Digital Transformation, Part 1: Rapid State of Change

nnovation is a game changer. There’s a new sense of urgency. We are in the middle of a digital transformation and businesses need to face it – or get disrupted. One message that we hear repeatedly when co-innovating with enterprises across the globe is: “We need to accelerate the pace of change and innovation for us and for our clients.”

And at the heart of this change is the cloud.


But what is digital transformation really about? Have we simply digitized by adopting technology without truly innovating the way we work? Let’s talk about what has changed in business and how a cloud-first and outcome-based approach can help.

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Cloud Myth Buster Summary – the wrap

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:

Myth Buster Summary - Infographic

#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 s tay tuned and in contact with us.

Sven Denecken ( @SDenecken ), Bert Schulze ( @BeSchulze ), Nikolai Vetter ( @NikolaiVetter ), and


Originally appeared in SCN

Top cloud threats of 2013

Security is a major challenge to companies looking to adopt cloud technologies. The Cloud Security Alliance has released “The Notorious Nine,” a list of the most prevalent cloud computing threats of 2013. InformationWeek reports on the CSA’s top concerns, which include data breaches, data loss, and , of course, ”malicious insiders.”

While security is a continuing concern for companies using cloud platforms, there are steps executives can take to protect company data. Download our full report, , with free registration.

Cloud adoption among SMEs still growing

Earlier today, Parallels released its annual SMB Cloud Insights report, which predicted that the SMB cloud market will grow to $32 billion by 2016, up from $18.9 billion in 2013.

Meanwhile, concerns over security persist, and companies are taking steps to deal with these issues. A new report from Gartner identifies small and midsize businesses as the main contributor to growth in the cloud-based securities market, with most spending focused on the transition from on-premise to cloud-based identity and access management (IAM) services. This is right in line with the findings from our Unlocking the Cloud program–see the chart from our infographic below.


New Disney service stores movies in the cloud

The ability to access content anywhere, on any device, is increasingly important to consumers, and like other media companies, Disney is focusing efforts on digital distribution. On Tuesday, the company launched Disney Movies Anywhere , a service that allows consumers to buy Disney movies through iTunes as well as through the service’s own website and app. Ultimately, Disney plans to include other partners outside of iTunes to expand availability.

HR in the cloud

Businesses are using cloud to improve business outcomes across a range of business functions–including HR. A recent article from Baseline details the way Chiquita recently developed a cloud-based solution for talent management. With 21,000 employees, the company needed to be able to make faster hiring decisions with a single HR system that could be regularly updated. The new cloud-based solution offers that and more, including applications for employees, tighter security, and more free time for IT to focus on innovation.

Visa expanding mobile payment options

On Tuesday, Visa announced new mobile payment options for clients and partners. The offer follows a new Host Card Emulation (HCE) feature for Android operating systems, which allows smartphone users to make payments with any NFC app. Financial institutions will be able to issue and host Visa accounts in the cloud, and clients will experience new flexibility in their mobile payment options. Recent security breaches at Target are still top of mind for consumers, and Visa has outlined a “mutli-layered defense” strategy to assuage the public’s fears.

Cloud adoption rates continue to grow

A new report from IHS Technology predicts that global spending for cloud services will reach $174.2 billion by the end of 2014, and that number will swell to $235.1 billion by 2017. As more and more businesses move to the cloud, consumer behavior, business models, and application development will change–and firms that refine their processes to address these shifts will likely reap the most rewards from the cloud.