Google Cloud today announced that it has been selected by the Israeli government to provide public cloud services to help address the country’s challenges within the public sector, including in healthcare, transportation, and education. 

Following a thorough public tender process, Google Cloud was selected for this four-phase project known as “Project Nimbus.” The agreement will deliver cloud services to all government entities from across the state, including ministries, authorities, and government-owned companies. The agreement is also available for higher education, health maintenance organizations and municipalities. The project will run for an initial period of 7 years, and the Israeli government may extend the engagement for up to 23 years in total. 

As part of the agreement, Google Cloud will work with the public sector on the formulation of best practices for cloud migration, integration and migration to the cloud, and optimisation of cloud services. Google Cloud will also provide training to the country’s technical government employees and senior leaders to enhance digital skills. Google Cloud announced last month that it will open a Google Cloud region in Israel to make it easier for customers to serve their own users faster, more reliably and securely. The region in Israel will be available to serve not only the government and related entities but also private commercial companies, just like any other Google Cloud region. 

The Accountant General of Israel, Mr. Yali Rothenberg, congratulates Google on their winning bid in the first tender of “Project Nimbus”, a multi-year flagship project led by the Israeli Government Procurement Administration, that is intended to provide a comprehensive framework for the provision of cloud services to the Government of Israel.

We are delighted to have been chosen to help digitally transform Israel. This builds on the continued success we are seeing with the public sector globally.

Google Cloud region in Israel

In April, we announced that a new Google Cloud region is coming to Israel to make it easier for customers to serve their own users faster, more reliably and securely. Our global network of Google Cloud regions are the foundation of the cloud infrastructure we’re building to support our customers in the Middle East and around the world. With cloud’s 25 regions (and forthcoming Middle East regions in Qatar and Saudi Arabia) and 76 zones around the world, we deliver high-performance, low-latency services and products for Google Cloud’s enterprise and public sector customers.

The app economy has enabled a huge range of unique business models to flourish. One such model is online food ordering and delivery services, in which apps leverage geo-location data to aggregate local food choices and offer personalized options to consumers.

A leading company in this space is Just Eat. Launched in the UK in 2001 with a vision of ‘serving the world’s greatest menu. Brilliantly.’ The company has capitalized on the popularity of online food delivery and grown its presence across 12 markets. 

Just Eat acts as an intermediary between take-out food outlets and hungry customers, giving local restaurants access to a broader base of potential diners, while providing consumers with an easy and secure way to order and pay for food from their favourite restaurants.

Today the company helps 27 million customers find food from more than 112,000 restaurants—everything from homemade Italian pasta, to Chinese noodle bowls, to fish-and-chips. 

Data is the fuel of Just Eat’s rapid growth, but it wasn’t always looked at that way. In its early days, Just Eat struggled with the deluge of information and faced fragmentation across its systems. In fact, the company realized its legacy data vendor wasn’t capable of ingesting 90 percent of the data produced by its food platform. This was incredibly frustrating for Just Eat’s analysts and data scientists, who had to waste time cleaning up sources instead of leveraging the data to create a better user experience. 

Just Eat turned to Google Cloud, and now uses machine learning (ML) to power sophisticated consumer recommendations on both its app and website. It also makes heavy use of features offered by Google Cloud Platform, including BigQuery for running analytics on its customer data set and Cloud Pub/Sub for messaging app users with relevant offers in real-time. 

Having all of Just Eat’s data in one platform has translated into real value for its customers. With Google Cloud tools, Just Eat has created its own proprietary Customer Ontology framework, which today contains 5.5 billion features that better understand consumers’ behavior and food habits, and provides insights into previous visits.

Just Eat recently created an “Adventurous Index” to map its customers according to their ordering habits, enabling them to tailor their marketing and user experiences. For example, mid-adventurous customers are shown a choice of restaurants that serve their most ordered cuisine, while adventurous customers can choose from restaurants that serve a wider variety. This not only has prompted consumers to be more adventurous with their choices, but also has led to more business at a more diverse set of restaurants.

Matt Cresswell, Director of Customer Platforms at Just Eat said that Google Cloud has become integral to its product delivery: “Consumer food choice is a hugely nuanced topic. We know that individuals have their own unique journeys when they use Just Eat. We’ve sought to create a truly one-to-one relationship with every customer. The changes we’ve made to the platform mean they can access the dishes they enjoy at the touch of a fingertip, and find inspiration to discover new dishes they’ll love. We’re grateful to Google Cloud for helping us support our customers on their culinary explorations.”

Accelerating digital transformation

Digital transformation is what propels businesses and industries forward. Organizations of all sizes—from startups to global enterprises—focus on digital transformation not only to make scaled improvements, but also to drive significant change and fully embrace the digital age. The pandemic has jump started and pushed many organizations into full gear to digitize their business models and transform with increased business agility, resiliency, and velocity, while driving new innovation and business values for the customers.

