Future Shifts in Enterprise Architecture Evolution. IPMA Marlyn Zelkowitz, SAP Industry Business Solutions May 22 nd, 2013

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1 Future Shifts in Enterprise Architecture Evolution IPMA Marlyn Zelkowitz, SAP Industry Business Solutions May 22 nd, 2013

3 Terminology IT Virtualization Abstraction of IT Resources Private Cloud Provisioned for a Single Organization Public Cloud Provisioned for Open Use Hybrid Cloud Composition of Distinct Infrastructures Community Cloud Provisioned for a Group of Organizations 2013 SAP AG or an SAP affiliate company. All rights reserved. 3

On-demand self-service Broad network access Resource pooling Rapid elasticity Measured

4 What is cloud? Category Characteristics Software as a Service (SaaS) Platform as a Service (PaaS) On-demand self-service Broad network access Resource pooling Rapid elasticity Measured service Infrastructure as a Service (IaaS) Source: US National Institutes of Standards & Technology 2013 SAP AG or an SAP affiliate company. All rights reserved. 4

5 Evolution to Cloud

8 Cloud Adoption Customer journey from virtualization to cloud High Hybrid or Public Cloud Business Innovation IT as a Service Deploy ondemand solutions Infrastructure as a Service or other providers Other deployment options Private Cloud Automation Improved Speed and Agility Customer-specific Highly virtualized Migration from on premise Consolidation Increased Agility, Lower Costs Virtualization VMWare Citrix SAP LVM, ACC Low Low Speed of Innovation High Find out more here 2013 SAP AG or an SAP affiliate company. All rights reserved. 9

Global Standard Industry Standard Organization Specific People In House Contract Outsource Governance Process Improvement Resource

9 Organizational Efficiency and Effectiveness Shared services evolution in public sector organizations Optimized Organization IT Infrastructure Blades Virtualization In Memory Cloud Software Single Instance Hybrid Multiple Instances Technology Consolidation Process Global Standard Industry Standard Organization Specific People In House Contract Outsource Governance Process Improvement Resource Optimization SHORT-TERM MEDIUM-TERM LONG-TERM From Technology to Process Standardization 2013 SAP AG or an SAP affiliate company. All rights reserved. 10

10 Cloud Adoption

11 Expected impact of cloud in public sector - globally 50% 39% 37% 28% 24% 18% 3% Fundamentally change business model Change interaction with citizens and suppliers Provide management with greater transparency on transactions Reduce costs Accelerate time to market No significant impact Other Source: KPMG Exploring the Cloud: A Global Study of Governments Adoption of Cloud, February SAP AG or an SAP affiliate company. All rights reserved. 12

12 Public sector cloud adoption lags private sector 38% 35% 32% 29% 24% 19% Public Sector Private Sector Developing a strategy Testing a proof of concept Partial implementation Source: KPMG Exploring the Cloud: A Global Study of Governments Adoption of Cloud, February SAP AG or an SAP affiliate company. All rights reserved. 13

Cloud computing is gaining traction What is your state s

Already considered and rejected Still investigating 19%

the cloud and is considering others 56% 71% Adopted or are

CIO Survey by the National Association of State CIOs

13 Cloud computing is gaining traction What is your state s status regarding cloud computing in 2012? Already considered and rejected Still investigating 19% Other 10% 0% Highly invested 15% Has some applications in the cloud and is considering others 56% 71% Adopted or are highly invested in cloud computing Source: The 2012 State CIO Survey by the National Association of State CIOs (NASCIO), TechAmerica and Grant Thornton 2013 SAP AG or an SAP affiliate company. All rights reserved. 14

14 Cloud adoption covers many types of services What categories of services have you migrated or do you plan to migrate to the cloud? & collaboration 64% Storage Geographic information systems Disaster recovery Program / business applications Office productivity software Digital archives / electronic records 48% 48% 44% 42% 37% 31% Percent responding Citizen relationship management Open data Enterprise resource planning 25% 25% 23% Imaging Other 15% 15% 0% 10% 20% 30% 40% 50% 60% 70% Source: The 2012 State CIO Survey by the National Association of State CIOs (NASCIO), TechAmerica and Grant Thornton 2013 SAP AG or an SAP affiliate company. All rights reserved. 15

