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.

For over a decade, we’ve been investing in Canada to become a go-to cloud partner for organizations across the country. Whether they’re in financial services, media and entertainment, retail, telecommunications or the public sector, a rapidly growing number of organizations located or operating in Canada are choosing Google Cloud to help them build applications better and faster, store data, and deliver awesome experiences to their users, all on the cleanest cloud in the industry. To support this growing customer base, we’re excited to announce that the new Google Cloud region in Toronto is now open. 

As you’d expect, we’re thrilled about this news, but we aren’t the only ones that have been looking forward to this launch. We asked some of our customers operating in Canada for their take on the upcoming cloud region. Here’s what they had to say:

“Our alliance with Google is truly distinctive in the Canadian market as we are working together to co-innovate and create new services for key industries, including communications technology, healthcare, agriculture, security, and the connected home. The new cloud region in Toronto marks another key milestone that will propel TELUS’ digital leadership by further leveraging the scalability, reliability and cost effectiveness of Google Cloud to support improved customer experience and build stronger, healthier and more sustainable communities.”—Hesham Fahmy, Chief Development Officer, TELUS 

“We’re simplifying, modernizing and digitizing Scotiabank to enhance the customer experience for our 25 million customers across the globe. By leveraging powerful cloud-based services including Google Cloud, we’re able to put the most advanced software engineering, data analytics and machine learning tools in the hands of our talented employees. We welcome Google Cloud’s investment in Toronto and look forward to the opportunities the Toronto Cloud Region will present to our Technology team.”
—Michael Zerbs, Group Head Technology & Operations, Scotiabank 

“Cloud technologies—and the access to scalable compute, rich geospatial datasets and smart analytics tools—will be critical  contributors to support climate action and sustainable policy decisions. At Natural Resources Canada, scientists and researchers are applying innovative digital solutions to support Canada’s natural resource sector. The new Google Cloud region in Toronto will provide our scientists, technologists and researchers with the products and services necessary to turn Earth data into actionable insights.”
—Vik Pant, PhD, Chief Scientist and Chief Science Advisor, Natural Resources Canada 

“At Accenture, we bring together technology and human ingenuity to create and respond to change. We’re thrilled to join forces with Google Cloud and their newest region in Toronto with an important mutual goal: to accelerate cloud innovation in Canada. Our clients already know us for our deep industry intelligence, cloud-first expertise and market-renowned delivery. We’re now combining that with Google’s human-centric design to bring even more opportunities to our clients across all industries.”
—Jeffrey Russell, President of Accenture in Canada. 

“We are thrilled to see Google’s commitment to Canada. We look forward to helping our joint customers transform their operations, leveraging Google Cloud’s latest data center in Toronto. At Deloitte, we believe cloud is THE opportunity to reimagine everything.”
—Terry Stuart, Deloitte Chief Digital Officer, Canada. 

“As Canadian organizations increasingly leverage cloud to transform their businesses, we are excited about the new opportunities that the Toronto Google Cloud region brings to the market. We look forward to continuing our strong partnership with Google Cloud to bring customized and innovative solutions that help Canadian companies fully realize the value of cloud technology, so that they can compete and win on the global stage.”
—Andrew Caprara, Chief Operating Officer, Softchoice 

Toronto joins 27 existing Google Cloud regions connected via our high-performance network, helping customers better serve their users and customers throughout the globe. In combination with our Montreal region, customers now benefit from improved business continuity planning with distributed, secure infrastructure needed to meet IT and business requirements for disaster recovery, while maintaining data sovereignty.

The new region launches with three zones, allowing organizations of all sizes and industries to distribute apps and storage to protect against service disruptions, and with our core portfolio of Google Cloud Platform products, including Compute Engine, App Engine, Google Kubernetes Engine, Bigtable, Spanner, and BigQuery.

