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Thứ Sáu, 31 tháng 10, 2014

Security Is Focus in SAP's Government Cloud Portfolio - Top Tech News

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SAP sees plenty of opportunity in the federal government, and the global technology giant is zeroing in on potential revenues with a secure Relevant Products/Services cloud Relevant Products/Services offering that aims to address every dimension of the cloud model -- including support, operations and delivery.

SAP has announced plans for a U.S. federal secure node that will be delivered in partnership with SAP National Security Services (SAP NS2), its independent, U.S.-based subsidiary. Plans call for a fully managed, secure cloud for mission-critical applications like the SAP Business Warehouse application and custom app on the SAP HANA cloud platform.


"Cloud-based solutions are driving transformation across the private sector, and innovative government agencies that embrace them can fuel meaningful change in the way government business Relevant Products/Services is done," said Jen Morgan, president of SAP in North America. She stressed the security Relevant Products/Services and reliability of the new SAP Cloud portfolio offerings for federal government agencies.


Regulatory Compliance Focus


This is a heavy-duty offering from a regulatory and compliance perspective. SAP's U.S. federal secure node environment is designed to comply with National Institute of Standards and Technology parameters and data Relevant Products/Services sovereignty and citizenship restrictions that are part and parcel of delivering cloud-based services to U.S. federal civilian agencies and the U.S. Department of Defense.


With SAP NS2, the company is recognizing that government agencies have various regulatory guidelines through which to wade, along with security demands that can make it difficult to fully embrace cloud technology in an age of rising cyber Relevant Products/Services threats. SAP aims to help government clients find the right balance of cloud, hosted and on-premise technology to address the needs of citizens.


"It is critical that our federal customers have access to cloud models that are tied to national standards along with options for secured support," said Mark Testoni, president and CEO, SAP NS2. The company hopes its federal secure node will become the poster child for how industry can support customers with mission-critical solutions and platforms.


SAP's Market Challenge


Will SAP hit that mark? We caught up with Charles King, principal analyst at Pund-IT, to get his thoughts on the new SAP offering. He told us SAP's strategy is a bit more complex than Oracle's recently announced expanded government cloud solutions portfolio, mainly because of the company's foreign incorporation and ownership.


Oracle recently announced that Oracle Human Capital Management Cloud (Oracle HCM Cloud), Oracle Enterprise Resource Planning Cloud (Oracle ERP Cloud), and Oracle Sales Cloud applications are available to government organizations through Oracle Government Cloud.


"SAP should be able to get around any legal and regulatory sensitivities in its creation of an independent U.S.-based company that will manage SAP NS2 services and processes. It's also interesting to note the announcement's intent focus on security as a paramount concern," King said.


"Some might consider that a simple attempt to reassure potential public-sector customers, but it also highlights how SAP understands the priorities of the customers it hopes to court. Overall, I expect SAP NS2 will do pretty well in its target markets."







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SAP HANA supports multi-tenancy – now what? - Diginomica

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With new hires from SAP, Infosys strengthens senior team - Economic Times

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BANGALORE:Vishal Sikka continues to attract talent from SAP as he builds a team of leaders to help transform Infosys into what the first non-founder chief executive officer calls a "next generation IT services company."

Ganapathy Subramanian, former vice-president at SAP Labs India, and Sudipto Shankar Dasgupta, former chief development architect at SAP Labs India, have joined Infosys as vice presidents. While their roles have not been revealed, ETlearns they will continue to be based out of Bangalore.


Since Sikka, a former member of the Executive Board of SAP AG, took over at the country's second-largest software company on August 1, seven SAP executives, including five SVPs, have switched loyalties to join Infosys. They include Ritika Suri, Abdul Razack, Sanjay Rajagopalan, Navin Budhiraja and Michael Reh, all of whom report directly to Sikka.


The SVPs will be stationed in Palo Alto, save Reh who will be based out of Germany.


A company spokeswoman declined to comment on the matter, saying: "As per company policy, we do not comment on the appointments or exits of executives other than members of the board or executive officers."


Infosys had said that in the second quarter, over 3,000 professionals joined the company from several global corporations, including "a few from SAP. It is relatively common in our industry that when a senior leader leaves a company, there would be a few people who may decide to follow."


Srikantan Moorthy, executive vice president and head of human resources, told ET earlier this month that Infosys will "continue to build on its relationship with SAP in different forms, whether it is on the human resources side in terms of their processes or the products they have built."


