07 cloud day ksa - the cloud built for business - transitioning to the cloud

SAP Cloud Day The Cloud Built for Business

October 29, 2014

Transitioning to Cloud

Karim Abdel Razek – Principal Transformation Consultant

Business Transformation Services MENA

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Agenda

Transitioning to Cloud

Introducing HANA Enterprise Cloud

Hybrid Cloud & Integration Scenarios - Hana Cloud Integration and Co-Existence With existing

Landscape (SAP/Non SAP)

Cloud Security

Transitioning to the Cloud


Transitioning to the Cloud Requires a Strategy and a Transformation Plan

Many questions and topics need to be answered when developing a Cloud Strategy

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Topics To Be Considered When Building A Cloud Strategy


Business Drivers & Value

Technology & Architecture

Risk & Security

Governance & Transformation

Drivers for transformation into

the cloud Value Analysis

Benchmarking

Cost and benefit

analysis

Cloud Architecture & Design Service & Deployment Models Middleware &

Backend Integration

Device Evaluation

Operations Concept

Risk Identification & Analysis Security Concept & QA

Definition of Guidelines & Policies

Skills Matrix &

Education Plan

Organizational

Impact Analysis

Transformation

approaches

Cloud Principles

Data Governance and

Compliance


There are 6 Steps to Developing a Cloud Strategy

Step 1: Step 2: Step 3: Conduct Cloud Discovery Workshop Conduct Cloud Maturity Assessment Find the Right Cloud Solution Fit

Step 4: Step 5: Step 6: Determine Cloud Architecture Design Define Cloud Transformation Roadmap Cloud Business Case Calculation


Step 1. Cloud Discovery Workshop

Risk

Program

Training

Strategy

Value

Meta Business

Management Processes

IT

Change

A Cloud Transformation needs to balance

economic, social and technical aspects. This requires the involvement of fields such as:

Organizational Culture, Leadership and

Communication

Strategy, Risk and Benefit Management

Business Process Management & IT

Change & Training Management

Program & Project Management

SAP Business Transformation Services Employs

a Holistic Approach to Cloud Transformation

Supported By Cloud Transformation Maturity

Model

9 © 2014 SAP SE or an SAP affiliate company. All rights reserved.

Step 1. Cloud Discovery Workshop (cont…)

More details in the Training Material for

CAS2.0 Training

Meta Strategy

Direction

Value Risk

Processes IT

Enablement Organizational Training & Program & Change Competence Project

Culture / Philosophy

Sponsorship

Vision

Alignment

Execution

Identification Identification

Realization Management Planning Planning

Realization Mitigation

Governance Data

Standardization Application

Organization Infrastructure

Impact analysis Management planning

Management execution

Curriculum Framework

Execution Organization

Skills Execution

Level 1 - Undefined Level 2 - Exploratory

Level 3 - Defined

Level 4 - Managed

Level 5 - Excellent

None or minor and isolated initiatives regarding Cloud. Exploratory initiatives regarding Cloud could be implemented to test and validate Cloud potentials, however there is not yet any overall governance. A standardized approach to Could Computing would be possible after a target Cloud architecture is defined.

Cloud initiatives have the potential to transform the organization towards its target architecture. Proactive management of the Cloud metrics and assets would be possible. Target architecture could be

implemented seamlessly.

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Step 2: Conduct Cloud Maturity Assessment

From the Cloud Discovery Workshops, results of the Maturity Model assessments are

distilled into the “Cloud Maturity Heat-Maps”

Traffic light system enables prioritization of areas to be addressed to transition from

one level to another


Step 3: Find the Right Cloud Solution Fit

Based on the organization’s solution(s) requirements, and the need for customer

specifics (e.g. degree of customization, integration, risks, compliance requirements,

etc…) the cloud deployment model is selected


Step 4: Determine Cloud Architecture Design

Just like city planning ensures the public infrastructure and

private assets work

harmoniously together

means never having

“Good architecture

to dig up the roads” Gartner

12


Step 5: Define Cloud Transformation Roadmap

Defining the strategic imperatives

for achieving the cloud strategy

Selecting the right path to achieving

the strategic intent

Establishing the value drivers and

levers for successful realization of

initiatives

Defining the precedence and “toll

gates” for transitioning from one

initiative to the another

Engaging the organization and

creating a compelling case for

change


Importance of Employing Organizational Change Management in Cloud Transformation Programs

Change Management is one of the main success factors in

transformations and Cloud projects.

