And if one should face any issues there's a huge community willing to help (see stackoverflow.) All of these factors dramatically reduce the cost of development, as you no longer need special expertise to develop great software.

 

Internal politics

 

As we techies know it's hardly ever technology that makes things complicated. Usually it's processes or politics. Same here!

 

At first glance it seems natural that some parties within a company are skeptical when it comes to cloud computing - especially IT departments. Of course they are not eager to lose influence and they may even be afraid to become obsolete. But nothing could be farther from the truth!

 

Matter of fact, operations are more important than ever and the skill set typically residing within IT departments nowadays is in higher demand than ever. The keyword here is: DevOps. While traditionally development and operations have been two separate entities with contradicting KPIs (the former measured by the number of new features being rolled out and the later measured by the stability of productive systems) the line becomes blurry in the context of cloud computing.

 

Developing cloud applications comes with the requirement to always be able to fix bugs and roll out new features. The development becomes much more agile and consequently the delivery process needs to be automated. Topics such as unit tests, integration tests, load tests, regression tests etc. (see continuous delivery) are essential to ensure that new features can be rolled out without jeopardizing the stability of the application or causing unnecessary downtimes. On the development sides there's the need to provision development landscapes on the fly based on pre-defined configurations. Because of all of these reasons it makes a lot of sense to combine development and operation into cross-topic teams that take ownership of a product throughout its whole lifecycle. Those interested in the topic may want to check out the DevOps series hosted on IBM's developerWorks website.

 

How-to get started?

 

At this point of the discussion I frequently get asked "so, how-to get started?" or "What are scenarios particular suited for the cloud?" Great question (as it indicates that the person asking it may be willing to try it out!)

 

Instead of giving a direct answer let me share a story. A while back I had the unique opportunity to witness Gunther Dueck (former CTO of IBM) give a presentation about innovation in large enterprises. One of the things that stuck with me was that he compared large enterprises to cruise ships: once set in motion it's hard to turn them around and it takes time to change course! There will always be people fighting new ideas and holding on to the good old way of doing things (= naysayers to progress, or "Fortschrittsverweigerer" as we say in German.) Instead of hoping/waiting for a top-down movement it may be better to send out a few speedboats that explore new lands detached from the mothership and only come back once they have found something fruitful. In some cases it may even be necessary to send out sub-marines that explore new territories without even being noticed by skeptics.

 

This approach makes a lot of sense to me personally and matches my own experiences made while developing solutions on emerging technologies. In fact, one of my former managers once told me: "Manchmal ist es leichter, um Verzeihung zu bitten, als um Erlaubnis zu fragen!" ("Sometimes it's easier to seek forgiveness not permission!") Especially when it comes to the adoption of PaaS - being a developer-centric topic - I tend to believe that the revolution has to be started bottom-up (see Billy Marshall's post "The CIO is the last to know!")

 

Consequently, my advice to such questions is to carefully choose a pilot project and then look for an executive sponsor to get started. "Think big, start small!" should be the guiding motto. Once you have developed a cloud application, show it to the business people and then things get rolling. (You'd still have to hold them back and explain that it's a mere prototype and not something to be set live the next day, but we all know that drill, right?)

 

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Typical cloud scenarios

 

To be frank, I don't think there's such a thing as the killer app for cloud. In general, every scenario that requires having to deal with large volumes of users or data is a great fit for cloud. Same is true for applications that need to be accessible from all around the globe. Prominent examples are shop floor systems dealing with thousands of sensors or broad-reach apps connecting thousands of users. Usually mobile solutions are connected to backend systems in the cloud. It could literally be anything...

 

One of the easiest use-cases to get started with are so called employee self-services like time-recording or absence management solutions. This type of applications is not mission-critical and hence well suited to gather experience with developing cloud solutions. On the other hand, such self-services reach a lot of users and solve a classical pain point - eventually helping to win your co-workers for your cause. If you just use the cloud as a vehicle to access the respective functionality (e.g. via mobile devices) keeping the data in the corresponding on-premise system(s) you can even work-around some of the data protection aspects mentioned earlier.

