The retail industry is rapidly evolving, with customers demanding exceptional digital experiences, and retailers adjusting their businesses to be more efficient. With many retailers relying on SAP for critical business functions like digital transactions, finance, supply chains and more, this shift has led them to look for ways to modernize these systems, deliver them on highly scalable infrastructure, and extract more value out of the data from within them.  

I’m proud that we are helping German retailers successfully migrate business-critical SAP systems onto Google Cloud, minimizing risk and downtime and ultimately helping them build a foundation for future growth. Our work with retailers like Otto Group, one of the world’s largest ecommerce businesses, MediaMarktSaturn, the large consumer electronics retailer, and METRO, the wholesale retailer with operations across Europe, demonstrates our deep partnership with SAP to support customers’ digital transformations.

Helping Otto Group IT run SAP on secure, sustainable infrastructure

Otto Group, a leading online-retailer and services group in Germany and one of the world’s largest ecommerce companies, migrated their SAP workloads to Google Cloud in order to modernize their SAP landscape and build a more agile environment that would enable them to quickly scale up or down according to business needs. 

The Otto Group, which consistently balances the sustainable use of resources and climate-neutral action with economic growth, is also able to leverage Google Cloud’s clean infrastructure to deliver the bulk of its internal SAP environment, ensuring the company’s business systems are running on secure, sustainable infrastructure. Since 2017, Google has matched 100% of its global electricity use with purchases of renewable energy every year, and is now building on that progress with a new goal of running entirely on carbon-free energy at all times by 2030. 

With Google Cloud, Otto Group has told us they have access to better means of automation and improved network capability compared to what they had with their previous provider. Through this cloud migration, Otto Group IT is providing modern and flexibly scalable SAP systems to their internal customers.

Powering MediaMarktSaturn’s online ecommerce experience 

For MediaMarktSaturn, SAP is critical to the smooth day-to-day running of its business, so the company was keen to ensure maximum availability and stability with a cloud environment. After a thorough examination of its business needs and hands-on support from Google Cloud’s teams, MediaMarktSaturn elected to migrate its SAP HANA database onto Google Cloud, enabling a performance increase of four times compared to its previous on-premises installations.

The SAP suite is critical for the ecommerce platform to run smoothly on a day-to-day basis. By migrating to Google Cloud, the retailer is providing even more support and maximum availability for its customers. With Google Cloud’s industry-specific expertise, MediaMarktSaturn’s customers have access to a reliable and stable ecommerce platform, so they can browse for products online from wherever they are. 

Transforming METRO’s business by running SAP workloads in the cloud 

With more than 97,000 employees in 34 countries, Germany’s METRO is one of the world’s largest B2B wholesalers. Previously, METRO relied on unique finance systems that were different in each country,  and updates or system testing required substantial coordination across numerous teams, which was both time-consuming and costly. 

To address these pain points, METRO is moving away from on premise deployments and is now migrating its SAP S/4HANA finance systems to Google Cloud to support everything from classical role-based accounting to the use of cognitive tools. Now, internal METRO teams can work seamlessly across operations, enhancing the services they provide to customers by addressing demands in real time. 

To read more about how SAP on Google Cloud drives agility, efficiency, and innovation for our customers, visit our solutions page here.

Editor’s note: This post was originally published in TechPulse Belgium, where Jack Buser, Google Cloud’s Director of Game Industry Solutions, shared his trends for the industry this year.

The year 2022 will hold many surprises (with a few already dropping!), but there’s one near certainty: By this time next year there will be millions more gamers worldwide. It’s thanks to the industry’s little-noted technology growth drivers, which are getting stronger. 

Games are no longer a niche hobby; it’s global, mainstream entertainment. There were 3.1 billion gamers worldwide in 2020. It’s estimated that by 2024 there will be another 500 million. With a global population of 7.7 billion, that’s nearly half the planet. Revenues in 2021 may reach $175 billion—likely more than movies, music, and books combined. 

