During the last few weeks we enjoyed demystifying the most common legends about Cloud for you. We hope we turned cloud for you from an indomitable beast into a pet.
Adopting and managing Cloud is a question of knowledge, it´s a question of awareness of risks and abilities. And finally every single customer needs to answer the question himself on how well the cloud provider did his homework to domesticate the beast and unlock the value of cloud for enterprise usage.
Cloud is a catalyst for the entire industry to undergo a significant transformation. With the arrival of this technology, status quo is changing faster than ever and require companies to change and adopt - or go out of business. Every single company needs to find a way to transform the business into the digital age.
We hope we have contributed to a better educated conversation about cloud. Also we wouldn’t like you to miss a summary of our series. here we go:
#1: SAP is not a cloud player
True choice in where and how to adopt cloud based solutions - complimenting new or innovating existing processes. SAP offers customers the freedom to do this in a non-disruptive way. This creates new opportunities for all our customers and helps grow our cloud community every day. We have already cloud customers in 25 industries and 100+ countries all over the world.
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#2: SAP software is hard to use
SAP combines its achievements in business expertise over the past decades with the newly emerged focus on people and how they work. Our next generation cloud portfolio is delivered with a “mobile first” development approach and a consumer-like user experience. Social collaboration is embedded in our product design. And we run hundreds of design-thinking and co-innovation workshops around the globe to engage the end user in our user interface designs. More than 36 million subscribers to SAP Cloud Services experience it every day.
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#3: You have to stay on premise or move to the cloud
In 2017, 50% of large enterprises will have hybrid cloud deployments by 2017. Therefore SAP’s cloud portfolio has been designed to serve the hybrid cloud reality. We bring SaaS, PaaS and integration content together to ensure interoperability for our customers. This delivers the freedom to pick and choose whatever creates value for the customer, independent of the technology stack. Cloud Computing will simply become an additional option in a heterogeneous but integrated landscape.
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#4: Running mission critical systems in the cloud is not secure
SAP handles data with the utmost discretion and strives to deliver services and support that allow business-critical processes to run securely. SAP is used to work with sensitive customer data for more than 4 decades now. Data security and data privacy stays part of our DNA. We protect our customer data with a defense in depth strategy where all layers are secured, not only our Cloud Data Centers that by the way meet a Tier-4 standard..
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#5: Cloud business is not proven
At SAP we are proud that we run our cloud built for Business. Forming the industry’s largest cloud base with more than 36 million end users subscribed to SAP´s cloud services, we are on our way to become the Leader in enterprise cloud business services. We help our customers and partners to gain competitive advantages and realize business benefits in the cloud. A proof point is the Ariba Business Network where more than 1.5 million businesses from more than 191 are connected, transacting more than $600 billion worth in commerce.
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#6: Cloud is only for small businesses
Early SaaS vendors focused on smaller companies as their business is often less complex, customer complexity might increase with the size of organization. We also see some industries which are more complex than others, irrespective of the company size. Differences lead to differentiated deployment footprints between On-Premise, Cloud, Managed Cloud and Hybrid landscapes. The entire SAP cloud portfolio is designed to serve various customer footprints and to ensure SAP serves large customers in the cloud with the same completeness and sustainability as On-Premise. This concept created a 70.000+ customer cloud installed base already of which 60% are classified as large enterprise.
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#7: Cloud is all about TCO
Early cloud Decisions were mainly driven by scale and reduction of costs. No upfront investments (CAPEX), but ratable payments over time (OPEX) lower the risk profile significantly. Beyond TCO, today´s business is driven by Speed and Agility. 52% of the Fortune 500 firms since 2000 are gone as they have been out-innovated by others– This makes Pace of inn ovation the #1 driver for cloud. SAP’s cloud solutions allow an agile adoption of new business models and capabilities, speed up innovation cycles and allow the required flexibility in the structure of organization, processes and IT to stay ahead of the game.
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#8: Cloud can’t adapt to my needs
Stand-alone SaaS solutions deliver simplification, innovation and velocity on the one side and offer a flexible cost structure on the other. Therefore enterprises suffer from the loss of flexibility due to higher standardization of SaaS solutions and accept the control in the hand of the solution provider. PaaS brings back some of the adorable enterprise aspects. With the combination of SaaS & PaaS enterprises have the best of both worlds. Control and flexibility paired with OPEX and Velocity makes SaaS the #1 innovation engine in the IT and PaaS the enabler for large scale enterprise SaaS adoption.
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#9: Cloud is hype in consumer-oriented industries only
SAP’s delivers a simplified consumption model that comes with a great user experience to bring the pace back to business that is required to stay competitive. But each industry adopts at own business priorities and own pace. Based on Public Cloud and Managed Cloud environments we see companies of any size and any industry moving their differentiating and non-differentiating processes to the cloud and gaining their individual advantages with a significantly simplified consumption of services.
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So much for busting some of the key myths we have come across in our cloud strategy and co-innovation work. We hope you enjoyed this series and you stay tuned and in contact with us.
Sven Denecken (@SDenecken), Bert Schulze (@BeSchulze), Nikolai Vetter (@NikolaiVetter), and @SAPCloud
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