Implementing Cloud solutions at an organization usually

involves various organizational, technological, and social

changes.

Change Management focuses on the effects these changes

have on managers and employees.

This concerns, in particular, new demands on the way of

thinking or behaving, but also deals with any new

competencies and skills required.

Change Management is the bridge from “old” to “new”



Benefits of OCM in Cloud Projects

Increase change readiness to new forms of cloud-based business (e.g. shift of mindset) Effective expectation management towards business and IT with respect to SAP´s Cloud solutions Cloud

readiness

Cloud adoption and usage

Aligned cloud service

Support for better business and IT collaboration (relationship building) - Facilitated dialogue between business users and technology/cloud specialists

- Building more understanding of cloud benefits for users in their LOB Higher trust in SAP´s Cloud solutions

Higher business acceptance with respect to SAP´s Cloud solution portfolio

Accelerated adoption process of business and IT departments

Increased cloud service uptake (higher cloud service usage by end users)

Higher sustainability of cloud service usage (higher renewal rate of subscriptions)

OCM service contains best-practice methods and tools and is fully aligned with SAP´s Cloud

solution portfolio



Step 6: Cloud Business Case Calculation

Speed of “Time to value”

Cash flow impacts and time reduction of budgeting

cycles by moving from CAPEX to OpEx

Efficiency per dollar spend resulting from greater

scalability and flexibility of pricing plans

Amount of reduction of infrastructure and evolution

costs

Response rate to global opportunities and time to

market

Impacts of reduced complexity and costs associated

with “stepping up” infrastructure

Impacts on losses resulting from reduced downtime

Cost impact on application, storage, network

deployment, and management

Lower cost of adoption

Introducing HANA Enterprise

Cloud


SAP HANA Enterprise Cloud

Managed, Monitored and Maintained by SAP & Ecosystem

SAP HANA Enterprise Cloud is a fully managed, monitored and maintained private cloud provided by SAP. It’s designed so our

customers can migrate their existing SAP environment to the cloud seamlessly

As part of the One Cloud Delivery initiative, SAP takes on the burden of managing the customer’s cloud system so they can

concentrate on their business strategy


On Premise HANA Enterprise Cloud

Speed of Business

Low and decreasing over time (high

dependencies on upgrades / maintenance) Ability to respond to business needs faster

Business - Uptime System downtime for support/

maintenance 99.5% uptime guarantee available

Business - Performance Infrastructure Driven HANA customized Infrastructure (Worlds

largest cluster of In memory server)

IT – Maintenance and Support Customer is In house

IT constrained

3000+ SAP Experts supporting Data

Center

IT – Upgrades and

Enhancements Customer IT roadmap driven Always on latest release

Economics– IT TCO Capex- High Resource / Infrastructure

Requirement Opex - Controlled IT spend

Flexibility & Elasticity Limited to Scale up. Higher costs Complete Flexibility to scale up and down

On Premise vs. HANA Enterprise Cloud

What to Choose?