Some experts say that SAP executives joining Infosys is a vote of confidence in Sikka's leadership skills. "People are attracted to leaders and compelling ideas,"said Dave Gardner, founder of Gardner & Associates Consulting, a California-based advisory firm. "If the work is exciting, there will be little difficulty finding people who want to help Infosys evolve. Vishal is building a great team. I don't see any problems attracting and retaining top talent."


When Sikka announced Infosys' second-quarter results on October 10, the company maintained its revenue growth forecast of 7-9% for the year and gave investors a generous interim dividend and share bonus. Nasscom expects the industry to grow by 13-15%, meaning Infosys and Sikka have a lot of ground to cover.



Copyright © 2014 Times Internet Limited. All rights reserved.






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Security Is Focus in SAP's Government Cloud Portfolio - CIO Today

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SAP sees plenty of opportunity in the federal government, and the global technology giant is zeroing in on potential revenues with a secure Relevant Products/Services cloud Relevant Products/Services offering that aims to address every dimension of the cloud model -- including support, operations and delivery.

SAP has announced plans for a U.S. federal secure node that will be delivered in partnership with SAP National Security Services (SAP NS2), its independent, U.S.-based subsidiary. Plans call for a fully managed, secure cloud for mission-critical applications like the SAP Business Warehouse application and custom app on the SAP HANA cloud platform.


"Cloud-based solutions are driving transformation across the private sector, and innovative government agencies that embrace them can fuel meaningful change in the way government business Relevant Products/Services is done," said Jen Morgan, president of SAP in North America. She stressed the security Relevant Products/Services and reliability of the new SAP Cloud portfolio offerings for federal government agencies.


Regulatory Compliance Focus


This is a heavy-duty offering from a regulatory and compliance perspective. SAP's U.S. federal secure node environment is designed to comply with National Institute of Standards and Technology parameters and data Relevant Products/Services sovereignty and citizenship restrictions that are part and parcel of delivering cloud-based services to U.S. federal civilian agencies and the U.S. Department of Defense.


With SAP NS2, the company is recognizing that government agencies have various regulatory guidelines through which to wade, along with security demands that can make it difficult to fully embrace cloud technology in an age of rising cyber Relevant Products/Services threats. SAP aims to help government clients find the right balance of cloud, hosted and on-premise technology to address the needs of citizens.


"It is critical that our federal customers have access to cloud models that are tied to national standards along with options for secured support," said Mark Testoni, president and CEO, SAP NS2. The company hopes its federal secure node will become the poster child for how industry can support customers with mission-critical solutions and platforms.


SAP's Market Challenge


Will SAP hit that mark? We caught up with Charles King, principal analyst at Pund-IT, to get his thoughts on the new SAP offering. He told us SAP's strategy is a bit more complex than Oracle's recently announced expanded government cloud solutions portfolio, mainly because of the company's foreign incorporation and ownership.


Oracle recently announced that Oracle Human Capital Management Cloud (Oracle HCM Cloud), Oracle Enterprise Resource Planning Cloud (Oracle ERP Cloud), and Oracle Sales Cloud applications are available to government organizations through Oracle Government Cloud.


"SAP should be able to get around any legal and regulatory sensitivities in its creation of an independent U.S.-based company that will manage SAP NS2 services and processes. It's also interesting to note the announcement's intent focus on security as a paramount concern," King said.


"Some might consider that a simple attempt to reassure potential public-sector customers, but it also highlights how SAP understands the priorities of the customers it hopes to court. Overall, I expect SAP NS2 will do pretty well in its target markets."







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SAP HANA supports multi-tenancy – now what? - Diginomica

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Reliance Hospital doctors to use Google Glass to pull patient's medical ... - Economic Times

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Varun Aggarwal, ET Bureau Oct 30, 2014, 12.41PM IST







(The Glass costs $1,500 a…)




BANGALORE: When a patient enters the emergency ward of Sir HN Reliance Foundation Hospital and Research Centre in Mumbai, he would be greeted by a doctor, who would be wearing a Google Glass and would already know the patient's entire medical history, allowing the treatment to begin within a few minutes.





The junior doctor can diagnose the patient, consult senior doctors and read the patient's medical history on Google Glass, without taking his eyes off the patient even for a minute. The renovated hospital, which last week was inaugurated by Prime Minister Narendra Modi, would be the Minister Narendra Modi, would be the first in the country to use Google Glass in its everyday operation.


The project is still in its pilot phase and would be deployed across the hospital within a month's time.


SAP has a built an app called 'We Care' for the hospital, which connects the Google Glass with the hospital information system, and all data recorded on the Google Glass can be automatically be stored in the system. Doctors can also pull out various reports about the patient by just tapping on the Glass and instead of scribbling notes in a piece of paper, they can just talk to the Glass, which will type in all the notes for them.