 

Cloud - A new gold rush?

 

Analysts and IT influencers alike predict enormous growth in the PaaS sector and "suggest that now is the time to begin evaluating how PaaS offerings can fit into your overall IT strategy." [Source] As we all know too well though developers are resistant to marketing and can only be convinced to give something a try by their peers. Fortunately this is easy to do. Most of the PaaS vendors provide developers with free trial accounts or even developer licenses, which makes it very easy to test-drive and evaluate them. The time is now!

 

Looking at the stats of the last gold rush the numbers may not sound too convincing: 100,000 left for Klondike, 40,000 made it to Dawson City and only 4,000 found gold!

 

I interprete these numbers differently though: those that well prepare for the road ahead and who are the first on the road will also be the first to stake their claim and make a fortune. PaaS is still in its infancy and as such all cloud platform providers are looking for great show-cases and reference customers that help in marketing, making it the perfect time to get started as the platform vendor of your choice will support you by amplifying your message and advertising your solution.

 

So, what are you waiting for?

 

Related:

 

 

PS: The typical disclaimers apply... all my personal point of view ... yada, yada, yada!

I was recently doing research on another Customer OnDemand-related blog and I came across a new offering from Mulesoft entitled “SAP Customer OnDemand Connector” which is based on Mulesoft’s CloudHub, an integrated platform as a service (iPaaS).

 

Moreover, with MuleSoft Anypoint™ Connectors, Customer OnDemand can establish instant API connectivity to any popular applications or services. Leveraging repeatable integration solutions permits users to have connectivity on-premise or in the cloud. Moreover, because MuleSoft takes advantage of the entire Customer OnDemand API, CloudHub utilizes the full set of CRUD (create, read, update, delete) operations.  [SOURCE]

 

Besides this one page of details, I’ve been unable to find any additional information or other references to the product

 

Yet, the presence of this offer from Mulesoft should be worrying SAP inasmuch as this offer is direct competition with SAP’s own efforts in this area.  As illustrated by two videos by Ginger Gatling demonstrating Customer OnDemand integration with ECC and OnPremise CRM, SAP also has similar plans. 

 

Note: Besides these two videos, I haven’t seen any other recent material on such LoB integrations. Currently, SAP is focusing primarily on the integration between SuccessFactors and OnPremise HCM systems and other integrations receive less public – and perhaps, internal – attention. 

 

POV

 

  • The Mulesoft SAP Customer OnDemand Connector appears to be available today.   Release dates for competitive integration products for SAP’s Integration as a Service offering are still vague and might come as late as later this year.  Maybe, we will hear some news regarding such dates at the upcoming Sapphire.
  • Mulesoft’s CloudHub is definitely a competition for SAP’s Integration as a Service offering. It already has an impressive variety of connectors – including an offering for SuccessFactors. It will be difficult for SAP to compete on the quantity of connectors. In my opinion, SAP should focus on quality especially regarding the integration between SAP OnDemand and OnPremise offerings.  Mulesoft can’t compete with SAP’s internal knowledge of its own applications – this advantage must be exploited and be presented as the major selling point of the upcoming IntaaS offering.
  • I have no idea how SAP’s IntaaS offer will be priced but the CloudHub Plans & Pricing page is instructional in determining possible plans for SAP’s equivalent offering.  One important distinction between SAP and Mulesoft in this area is that SAP also offers the OnDemand applications involved in the various integrations. Thus, flexibility in IntaaS pricing might be an important selling advantage for such applications.  Prospects might even be offered discounted integration costs when purchasing such applications.  This tight association between IntaaS and the  different SaaS applications would also hopefully benefit customers who are able to simplify the administration of their cloud subscriptions by using a single vendor instead of multiple suppliers.

At the recent Q1 2013 earnings call, Co-CEO Jim Hagemann Snabe commented about the increasing success of SAP’s cloud efforts.