It’s a strength unique to the games industry, driven by the way its creators deploy new technology. Advances we see in everything from pricing and emerging markets, to backend computing and delivery suggests it will grow from here, on things like artificial intelligence and planet-scale networks.

Games forever, game better

It’s no surprise that videogames have become a huge business. Playing games is one of our deepest human expressions. There is a 4,500 year old board game that people still play, a testimony to the human love of testing cleverness, honing reactions, building trust, or just enlivening a day.

Video games do all that and for decades game makers have taken the most cutting-edge computing tech to make things better. We’ve seen electronic ping pong become shooting asteroids, to simple (yet iconic) 2D sprites evolve into believable, expressive 3D characters, all leading to today’s immersive worlds hosting tens of millions of players worldwide.

There’s more to come. I work at technology’s cutting edge for games, offering the world’s leading game creators access to powerful cloud computing, a low-latency global network, Machine Learning and AI, and much more. As usual, game innovators are taking up all these tools, building new narratives, new ways to play, new markets, and new jaw-dropping moments.

And game creators aren’t just thinking about players; they’re also thinking about viewers. More and more people are watching eSports, and creators are using the games medium to engage their viewers in increasingly immersive ways.

Streaming like never before 

AI and ML are sharpening games and attracting new players in other ways. These technologies increasingly power everything from network performance to global player matching. The delicate but essential work of encouraging newcomers and discouraging bad actors, optimizing monetization, or building and scaling up new player environments.

Another important area we’re seeing cloud tools being put to use is in coordinating the workflows of global teams of developers. It’s not just a question of building faster anymore, but of collaborating and responding more effectively. The distributed work trends that featured so strongly during the pandemic had already featured in much of the game industry, increasingly it’s an industry standard. This will likely mean even faster and more diverse game development, addressing the needs of new markets where we’re seeing double-digit growth.

Tools like cloud streaming, 5G, and edge computing are likely to accelerate the use of Game Streaming, Augmented Reality, and other types of immersive gameplay. If my metaverse doesn’t have games, count me out! We’re looking at some exciting new developments in coming months with some major industry players. Stay tuned.

A big year for the games industry

As a premier provider of solutions, tools and services to games companies, our engineering job is complex and global. Fortunately, our mission is simple: Help game companies transform to meet new global opportunities with planet scale solutions. Technology has brought the gaming industry to astonishing heights, and is the perfect compliment to great storytelling and creative ingenuity. 

As a decades-long industry veteran, I’ve never been more impressed with what technology can do for our industry. Looking past 2022, when we’ll see more compute, more AI, more AR, and more innovation around healthy and exciting game play, there is just one near certainty: More growth.

For a business to succeed in the long term, it needs to learn not just to adapt to inevitable change, but to harness it. South Africa-based PPS has been an insurance company since 1941 and today is the biggest mutual insurance provider in the country.

As a mutual company, PPS is owned by more than 200,000 members, making them shareholders. In recent years, PPS and other companies like it have been affected by a number of external factors.

“For one thing, technology platforms have brought in a new gig economy that has all kinds of implications for insurance,” says Avsharn Bachoo, CTO at PPS. “What we’ve been seeing is basically a disruption of the South African insurance industry. We chose to see that as an opportunity.”

“Our servers were at the end of their life cycle and we had to decide whether to refresh them or switch completely. To embrace the world of AI and machine learning effectively, we knew we needed a cloud-based infrastructure. We’ve found the answer in Google Cloud Platform.”

—Avsharn Bachoo, CTO, PPS

In early 2018, faced with an uncertain economic environment that was squeezing growth and profitability, PPS decided to transform itself from a traditional broker-based business into a digital insurance provider. A key pillar of this new strategy was to overhaul the company’s technology infrastructure. To turn the strategy into reality, Avsharn and his team chose Google Cloud Platform (GCP).

“Our servers were at the end of their life cycle and we had to decide whether to refresh them or switch completely,” says Avsharn. “To embrace the world of AI and machine learning (ML) effectively, we knew we needed a cloud-based infrastructure. We’ve found the answer in Google Cloud Platform.”