"This remarkable app has the potential to bring patient care to new heights," said Mukesh Jain, CIO at the 345-bed, multi-specialty hospital. "SAP has blended perfectly with We Care solution smooth clinical workflow and the smartphone hands-free format of smart glasses for the potential use of any physician anywhere." Reliance is looking at applying Google Glass in emergency care to start with. When the patient is brought in, the trauma doctor who would be attending to the patient first would have a Google Glass and would be able to look up the patient's past records and also collaborate with other departments as when the patient is brought in.


The information is stored centrally and stored in the hospital information system. Doctor can pull in the patient's X-ray images or radiology reports from the past and use them.


"Usually in the healthcare environment, it is only the patient who is stationary—everything else is mobile," said Andy David, Health care Director, SAP APJ. "With the help of the Google Glass, doctors can attend to multiple patients, engage with them and see almost twice as many patients during the rounds. Doctors can take accurate notes on the Google Glass itself.


The data is stored automatically and can be accessed when required." The We Care application, which was designed completely in India by SAP India Labs, could soon turn into a product that will be available to any hospital worldwide. The Reliance hospital is so far the first one to implement it globally.


The Glass costs $1,500 a piece but the same app also works on mobiles and tablets to make it more cost efficient.


As the usage of Google Glass increases, the price of the gadget is expected to go down significantly. Initially seen as just a creepy gadget, Google Glass is seeing many applications in the enterprises recently. In June this year, Dr Pavan Kumar, head, cardiac surgery, at Mumbai's Nanavati Hospital used Google Glass to record a surgery.




Nanavati hospital is also working on an application that will let it use Google Glass for telemedicine.


Several applications are being developed for Google Glass by various developers in the areas of retail, manufacturing and warehouse management, which could gain momentum once Google Glass is officially launched in the country and cost of the device goes down.


SAP Labs India is also working with other smart glass manufacturers such as New York-based Vuzix to design applications for different industry verticals.







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Security Is Focus in SAP's Government Cloud Portfolio - Top Tech News

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SAP sees plenty of opportunity in the federal government, and the global technology giant is zeroing in on potential revenues with a secure Relevant Products/Services cloud Relevant Products/Services offering that aims to address every dimension of the cloud model -- including support, operations and delivery.

SAP has announced plans for a U.S. federal secure node that will be delivered in partnership with SAP National Security Services (SAP NS2), its independent, U.S.-based subsidiary. Plans call for a fully managed, secure cloud for mission-critical applications like the SAP Business Warehouse application and custom app on the SAP HANA cloud platform.


"Cloud-based solutions are driving transformation across the private sector, and innovative government agencies that embrace them can fuel meaningful change in the way government business Relevant Products/Services is done," said Jen Morgan, president of SAP in North America. She stressed the security Relevant Products/Services and reliability of the new SAP Cloud portfolio offerings for federal government agencies.


Regulatory Compliance Focus


This is a heavy-duty offering from a regulatory and compliance perspective. SAP's U.S. federal secure node environment is designed to comply with National Institute of Standards and Technology parameters and data Relevant Products/Services sovereignty and citizenship restrictions that are part and parcel of delivering cloud-based services to U.S. federal civilian agencies and the U.S. Department of Defense.


With SAP NS2, the company is recognizing that government agencies have various regulatory guidelines through which to wade, along with security demands that can make it difficult to fully embrace cloud technology in an age of rising cyber Relevant Products/Services threats. SAP aims to help government clients find the right balance of cloud, hosted and on-premise technology to address the needs of citizens.


"It is critical that our federal customers have access to cloud models that are tied to national standards along with options for secured support," said Mark Testoni, president and CEO, SAP NS2. The company hopes its federal secure node will become the poster child for how industry can support customers with mission-critical solutions and platforms.


SAP's Market Challenge


Will SAP hit that mark? We caught up with Charles King, principal analyst at Pund-IT, to get his thoughts on the new SAP offering. He told us SAP's strategy is a bit more complex than Oracle's recently announced expanded government cloud solutions portfolio, mainly because of the company's foreign incorporation and ownership.


Oracle recently announced that Oracle Human Capital Management Cloud (Oracle HCM Cloud), Oracle Enterprise Resource Planning Cloud (Oracle ERP Cloud), and Oracle Sales Cloud applications are available to government organizations through Oracle Government Cloud.


"SAP should be able to get around any legal and regulatory sensitivities in its creation of an independent U.S.-based company that will manage SAP NS2 services and processes. It's also interesting to note the announcement's intent focus on security as a paramount concern," King said.


