cloud computing adoption in sap technologies

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Cloud computing is emerging as an exciting trend in the ICT and with this presentation we tried to explore opportunities of adopting Cloud computing in SAP Technologies


  • 1.
    • By
  • Siva Velaga
  • Swapna Veldanda

Clouding Computing Adoption in SAP Technologies 2. Agenda

  • Trends in Storage Market
  • What is Cloud Computing
  • Cloud Computing Characteristics
  • Layers of Cloud Computing
  • Predictions
  • Case studies
  • Relatedness to SAP

3. Trends in storage market

  • There are a few prominent trends that are coming up today:
  • Virtualization:Both server and desktop virtualization are very hot today.
  • Data center consolidation:It is very cheap for enterprises to build data centers, especially small. However, the cost for transport of data between data centers is very high. So companies are looking for data center consolidation.
  • Secure multi-tenancy in storage infrastructure:This is going to be the next big thing. Cloud provider will be able to put in 500 terabyte of storage and put many customers and those customers will be able to access only their floor with swipe cards.
  • Heterogeneous virtualization of storage:.That is already a huge hit today
  • Going forward customers will demand the usage of a particular infrastructure in data centers, unlike today.

4. What is Cloud Computing

  • Cloud Computing," to put it simply, means "Internet Computing." The Internet is commonly visualized as clouds; hence the term cloud computing for computation done through the Internet. With Cloud Computing users can access database resources via the Internet from anywhere, for as long as they need, without worrying about any maintenance or management of actual resources. Besides, databases in cloud are very dynamic and scalable
  • Examples:Google Apps,, Amazon

5. Cloud Computing Definition from Consumer perspective Trends Cloud Computing allows On Demand Software Provisioning with Zero-Installation &Automatic Configuration at low cost and immediate access in Scalable Data Centers. Definition from Consumer Perspective Application Providers Platform Providers Infrastructure Providers Service Providers 400,000 Developers + ISVs Selected Cloud Consumers & ISVs 6. Cloud computing characteristics

  • Transparent scalability
  • Usage-based billing
  • Off-premises operation
  • Cloud computing can be thought of as the urge to stop worrying about how the bits flow in an organization, in order to focus on how the flow of bits can create business value

7. Layers of cloud computing

  • The newest entrepreneurial excitement around the various layers of Cloud Computing.
  • They include:
  • Infrastructure as a Service,IaaS
  • Platform as a Service,PaaS
  • Software as a Service,SaaS

8. Contd

  • IaaSis called Utility Computing because the providers own and rent out billions of bytes of data storage over the Internet for paying subscribers to use, or massive computing power for paying subscribers to exploit with their own software. The simplest form of Cloud Computing, IaaS is computer hardware online. Renters of this service have to be very sophisticated.

9. Contd

  • PaaSis where a business combines the compute power and data storage with software development tools for programmers to use in building software as a service. The PaaS provider hosts this software shares the subscription revenue. The software can be anything games, word processing and business tools are examples. PaaS involves multiple parties for deployment and use, and the required level of sophistication varies, as does the quality of the software.

10. Contd

  • IaaSis called Utility Computing because the providers own and rent out billions of bytes of data storage over the Internet for paying subscribers to use, or massive computing power for paying subscribers to exploit with their own software. The simplest form of Cloud Computing, IaaS is computer hardware online. Renters of this service have to be very sophisticated.

11. Why Cloud Computing

  • Anytime Anywhere Access
  • Cut Down in Costs
  • Pay as you use
  • Saving on Physical Space
  • Corporations might save money on IT support. Streamlined hardware would, in theory, have fewer problems than a network of heterogeneous machines and operating systems.
  • Features likegrid computingcan be exploited

12. Predictions about Cloud computing

  • 75 percent of organizations in Asia Pacific will increase their software as a service (SaaS) investments by 2010
  • Cloud services will create over 300,000 jobs over the next 5 years in India, says Zinnov Research
  • The overall computing market will reach $ 70 billion by 2015. India, with its powerful ecosystem of over 1300 independent software vendors (ISVs), 1.4 million developers and more than 11000 system integrators (SIs and Custom software development organizations), is ideally poised to address this growing opportunity

Source : Gartner Survey 13. Strategies of IT companies

  • Fujitsu is setting up public clouds in various geographies and offering vertical-specific solutions
  • TCS, Infosys, Wipro Typically running SMB enterprise systems on clouds
  • Wipro calls it 2-minute noodle approach and is targeting small firms in different industries textiles, gems & jewellery and healthcare
  • Appirio, a much smaller firm, assures to save its customers a million dollar if they migrate to cloud
  • SAP has joined the Virtual Computing Environment (VCE) coalition floated by Cisco-EMC-VMware
  • Capgemini is leveraging its relationship with SAP to create licensing options

Source : Information Week 14. SaaS Makes Enterprise Software Tools Available to SMBs

  • Why does on-demandmake it easier for SMBs to acquire enterprise software?
    • No need to buy or install expensive infrastructure
    • No upfront investment
    • Minimal burden on IT staff
    • Reduce technology risk
    • Eliminate the upgrade cycle

15. Cloud Computing decision factors

  • Uptime:
  • Does this application require 100% uptime?
  • Integration:
  • How does it integrate with other existing applications
  • Data security/confidentiality:
  • How critical is the data being trusted a third party with?

16. On Demand vs On Premises Deployment? What is the best for me?

  • Who will be the main users of this application?
  • Will this Application handle sensitive, confidential or regulatory data?
  • Are you looking to use this application in a standard or non-standard way?
  • What kind of financial commitment are you looking to make with regard to this application?
  • What is the size of your company?
  • What scale of deployment do you expect for this application?


  • What technical SUPPORT resources are available ?
  • What level of INTEGRATION do you think will be needed with other IT systems currently used by your company?
  • What kind of SCALABILITY and elasticity needs will this application have?
  • Will this application need to handle heavy DATA TRANSFER?
  • What is the current IT INFRASTRUCTURE status of your company?

Contd 18. Key Drivers for On Demand or On Premises

  • Functionality
  • Sensitivity of information
  • Data Load
  • Implementation timing
  • Integration Requirements
  • Deployment Scale

19. Cloud Computing Evaluation checklist

  • Availability of Resources
  • Transparent communication in Business continuity management and disaster recovery plan
  • Service Level Agreement
  • Pricing model
    • whether pricing is cased on per license
    • Part capex model or
    • Part opex model
  • Assurance on deliverables

20. SAP Cloud Computing Architecture 21. Hardware Utilization with System Landscapes: Todays Situation Source : Amazon AWS 22. Traditional Hosting vs. Amazon Cloud Hosting Costs of ERP for Development in Term500 /hour month 0.30 / hourProvisioning Time Min 1week 6 min Source : 23. Impact on SAP Business Solutions and Technology Source : 24. SAP Cloud Computing:A case study from Crossgate

  • Cross gate provides an EDI/B2B managed services hub in a cloud computing environment that utilizes SAP technology including Net weaver PI.
  • Crossgate configures an ERP profile (interface) which integrates the SAP ERP (or other SAP applications) to Crossgate's EDI/B2B exchange. Data can be moved in and out of the Crossgate exchange and translated into all the various EDI and B2B standards and custom B2B file formats required within your trading partner


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