Power, speed, flexibility with Google Cloud Platform

Previously, PPS maintained an on-premises IT infrastructure, which worked for its traditional business but was unsuited for its new way of working. In early 2018, the company started working on new products for its members but this required large amounts of compute power that proved prohibitively expensive with on-premises servers. Even existing products were starting to require more than the infrastructure could deliver. Aging equipment meant that it’s testing and quality assurance environments bore little resemblance to the actual production environment.

“We had no pre-production environments at all,” says Avsharn, resulting in more work for developers after products had been released. Meanwhile, the capital required to buy and configure more servers for new projects meant fewer resources available for innovation, and left the company less able to react to changes in the market. PPS knew it had to find a cloud-based alternative.

Shortly after devising a new digital strategy, PPS engineers attended a training session on cloud infrastructure given by leading South African Google Cloud Partner Siatik. Impressed with the presentation, PPS engaged Siatik to help run a proof of concept for a cloud-based infrastructure, running on GCP. With on-site engineers and constant communication, Siatik formed a very close working relationship with PPS. “The team at Siatik was exemplary,” recalls Avsharn. “They were well-organized, with cutting-edge technical acumen and very creative solutions to our problems. They were real game-changers.”

“We wanted the platform to retrain its models in response to new data and improve its recommendations with more information. Normally this would be a manual process but Google Cloud ML Engine lets the models do this automatically.”

—Kimoon Kim, Lead Solution Architect and Data Engineer, Siatik

The proof of concept was successful, with GCP outperforming the existing infrastructure in terms of how it handled compute demands, databases, and storage.

“It’s the speed of GCP that really impresses us,” says Avsharn. PPS saw that GCP wasn’t just an opportunity to migrate its existing infrastructure to the cloud. With Siatik’s help, it redesigned its monolithic core architecture to one based around microservices using Google Kubernetes Engine (GKE). For data processing and storage, Cloud Dataflow and Cloud Datastore proved invaluable, while Stackdriver helped the IT team stay on top of logging and monitoring the system.

“Google Cloud makes migrations very easy,” says Brett St. Clair, CEO at Siatik. “It takes care of all the hard work with configurations and replications, so when we switch the machines on, everything is ready and working.”

The ease with which PPS migrated to GCP means that it can now tackle strategic goals much more quickly than before. The most ambitious of these is an AI-powered product recommendation platform. Information is collected from customers who opt in at a defined point in their journey, this database is queried using BigQuery, and the information is fed into the platform. The AI model then calculates the most appropriate products for each member, according to their personal history.

“Most of the product recommendation engines out there are based on clustering, where you’re offered products based on your peer groups,” explains Avsharn. “For the first time, we can make recommendations to members based on their individual preferences and historical behavior. That’s really powerful for us.”

Siatik helped PPS use TensorFlow and Cloud Machine Learning Engine to build the AI platform. For the engineers, these easy-to-use tools helped speed up the process considerably, allowing them to host the models locally without any fuss. Previously, it took one to three months to manually build the model and match an offer to a customer. With the AI platform, a match takes just a few minutes. Cloud ML Engine, in particular, helped the platform adapt to new information on the fly and easily make adjustments to its hyperparameters, that is, preset variables which define the model-training process.

“We wanted the platform to retrain its models in response to new data and improve its recommendations with more information,” says Kimoon Kim, Lead Solution Architect and Data Engineer at Siatik. “Normally this would be a manual process but Google Cloud ML Engine lets the models do this automatically.”

“Google Cloud helped us cancel out a lot of the noise around machine learning and AI. We don’t have to build new complicated algorithms or hire huge teams of data scientists to benefit. We just bring our data and use the right tools to focus on what’s really important.”

—Avsharn Bachoo, CTO, PPS

Harnessing artificial intelligence for real-world results

PPS deployed its new AI recommendation platform in December, 2018. Just a couple of months later, its impact was clear. “In around eight weeks, we saw a 5 percent growth in sales,” says Avsharn. “It’s been a direct result of building our recommendation platform with Google Cloud. We can offer the right products to the right members.”

