The music industry is rapidly changing. Only 20 years ago, the availability of music and the infrastructure that was required to make an album a sales success were incredibly complex and expensive. With the decline of physical sales and a fundamental shift to digital, music streaming now accounts for more than half of all sales globally.

At the same time, technology has democratized music-making; in many ways, it has made the musical landscape more diverse. Artists can upload their music with the click of a button. But while it’s easier for creators to share their songs with audiences, getting paid has become more fragmented.

Although music is booming, people no longer buy it outright. Instead, listeners download music digitally or subscribe to streaming services to have their libraries with them at all times. To monetize digital content effectively, artists need to know when, where, and how often their songs are played on each service. To help them navigate this complicated royalties landscape and maximize their profits, Berlin-based international music company BMG provides customized, transparent, and fair services to songwriters and artists.

With publishing and recording divisions under one roof, the subsidiary of international media giant Bertelsmann works with both emerging artists and established stars, including John Legend, Kylie Minogue, Mick Jagger, and Keith Richards. With the MyBMG web and mobile application, clients can view and analyze their royalty details in real time and collect payment. When a new record is released, BMG uses data to maximize its impact and revenue for its creators.

“We make sure that everyone who uses our clients’ music knows who needs to be paid the associated royalties, then we collect these royalties and share them out quickly and transparently,” explains Sebastian Hentzschel, Chief Information Officer at BMG. “When our artists release new music, we make sure that it’s marketed and promoted effectively around the world.”

“We needed a scalable solution for our royalty workloads that was intuitive for our developers. We also wanted a partner, not a client-vendor relationship. With autoscaling via BigQuery, excellent customer support, and a clean and simple user interface, Google Cloud ticks every box for us.”

—Gaurav Mittal, Vice President Group Technology, BMG

Getting up to speed with a new way of paying artists

In this digital world, artists aren’t just paid every time a fan buys an album—they’re paid a small amount, or royalty, for each song downloaded or streamed by a listener. So, when the industry shifted to digital, the volume of data that BMG needed to handle grew exponentially. “One CD sale is equivalent to about 1,500 streamed songs or plays,” says Gaurav Mittal, Vice President Group Technology at BMG. “That means IT departments have to process 1,500 times the amount of data to calculate payments for artists, and this makes scalable micropayment processing very important.”

Until 2019, BMG’s infrastructure was entirely hosted on-premises. Hardware limitations made it challenging to scale on-demand, making it harder to handle the data peaks that royalty processing can bring. “With our on-premises infrastructure, we were going to hit a ceiling in a few years,” says Gaurav. “We still managed to process royalty payments for our clients, but it was increasingly time consuming and expensive. To keep focusing on our clients, rather than our infrastructure, we decided to migrate to Google Cloud.”

From the outset, Gaurav and his team had a clear vision for the partnership: “Most importantly, we needed a scalable solution for our royalty workloads that was intuitive for our developers. We also wanted a partner, not a client-vendor relationship,” he says. “With autoscaling via BigQuery, excellent customer support, and a clean and simple user interface, Google Cloud ticks every box for us.”

Keeping artists happy with business-as-usual payouts during migration

To move applications to the cloud while keeping payment cycles on track for its artists, BMG teamed up with Google Cloud partner Rackspace Technology. “We selected Rackspace Technology because it combines strong technical muscle and a global footprint, with the customer service of a local boutique firm,“ shares Gaurav.

BMG’s own technology team put together the outline for the Google Cloud architecture, which they passed on to Rackspace Technology for optimizations and the ultimate stamp of approval. Whenever Gaurav and his developers needed support, Rackspace Technology was ready to go. “So far, we’ve migrated 17 applications successfully, and Rackspace Technology has been 100% spot-on with each suggestion,” says Gaurav. “I can’t recall a single flaw in a Rackspace Technology-approved architecture, and that really says something.”

When BMG began its migration in August 2019, the team developed an ambitious two-year plan. Only 14 months later, however, the project is more than 75% complete. Among the solutions that BMG is using today are Cloud Storage to securely store 130 TB of data, and Cloud SQL as its standard database technology. The web applications run on Compute Engine, App Engine, and Google Kubernetes Engine.

“After successfully moving a few applications, it was clear that with the strong teamwork of BMG and Rackspace Technology, together with the ease of use of Google Cloud, we could speed up the project without sacrificing quality,” says Gaurav. “We’re set to complete our migration six months before schedule, helping us to quickly move out of our hybrid environment.”