 

Let's talk about cloud. We continue to see strong momentum in the cloud. In only 12 months, we have become a major player in the cloud, with the most comprehensive portfolio of cloud applications, over 24 million cloud users, over 1 million companies connected in the Ariba business network and almost EUR900 million revenue run rate today, and growing very fast.

 

Although most analysts focused on SAP’s cloud-related financial successes, I was irritated by the user count.   24 million was a big number. What exactly did it tell us about SAP’s cloud success?

 

A look back

 

I first wanted to look at past earnings calls to see what sort of progress SAP was making regarding their cloud user count.

 

The first mention in earnings calls of the cloud user count as a metric was in the Q2 2012 earnings call where Hagemann Snabe made this statement

 

Finally, Cloud. The acquisition of SuccessFactors combined with SAPs own cloud assets now make us a major player in the cloud business. With more than 16 million users we have the largest install base in their business cloud.  (My emphasis)

 

In the Q3 2012 earnings call, Hagemann Snabe made this statement:

 

We now have more than 17 million users in the cloud, that’s 4 times more than number 2. So we’re big in the cloud, and we are growing very fast. (My emphasis)

 

Note: I assume that this count for Q3 2012 doesn’t include Ariba which had just been acquired.

 

In the Q4 2012 earnings call, Hagemann Snabe made this statement:

 

We are a major player in the Cloud, we have the most users, we have the broadest portfolio, the most consistent portfolio and with Ariba the largest Cloud-based business network in the world.  (My emphasis)

 

Breaking down the metric

 

A quick analysis of the figures of the user count shows that there has been steady increase over time. Where exactly did these millions of users come from?  I’d never seen any details about the user counts for particular cloud offerings – so I decided to do some quick research and try and get some figures.

 

SuccessFactors has 20 million “subscribers”.

image001.jpg

 

In December 2012, it appeared that Ariba had 5 million users.

 

Thus, based on the figures from these two offerings (Ariba + SuccessFactors), SAP had over 25 million users / subscribers.  However, in the Q1 2013 earning call, Hagemann Snabe said that SAP had 24 million cloud users.

 

If SAP’s two biggest cloud acquisitions together have more users then the total number of cloud users associated with all SAP’s cloud offerings, then there are various possible conclusions:

 

  1. The number of users of “less important” SAP cloud offerings (not SuccessFactors or Ariba) is very small and these applications aren’t being used at all.
  2. SAP has problems with addition and / or reporting
  3. The metric is flawed and has little relevance

 

What is a cloud user?

 

The bulk of SAP’s cloud usage originates from SuccessFactors. Therefore, I found SuccessFactors’ use of the word “subscriber” instead of “user” in its marketing material very interesting. This distinction demonstrates that there is a difference between actual usage of a cloud application and the number of users who have the potential to use this application but might not exactly have used the application.  It is the distinction between users who have used the application and the number of users who could use the application.

 

Yet, he use of the world “subscriber” by SuccessFactors is intentional and reflects how SuccessFactors makes its money.  For example, the subscription fees for its “Workforce analytics and / or Workforce Planning” products are based “on the number of Employees in Customer’s and its participating Customer Affiliates’ organization” rather than the number of users that actually use the system.

 

Conclusion

 

With its two cloud acquisitions, SAP now has by far the largest cloud user base in the market.  As a marketing tool, the “biggest cloud player” card might sound good but actually it hides the evolving diversity of SAP’s cloud efforts. When these activities were nascent, then there was little else that SAP could use to prove its cloud prowess.   Yet, at this point in time, the use of cloud user counts really doesn’t help us understand SAP’s cloud strategy or its level of achievement of this strategy.  

 

More useful might be metrics that reflect how each individual cloud offering determines its subscription fees (As I’ve reported earlier, there is actually more diversity in such metrics than you might expect).  Faced with the difficulty of comparing the success of such different metrics, the common denominator of subscription revenue is used.  This can be seen in the latest earnings call:

 

We see continued very strong growth in the cloud, with a 385% year-over-year increase in cloud subscription and support revenue and a 95% increase in deferred cloud subscription and support revenue. [SOURCE]

 

However,  we then have a similar problem in that the cloud offerings are bulked together and we have no idea about subscription revenue of individual offerings. This merging of the subscription revenues of individual offerings provides very broad indications of success but I’d be curious as to how much of this success is based on SuccessFactors and Ariba activities compared to the other SAP cloud offerings.