For developers and engineers at PPS, working with Google Cloud gives them access to high performance technology and automation options with GKE. As a result, the infrastructure runs 70 percent faster than before with fewer cores and less memory. Developers can also work in mature testing environments, and for the first time, are able to build pre-production environments, leading to better quality products. More strategically, moving to a serverless, cloud-based infrastructure has helped PPS take control of its budget, moving away from intermittent, large capital spends to more manageable, project-to-project flows of operational expenditure. The company expects to see savings of around 50 percent, or $695,000.

“We have a lot more flexibility with our resources thanks to Google Cloud,” says Avsharn. “When we have a new idea, we don’t have to outlay new capital such as servers before we can even start working on it. We just spin up instances when we want and spin them back down when we’re done.”

With the AI platform deployed and working well, PPS is already looking at ways to improve it, including real-time updates and further automation. Soon, the company will integrate the platform with more sales campaigns for more effective targeting to boost sales even further. Meanwhile, it’s also experimenting with machine learning to spot patterns in data at scale for fraud analytics and risk assessment.

For PPS, working with Google Cloud has helped it transform quickly and effectively from disrupted to disruptor. The company is now looking to gain the same transformative effects by implementing G Suite for increased productivity and collaboration.

“Google Cloud helped us cancel out a lot of the noise around machine learning and AI,” says Avsharn. “We don’t have to build new complicated algorithms or hire huge teams of data scientists to benefit. We just bring our data and use the right tools to focus on what’s really important.”

The city of South Bend, Indiana has announced they are working with Google Cloud to connect 500 local job seekers with no-cost access to Google Cloud Skills Boost through Upskill SB. This initiative will train, upskill, and certify residents in cloud computing skills to create pathways to technical jobs.

As companies, nonprofits, and governments increasingly leverage cloud computing technology to strengthen their organizations, skilled cloud talent is in high demand both nationally, in Indiana, and in South Bend. According to Lightcast, there were 27,180 unique cloud roles open in the U.S. as of October 2022. Cloud skills are the most in-demand skill set by IT departments: more than one-third of tech learners said professionals with cloud skills are the most challenging to find.

“This partnership with Google Cloud will help residents get on a no-cost path to a cloud computing career at a time when the field is rapidly growing,” said Caleb Bauer, Executive Director of Community Investment for the City of South Bend. “This will help residents prepare to take the next step in their career with Google Cloud Skills Boost and will pave the way to build in-demand skills.”

Google Cloud Skills Boost is the destination for all Google Cloud learning and training opportunities. Local colleges and universities are also able to offer free access to Google Cloud Skills Boost for students through  the Google Cloud Higher Education program. Students can request access to free online labs, quests, and courses. Faculty can take advantage of free Google Cloud Computing Foundations curriculum and coach their students to prepare for Google Cloud certifications.

“Google is proud to offer no-cost access to Google Cloud Skills Boost for jobseekers in South Bend,” said Alice Kamens, Workforce Development lead at Google Cloud. “Through this partnership, we’re advancing our work to ensure everyone has access to the technical training needed to pursue cloud computing careers.”

Those interested in learning more about the program or applying for Upskill SB should visit the Google Cloud page on Upskill SB. Scholarship recipients need access to a computer, hand-held device or smartphone and the internet.

May is a big month for the security industry. It’s been over a year since we gathered for RSA in San Francisco for one of 2020’s last major in-person events. While we likely won’t be together in person this year, it’s an important time for the security community to come together and reflect on many accomplishments, and to consider the challenges still ahead of us. As the world focuses on security incidents and all the risks that still need resolving, it is important to stand back, on occasion, and also note that immense progress has been made by large numbers of small, medium and large enterprises to protect themselves and their customers against increased threats. What is also amazing is to see organizations do this while accelerating their digital transformations, supporting and protecting customers and managing ongoing remote working challenges. We are privileged to play our part in supporting those great teams. 