"Some might consider that a simple attempt to reassure potential public-sector customers, but it also highlights how SAP understands the priorities of the customers it hopes to court. Overall, I expect SAP NS2 will do pretty well in its target markets."







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SAP HANA supports multi-tenancy – now what? - Diginomica

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Copyright diginomica Ltd 2013-14, Created under Creative Commons License, some rights reserved








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Reliance Hospital doctors to use Google Glass to pull patient's medical ... - Economic Times

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Varun Aggarwal, ET Bureau Oct 30, 2014, 12.41PM IST







(The Glass costs $1,500 a…)




BANGALORE: When a patient enters the emergency ward of Sir HN Reliance Foundation Hospital and Research Centre in Mumbai, he would be greeted by a doctor, who would be wearing a Google Glass and would already know the patient's entire medical history, allowing the treatment to begin within a few minutes.





The junior doctor can diagnose the patient, consult senior doctors and read the patient's medical history on Google Glass, without taking his eyes off the patient even for a minute. The renovated hospital, which last week was inaugurated by Prime Minister Narendra Modi, would be the Minister Narendra Modi, would be the first in the country to use Google Glass in its everyday operation.


The project is still in its pilot phase and would be deployed across the hospital within a month's time.


SAP has a built an app called 'We Care' for the hospital, which connects the Google Glass with the hospital information system, and all data recorded on the Google Glass can be automatically be stored in the system. Doctors can also pull out various reports about the patient by just tapping on the Glass and instead of scribbling notes in a piece of paper, they can just talk to the Glass, which will type in all the notes for them.


"This remarkable app has the potential to bring patient care to new heights," said Mukesh Jain, CIO at the 345-bed, multi-specialty hospital. "SAP has blended perfectly with We Care solution smooth clinical workflow and the smartphone hands-free format of smart glasses for the potential use of any physician anywhere." Reliance is looking at applying Google Glass in emergency care to start with. When the patient is brought in, the trauma doctor who would be attending to the patient first would have a Google Glass and would be able to look up the patient's past records and also collaborate with other departments as when the patient is brought in.


The information is stored centrally and stored in the hospital information system. Doctor can pull in the patient's X-ray images or radiology reports from the past and use them.


"Usually in the healthcare environment, it is only the patient who is stationary—everything else is mobile," said Andy David, Health care Director, SAP APJ. "With the help of the Google Glass, doctors can attend to multiple patients, engage with them and see almost twice as many patients during the rounds. Doctors can take accurate notes on the Google Glass itself.


The data is stored automatically and can be accessed when required." The We Care application, which was designed completely in India by SAP India Labs, could soon turn into a product that will be available to any hospital worldwide. The Reliance hospital is so far the first one to implement it globally.


The Glass costs $1,500 a piece but the same app also works on mobiles and tablets to make it more cost efficient.


As the usage of Google Glass increases, the price of the gadget is expected to go down significantly. Initially seen as just a creepy gadget, Google Glass is seeing many applications in the enterprises recently. In June this year, Dr Pavan Kumar, head, cardiac surgery, at Mumbai's Nanavati Hospital used Google Glass to record a surgery.




Nanavati hospital is also working on an application that will let it use Google Glass for telemedicine.


Several applications are being developed for Google Glass by various developers in the areas of retail, manufacturing and warehouse management, which could gain momentum once Google Glass is officially launched in the country and cost of the device goes down.


SAP Labs India is also working with other smart glass manufacturers such as New York-based Vuzix to design applications for different industry verticals.







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Thứ Năm, 30 tháng 10, 2014

SAP: On Track to Deliver Long-Term Growth - GuruFocus.com

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Software giant SAP (SAP) delivered better-than-expected performance for the third quarter 2014. It is making significant progress into cloud-based platform. Its cloud business grew approximately 41% year-over-year to $352.6 million as it adopted subscription and support fee-based model. This shift from packed software to cloud-based software is certainly a good move taken by the company as most of its clients are now moving to cloud technologies, due to its highly cost-control efficiency. This move should accelerate its growth in the long run but it will pressurize its bottom line growth in the near term. In addition, SAP has also boosted its cloud revenue outlook for the full year.


Robust growth


Its revenue for the third quarter rose approximately 5% to $5.39 billion from $5.18 billion in the corresponding period last year. However, it fell short of Zack consensus estimates of $5.76 billion in revenue. Also, its net income for the quarter increased 15.6% to $1.10 billion or earnings of $1.06 per share, compared to $959.64 million or earnings of $0.81 per share in the same quarter a year earlier. Its earnings topped the consensus estimates of $0.94 per share.