We’re working to bring you new cloud products and capabilities in Canada, and our goal is to allow you to access those services quickly and easily—wherever you might be in the country. The past year has proved how important easy access to digital infrastructure, technical education, training and support are to helping businesses respond to the pandemic. We’re particularly proud of the teams who faced the unique challenges of building a cloud region during this time to help our customers and community accelerate their digital transformation.  

To support all of our users, customers and government organizations in Canada, we’ll continue to invest in new infrastructure, engineering support and solutions. We’re currently hosting our first ever Google Cloud Accelerator Canada to bring the best of Google’s programs, products, people and technology to startups doing interesting work in the cloud. We’ve recently received Protected B accreditation with Canadian Centre for Cyber Security, which is crucial for healthcare, education, and regulated industries adopting cloud services. We’re also pleased to announce the preview of Assured Workloads for Canada—a capability which allows you to secure and configure sensitive workloads in accordance with your specific regulatory or policy requirements. 

For help migrating to Google Cloud, please contact our local partners. For additional details on Google Cloud regions, please visit our locations page, where you’ll find updates on the availability of additional services and regions. You can always contact us to help you get started or access our many educational resources. We’re excited to see what you build next with Google Cloud.

Editor’s note: Google Cloud partner commercetools shares how modern technologies like composable commerce, cloud-native infrastructure and artificial intelligence/machine learning (AI/ML) will lead the way in business-to-business (B2B) digital commerce this year.

Digital commerce in B2B has been predicted as the next big thing for years; yet, at the start of COVID-19, 60% of B2B companies had zero or limited eCommerce capabilities. The pandemic accelerated digitization and eCommerce has finally taken off: As of February 2022, 65% of B2B companies offered eCommerce capabilities.

The behavior of B2B buyers is also changing: Consumer-like expectations are at the heart of successful B2B commerce, and this is how manufacturers, distributors and wholesalers will shape their customer experiences. Today, 73% of B2B buyers want a personalized business-to-consumer or B2C-like experience. 83% prefer ordering or paying through digital commerce and 72% are eager to purchase across channels.

With digital commerce dictating how B2Bs will grow in 2023 and beyond, what trends will spur digital transformations across this business model? Here’s what the team at commercetools expects to unfold in B2B eCommerce this year.

#1 B2B firms are switching to cloud-native, composable commerce

B2B players still plagued with manual processes and siloed backend systems will move away from monolithic platforms and choose composable commerce. In a nutshell, composability enables businesses to select best-of-breed components, such as search, cart or checkout, and “compose” them into a custom application.

B2B firms will modernize their commerce backend, interoperating siloed systems like Configure Price Quote solutions (CPQs) for sales and enterprise resource planning solutions (ERPs) for order entry with an API-first and composable commerce stack. They will also pivot from on-premise deployments to cloud-native architectures as the baseline for auto-scaling capabilities instead of pre-provisioning online capacity during traffic peaks. That way, B2Bs can customize customer-centric experiences to boost revenue while reducing the complexity and cost of in-house IT infrastructure, as well as gaining operational efficiencies

B2Bs will maximize the cross-section of composable commerce and cloud-native infrastructure by leveraging a commerce backend like commercetools Composable Commerce hosted on Google Cloud. This combined solution provides commercetools’ ready-to-use components built as microservices and exposed as APIs, such as product information management (PIM) and unified cart, integrated through the Google Cloud Marketplace.

#2 Strong focus on data quality and personalization

Focusing on data quality continues to be a big trend in 2023. B2B buyers expect product, pricing, inventory and shipping data points to be accurate across every touchpoint so they can make better purchasing decisions, such as when to order products and calculate quantities.

With so many data points to capture throughout the customer journey — product, inventory, pricing and customer data — we’ll see more B2B companies reorganizing their vast information pools to elevate customer experiences. They will pivot to modular and API-first solutions, plus flexible data models, so they can break data silos from legacy monolithic platforms and access such data when needed.