It’s also been a busy month for us here at Google Cloud since our inaugural CISO perspectives blog post in April. Today, I’ll recap our cloud security and industry highlights, a sneak peak of what’s ahead from Google at RSA and more. 

Thoughts from around the industry 

• Risk Governance of Digital Transformation in the Cloud – In our latest Office of the CISO whitepaper, we shared guidance on both the challenges and opportunities of cloud transformation for Chief Risk Officers, Chief Compliance Officers, Heads of Internal Audit and their teams. A misconception we sometimes see among these executives is that moving to the cloud creates more risk to manage. Having held these leadership positions in previous roles, I believe that the cloud is as much a means of managing security, resilience and other risks as it is a risk in its own right. The whitepaper dives deep into considerations for each of these leadership functions as their organization embarks on a digital transformation journey. 
• The importance of meeting global compliance requirements – Compliance is critical for building trust with customers in regulated industries, especially the public sector. It is worth remembering that in any critical industry, where there can be material impact from incidents, strong industry practices and standards to protect customers are vital (I wrote about this last summer). At Google Cloud, we’re regularly adding new compliance and security certifications to meet our customers’ needs globally. Recently, we expanded our list of FedRAMP High-certified products to include Cloud DNS, and helped our customers in the Asia-Pacific region address various compliance requirements to meet new government regulations for security and data protections. Google Cloud was also the only cloud service provider to complete an annual pooled audit with the Collaborative Cloud Audit Group (CCAG), which is a syndicate of 39 leading European financial institutions and insurance companies who depend on cloud infrastructure and technologies to deliver innovative solutions and experiences for their customers. Having spent most of my career in the financial services industry, I know firsthand the importance of managing risk assessments for outsourced vendors to provide the necessary assurances customers need from their cloud providers. 

RSA 2021 

We have a great lineup of speaking sessions and keynotes from Googlers at RSA this year. Below are the highlights you don’t want to miss: 

• I’ll be doing a session on May 20 about supply chain resilience, where a panel of experts will dive into how we can adjust risk and security initiatives to handle the next “punch to the supply chain.” Additionally, on May 18 I’ll join many of my esteemed CISO leaders from various industries and governments for a keynote discussion on our top security insights, lessons learned and best practices for how we move forward as an industry to address the next wave of challenges. 
• Google’s Senior Director of Information Security Heather Adkins will deliver a session on how to build secure and reliable systems at scale, which will cover principles from Google’s Site Reliability Engineering book with the same title (available for free download here). I’m most looking forward to Heather’s advice for how we as an industry can reshape our security thinking, based on modern architectures and technologies that can help organizations design scalable and reliable systems that are fundamentally secure.
• Nelly Porter, Senior Product Manager at Google Cloud Security, will participate in a panel discussion with security experts on the importance of Confidential Computing technology, how it’s changing the security landscape and where it’s headed. Google Cloud has made great progress in delivering a Confidential Computing portfolio for our customers in regulated industries over the past year, and we’re excited for new milestones in 2021. 

Google cloud security highlights

• Infrastructure and SRE spotlight – Before I joined Google Cloud, I always admired the infrastructure and benefits this organization delivers that are uniquely Google – from the subsea cable innovations to SRE inventions and principles. Security and resiliency are baked into every layer of our infrastructure. Many of the Googlers who build and support our platform have sat in the same seat as our customers, so they understand those needs intimately. Over the last few months it’s been amazing to watch our technical infrastructure team grow, and the direct reliability, operational resilience and security benefits that team brings to our customers. For example, we’ve opened a new region in Poland, announced the first subsea cable that will directly connect the U.S. to Singapore with fiber pairs over an express route, and released an SRE book focused on how organizations can complete a successful cloud migration.
• New security foundations blueprint guide – As part of our mission to deliver the industry’s most trusted cloud, we strive to operate in a shared-fate model for risk management in conjunction with our customers. This includes sharing opinionated step-by-step guidance with key decision points and focus areas for how our customers deploy workloads in Google Cloud. This is why we’ve updated our Google Cloud security foundations guide and corresponding Terraform blueprint scripts. These blueprints are tremendously helpful to many stakeholders within an enterprise, like a CISO that needs to understand our key principles for cloud security, or a C-Suite business leader that needs to quickly identify the skills their teams need to meet an organization’s security, risk, and compliance needs on Google Cloud. 