Last year, I blogged about Financials On Demand (with the title  “The first honeycomb in the hive: Understanding the positioning of Financials OnDemand “) in which I described the re-use of Business ByDesign for other cloud offerings.

 

We haven’t heard much about this effort in the last few months.

 

In a recent blog by Dennis Howlett concerning SAP’s Q1 FY2013 results, I found an interesting paragraph about Business ByDesign.

 

On our call, Snabe talked about wins against NetSuite and Salesforce.com on products that are subsets of the main BYD suite, including Sales OnDemand. I can point to wins the other way. Snabe said that the mid range is continuing to buy functions with finance leading the way. I find this depressing. The cloud provides ways to transform business. If SAP is a proxy for what’s happening in the market then that isn’t the case in the mid market. More research is needed here.

 

I was curious to know whether this strategy was being actively pushed in other parts of SAP’s cloud organization.

 

At the recent Q/A session following the announcement of SAP’s Q1 2013 results, financial analyst Richard Sherlund (Nomura) asked Lars Dalgaard a question about his progress in this area:

 

Then lastly, if we could just ask Lars for an update on ByDesign, in terms of his work on making that more modular and on HANA and where we stand on that?

Here is Lar’s response:

 

Yes. So the success we're having in unbundling Business ByDesign's architecture has been extremely strong recently. We've just had some really, really big win, a line of business focused in Sales OnDemand. And we're seeing that this line of business initiative, which actually was started by SAP before I got there, but I've just been able to put a lot more tonnage behind the strategy. It is clear that people buy cloud in business units and line of business, and that's the way that it's bought. And so we've had real success in splitting that out. And particularly, what we're seeing from the ByD code is the financials is what's very popular.

 

Based on this statement, it appears that SAP is continuing this strategy of unbundling “honeycombs” from ByDesign.  The only reference to ByDesign during the SAP’s Q1 2013 results call was as a source of material for other cloud offerings (Financials OnDemand, etc). There were no details on the status (number of the customers, for example) of ByDesign as a complete suite.  I don’t know whether ByDesign will shrivel away but it is obvious that as SAP’s cloud-related strategy evolves and includes an ever-increasing number of offerings that the focus of  cloud-related marketing / resources lie elsewhere.

SAP Cloud Knowledge Management hast established a team to produce highclass product videos.

The videos will be offered in YouTube and should provide useful information about new or existing SAP cloud product features.

The media video should not replace classical product documentation but our videos will be a missing link between marketing material and classical product documentation. They are:

  • Easy AND fast to consume
  • Snazzy to raise the interest on a specific topic
  • Produced on a regular base (already 15 videos published this year.

 

We announce new videos in Facebook and Twitter and will also do so now in SAP Community Network.

 

Here are the latest Cloud product videos produced by Cloud Knowledge Management – hope you like them J

 

 

… and due to popular demand:

SAP Business ByDesign What’s New 1302  - Multilingual Version

 

Future videos will be published together with short abstracts.