We also expect to see more customer analytics to unlock data on buyer behavior. By understanding what customers see, click and add to their shopping lists, B2B businesses get valuable insights into how buyers behave, using this data in the shopping journey according to product interests. That way, it’s possible to offer personalized experiences across touchpoints without hassle.

“It is important for B2B companies to look at their data as if it is one of their products; invest in its upkeep and integrity while finding ways to continuously improve it. Using advanced analytics powered by AI and ML to identify patterns from large amounts of data, B2B companies can activate insights into customer decision journeys to maintain loyalty, personalize experiences to improve satisfaction and boost revenue, while also finding ways to optimize costs. For example, with analytics, enterprises can streamline spend to focus on the highest-performing channels and reduce waste.” — Carrie Tharp, Google Cloud VP of Retail and Consumer

With data-driven tools coming into play like Google Cloud’s Discovery AI, Recommendations AI and Vision Product Search connected with composable commerce, B2B players can boost customer analytics to personalize experiences, improve customer satisfaction and reduce churn.

#3 The B2B customer experience will be redesigned

B2B players are taking a page out of the B2C playbook to elevate experiences throughout the customer journey. While intense work needs to happen in the backend commerce engine, B2B players will also redesign their digital frontends. That means boosting website performance, while mobile responsiveness and personalization will be at the forefront of these advanced digital initiatives.

More than ever, B2B companies are looking for digital storefronts delivered as progressive web applications (PWAs) for optimized performance and responsiveness across devices, as well as fast-loading and responsive experiences to boost your digital presence, SEO rankings and conversion rate. B2Bs can further streamline frontend development with solutions natively connecting to Google Cloud Marketplace, which supports a variety of storefront providers, including commercetools Frontend.

Leveraging Google Cloud’s unique capabilities, such as PWA web app development, Google Cloud Discovery AI solutions that include Retail Search and Vision API Product Search, among many others, B2B companies are well positioned to boost digital commerce in the years to come.

What’s next in 2023?

2022 was already a turbulent year; for better or worse, 2023 is expected to have a similar fate. For B2Bs, even the ones with tight budgets, investing in digital commerce can help future-proof businesses for whatever’s happening this year. To dive deeper into all predictions and insights by commercetools in collaboration with Google Cloud, read the guide Pivotal Trends and Predictions in B2B Digital Commerce in 2023.

Google Cloud Results

• Enables accurate allocation of marketing spend to underserved areas
• Supports expansion into international markets
• Helps ensure accurate forecasting of inventory levels
• Improves accuracy of forecasted delivery times by at least 60%

Operating in India since 2011, Rebel Foods has grown from a brick-and-mortar business that provided wraps to customers to a cloud kitchen that delivers cuisine to about one million consumers per month. “We started with the Faasos food brand and now we have scaled up to 10 brands,” says Soumyadeep Barman, Chief Technology Officer at Rebel Foods. “We have doubled our revenue every year from 2014 until now, and we operate kitchens in 15 cities across India. Each kitchen offers at least seven of our brands to customers.”

Barman attributes Rebel Foods’ success to the fact that it is a full stack company. “We procure, we have our own inventory, we prepare the food, we deliver the food to customers, and we make sure customers are delighted every time they order,” he says.

The rapid emergence and adoption of mobile technologies and services in India gave the business its opportunity to expand quickly. “The boom in applications and the web really got going in India in about 2014,” Barman says. “The subsequent emergence of smart devices and mobile applications opened up new markets, including older people who had not really used a computer until then.”

The business released the first iteration of its mobile application in 2013 on servers in an on-premises data center. “However, we experienced breakages because our infrastructure was not scalable or dependable enough, and we decided to move to another solution,” Barman says.

Google Maps Platform delivers opportunity

In 2014, Rebel Foods decided to move to the cloud and selected Google Cloud because of its stability, reliability, and scalability.

The business also wanted to take advantage of the opportunities Google Maps Platform presented to improve the efficiency and effectiveness of its delivery service. With 175 kitchens delivering to about 900 locations across India, Rebel Foods needs to provide estimated delivery times and meet delivery guarantees, while accounting for all the factors that might affect how quickly a rider can reach a customer’s doorstep.