With HANA Enterprise Cloud (HEC), the Customer Has the Choice of What Fits Best to Their Requirements, and at Their Own Pace

Cloud Provider

• SAP • 3rd party cloud provider (ie. AWS)

Payment

HANA

Deploymnt

• Subscription-based • Bring-your-own-License (BYOL) • Cancel at any time • Long-term contract (i.e. 3yrs)

• Public Cloud • Private (managed) Cloud

The customer has the choice • HANA Enterprise Cloud (HEC)

• HANA Cloud Platform (HCP)

• HANA One

Platform

• Pure HANA platform to build native HANA apps • Suite on HANA

Target groups

• Enterprises and their mission-critical systems • Startups


Hybrid Cloud & Integration

Scenarios Hana Cloud Integration and Co-Existence With existing Landscape (SAP/Non SAP)


There is an Increasing Number of Business Scenarios With Integration Needs



Several Technical Integration Solutions Are Available From SAP and from the Partner Ecosystem

HANA Cloud Integration (HCI)

Cloud for customer and travel

SFSF BizX, Employee

Central and Workforce Analytics Ariba Network integration

Financial Services Network

(FSN)

SAP Sales and Ops Planning

Business ByDesign

Process Integration (PI)

SFSF Adapter (PI

Connectivity AddOn) for EC

Add-On 2.0 for SAP ERP

HCM and SuccessFactors

BizX

Ariba Network Integration:

SAP Business Suite Add-on

Direct Integration and File Integration

Ariba Toolkit SAP HCM - SuccessFactors

BizX Integration - Addon 1.0

Data Services

3rd party integration

tools

Dell Boomi AtmoSphere

Cast Iron

Mulesoft



SAP’s Cloud Integration Strategy

SAP HANA Cloud Integration

technology Cloud-based multi-tenant technology for

real-time process integration and data

integration Design time with graphical flows and

mappings

Centralized monitoring and administration

Community marketplace (planned)

iFlows (prepackaged

integrations) Prepackaged integration flows with

prebuilt logic for integration scenarios,

routings, and mappings for

- SAP Cloud-SAP On-Premise

– SAP Cloud-SAP Cloud

- SAP Cloud-3rd Party Clouds

iFlows developed on SAP HANA Cloud

Integration, NW PI, or point to point

Open APIs and deployment

choice Rich set of open standards based

APIs to build custom integrations

To provide choices to customers, in

addition to offering our own integration

technologies, SAP also certifies

connectors developed by third-party

integration platforms like MuleSoft, Cast

Iron, and Boomi



The Most Common Cloud Deployment Models

Relevant Cloud Deployment Models

Private Cloud

Exclusive use by a single organization

A private cloud is operated solely for an organization.

Most secure as resources such as servers, storage,

etc. are virtually only available for one organization A private cloud can be on-

premise or operated externally in the data center

of a cloud provider

Public Cloud

Open to be used by the general public and is not

exclusive

With a public cloud the infrastructure is available to the general public or large

industry group (e.g. Successfactors) In general, following Multi-

tenancy principle

Hybrid Cloud

Composition of two or more distinct cloud

infrastructures

A hybrid cloud can include private cloud setups May comprise two or more clouds that remain unique entities but are bound

together by standard or proprietary technology.

Community Cloud

Exclusive use by a specific community of

consumers with shared concerns

The cloud infrastructure is

shared by several organizations and supports

a specific community that has shared concerns (e.g., mission, security, requirements, policy, and compliance considerations).



HANA Enterprise Cloud Deployment Examples

Typical Customer

Landscape

Moving entire

Landscape to Cloud

SAP NetWeaver 3rd Party Portal Applications

ERP Extractors

6.0 RDBMS

SAP ILM for SAP NLS Archiving for Archiving

Moving Part of

Landscape to Cloud

SAP Business SAP Objects Mobility

BW CRM 7.0 7.0

RDBMS RDBMS

Merging Data into

Datamart in Cloud

Sandbox System in the Cloud


Cloud Security


SAP As Trusted Advisor And Reliable Business Partner

As a trusted advisor and reliable business partner to its customers, SAP takes security very seriously,

leveraging standards and processes

to build security into its software products from the very beginning.