On-demand has become a buzzword in the last months/years. Some people interpret on-demand by “modern” and on-premise by “old-fashioned”. That’s basically wrong. This blog is to present considerations and/or questions that shall help you to justify which operational model to use for new applications no matter if they are built or bought. The migration of applications from one operational model to another, however, is a completely different game. We don’t touch this topic in this blog.
Definition: Hybrid
If some applications are run on-premise whereas  other applications are run on-demand then we call this operational model “hybrid”. This definition is perfectly aligned with article #15 on the meaning of “hybrid”.
This definition should not be mistaken with the one of “mixed” applications where the same applications run partially on-premise and partially on-demand.
The purpose of this blog is to provide considerations of a very general kind. We don’t want to cope only with SAP applications or solutions. The situations we describe in this blog are valid for basically all customers who think about utilizing on-demand as a new operational model. We are targeting decision makers and middle management as readers of this blog.
Now, let us start by looking at two initial examples:
Example: Long-established Company
Setting: You are leading a long-established company. Your IT is up and running for quite a while; not the latest hardware/software, but it is sufficient. All applications are built on-premise
New applications should definitely be built on-premise as all applications before because infrastructure and skills are available for on-premise.
This example is typical for companies following a conservative approach with regards to adopting new technologies.
But, let us now look at a diametrically different example:
Example: Start-up Company
Setting: You are a new business application startup. As newly established software company you leverage most modern IaaS or PaaS platforms to provide your solution as on-demand SaaS application to your customers.
The on-demand operational model is obviously the right solution, at least for the first period of time as it produces lowest costs.
These two examples lead us to the introduction of a concept that we want to call “dynamics“. It is definitely relevant for this decision finding process with regards to the operational model to use.
Definition: Dynamics
In general, dynamics means alteration from what has been and what will be. The more need or wish for alteration, the more dynamics. In this interpretation dynamics can be seen as a driving force for alteration.
The bigger the system landscape of a company is (no matter whether on-premise or on-demand), the more expensive is each single alteration if it is of a general kind. Hence, the desire for change becomes smaller and smaller. So is the dynamics. This conception is surely not valid for all kinds of alterations, but for many of them.
The example of the long-established company underlines this thesis. So, it sticks to the up-to-now operational model (on-premise in this case).
The example of the start-up company on the other side is characterized by extreme dynamics which doesn’t mean that you have to change your operational model. It just means you have the freedom to decide. So, you should think carefully about all the boundary conditions to find the right decision.
Dynamics is a very important criterion for the decision of the right operational model, especially as its meaning is twofold: On one hand the dynamics of the company is meant (see examples 1 and 2), on the other hand the dynamics of the business demands are meant (see upcoming example 3).
Possibly there are even more aspects of dynamics that are relevant for our considerations. And all of them tend to the freedom of choice. In many cases they tend to the on-demand model.
Example: DZ Bank AG (see 1)
Setting: For more than 15 years, DZ Bank uses an integrated technology solution based on SAP ERP HCM for its human resources (HR) tasks. Now, initiated by the expansion of DZ Bank, the HR processes were to be tightened up and data were to be provided more reliably and transparently.
For complementing its existing on-premise HR systems DZ Bank decided to add SAP’s cloud applications by SuccessFactors for performance & goal management.
Besides dynamics as a driving force, there must be other criteria, more rational ones that are of relevance. Let us look at an (incomplete) selection of them.
Criteria Table

Criterion

“On-demand”

“On-premise”

Backend Connectivity

To be compensated by a peer-to-peer communication technology from on-demand to on-premise (see 13) and possibly further infrastructures built on top of this basis

Datacenter Local Area Network and internal local application middleware.

Control

100% trust in your SaaS-provider (see 3, 4)

100% internal control (see 3, 4, 7, 9)

Costs

Pay as you go, per user, per month, etc (see 4, 7)

Up-front costs for hardware, maintenance, software licensing, datacenter facility, etc.

Customization

Limited (see 3)

Possible in wide ranges (see 9)

Infrastructure: Sizing, Updates, Add-ons

Provided by the cloud offering, priced-in, limited capabilities (see 4)

Rather complex and expensive

Integration with existing or 3rd party software

Only loosely coupled (see 3, 4, 7)

Loosely and tightly coupled are both effective (see 3, 9)

Mobile access

Authorizations are taken care of effortlessly (see 7)

Most companies have “build-your-own“ mobile connectivity infrastructure (see 3, 7)

Network Costs

Very high because of increased investment needs in WAN communication reliability, security and performance investments

Very low costs: Local Area Network

Reliability

Central back-up systems are available in case a server crashes or power goes out. Duplicate or redundant systems replace in case of serious failures
(see
4)

Usually, there are no back-up or duplicate/redundant servers available except you are dealing with very sensitive data (e.g. banking sector)

Security

A2A data transfer via internet creating security risks; compensated by high security efforts of the provider (see 14)

A2A data transfer via internal datacenter environment creating lower risks (see 9)

Support of proprietary software processes

Only standard API’s and scenarios are supported by a SaaS  provider. But through the APIs you can build custom extensions and support them on your own.