The business turned to Google Maps Platform Premier Partner Searce for support in leveraging Google Maps Platform APIs to deliver a compelling customer experience and improve its efficiency. “Searce helped us determine the Google Maps Platform APIs we should use across our mobile applications and websites, and how many licenses we needed to conduct activities like calculating estimated delivery time and reviewing order heat maps,” Barman says. “Thanks to the firm’s support, Google Maps Platform APIs were a game changer for us.”

Mapping customer locations

Customers accurately pinpoint their location in a map through functionality made available through the Places API and Geocoding API, in conjunction with the JavaScript API. Drivers use the Directions API to identify the quickest route to customers.

Customers can also track the progress of delivery and estimated time of arrival using an Android or iOS application, or the brand websites.

Deploying Google Maps Platform APIs enabled Rebel Foods to improve by up to 60 percent the accuracy of forecasted delivery times. “Rather than tell a customer we can reach them in, say, 45 minutes, based on previous experience and gut feeling, we can retrieve an accurate traffic scenario and calculate delivery times based on traffic congestion levels and likely average speeds,” Barman says

Allocating budget effectively

Google Maps Platform also allows the business to combine mapping of customers to individual kitchens and to how often customers place orders – and for what value. This enabled the business to understand where to allocate budget for local marketing to stimulate demand in underserved areas.

Google Maps Platform technologies complement Rebel Foods’ use of Google Cloud Platform services such as the BigQuery analytics data warehouse to process data used to forecast inventory levels and provide recommendations to customers based on previous usage and behaviors. The business also runs its key applications in Kubernetes Engine to achieve cost-effective scalability, so it can expand to international markets.

“We are targeting growth into a range of international markets in January 2019, including Australia, the Middle East, and Southeast Asia,” Barman says. “With the user data and experience provided by Google Maps Platform in particular, we are poised for success.”

About inshorts

Mobile news platform inshorts condenses the latest national and international news into 60-word briefs in English and Hindi. With 10 million downloads so far, it’s expanding to cater to millions more on-the-go Indians reading news on mobile devices.

Industries: Media & Entertainment

Location: India

Across India, hundreds of millions of people turn to their smartphones for news that will enhance their lives and help them achieve their goals. According to Professor Rasmus Kleis Nielsen, Director of the Reuters Institute for the Study of Journalism: “The past few years have seen explosive growth in mobile internet access, and the rapid move to digital media will have profound implications for the practice of journalism, the business of news, media institutions, and thus by extension political and public life in India.” The Institute reports that Indians with internet access have risen from 100 million to 500 million in the past decade alone. The report identifies India’s news industry as “a mobile-first market,” with 66% of Indians citing smartphones as the device they most frequently use to access online news.

Seeing an opportunity to meet the growing need for news on the go, inshorts developed a mobile news platform for Indians on the move who want to stay informed but don’t have time to read long articles. The inshorts solution condenses news, from politics to cricket, into briefs of under 60 words and has been well received, with 10 million downloads since launching in 2013.

To keep the attention of its always-on news consumers and attract more users for continued growth, inshorts knows it must continuously evolve and improve its platform. The company turned to Google Cloud in 2016 in order to free its developers from time-consuming infrastructure maintenance tasks and enable them to focus on creating innovative applications instead. It was also looking for powerful yet cost-effective data and scaling tools to reach more remote corners of India and found this in Google Cloud.

“There’s a new wave of 300 to 400 million first time mobile users projected for India,” says Manish Bisht, Head of Technology at inshorts. “We want to capture those users, and Google Cloud is helping us succeed.”