Looking ahead, the software giant anticipates its cloud revenue to accelerate in the range of $1.30-1.34 billion from the previous guidance of $1.25-1.32 billion. The high-end of the guidance represents approximately 41% growth for its cloud revenue as compared to 2013. It also expects its software and software-related service revenue to grow in the range of 6% to 8% for the year on the constant currency basis. However, it has lowered down its operating profit for the year. The company now expects its full year operating profit to be in the range of $7.05 billion to $7.30 billion from previously announced $7.30 to $7.56 billion.


Aggressive plans


The software giant expects this customer changing cloud business to fuel growth for its top line in a more appropriate manner along with the strong growth of its support revenue. SAP indeed leads this transformation to the worldwide network economy. It has more than 1.6 million associated companies registered on its cloud-based business. The past twelve months was a record in terms of volume; SAP’s volume was around 600 billion, which is more than combined volume for Amazon, eBay and Alibaba.


In addition, the company is planning to expand its cloud business. It is investing in the upfront in the cloud-based technology, which is pressurizing its profits. It has recently announced that it would acquire Concur Technologies (CNQR), a leading United States cloud traveling and expense management software producer.


Moreover, SAP expects Concur to augment growth for its revenue in the long term. SAP should also benefit from the Concur’s 1.2 trillion corporate travel and expense market that should accelerate its business network. Also, it should benefit from the innovative business models for cloud technologies Concur has at its fold. Concur has acquired HR, E-commerce, and workforce application such as SuccessFactors, Ariba and Fieldglass that should add value to its business network.


Furthermore, it is benefiting from HANA. Its flagship SAP HANA software is already gaining traction in the cloud-based portfolio for the company in the market. This Real-Time Business Platform is winning more customers for the companies across all the industries, irrespective of the regions as it provides captivating business benefits that enhance business efficiency.


SAP HANA is being executed at its “Run Simply” strategy that integrates all SAP solutions to one single business platform in the cloud. SAP HANA is leading customer engagement and has 44 million users enrolled for its software and software-related service business, which is world’s largest business network. It has witnessed a triple-digit growth in the next generation customer engagement for its Omni-channel e-commerce platform. There are currently more than 1,600 startup companies that are creating applications of SAP HANA.


Conclusion


The software giant is possibly a great pick as it promises great returns in the long term. Though its short-term profit looks a little insecure, it will deliver handsome returns to shareholders once this upfront investment is effectively integrated to its business. Also, its cloud business really looks like a big thing in the enterprise resource system that should fuel its growth in the future. The stock is currently trading at the trailing P/E of 19.03 and forward P/E of 17.60 that indicate fair valuation for the company. It has PEG ratio of 1.28 that continues to complement its growth in the long run.







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With new hires from SAP, Infosys strengthens senior team - Economic Times

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Varun Sood, ET Bureau Oct 27, 2014, 04.09AM IST







(Vishal Sikka continues…)




BANGALORE:Vishal Sikka continues to attract talent from SAP as he builds a team of leaders to help transform Infosys into what the first non-founder chief executive officer calls a "next generation IT services company."


Ganapathy Subramanian, former vice-president at SAP Labs India, and Sudipto Shankar Dasgupta, former chief development architect at SAP Labs India, have joined Infosys as vice presidents. While their roles have not been revealed, ETlearns they will continue to be based out of Bangalore.





Kaustav Mitra, Global VP, SAP Startup Focus, is serving his notice period and is expected to join Sikka's team, as is Yusuf Bashir, VP,New Products & Business Development at SAP.


Since Sikka, a former member of the Executive Board of SAP AG, took over at the country's second-largest software company on August 1, seven SAP executives, including five SVPs, have switched loyalties to join Infosys. They include Ritika Suri, Abdul Razack, Sanjay Rajagopalan, Navin Budhiraja and Michael Reh, all of whom report directly to Sikka.


The SVPs will be stationed in Palo Alto, save Reh who will be based out of Germany. With Mitra and Bashir, also expected to work from Palo Alto, the number of former SAP executives joining Infosys rises to nine.


Mitra told ET that for now he remains with SAP, driving the Startup Focus programme. "If there is any change in my situation, I would be more than happy to do a detailed debrief, circumstances permitting,"said Mitra. An e-mail sent to Bashir remained unanswered.


Mitra will be joining Infosys when the Bangalore-based company is looking to strengthen its engagement with startups. At SAP, Mitra is credited with having recruited over 1,500 startups in two years and helped enable $20 million in startup revenue in 2014, with forecast of $90 million for 2015, making SAP co-founder Hasso Plattner call it "one of the best ideas at SAP of the past 10 years."