15 State CIO Priorities for 2013 confirm this trend Priority Strategies, Management Processes and Solutions 1. Consolidation / optimization 2. Cloud services 3. Security 4. Mobile Services / Mobility 5. Budget and cost control 6. Shared services 7. Health care 8. Legacy Modernization 9. Interoperable nationwide public safety broadband network 10. Disaster recovery / business continuity Priority Technologies, Applications and Tools 1. Cloud computing 2. Mobile workforce technologies 3. Virtualization 4. Legacy application modernization 5. Identity and access management 6. Enterprise resource planning 7. Security enhancement tools 8. Networking 9. Business intelligence (BI) and business analytics (BA), Big Data 10. Document/content/records/ management Source: NASCIO State CIO Priorities for 2013, November 13, SAP AG or an SAP affiliate company. All rights reserved. 16

16 Security & Integration Remain the Biggest Concerns Key Takeaway: Security remains by far the biggest concern for many organizations, with issues around the integration with other solutions and with existing IT landscapes next Q: What are your main concerns with cloud computing? Security breaches & data losses 67.0% Cost of 3rd party integration 39.0% Difficulty integrating multiple point solutions 38.0% Mismatch with organizational requirements 35.0% Point solutions may not be supported long-term 32.0% Data 'silos' that may slow the enterprise 24.0% Other concerns 21.0% Source: SAP Performance Benchmarking ( SAP AG or an SAP affiliate company. All rights reserved. 17

17 Other potential pitfalls with cloud computing Learn from early adopters Cloud costs More? Less? The debate rages on Capital vs operating expense depends on the time period Falling computing costs plus increased automation Cost comparisons are not apples to apples even the offerings vary! Cloud migration Onboarding Exit strategy Data ownership Service levels Disaster recovery 2013 SAP AG or an SAP affiliate company. All rights reserved. 18

18 Debunking myths - managing barriers to cloud adoption Security and Privacy Compliance with standards ISO SSAE-16 Attestation successor to SAS-70 Payment Card Industry compliance FISMA Compliance with NIST SP Federal Risk Management Authorization Program (FedRAMP) Health Insurance Portability and Accountability Act (HIPAA) Risk management Identity and access management Living plans Continuous monitoring 2013 SAP AG or an SAP affiliate company. All rights reserved. 19

19 Thank you Contact information: Marlyn Zelkowitz Global Director, Industry Business Solutions, Public Services T: M: E:

20 Appendix Case Studies

21 Does Virtualization Really Reduce TCO? The Numbers Speak for Themselves Number of servers = 355 Physical Server Cores = 1,184 TB of storage = 330 TB Linux and Virtualization Savings achieved = $8,563,566 Module SAPS Servers BW 270, CRM 506, ECC 320, EWM 151, Live Cache 10,000 9 NetWeaver 58, PI 171, Portal 137, SCM 162, SNC 117, TREX 83, Other 105, TOTAL 2,096, Environment Server Count Production 133 Stage 133 Development 58 QA 15 Training 16 TOTAL 355 SAP Customer VMware Study 2013 SAP AG or an SAP affiliate company. All rights reserved. 27

Case Study: Miami-Dade School District Business Challenge: Miami-Dade County Public Schools needed a costeffective, flexible, and scalable technology infrastructure to support a growing array of

9% uptime Mitigate Risk: Established highly portable server farm Improve Service: Provisioning time reduced from 40 hours to less than 2 hours Lower TCO: Three-year ROI of 116%, with $5.

22 Case Study: Miami-Dade School District Business Challenge: Miami-Dade County Public Schools needed a costeffective, flexible, and scalable technology infrastructure to support a growing array of teaching-related and business services, expanding educational opportunities for all students. Results: Improve Performance: 99.9% uptime Mitigate Risk: Established highly portable server farm Improve Service: Provisioning time reduced from 40 hours to less than 2 hours Lower TCO: Three-year ROI of 116%, with $5.18 million in hardware savings and $1.5 million in energy savings With a virtual-to-physical server ratio of 16:1, we were able to move forward with an otherwise unaffordable implementation by including SAP virtualization from the very beginning. - Miami-Dade School District 2013 SAP AG or an SAP affiliate company. All rights reserved. 28

INTO THE CLOUD WHAT YOU NEED TO KNOW ABOUT ADOPTION AND ENSURING COMPLIANCE

INTO THE CLOUD WHAT YOU NEED TO KNOW ABOUT ADOPTION AND ENSURING COMPLIANCE INTRODUCTION AGENDA 01. Overview of Cloud Services 02. Cloud Computing Compliance Framework 03. Cloud Adoption and Enhancing