Easily possible (see 9)

Time-to-market

Joint development of software, infrastructure and operational processes (see 4, 7, 9)

Separation of software development and infrastructure / operations yielding a TCO disadvantage

 

Legend
·  means to be the better solution for the according criterion
·  means to be an equivalent or almost equivalent solution in regards to the better one
·  means to be the disadvantaged solution for the according criterion
Comments for the Criteria table:
For each of these criteria you have to judge how relevant they are for the situation of your company. A weighting factor can probably help representing this relevancy, formally.
Instruction for use to make an operational model decision for new applications:
1.   Rational Part.
You walk through all the criteria of the table and for each of them you weight its relevancy for your company and, hence, get an indicator for one of the operational models. By taking all criteria into account you achieve a direction towards one of the operational models.
2.   Case distinction Part.
If you are using a hybrid operational model landscape, already, then it’s just perfect.
If you are running applications on one operational model only (usually on-premise) and if this one is the one you retrieved by the criteria table, then it’s perfect, too.
But, if it’s the other one and you want to follow this recommendation, then you have to invest additional money to build up knowledge, train employees and to build up infrastructure to operate on two different operational models. These costs may be very high depending on the situation of the company / number of IT employees and other related factors. A lot of these costs are one-time start-up costs. They pay off best if a company sets a long term strategy to embrace cloud solutions, so that these startup cost are amortized by many cloud solution usage.
Only in this case the upcoming part (balancing part) in the decision process is applicable.
3.   Balancing Part.
These additional costs (see case distinction part, last option) have to be balanced against the dynamics of the company, of business demands and other aspects (see section “Dynamics” above).
To illustrate these considerations better, let’s revisit the example of the DZ Bank AG above: It shows that additional costs for the second operational model (although maybe high) are not as significant as the dynamics of the company (“expanding”) and the dynamics of the business demands (“tightening processes” and “data to be more reliable and transparent”).
The situation looks very different in the example of the long-established company.
The rational part evaluates the criteria table as a lot of other articles in the net do in a similar way, before.
That’s not new!
The case distinction part then compares the operational model the company uses right now with the one the criteria table yielded in the rational part. If it’s the same or the company uses a hybrid operational model, then everything’s perfect. But if not, then and only then the balancing part becomes relevant. As the name suggests it eventually balances the imminent costs with the dynamics of the company, business demands and so on. So, the decision is made. And this is the part of the process that is new. The consideration of different aspects of dynamics influences the result retrieved by the criteria table significantly.
Summary
Operating on hybrid operational models seems to increase TCD/TCO in many scenarios depending on use case, business case and other criteria. Nevertheless, these costs have to be balanced against the dynamics of the company, the business demands and similar aspects of dynamics.
In the near future the hybrid operational model will probably be just reality.
This histogram shows us where the distribution of operational model may evolve between 2012 and 2016 even though the specification of concrete years should better be exchanged by intervals in order not to pretend a precision that is just not there.
saugatuck.png
The most important operational model of the next years will be the hybrid one because many companies that rely today on on-premise will change to the hybrid operational model in the same way as our DZ Bank in example 3 did. The percentage increases heavily from 2012 (40%) to 2014 (63%). But, the peak of this process will be reached in 2014 if the prognosis is right. After that, the number of companies favoring a hybrid operational model will decrease, again. This red curve most probably has to be stretched into the future for all companies, but especially for big companies.
There will be quite some companies sticking to their on-premise model. Our example of the long-established company also belongs to this fraction. But the number of these companies constantly decreases from 50% in 2012 to 13% in 2016. One might ask whether the on-premise operational model will really decrease that much and that early.
More and more companies, however, will rely solely on the on-demand model. Among them many start-ups may exist as our example start-up company.
Resources:
  1. Watch the wave Blog: DZ Bank using the hybrid cloud and on-premise solution
  2. SAP Community Network: What is a cloud and on-premise hybrid solution by SAP?
  3. SearchCloudApplications: On-premises vs SaaS: Making the choice
  4. CrownPeak Whitepaper: On-premise versus cloud
  5. TechRepublic Blog: Comparing cloud to on-premise CRM: Choosing a solution
  6. E3 magazine: Cloud Services und Mobility
  7. ERP Software Blog: Cloud vs. On-Premise ERP – Iighing the Pros and Cons
  8. SAP Community Network: OnDemand to OnPremise Connectivity for SAP Cloud Solution Integration
  9. Nitman Software Whitepaper: SaaS vs. On-Premise Deployment
  10. HarrisData Blog: Reliability of Cloud vs On-Premises Software
  11. HarrisData Blog: Cloud Reliability Stumbles
  12. SoftwareAdvice: The Downtime Dilemma: Reliability in the Cloud
  13. SAP Developer Network: SAP NetWeaver Cloud Connectivity Service - Security Whitepaper
  14. SAP Community Network: What is a cloud and on-premise hybrid solution by SAP?
  15. Saugatuck Technology, 2012 Cloud Business Solution Survey, Global, N-228 (Feb 2012)