A company spokeswoman declined to comment on the matter, saying: "As per company policy, we do not comment on the appointments or exits of executives other than members of the board or executive officers."


Infosys had said that in the second quarter, over 3,000 professionals joined the company from several global corporations, including "a few from SAP. It is relatively common in our industry that when a senior leader leaves a company, there would be a few people who may decide to follow."


Srikantan Moorthy, executive vice president and head of human resources, told ET earlier this month that Infosys will "continue to build on its relationship with SAP in different forms, whether it is on the human resources side in terms of their processes or the products they have built."


Some experts say that SAP executives joining Infosys is a vote of confidence in Sikka's leadership skills. "People are attracted to leaders and compelling ideas,"said Dave Gardner, founder of Gardner & Associates Consulting, a California-based advisory firm. "If the work is exciting, there will be little difficulty finding people who want to help Infosys evolve. Vishal is building a great team. I don't see any problems attracting and retaining top talent."


When Sikka announced Infosys' second-quarter results on October 10, the company maintained its revenue growth forecast of 7-9% for the year and gave investors a generous interim dividend and share bonus. Nasscom expects the industry to grow by 13-15%, meaning Infosys and Sikka have a lot of ground to cover.







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IBM and SAP Partner in Cloud Infrastructure Deal - Top Tech News

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SAP has embraced IBM as a “premier strategic provider” of cloud Relevant Products/Services infrastructure Relevant Products/Services services for its business Relevant Products/Services critical applications. The partnership between the tech titans aims to accelerate the ability to run core business in the cloud.

Practically speaking, the deal means SAP HANA Enterprise Cloud is now available through IBM’s cloud. By rolling out on IBM cloud data Relevant Products/Services centers, the SAP HANA Enterprise Cloud will expand to major markets more rapidly.


“The demand for SAP HANA and the SAP Business Suite on SAP HANA in the cloud is tremendous and this global agreement with IBM heralds a new era of cloud collaboration,” said Bill McDermott, CEO of SAP. And IBM Chairman, President and CEO Ginni Rometty, called the announcement “a significant milestone in the deployment of enterprise Relevant Products/Services cloud.”


Who Brings What?


The benefits for enterprise customers are real, with IBM and SAP both bringing plenty to the table. SAP HANA offers in-memory Relevant Products/Services computing capabilities combined with the ability to run mission-critical business applications, like SAP Business Suite, in a cloud environment.


For its part, IBM brings enterprise depth and the open architecture of IBM Cloud Managed Services and SoftLayer so customers can securely manage SAP workloads -- from trial to production -- on a consistent infrastructure, with transparency and control over where data resides.


SAP HANA will run on IBM Cloud with an open-standards-based approach that promises to help make it easier to integrate existing technology investments with new workloads. The companies also pointed to greater ease complying with regulatory mandates.


A Eureka Moment?


We caught up with Charles King, principal analyst at Pund-IT, to get his take on the SAP-IBM alliance. Although Big Blue has in-memory and analytics Relevant Products/Services products of its own that compete directly with SAP HANA, King told us there is a good case for “co-opetition” here. By that he means the ability of competing vendors to work together for mutual benefit.


“The deal should deliver substantial benefits to both companies. For SAP, the partnership is designed to present HANA in its best light, an important point for a technology and related processes that are still something of a mystery for many organizations,” King said. “The deal should also offer SAP access to new global customers and markets, including many that are interested in HANA but unwilling to pony up the cost of a dedicated solution.”


IBM, meanwhile, wins immediate validation of its cloud services solutions and strategy. King noted that many questioned the value of Big Blue’s $2 billion SoftLayer acquisition, which provided the foundation for IBM Cloud. With this alliance the value becomes clearer. King expects that the HANA Enterprise Cloud should pay off for IBM financially, as well as through competitive advantages.


“Overall, the SAP HANA Enterprise Cloud partnership seems likely to bring commercial success to IBM and SAP, significant benefits to their customers and substantial discomfort to the competition,” King said. “So far as IT industry ‘eureka!’ moments go, it seldom gets better than this.”







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SAP's Bill McDermott provides a CEO's plan to defy disruption - Fortune

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Changing the business model of a company with $22 billion in revenue is at the top of Bill McDermott’s to-do list. New cloud-based business models are disrupting the enterprise-software industry, and SAP SAP , one of the giants, faces significant challenges from Salesforce.com and other fast-rising competitors. The German company recently cut its profit growth forecast for the year, largely because the cloud-based model reduces upfront revenue. McDermott, 52, talked recently with Fortune about managing the transition and more. Edited excerpts:


You’re facing a classic challenge: the big, highly-successful incumbent vs. competition using new models. Historically incumbents don’t have a great record. How are you confident it’s going to work for you?