“Our income-tracking teams are very savvy on the data, and the simplicity of Google Cloud empowers them to self-serve analytics, rather than wait for IT. Our teams are much more productive.”

—Gaurav Mittal, Vice President Group Technology at BMG

Royalty reporting and processing with BigQuery and Dataproc

So far, all of BMG’s critical workloads are up and running on Google Cloud. Royalty calculations, for example, which require incredible processing power and the collection of many micropayments to ensure full and timely payout, run entirely on Dataproc with output stored on BigQuery for downstream integration and reporting.

Enabling more harmonious workflows through self-serve analytics

As the new beating heart of BMG’s royalty reporting, BigQuery changed the rhythm of collaboration company-wide. In the past, income tracking teams had to contact IT departments if they needed deeper data insights for their work. By integrating Data Catalog with BigQuery, BMG has made the data more accessible to all teams. This helps them detect missing income and new revenue streams independently, maximizing profits for artists.

“Our income-tracking teams are very savvy on the data, and the simplicity of Google Cloud empowers them to self-serve analytics, rather than wait for IT,” says Gaurav. “Our teams are much more productive.”

“Google Cloud enables us to be more client focused and deliver better features faster. We believe it’s just the beginning. We offer rights and royalty services for music publishing, recorded music, neighboring rights, and books. Without scalability limitations, it’s absolutely conceivable to offer our platform as a service to other companies or industries, such as gaming. Google Cloud has opened a world of possibilities.”

—Sebastian Hentzschel, Chief Information Officer, BMG

With a leaner IT environment, BMG can focus its effort on the needs of its clients. Beyond improvements in royalty processing, it can concentrate on app development, releasing new features and enhancements more frequently. By hosting applications on Google Kubernetes Engine, App Engine, and Compute Engine, BMG has built a CI/CD pipeline with automated deployments and testing to significantly speed up workflows.

“In our old system, it could take several weeks to set up an environment,” says Gaurav. “With Google Kubernetes Engine, any of our developers can complete the process in a few clicks. Having that autonomy makes our developers more motivated and self-driven.”

“Google Cloud enables us to be more client focused and deliver better features faster,” adds Sebastian. “We believe it’s just the beginning. We offer rights and royalty services for music publishing, recorded music, neighboring rights, and books. Without scalability limitations, it’s absolutely conceivable to offer our platform as a service to other companies or industries, such as gaming. Google Cloud has opened a world of possibilities.”

With the migration almost complete, BMG is looking forward to its next technology project. It plans to leverage AutoML to further scale and automate royalty tracking with machine learning. On the marketing side, advanced analytics will help BMG determine the effectiveness of promotional campaigns around the world, further increasing profits for artists. By connecting Google Data Studio to BigQuery, BMG will increase the quality of its analyses, helping musicians better understand the reach of their music around the world.

In the end, Gaurav shares, helping musicians is what it all comes down to. “We’re a new kind of music company because we build our services around our artist, songwriter, and publisher clients, not the other way around,” he says. “Google Cloud is helping us maintain strong relationships with our clients, and that’s music to our ears.”

Cloud migration is top of mind for most companies with SAP applications. While the advantages of the cloud for SAP customers is generally understood, the move itself can be complicated and disruptive. So what actually are the business benefits and cost savings? How long will it take to recoup such an investment? Two recently published reports from Forrester and IDC can help to quantify the benefits and ROI. 

Getting answers to the million-dollar questions
Forrester and IDC bring different methodologies to the table; they asked somewhat different questions and used different models to calculate their financial KPIs. This allows you to get two different points of view on the same basic questions about value, risk, and ROI.

As it turns out, both reports found that customers who migrate their SAP environments to Google Cloud see an impressive return on their investments. From uptime and infrastructure to efficiency and productivity—both Forrester and IDC identified major benefits to companies that have made the move to Google Cloud.

Let’s walk through some of the highlights from both reports.

Forrester’s TEI model spotlights the power of uptime improvements
Based on in-depth conversations and quantitative research with six companies, here are the key findings from the Forrester Total Economic Impact (TEI) study for companies running SAP systems on Google Cloud: 

• Direct cost savings. When they compare cloud subscription and related costs to what they spent on legacy systems and infrastructure, most IT leaders expect a cloud migration to deliver up-front savings. But according to Forrester, the companies interviewed reported average savings of more than $3 million a year, including eliminated hardware purchases, right-sized software licensing, staffing efficiencies, and other operational cost savings.

