SAP to Provide Unified Comprehensive Cloud Portfolio for Sri Lanka

The title above (same as the press release) may sound like Greek, freshly minted from SAP’s marketing department. Yet, Sri Lankan companies will dismiss cloud computing solutions only at their own financial and competitive peril. Before, explaining what exactly SAP intends to do in Sri Lanka, let me briefly explain the notion of cloud computing.

The only words that matter are “cloud computing”. This does not mean that scientists have designed clouds of computers floating over our cities, nor is it an obscure brand, waiting to topple Apple and Google. According to PC Magazine, cloud computing, in its simplest form, means storing and accessing data and programs over the internet, instead of using your computer’s hard drive. So why call it a cloud? A cloud is just a metaphor for the internet, which traces its roots to early presentations of the server-farm infrastructure that described the internet as a giant floating cloud, accepting and connections and exchanging information as it floats around. As I am writing this article using Google Drive, I am using a cloud service provided by Google. Similarly, if you use online apps ranging from Google Drive to Sky Drive or a myriad of online services, then you have already used cloud computing solutions.

Businesses have a slightly different take on the “cloud”. Some choose to implement Software-as-a-Service (SaaS), where the business uses an application that it runs and manages over the Internet (e.g., Salesforce, Quickbook, Basecamp, Concur, etc.). Another variety is the Platform-as-a-Service (PaaS), where a business can create an application that is custom designed and usable by all in the company. Lastly, you have Infrastructure-as-a-Service (IaaS), which is dominated by big players such as Amazon, Google, and Rackspace, that provide services that can be rented out in turn. Cloud services may be relatively new but already have a massive impact. Mckinsey & Company, for instance, claims that more than 80% of large companies in North America, are either looking at or already using cloud services. The rest of the world is not watching idly by either, global firms or firms with global ambition are all looking into cloud services because they are simpler to manage, cheaper to operate and easier to customise. Hence, it is no wonder, why the market is already generating more than $100 billion a year.

The appeal of cloud systems is mostly centred on the versatility and customisability of the entire eco-system. Companies don’t need to develop and maintain large server farms, or spend millions on mediocre services. Instead, they can get access to the latest technology and applications at a fraction of the cost. Moreover, in terms of security and reliability, cloud computing solutions are leaps and bounds ahead of private server solutions. If you are thinking of cloud computing and security, think along the lines of personal wealth and banking. If you choose to keep your money at home you feel closer to it but you also have a false sense of security because most of us are not going to invest in safes or patrol our houses at night. Instead, keeping the money in a bank is a much safer solution because a bank is able and willing to invest a lot more on securing the money belonging to its customers. The same principle applies to cloud computing, even though you may not be able to go down to your basement and physically hold your data, the chances are that it is more likely to be secure in a state-of-the-art server farm in the middle of the US or somewhere in Europe.

This is where SAP comes into the equation. The company is introducing a unified strategy for its broad cloud portfolio in Sri Lanka and this involves customers, partners and the its valuable ecosystem. Neeraj Athalye, head of Cloud Business for SAP India, noted that SAP’s focus is to currently simply access and expand the reach of SAP’s cloud enterprise solutions. The company’s systems are well tried and tested, already used by 36 million users from 258,500 SAP customers in 191 countries across 25 industries. Those numbers are awe-inspiring, so access to the cloud a gateway to more exposure and opportunity for Sri Lankan companies.

SAP also boasts early wins, confidently claiming it has increased revenues and reduced operating costs of major Sri Lankan firms from a range of industries including spirits and liquor, healthcare, hospitality and telecommunication. To ensure a maximum impact, the company is partnering with N-able, which is the information and technology arm of Hemas, a local conglomerate. Both partners are a good fit and have spent years weaning off companies from generica stand-alone IT solutions. Their focus has been on producing integrated data-heavy solutions that allow companies to gain a better insight into their operations and design strategies to cut costs and increase revenues.

Currently SAP will be providing will be providing services based on four key organisational criteria.

●    People - Involves solutions from SuccessFactors (part of SAP), which provided workforce strategies.
●    Money - SAP cloud for Financial, SAP Cloud for Travel, and SAP business ByDesign, provide real-time financial insights.
●    SAP Cloud for Sales, SAP Cloud for Service and the new SAP cloud for Marketing provide collaborative and user-friendly systems. On a related note, SAP will also provide key features such as sentiment analysis, which allows companies to understand what people are saying about their products anywhere in the internet (right now this only applies to English and Tamil, but SAP is keen to work on Sinhala and more local dialects).
●    Supplies - Ariba, also a SAP company, provides cloud based procurement and invoicing applications with the world’s largest web-based trading community. This is a great opportunity to enhance supply-chain diversity and reliability for Sri Lankan companies.

By Navam Niles