In our industry there’s a lot to be said for having experience running global companies in 180 countries in every industry. That core competency of knowing how enterprises run really helps. Information now has to be in real time so people can make instantaneous decisions, and provisioning this information in a cloud environment is a more economic model. But the big idea—how we’ll win—is the business network.


Tell me what that is.

We recently announced the acquisition of Concur [a travel and entertainment software firm]. This builds on a couple of other moves we’ve made. Think about the challenges of managing temporary labor, which is the fastest-growing part of the labor market, or all the expenses associated with the business ­traveler—you’d want information on those costs in real time. SAP has cornered the market on what we call the business network, the stuff that you do within companies and between companies. That will differentiate SAP in the new economy.


So the network means that while the software we’re discussing has traditionally worked within the company, and maybe with some suppliers, you now mean it to connect far more broadly. Is that the big idea?

Exactly. For example, today, when I first met you, you were on your device. You might in fact be contacting Uber for ground transportation after the meeting. Or perhaps you’re going to go book a hotel. And perhaps even an airline where you want your favorite seat, and tonight you might get something for dinner with colleagues. There’s a very complex global network that’s out there on the Internet right now, where Concur has a center seat in managing all of that and all of those processes.


And instead of you at the end of your trip having to fill out an expense report, wouldn’t it be nice if it was all digital and done for you? And wouldn’t it be nice for your employer if it was updated in your company’s ERP system, so financially everything was under control? That’s one example of the travel business network that SAP is leading.


Another big theme of yours is simplicity. Appropriately, it’s a one word theme. Simple. But your software manages the global operations of giant companies. How can that ever be simple?

That’s a great question. There are two themes at play here in our branding. One is “run,” because we do run the most complex global organizations in the world. And the other is “simple.” How can you take all of that elegance and sophistication and provision it to the company in a simple way?


As I talk to CEOs and public officials all over the world, the most intractable issue of our era is complexity. How do we beat it back? I think Michelangelo might have had it right when he said the ultimate form of sophistication is simplicity. What we want to do is take all the complexity and hide it, so when you do your business on your device, all that information is provisioned to you in real time, all those business processes are elegantly and smoothly managed, and ultimately you get competitive advantage because you get speed, access to new markets, and new innovative business models, so you win the game.


So the complexity must be there, but it can be kept out of the customer’s hair.

Exactly, and you know one of the things people say to me is, how can you take credit for simple? Because I’ve got the great simplifier. SAP HANA, which is the in-memory platform for managing structured, unstructured, social, all the big data that operates in the business. You can do it on one platform and do it in real time.


Big data is such a huge theme, the sheer volumes of data that companies have and will have is rapidly becoming overwhelming. How is SAP’s solution to that problem better than somebody else’s?

Well, SAP HANA is the only true in-memory platform in the industry.


And in-memory means it’s there and immediately accessible, right?

Exactly. And that includes all the transactions that a business might be doing. So if you’re selling toothpaste and you’re Colgate in Latin America, and you want to know how that’s doing versus China, and you want to see it in real-time, you can do that. If you want to take all the unstructured information, perhaps it’s what someone is writing in a CRM system to say that XYZ customer had such-and-such a meeting with me today, or you simply want to aggregate data from Facebook or Twitter and really get the wisdom of the crowd to the sentiment analysis from your customers, HANA can get all that data and shape that in main memory. It is the equivalent to the enterprise of what Google is to the Internet.


You’re not a techie, but you’re running a high-tech company. How?

I see everything through the eyes of the customer and, fortunately, I’ve encouraged 67,000 of my colleagues and 2.1 million people in our ecosystem to do the same. In the end, the customer must win, and I think the idea of having this empathy for the total customer experience is what counts.


You have a new book titled Winners Dream, and a whole section is called “Empathy,” which has become a hot word in business recently. Why do you think that has happened now?

I think people realize that the customer relationship is fragile, and if you don’t have a very thoughtful relationship with your consumer, you could cease to exist pretty quickly. I got my first lesson in a delicatessen when I was 16 years old, and if my customers didn’t keep coming back, I didn’t make payroll and I’d go out of business. Empathy gets driven into you pretty early when you’re a sole proprietor like I was.


Customers are being asked to put more and more valuable data in the cloud. They’ve got to worry about how much they can trust doing that. What’s your answer?

We’ve been at this now for 43 years, running the biggest, most important companies all over the world, and that experience of managing processes and data and information is a core competency of ours. We also believe that data centers have to be domiciled where the customer wants them to be. So if a customer is located in Europe and they have a particular concern about a Northern California data center holding all their information, that should be respected and the data should be in Europe, which is what we’ve done in building our clouds.