When we think about the types of features to build into products, we have many principles we follow. But the two that I keep coming back to as crucial are:

1. The need for secure products not just security products. All products should have security built in and while we do build great security products our security and other teams remain focused on constantly enhancing the base levels of security and the security features in all our products. 
2. Defense in Depth. We don’t just focus on defense in depth from attacks – for ourselves and our customers. We also prioritize defense in depth from configuration errors or other hazards. 

As you see below in some of the highlights of new features and products, these represent our commitment to secure products and all forms of defense in depth. 

• Workload identity federation – Service account keys are powerful credentials, and can represent a security risk if they are not managed correctly. A safer approach is to use workload identity federation, using IAM to grant external identities IAM roles, including the ability to impersonate service accounts. This lets you access resources directly and eliminates the maintenance and security burden associated with service account keys. We also offered related overall guidance on the best way to use and authenticate service accounts on Google Cloud.
• VPC-SC Directional Policies – With VPC Service Controls (VPC-SC), admins can define a security perimeter around Google-managed services to control communication to and between those services. Using VPC-SC, you can isolate your production GCP resources from unauthorized VPC networks or the internet. But what if you need to transfer data between isolated environments that you’ve set up? VPC-SC directional policies is a new secure data exchange feature that allows you to configure efficient, private, and secure data exchange between isolated environments. 
• Anthos service mesh supports VMs as well as clusters – Most enterprise compute resources are still in VMs and many will remain there for a long time to come. In Anthos 1.7,  your VM-based workloads can now take advantage of the same mesh functionality as your container-based workloads.
• Cloud Spanner CMEK and Access Approvals – Cloud Spanner is Google Cloud’s fully managed relational database that offers unlimited scale, high performance, strong consistency across regions and high availability. Spanner now supports customer-managed encryption keys (CMEK) and Access Approval, Google Cloud’s industry-leading controls to require approval before access to your content by Google support and engineering teams.
• External Key Manager enhancements – In early 2020 we launched Cloud External Key Manager (Cloud EKM), the industry’s leading Hold-Your-Own-Key (HYOK) product. Using Cloud EKM, the keys used to protect your data stored and processed in Google Cloud are completely hosted and managed outside of Google Cloud infrastructure. Cloud EKM initially launched with support for BigQuery and GCE/PD;  we expanded support for Cloud SQL, GKE, Dataflow Shuffle, and Secret Manager, with CMEK support currently in beta. We also provided in-depth documentation on the functionality, architecture and use cases for Cloud EKM in a new whitepaper.
• Web App and API Protection solution –  Web applications and public APIs are increasingly important to how organizations interface with their customers and partners, and we’ve seen increased investment in tools to protect these resources from fraud and abuse. Google Cloud’s new Web App and API protection solution is based on the same technology Google uses to protect its public-facing services against web application exploits, DDoS attacks, fraudulent bot activity, and API targeted threats. It provides protection across clouds and on-premises environments.
• Threat Intel for Chronicle – Most threat intelligence feeds require security teams to do the implementation and legwork. With our new Threat Intel for Chronicle offering, however, our intelligence insights are applied automatically across your security telemetry to present unique observations within your environment. Threat Intel for Chronicle is exclusively curated for enterprise customers by Uppercase, Google Cloud’s intelligence research and applications team to provide our perspective on threats across the internet and surface them as relevant alerts.

That wraps up another month of thoughts and highlights. If you’d like to have this Cloud CISO Perspectives post delivered every month to your inbox, click here to sign-up, and we’ll see you in June!