shopper.jpg

Retail is a fascinating segment to study.  

 

Retailers live in a world of razor thin margins, expensive returns, staggering shrinkage, and talent retention challenges.   It’s no wonder retailers themselves are so keen to leverage Social Media as a tool to improve the customer experience.On the other side of the counter (physical or virtual) consumers have demonstrated a desire to use social media to talk about retailers, but not necessarily to retailers.

 

And taken on the whole, the consumer / retailer relationship reached a new level of intimacy a decade ago when consumers began to trade off privacy for discounts in the form of individual loyalty management cards.  Now retailers find themselves sitting on a warehouse of individual consumer data – reflecting past and ‘real time’ purchases (through loyalty card membership), easily augmented with the most intimate personal details by publicly disclosed social media data.  (Don’t think your local retailer knows how many kids you have?  Where you vacationed last?  How much your home is worth?  Don’t be so sure until you check your Facebook/Twitter/Tumblr/LinkedIn/etc/etc/etc accounts to see what you’re sharing). 

 

Could the aggregation of these data sources cross the line of ‘creepiness’ and betray our social compacts around privacy?  Do you as a retailer risk misreading the Social Media tealeaves?

 

NetBase has partnered with SAP to develop SAP Social Media Analytics, an industrial strength solution that gathers and processes billions of online conversations in real-time. With deep natural language processing capabilities, this analytics solution delivers all-important context that helps companies understand the nuances, including things like sarcasm, irony, and word play. Misunderstanding conversations is just as damaging as not listening at all.

 

Curious about what the best and brightest in retail are thinking about this?    So are we. At the recent NRF “Big Show” we asked some of the leading minds in retail  about how the best retailers are approaching Social Media. I thought I’d share one of those videos with you.

 

If you want to know more about what our partner NetBase has uncovered while working with JD powers  on consumer behavior, I’d encourage you to check out this recent report.

A recent SAP HANA Cloud downtime announcement on SCN caught my eye.

 

Dear SAP HANA Cloud customers,

 

Please be reminded that there will be a planned downtime for https://hana.ondemand.com on April 11th, between 05:00 – 06:00 UTC due to an infrastructure update.


Impact

 

Development operations like deployment, starting and stopping of applications will not be possible.

 

The following platform services will be down during the update:

    • Document Service
    • HANA DB

The other underlying platform services might experience short outages.

 

Running applications will be accessible.

 

Note: I closely follow the SAP HANA Cloud downtime announcements on SCN and the resulting updated release notes. I always look forward to seeing how the platform has evolved and I’m impressed that the team is keeping up with its two-week release cycle.  The public communication of such events is also an important sign of transparency vis-a-vis the ecosystem. 