However, according to the Boston Consulting Group, only about 30% of companies navigate a digital transformation successfully. Many large scale digital transformation programs failed because of lack of clear business priorities, top-down executive sponsorship, or dedicated resources and commitment to see it through.

Laying the foundation for digital transformation success

Digital transformation drives foundational change in how an organization operates, optimizes internal resources, and delivers value to customers; however, this doesn’t just happen overnight. Digital transformation requires a programmatic approach through an incremental yet agile, cost-effective, value-driven, and sustainable strategy to drive successful transformation across the organization.

One of the critical factors foundational to success is Cloud FinOps (Cloud Financial Operations). Cloud FinOps is an operational framework and cultural shift that brings technology, finance, and business together to drive financial accountability and accelerate business value realization through cloud transformation. In the context of Digital Transformation, it requires new ways of working and operating models to drive behaviors and cultural change that foster cross-functional collaboration, drive accountability, provide greater cost transparency, and promote a blameless culture.

Most importantly, Cloud FinOps serves as an enabling function to drive successful digital transformation programs and enable business agility by breaking down the boundaries between technology, finance, and business teams. Through this cross-functional team collaboration, technology leaders partner with finance and business leaders to better understand the technology investments to create sustainable business outcomes. By doing so, business priorities become more clear and the focus shifts to value creation, customer-centricity, and innovation.

As such, companies are reinventing their business models to fund value streams and connect cloud technology investments to strategic business outcomes. With the increased visibility of the cloud costs, finance teams are also gaining greater accuracy in tracking cloud spend against budgets. Organizations can align the TCO of the technology services to the value metrics to make better informed future investment decisions and forecast demand.

Cloud FinOps to accelerate business value realization

The successful deployment and implementation of Cloud FinOps building blocks will enable organizations to accelerate digital transformation beyond cost savings, including the ability to:

• Accelerate business value realization and innovation
• Drive financial accountability and visibility
• Optimize cloud usage and cost efficiency
• Enable cross organizational trust and collaboration
• Prevent cloud spend sprawl
• Break down of departmental silos

Organizations that are successful in digital transformation most often have established processes to measure and track business value. One of the key building blocks of Cloud FinOps is “Measurement & Realization.” By establishing a robust value measurement approach to track and monitor the business value metrics toward business goals, we are bringing technology, finance, and business leaders together through the discipline of Cloud FinOps to show how digital transformation is enabling the organization to create new innovative capabilities and generate top-line revenue.

Business value metrics fall across several factors: cost efficiency, resiliency, velocity, innovation, and sustainability. We suggest assigning KPIs to the following metric categories:

Cost efficiency: Measure cost efficiency through infrastructure savings, migration, and support costs. Customers will commonly start with metrics such as cost of compute and storage per day-week-month, and evolve to unit metrics such as cost per customer served or cost per transaction, where the cost of an application stack is aligned to customer drivers.

Resiliency: Enhance operational resiliency with improvement in service quality and security risk posture. Traditional measures such as system service level and the frequency and duration of critical downtime events are effective measures of IT durability. Customers can also augment these metrics by associating a cost per minute of downtime events, reflecting not only the direct impact of these events but opportunity costs as well.

Velocity: Decrease time to market by accelerating fluidity in product and service delivery. By moving to a cloud-based microservices architecture, customers commonly achieve benefits of increasing software release frequency, as well as being able to run many more test scenarios prior to release, resulting in higher quality code. As an example, our recent Google’s State of DevOps Report 2021, shows that elite performers have 973x more frequent code deployment and release frequency than the low performers.

Innovation: Enable a culture of rapid experimentation to drive innovation and cloud transformation. With cloud technology, companies can avoid the financial constraints of fixed cost investments and lengthy procurement lead times. As a result, the marginal cost of experimentation and time from ideation to experimentation can drop significantly while the number of experiments per unit of time can grow dramatically.

Sustainability: Embed true environmental and social sustainability metrics across the organization by adopting a circular economy strategy and building sustainability into everything we do – from running applications on zero net emissions virtual machines to reducing carbon footprint with enhanced productivity and collaboration services. According to Accenture, companies with average on-premise to cloud migrations can drive 65% energy reduction and carbon emission reduction of 84%1.

Getting started

The Cloud FinOps journey starts with defining or updating your metrics. Since business goals and strategic imperatives will likely change over time, it is important to review the Cloud FinOps metrics whenever the goals change. The review of metrics should include the changes in business goals when there are changes in the internal priorities of the team. Executive leaders need to identify dependency relationships between technology and business outcomes to improve the impact of metrics on decision making and to better prioritize and invest in evolving business and technology capabilities. Defining good metrics is not just about aligning to business goals and demonstrating value. It is also important to help prioritize strategic initiatives, guide effective resource allocation, and generate awareness across the organization to drive a shift in mindset with the new way of operating in the cloud.

The pandemic has accelerated the need for companies to modernize their digital capabilities. With technology-driven disruptions across all industries, it has never been more important for organizations to transform themselves, embrace an agile mindset, and make bold investments in cloud technology and capabilities to achieve sustainable business outcomes.