• Dramatically improved uptime. Customers told Forrester that migrating SAP to Google Cloud pretty much eliminates downtime—planned or unplanned—as a significant IT concern. According to Forrester, companies realized an average of $1.5 million in savings per year by avoiding the revenue and user productivity losses that had once been a fact of life for their IT teams.
• Significant efficiency gains. Because Google Cloud works to mitigate performance bottlenecks, infrastructure mishaps, network delays and more, the companies Forrester interviewed reported a yearly average of $500,000 in productivity gains for SAP business users and frontline workers.

Companies also reported an annual average of $500,000 in additional IT efficiency gains after migrating SAP to Google Cloud. This quantifies what happens when IT practitioners no longer have to deal with the bottlenecks that come with legacy systems, and are able to spend their time on tasks that actually build value and help the business. Based on the Forrester analysis, the companies interviewed could expect average three-year net benefits of about $15.4 million.

“We benefit from any technical innovation in the infrastructure area because Google Cloud is doing that for us,” one customer told Forrester. “So, whenever there’s new hardware available or new processes or whatever, I don’t have to run the specific project to migrate from A to B.” 

IDC finds that good things happen when SAP downtime is reduced 
The IDC report highlights four areas where Google Cloud generates the most value for customers:

1. Cutting infrastructure costs. According to IDC, customers running SAP on Google Cloud spent 31% less on infrastructure each year, or an average of $233,000 less per company. The ability to scale SAP environments dynamically and to keep them right-sized was a major factor; so were the advantages of automated infrastructure monitoring and savings on software licenses once these companies could stop overprovisioning.

2. Giving a team better things to do. IDC found that the infrastructure, database, and security teams of the companies they interviewed reduced the time they need to maintain and manage SAP environments by an average of 66% per year, for a savings of $443,000, per company. As a result, these companies got the equivalent of a major staff expansion from their SAP migrations—giving them both the staff time and the expertise to focus on far more valuable activities.

3. Limiting unplanned downtime. These companies reported to IDC an average 98% reduction in unplanned downtime. Migrating SAP to Google Cloud significantly reduces the threat of downtime and saves the business an average of nearly $770,000 per year in lost revenue and user productivity. For some firms, the downtime savings topped $1 million per year.

4. Making users more productive. The companies interviewed told IDC that by avoiding downtime and disruptions associated with upgrade and maintenance tasks for their legacy SAP systems, they saved an average of $363,000 annually in user productivity. But there’s an even more interesting under-the-hood stat contributing to these gains: These companies reduced the time required to deploy new SAP compute and storage resources from an average of 8.8 days to 1 hour.

When IDC added up these and other savings associated with running SAP on Google Cloud, it found an average three-year savings of more than $3.5 million and a five-month payback period. 

“We acquired another company, so basically overnight we needed to be able to deal with that increase,” said one customer IDC spoke with. “We doubled our footprint overnight, and we had to take on hundreds of additional employees. We needed a platform that we could easily scale up if we required, and that’s the benefit of running SAP on Google Cloud for us.” 

Explore the reports
There is a lot to think about when considering a move of SAP systems to the cloud. The cloud has many advantages, but migration can seem complicated and tricky; we appreciate that you are looking to understand the full picture. These papers are a great place to start. 

Download the reports—Forrester’s “Total Economic Impact of SAP on Google Cloud” and IDC’s “Business Value of SAP for Google Cloud Environments.” Then, get in touch.

Editor’s note: Earth Day reminds us that we all can contribute to creating a cleaner, healthier, and more sustainable future. Google Cloud is excited to celebrate innovative startup companies developing new technology and driving sustainable change. On this year’s Earth Day we’re highlighting Enexor BioEnergy and their initiative to produce clean, sustainable energy from plastic and agro-waste with the help of Google Cloud solutions.

Picture a world without electricity where billions of people burn dangerous fuels and trash from landfills to cook meals and heat their homes. Children constantly cough, choking on toxic smoke that lingers in houses and sickens entire families. Because there are no pumps or purification plants, contaminated water is hauled in buckets from dirty rivers and polluted wells. Without power or lights, hospitals and emergency medical clinics can only provide basic services during the day.

Although it is 2022, this harsh life is a reality for billions of people living in developing countries around the world.

