Erik Lüngen

COO & Cloud Services Industry Cloud

CLOUD – your choice?

Patrick Gruhn

SVP

© 2017 SAP SE / replex - All rights reserved.

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What is cloud? The analyst’s view

Cloud computing is a style of computing in

which scalable, IT-enabled capabilities are

delivered as a service to customers using

Internet technologies.

“”

© 2017 SAP SE / replex - All rights reserved.

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What is cloud? The consumers’ view

Doesn’t work? Stop

using and replace!“

”There is no one else between you and your consumers

You have to be always on and always there (24*7)!© 2017 SAP SE / replex - All rights reserved.

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What is cloud? – Characteristics and Qualities (1/2)

Cost efficient operation and hardware utilization Low cost of service

All Scenarios are exclusively accessed via the

internetWeb access only

(No VPN)

All customers are on the same version of the

software One Code line

Trial-systems can be ordered and tested instantly Out of the box

Customer decides, which features

to activate / to use Pay as you use

System behaves scalable Elastic cloud

© 2017 SAP SE / replex - All rights reserved.

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Customer grade User Experience (incl. social) Easy to use

Simple and powerful adoption mechanisms by

key-userFlexible, extensible,

configurable

Simplified, standardized, efficient customer

processes Next level of

standardization

Openness for integration by customer Easy to fit in

Easy consumption of innovation Regular innovation

High service quality, Provider takes over

responsibility for running patching and monitoring

the system

Positive customer

business case

What is cloud? – Characteristics and Qualities (2/2)

© 2017 SAP SE / replex - All rights reserved.

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What does this mean to me?

• Proof your Business Case

(Who will pay the bills and when?)

• Proof your cloud service with customers (POC)

• Speed is key

(growth, user adaption,…)

• Ensure efficient cloud / hardware utilization

© 2017 SAP SE / replex - All rights reserved.

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What does this mean to me?

Install &

ConfigureReplace

Run &

Use

Customer

Vendor

Yesterday

Deploy Terminate

Run

Customer

Vendor

Today

Configure &

Use

© 2017 SAP SE / replex - All rights reserved.

888

KPIs – what cannot be measured, cannot be fixed!

“

”© 2017 SAP SE / replex - All rights reserved.

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KPIs, KPIs, KPIs…

Deploy Terminate

Run

Customer

Vendor

Configure &

Use

Commitments on KPIs often

become part of contracts

KPIs are available for

customers in real time

During definition phase

specific KPIs for

performance, scalability,

etc. need to be defined

The specific KPIs need to be the leading

paradigms for software architecture.

KPI measurement needs to be an integral

part of the service.

Testing service needed to meet KPIs

before release of service to customer.

KPIs are monitored continuously.

Recommended actions (or better

automated steps) for threshold

passing are available.

Learnings will lead to new

requirements for development.

© 2017 SAP SE / replex - All rights reserved.

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Again - What is cloud?

Be prepared for

surprises. “

”So if you expect 10

plan for 0 and for 100!© 2017 SAP SE / replex - All rights reserved.

111111

Automate – wherever possible… Robots don’t get bored.

“

”(…and don’t make human errors)

© 2017 SAP SE / replex - All rights reserved.

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Low

Risk

FastROI (return on investment)

Continous Delivery and its benefitsC

hange

Time

Change

Big changes, deployed rarely Small changes, deployed frequently

High

Risk

$ Lost

Output

… and better workload balancing, less stress

Output

Time

© 2017 SAP SE / replex - All rights reserved.

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EFFICIENCY IS EVERYTHING

© 2017 SAP SE / replex - All rights reserved.

14CloudPhysics Global State of the Data Center Report Q4 2016

$54.7B

FINANCIAL IMPACT OF WASTED

IT RESOURCES

© 2017 SAP SE / replex - All rights reserved.

15CloudPhysics Global State of the Data Center Report Q4 2016

GDP of

114 Countries

FINANCIAL IMPACT OF WASTED

IT RESOURCES

$54.7B

© 2017 SAP SE / replex - All rights reserved.

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Stranded capacity things that are paid for, but not really used …

IT leaders should learn to focus not just on uptime and availability,

but also on capacity, utilization and density

Top 10 Technology Trends Impacting Infrastructure & Operations - Smarter With Gartner© 2017 SAP SE / replex - All rights reserved.

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CAPEX VS OPEX

PHYSICAL VS CLOUD© 2017 SAP SE / replex - All rights reserved.

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IT STARTS WITH YOU

(COOL … BUT WHY?)

© 2017 SAP SE / replex - All rights reserved.

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EFFICIENT CLOUD

=

LOWER COSTS

=

HIGHER PROFIT MARGINS

=

HIGHER EVALUATIONS© 2017 SAP SE / replex - All rights reserved.

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THE GROWTH TRAP

Funding

Customers

Growth

Costs „WHO CARES (just make it work)“

© 2017 SAP SE / replex - All rights reserved.

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SOUNDS GOOD:

BUT WHAT CAN I DO ?

© 2017 SAP SE / replex - All rights reserved.

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CAPACITY VS UTILISATION

MONITOR, MONITOR, MONITOR, MONITOR and oh did I mention MONITOR?

© 2017 SAP SE / replex - All rights reserved.

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CLOUD INSTANCES

Do you really need this size instance?Can you downsizeyour instances?

© 2017 SAP SE / replex - All rights reserved.

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Adapted from: Kelsey Hightower© 2017 SAP SE / replex - All rights reserved.

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Adapted from: Kelsey Hightower© 2017 SAP SE / replex - All rights reserved.

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FINAL WORDS:

COMPLEXITY IS

INCREASING

© 2017 SAP SE / replex - All rights reserved.

Questions ?

??

??

Erik Lüngen

COO & Cloud Services Industry Cloud

Thank you!

Patrick Gruhn

VP Market Development

© 2017 SAP SE / replex - All rights reserved.