SAP Virtualization & Cloud Week kicked off today with a keynote from Kaj van de Loo, SVP of Technology Strategy at SAP, entitled “Cloud Computing for the Enterprise.” With the sun streaming into the conference room at the Palo Alto campus, Kaj didn’t mince words when he told the 200-strong crowd: “Old business models are going away, and new ones are picking up pace.” Likening the current state of the technology industry to SAP’s R/3 days in the 1990s, he noted that SAP is now at an inflection point.From in-memory technology to virtualization and cloud management, there are tremendous opportunities at hand for SAP to innovate for customers, partners and internally as well. On the internal front, SAP saw significant results from its recent Cloud Cost Efficiency Initiative earlier this year. “We need cloud infrastructure at SAP”, said Kaj, offering as evidence the 99 percent cost savings SAP saw through its in-house use of SAP StreamWork.
SAP’s Cloud Strategy in a Nutshell
Nicely condensing SAP’s cloud strategy in the proverbial nutshell, Kaj explained how it cuts across four areas:
- Cloud enable on-premise SAP solutions by supporting customers looking to run some or all of their existing SAP on-premise investments in private and public cloud scenarios through tools, technology, and value-added services
- Build out SAP cloud offerings through on-demand solutions targeted to lines of business or personal productivity, and SAP Business ByDesign as the first comprehensive business suite on-demand; offer platform-as-a-service to leverage partners and customers to rapidly expand SAP solution scope; provide commercial platform with an application store at the center to market SAP and partner solutions
- Leverage the ecosystem and build alliances with strong partners
- Invest in the next-generation platform
Partnering in the Cloud
SAP and its cloud partners strive to create value for their mutual customers, who stand to benefit from fruitful collaboration. More extensions to SAP solutions, easier integration and orchestration of on-demand apps built on non-SAP platform-as-a-service offerings, and reduced TCO are part of the bargain. Kaj cited the “Cloud Services Provider Certification Program” as a key part of SAP’s cloud strategy, with a focus on SAP skills, using certified environments, and support infrastructure for SAP applications. Included among the partners who are now SAP certified Providers of Cloud Services with certification completed are IBM, T-Systems, Verizon and CapGemini.
Keeping it Simple
As he wrapped up his keynote Kaj told the crowd in no uncertain terms: “SAP can do simple things in a simple way”, adding humorously: “When did you last hear that?” To hear more from Kaj, and to see cloud management and project ‘River’ demos, watch the keynote replay, or watch the video, “Kaj van de Loo on Virtualization and Cloud Management.”