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How the public cloud makes SAP customers fit for the future

Despite all the prophecies of doom regarding the sluggish pace of digitalization in Germany: according to recent surveys, almost all German companies already rely on cloud services.
E3 Magazine
February 21, 2024
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This text has been automatically translated from German to English.

Most IT users rely on the provision of systems and software in a hybrid or private cloud scenario - but in the coming years, solutions in the public cloud will become more and more established. For good reason, as Marc Brudzinski from Ceyoniq knows: "Public cloud scenarios offer companies numerous advantages over the private cloud and local on-premises installations." 

Christian Burkamp,
Head of Research and Development, Ceyoniq

The cloud has already established itself as the new provisioning standard in many IT areas. In addition to hybrid solutions, there are also more and more cloud-only offerings in the ECM environment. "Here too, the future will be determined by cloud-first offerings and subscription models," says Marc Brudzinski. Two thirds of all companies would like to migrate half of their applications to the cloud within the next few years. "The public cloud, with all its potential and added value compared to traditional on-premises solutions, is crucial for the future viability of companies - and the basis for further digitalization requirements," predicts Christian Burkamp, research and development expert at Ceyoniq. "The high flexibility and scalability, better IT security and, last but not least, lower operating costs are already good arguments for companies to take the step into the public cloud."

According to Christian Burkamp, the most important drivers for moving systems and software to the public cloud are the good security profile, high flexibility and scalability as well as the lower operating costs compared to other deployment methods.

In addition, cloud environments are the basis for companies' comprehensive digitalization strategies. The high initial provisioning and operating costs of on-premises installations are a particular problem for many companies. They not only have to provide the entire IT infrastructure, but also all the software required for operation. Added to this are the often high costs for qualified IT staff and regular employee training for extensive updates or the introduction of new components and functions.

Marc Brudzinski,
Head of Marketing,
Ceyoniq

However, according to a recent survey, more than two thirds of all companies that migrated to the public cloud were able to significantly reduce the running costs of their IT infrastructure. This is because in a public cloud scenario, the provider is not only responsible for providing all the hardware and software, but also for maintaining the system, including all individual applications.

"The effort and costs for the company are reduced considerably, as the internal IT department only has to take care of the operation and maintenance of the end devices. This requires significantly fewer specialists than with an on-premises installation," explains Marc Brudzinski.

In addition, the high acquisition costs for hardware and software are eliminated; instead, the company uses the system provided in the public cloud as part of a software-as-a-service model (SaaS).

IT managers in companies are primarily concerned about security and data protection - and are therefore reluctant to migrate to the public cloud. For experts like Christian Burkamp, these fears are understandable, but unfounded: "Public cloud providers - in their own interests and usually with their own departments - attach great importance to modern security mechanisms and roll out regular updates to protect all system components against external attacks," continues Burkamp.

In addition, all components and processes are centrally organized in the public cloud. This eliminates the risk of data loss due to media disruptions between individual isolated solutions. Public cloud users also don't have to worry about encryption when storing and transferring data. On the contrary: on-premises installations are affected by attacks almost twice as often - especially under the increased demands of "New Work".

Outdated software and firmware versions and the still widespread shadow IT in the form of isolated solutions in the respective departments play a role that should not be underestimated.

ceyoniq.com

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Working on the SAP basis is crucial for successful S/4 conversion. 

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SAP Competence Center Summit 2024

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June 5 and 6, 2024

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