Producing clean energy from plastics and organic-waste

This Earth Day, let’s imagine what life would be like in these countries if people had access to safe and inexpensive bioenergy. In this world, indoor air is fresher. Clean water runs from faucets, while homes, businesses, and schools have electricity. Doctors and nurses have the power to treat patients 24 hours a day and save lives with advanced medical equipment. Local economies boom and entrepreneurs thrive.

This is the sustainable future Enexor BioEnergy and its partners are building—one village at a time. With the Enexor Bio-CHP™ system, we produce clean and sustainable energy from discarded plastics, organic, and biomass-waste such as rice and corn husks, seaweed, coconuts, and other biomatter while offsetting significant Carbon emissions. The Bio-CHP can be commissioned and easily installed in just a single day, with multiple systems installed side-by-side when more power is needed. By being offered under its novel Energy-as-a-Service business model, Enexor ensures that the Bio-CHP can generate immediate environmental positive impact and customer adoption.

Each Bio-CHP unit generates enough energy to power over 100 homes—and provides much-needed renewable electricity and thermal power for schools, businesses, manufacturing facilities, water pumps, Wi-Fi systems, and telecommunications towers. The Bio-CHP creates clean energy by safely oxidizing plastics and biomatter in a secure container using a high-temperature system to power a micro-turbine. This produces bioenergy, significantly reducing harmful greenhouse gas emissions.

By solving a community’s waste issues while providing more affordable renewable energy, the Bio-CHP also creates new economic opportunities and improved outcomes where it is installed. This includes using its inexpensive power to expand local services and offerings, and empowering local community clean up efforts by incentivizing waste collection via blockchain-enabled digital currencies and services such as PayGo. Additionally, the Bio-CHP is an ideal solution for businesses who desire to maximize their own sustainability efforts, gain greater energy resiliency, and save money on their current energy and waste costs.

Engaging in Google for Startups Accelerator: Climate Change

When developing the Bio-CHP, we realized we needed a reliable and experienced partner to help us incorporate the best in class machine learning and artificial intelligence into our technology. That’s why we joined the Google for Startups Accelerator and participated in the Google for Startups Accelerator: Climate Change.

The accelerator introduced us to other companies working to create a sustainable future and opened new opportunities for collaboration and partnerships. The accelerator also continues to give our small team access to the best of Google Cloud’s people, programs, and solutions. We especially want to highlight Google Cloud’s dedicated startup experts and the incredible technical support they provide, as well as the Google Cloud research credits we used to explore new solutions.

As an example, Enexor is developing a predictive maintenance tool that automatically adjusts Bio-CHP operations to match fuel composition. Another tool in development proactively identifies and flags potential Bio-CHP system and component failures—before they occur.

Google Cloud’s dedicated startup experts work closely with Enexor to develop predictive models for these tools and Enexor also used the Google Cloud research credits that were provided to build these advanced models on TensorFlow, Vertex AI, Cloud CDN and AutoML. Since each system is remotely monitored from Enexor’s global headquarters in Tennessee, predictive maintenance tools also increase the safety, reliability, and efficiency of Bio-CHP in off-grid locations.

Generating 13 billion kWh of clean power by 2040

In the future, Enexor plans to explore additional Google Cloud solutions such as BigQuery to crunch larger datasets, Google Data Studio to build dashboards, and perhaps even Google Cloud Tensor Processing Units (TPUs) to more efficiently process machine learning (ML) workloads.

These solutions will help Enexor to achieve three primary goals by 2040: to generate 13 billion kWh of clean power, reduce 120 million tons of CO₂, and provide one million people with access to clean and sustainable energy. With each Bio-CHP system, Enexor annually reduces up to 2,000 metric tons of CO₂ equivalent emissions by decreasing methane emissions released from landfills, offsetting fossil fuel-based power generation with carbon credits and minimizing waste disposal transportation emissions.

Enexor is now preparing to deploy the Bio-CHP in Accra, Ghana where it will convert organic and plastic manufacturing waste into sustainable energy. Enexor is also looking forward to working with the local Accra community and NGOs to collect discarded plastics and organic waste diverting it from ending in the rivers and oceans and instead using them as renewable fuel sources. We can’t wait to see what we accomplish next as we celebrate Earth Day 2022 and think about the sustainable future Enexor is helping to empower.

If you want to learn more about how Google Cloud can help your startup, visit our page here to get more information about our program, and sign up for our communications to get a look at our community activities, digital events, special offers, and more.