Geographically and strategically, where do you see your biggest growth opportunities?

Geographically, it’s well-known that the BRIC countries have been a wellspring of growth, but right now we’re very focused on Africa. Seven of the 10 fastest growing markets in the world are in Africa. They’re not big yet in terms of needle-movers, but they will be. The Middle East has been particularly exciting for us. And we continue to do well across Southeast Asia and also parts of South America that are just busting.


I always believe that if you are truly innovative and you’re designing solutions for the ages, which we are, you’ll also move the needle in big markets. So I think the trick to this is making sure you do move the needle in the big markets, and then you layer on this huge growth in the smaller ones, to have a really successful company long-term.


And strategically, what’s the highest growth potential in the plans you’re making?

As I think about HANA and the HANA platform being the de facto standard in memory platform for the free world, I think it’s a HANA world. So that would certainly be one.


As I think about industries, I think about not just the Internet of things and how it impacts all industries, but I think about healthcare, as an example, as a huge breakthrough industry, one that really needs some serious problem-solving. I like to find big problems and help solve them.


You’ve announced a big initiative to simplify SAP’s complex structure, and many employees will have to be retrained. You’re asking 67,000 people to do things differently. What are the next steps?

Many large global companies today have too many management layers between the top executive and the ultimate customer. So we had to de-layer the company. When you think about innovation, the cycles are going so much faster than they ever have before. So what we used to innovate in 18 months is now coming out in monthly or even weekly cycles. The other thing you have to do is empower people. Once you come out with the plan, I have no interest in having management teams inspect people’s progress. I don’t want managers that report the news. I want managers who are out there on the frontlines making the news.


This story appears in the November 17, 2014 issue of Fortune.







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Security Is Focus in SAP's Government Cloud Portfolio - Top Tech News

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SAP sees plenty of opportunity in the federal government, and the global technology giant is zeroing in on potential revenues with a secure Relevant Products/Services cloud Relevant Products/Services offering that aims to address every dimension of the cloud model -- including support, operations and delivery.

SAP has announced plans for a U.S. federal secure node that will be delivered in partnership with SAP National Security Services (SAP NS2), its independent, U.S.-based subsidiary. Plans call for a fully managed, secure cloud for mission-critical applications like the SAP Business Warehouse application and custom app on the SAP HANA cloud platform.


"Cloud-based solutions are driving transformation across the private sector, and innovative government agencies that embrace them can fuel meaningful change in the way government business Relevant Products/Services is done," said Jen Morgan, president of SAP in North America. She stressed the security Relevant Products/Services and reliability of the new SAP Cloud portfolio offerings for federal government agencies.


Regulatory Compliance Focus


This is a heavy-duty offering from a regulatory and compliance perspective. SAP's U.S. federal secure node environment is designed to comply with National Institute of Standards and Technology parameters and data Relevant Products/Services sovereignty and citizenship restrictions that are part and parcel of delivering cloud-based services to U.S. federal civilian agencies and the U.S. Department of Defense.


With SAP NS2, the company is recognizing that government agencies have various regulatory guidelines through which to wade, along with security demands that can make it difficult to fully embrace cloud technology in an age of rising cyber Relevant Products/Services threats. SAP aims to help government clients find the right balance of cloud, hosted and on-premise technology to address the needs of citizens.


"It is critical that our federal customers have access to cloud models that are tied to national standards along with options for secured support," said Mark Testoni, president and CEO, SAP NS2. The company hopes its federal secure node will become the poster child for how industry can support customers with mission-critical solutions and platforms.


SAP's Market Challenge


Will SAP hit that mark? We caught up with Charles King, principal analyst at Pund-IT, to get his thoughts on the new SAP offering. He told us SAP's strategy is a bit more complex than Oracle's recently announced expanded government cloud solutions portfolio, mainly because of the company's foreign incorporation and ownership.


Oracle recently announced that Oracle Human Capital Management Cloud (Oracle HCM Cloud), Oracle Enterprise Resource Planning Cloud (Oracle ERP Cloud), and Oracle Sales Cloud applications are available to government organizations through Oracle Government Cloud.


"SAP should be able to get around any legal and regulatory sensitivities in its creation of an independent U.S.-based company that will manage SAP NS2 services and processes. It's also interesting to note the announcement's intent focus on security as a paramount concern," King said.


"Some might consider that a simple attempt to reassure potential public-sector customers, but it also highlights how SAP understands the priorities of the customers it hopes to court. Overall, I expect SAP NS2 will do pretty well in its target markets."







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