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Snapshot of Cyber Attacks on June 25 2014

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IT security is based on three core elements

Managing IT security: Governance, risk, and compliance

Securing information - data privacy in the cloud and safeguarding information

Securing interaction - secure on-premise landscape

when it is integrated with cloud

and mobile

Securing identities - identity management and SSO

in hybrid infrastructures

Data protection and

data privacy

data encryption and

message security

Network and communication security

channel encryption

Key elements of identity

and access

management



Securing information

In an interconnected world, information security must span diverse legal entities, even different countries, from cloud service providers to network providers to your own company.

Safeguard information at the cloud service

provider Safeguard information on mobile devices

Prevent accidental information disclosure

Manage information across applications

Manage keys for users and devices in the cloud



Securing interactions

To embrace cloud and mobile solutions, the company network has to open up to the Internet. However, handling requests that come in through cloud-based and mobile solutions in real time as securely as if they were part of the company network presents several key challenges

summarized below.

Introduce cross-company processes with cloud

service provider Safeguard request on application level

Safeguard connectivity beyond proxy

infrastructure

Control incoming requests via staging approach



Securing identities

In the IT world users are modeled by identities that need to be authenticated when they access systems and are then provided with authorizations based on, for example, their assigned roles. In the on-premise world, identity management (IdM) solutions are already

standard and user authentication has

been simplified by single-sign-on (SSO)

mechanisms.

Off-board cloud and mobile users

Onboard and manage cloud users

Onboard in the mobile world

Enable central authentication and single-sign-on

Integrate external identity provider (IdP)



Audits & Certifications Overview

Attestation/ Certificate

Purpose

Attestation/ Certificate

Purpose

SOC1 Type 2 / Report on a service organizations internal controls that are ISAE 3402 / likely to be relevant to an audit of a customer’s financial SSAE 16 statements. (former SAS 70) SOC 2 Type 2 Report on Controls at a Service Organization Relevant to Security, Availability, Processing Integrity, Confidentiality or

Privacy Can be handed out to customers and prospects, use/distribution may be restricted.

SOC 3 Trust Services Report for Service Organizations Used for marketing purposes, unrestricted use/distribution.

ISO 27001 Certification of a Information Security Management System. Used for marketing purposes, certification can be

officially published.

ISO 9001 Certification of a Quality Management System Used for marketing purposes, certification can be officially

published.

ISO 27018:2014 Data Protection in the Cloud (not available yet) ISO 22301:2012 Business continuity management system. Used for marketing purposes, certification can be officially published

PCI-DSS Required for customers: who handle cardholder information for debit, credit, prepaid, e-purse, ATM, and POS cards

Safe Harbour Framework providing guidance for U.S. organizations on how to ensure adequate protection for personal data from the EU as required by the European Union's Directive on Data Protection

HIPAA Privacy regulations requiring health care providers,

organizations, and their business associates, develop and follow procedures that ensure the confidentiality and security of protected health information.

FISMA/ Required for customers: US federal agencies. Based on FedRAMP National Institute of Standards and Technology (NIST) SP 800- 53 controls - America based only.

FDA Required for customers from Pharma, Cosmetic, Food & Drug industries.

ITAR Required for customers from Military and Defense. Separated data center in US required with certified US personnel only.



SAP is securing information in the cloud by several measures

All cloud solutions from SAP focus on data protection and highly secure data centers

The U.S.-based cloud offerings from SuccessFactors

and Ariba are formally part of the Safe Harbor

Program

Cloud solutions from SAP and data centers operated

by SAP have completed SSAE 16 audits

SAP offers extensive Service Level Agreements (SLA)

SAP solutions support modern encryption techniques

SAP provides security guides


© 2014 SAP SE or an SAP affiliate company. All rights reserved.

Thank you

Karim RAZEK Principal Transformation Consultant

Business Transformation Services (BTS) – SAP MENA

Mob: +974 66198975

Email: [email protected]

mailto:[email protected]