 

The associated deployment was completed successfully but the initial announcement still irritated me.  Usually, such announcements contain statements like this one -  “The other underlying platform services might experience short outages.“ but this time two critical services were down during the update. I have no idea how long the downtime really lasted but it was announced as lasting one hour.   Running applications might be accessible but what if they used the document or HANA DB service? Would such applications still work? I don’t know whether the downtime announcement was just unclear or whether applications using the affected services were also impacted.  I also have no idea have many applications are currently productive on the platform or how many of these applications use these two services.

 

So many unanswered questions were disturbing. I was recently doing research on cloud SLAs and I started wondering about the downtime announcement and SAP’s SLAs for the offering.  Could the downtime of these two services be considered a SLA violation?

 

I looked for the SLAs of the HANA Cloud and only found an old SAP NetWeaver Cloud Supplemental Terms and Conditions from 10/2012 which contains this clause:

 

5. Platform Availability

 

With respect to the Platform (includes compute, structured storage, unstructured storage, bandwidth, connectivity connector in the Cloud), SAP warrants at least ninety-nine point nine percent (99.9%) System Availability over any calendar month. Should SAP fail to achieve ninety-nine point nine percent (99.9%) System Availability over a calendar month, Customer shall have the right to receive a credit equal to two percent (2%) of its subscription fees for the Service (for Platform fees only) for that month, for each one percent (1%) (or portion thereof) by which SAP fails to achieve such level, up to one hundred percent (100%) of the fees for such month.

 

Note: This paragraph really isn’t detailed enough for a cloud service. The description provided by the HP Cloud group regarding their SLAs is much easier to understand.

 

So, we have an availability of 99,9%. What is the acceptable downtime in a month to maintain the SLA? I used the Ez (Easy) Uptime Calculator to calculate it.

 

image001.jpg

Just a downtime of 43.2 minutes would be permitted in a month. If the HANA Cloud services were really down for an hour, then it appears that we might have a SLA violation – especially since the “Platform” described in the availability clause in the ToC is defined as including “structured storage, unstructured storage”.

 

Conclusion

 

Why am I even bringing up the topic? The deployment was successful and everything is fine. 

 

There is currently a heated debate about the quality of the support provided for SAP’s cloud applications.  In the comment stream to this blog,  Sina Moatamed makes a very important point:  “First challenge is that SAP is no longer in the software business.  Cloud is about Service Delivery.  The entire engagement has to be from that lens.” Although the blog in question focuses on metrics associated with support for SAP’s cloud applications, Sina’s point is very important and represents a shift for SAP.

 

Maybe I’m making a mountain out of a molehill and the two services weren’t even down for an hour. Yet as SAP moves more rapidly into the cloud space, it must be very aware that the market is closely watching its actions. SAP’s image and a judgement on its degree of professionalism regarding its cloud offering are still in flux - especially in comparison to other vendors / competitors.  Despite the fact that SAP's cloud / platform strategy has many moving parts, there have been major improvements over the last year; yet, as the platform matures, the expectations of the market change as well. SAP's challenge is to couple the innovative character of the platform with the new responsibilities associated with cloud-based service delivery.

 

Note: Recently, there has been a decision to move the Hana Cloud downtime announcements to a mailing list. Although the reasons behind this move are primarily technical in nature,  I would like to see a more prominent publication of this material.  The mailing list looks like it is open to everyone but most other cloud vendors have a single page for planned maintenance (for example, here is the one for SalesForce) or the status of the platform (here is the one for SalesForce). I’d expect something similar for the HANA Cloud.

Constanze Reichelt

From CIO to CIO

Posted by Constanze Reichelt Apr 16, 2013

Many businesses plan on adopting cloud platforms in the near future as a brand-new cloud platform research from Oxford Economics is showing. See chart below. To download a fully copy of the research paper, click here.

 

Oxford paper#1_investment plan graphic.jpg

Oliver Bussmann (CIO, SAP) offers CIO to CIO advice in his latest blog on cloud platform trends including three key characteristics he looks for in a cloud platform provider.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Source: "Unlocking the Cloud" Oxford Economics research, April 2013

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