So, where are you now in your cloud FinOps journey, and how do you move beyond the challenges ahead? Google can help you start the conversation and accelerate your path to maximizing business value with the cloud.

No matter where you are on the cloud transformation journey, through an interactive session with Google, we can bring executives across the organization together to work toward a shared vision and a plan to accelerate and realize business value in the cloud. If you are interested in more information, please contact us.

Special thanks to Pathik Sharma, Bruce Warner, Jon Naseath, and Nihar Jhawar for their contributions and sharing their domain expertise to this important Cloud FinOps topic.

Pierogies might just be the ultimate comfort food. But when Mrs. T’s Pierogies — the leading manufacturer of frozen pierogies in the US — learned it needed to transition its existing on-premises SAP ECC to S/4HANA, the company sought a little comfort for itself. 

Founded in 1952, Mrs. T’s Pierogies now produces more than 650 million pierogies a year. Moving that many pierogies requires a powerful ERP system — and an equally powerful IT infrastructure on which to run it. Mrs. T’s realized that the SAP-mandated transition of its ERP solution to SAP S/4HANA was an opportunity to move its SAP systems to Google Cloud and gain real-time analytics capabilities for faster sales forecasting, more effective trade promotions, and more sophisticated planning.

From necessity to opportunity

Mrs. T’s successfully ran its SAP ECC solution on its own on-premises servers for years. But after SAP decided to sunset the product, Mrs. T’s realized that it faced multiple challenges, including: 

• Migrating its SAP ECC 6.0 system from an on-premises leagcy OS to a cloud-based Linux environment
• Moving data from its SAP DB2 database to HANA
• Transitioning from ECC to SAP S/4HANA

That complex transition needed to take place with little or no downtime, since nearly all of the company’s invoices, warehouse movements, and transfer orders used the Electronic Data Interchange (EDI) protocol. Missing even a few hours of EDI transactions would put significant revenue at stake. Adding to the challenge: Some Mrs. T’s customers would not accept an invoice past five days, which left little room for error. Mrs. T’s chose Rackspace Technology, a longtime Google Cloud partner, to oversee the move. 

Mrs. T’s could have chosen to run S/4HANA on its legacy hardware but saw migration to Google Cloud as an opportunity to improve key aspects of its business, in particular data analytics. Historically, sales planning and forecasting involved time-consuming manual processes. But the speed, availability, and scalability of Google Cloud meant that Mrs. T’s could take advantage of S/4HANA’s embedded analytics capabilities. Migrating could also open the door to leveraging Google Cloud’s native integration of SAP data to power Google tools such as BigQuery, Google Cloud AI Building Blocks, and more. 

The move to Google Cloud also gave Mrs. T’s an opportunity to update its disaster recovery process. Previously, the company backed up to tape. So, if its SAP systems went down, a member of the IT department would have to drive the most recent tape backups an hour to its cold site, where the disaster recovery partner would load the SAP backup tape, boot the system up, switch network connections to that site, and cross their fingers. Not only would downtime be significant, but restored data would be limited to the periodic tape backup. 

“Everything just worked”

Once Mrs. T’s decided to migrate to Google Cloud, the company worked with Rackspace Technology to implement the system. The first phase focused on moving the SAP production environment from on-premises infrastructure to Google Cloud and updating its database to HANA, which took place over 12 weeks. The switchover occurred over a weekend and was all but invisible to users. “We came in on Monday and everything just worked,” recalls Timothy Coyle, Director of Information Systems & Technology. In a second four-month phase, the company transitioned from ECC to S/4. 

The move to Google Cloud paid dividends immediately. Batch transactions occurred twice as fast and on-screen end-user transactions rendered instantly. The upgrade also gave the finance team access to embedded analytics and monitoring for the first time. With everything now in the cloud, disaster recovery could be dynamic and nearly instantaneous, with a worst-case scenario of just 5 to 10 minutes of downtime. 

“Mrs. T’s needed a skilled and experienced partner that could move its SAP environment to Google Cloud with no negative impacts to its business. We knew this migration was a key initiative in Mrs. T’s digital transformation journey,” says Chuck Britton, Google Partner Development Manager at Rackspace. “We also knew that running SAP on Google Cloud would give the business the fast and flexible analytical capabilities it needed for its SAP data.” 

From ideation to production, Mrs. T’s migrated from its legacy on-premises infrastructure to a modern SAP S/4HANA solution on Google Cloud in only seven months, with minimal downtime and zero disruptions. Now that the migration is complete, Mrs. T’s has a flexible, highly scalable environment to run the SAP applications and data that fuel the business. Says Coyle, “Our strategic intent for IT is to make processes simpler, people more productive, and infrastructure more secure. This project fits right square in the middle of that strategic philosophy.”

Learn more about ways in which Google Cloud can transform your SAP experience and about Rackspace Google Cloud solutions for SAP customers.