Freeing up resources for new solutions

By migrating to Google Cloud, inshorts has been able to free up its development team to experiment with new ideas, without worrying about backend management or costs. The company worked with cloud consultancy Searce, a Google Cloud Premier Partner, to define the best solutions for achieving its goals. Searce partners with clients to help them scale their business by leveraging Cloud, AI/ML, and data analytics while reducing the operational IT infrastructure spend. Because it specializes in AI/ML, Anthos, and Cloud Search, inshorts chose it as the ideal partner for futurifying its business on Google Cloud. According to Manish, the Searce team was focused not only on helping inshorts to migrate and adopt a on-demand computing mindset, but helping it to decrease monthly costs as well. “There’s always a positive push from Searce, to help us move forward, and to really put our company’s priorities first,” he says.

Through the application development solutions of Firebase, for example, inshorts is able to test new features in a rapidly shifting market. The product’s ease-of-use and built-in data analytics mean that inshorts can now allocate its developer resources more efficiently across multiple projects, instead of needing an entire team to focus on one project. Product cycles are now just one week long, instead of one month, and each backend and frontend developer in the team of four is able to focus on a separate project, meaning that more work gets done in a shorter time.

Dataflow, which enables real-time data processing, has been a major factor in allowing inshorts to instantly recommend content to users. Previously, the company had managed its own instances, first manually recording what users were doing and later pushing out recommendations. That all changed with Dataflow. “Dataflow freed a lot of our development and instance management time, because we can process data in real time now,” says Manish. “And that means giving users what they want instantly.”

Perhaps one of the biggest time savings came from using Dataproc, which released the inshorts team from the task of managing clusters. “We simply moved to Dataproc, provisioned the machines, and let Google Cloud take over all the management for us,” says Manish. “This one change translated into labor savings of up to six hours a day.”

Where costs are concerned, inshorts is happy to report that Google Cloud has led to not just time savings, but monetary savings as well. The company had begun its cloud journey with a leading provider, but soon found that data analytics services were driving up costs. Meanwhile, the service required high levels of technical expertise to manage the growing infrastructure, which meant it needed to hire a DevOps expert. After switching to Google Cloud products such as Google Kubernetes Engine (GKE), Cloud Deployment Manager, and Cloud Build, inshorts has now reduced most of its DevOps burden.

“At the time, we were spending around USD100,000 per month in data analysis and data-related fields alone. We had to pursue a cost optimization drive,” recalls Manish. “We had no idea how much we would save just by migrating to Google Cloud. We brought down our costs for the entire infrastructure to around USD20,000 per month.”

The company now uses BigQuery with Looker Studio to analyze and predict its tech expenditure. With Looker Studio, it can easily visualize infrastructure costs and break them down by team, services, and project stakeholders.

Processing millions of images quickly, delivering news instantly

inshorts cites the move to GKE as one of its most important moves. “At one point, we were processing a quarter of a million images per day. Because images are uploaded by our users, traffic is unpredictable; planning the exact amount of compute needed in a given moment is almost impossible. Load balancing itself was no longer enough,” shares Manish. “Google Kubernetes Engine makes life easier for our developers, reducing the need for them to be ever present, and giving them a tool that’s easy to work with.”

The inshorts team moved to GKE primarily to gain this ease of use, where its team can now push a few configurations, then spin up clusters, tell them how to handle the load and what kind of machines to provision, and manage resources effectively. The team has reduced its dependency on DevOps since there’s no need for developers to worry about what size of machines they need for their applications. “The size of machine needed depends on the specific job, and with Google Kubernetes Engine it’s very easy to accommodate a whole range of jobs. We simply optimize our resources, scaling up or down as needed,” says Manish.

As inshorts’ platform becomes more feature-rich and sophisticated, it is taking advantage of the global network of Google Cloud. With its data center in the United States, the platform had begun to experience latency of about 600ms, too great a lag in an age of instant news. Because Google Cloud has regional data centers around the world, inshorts was able to simply move its data center closer to home, bringing down average latency to 100 ms. “We achieved significant app performance improvements thanks to being able to migrate our data center,” says Manish. “The loading was faster; everything was faster.”

Mapping the future with localized news

Being able to develop features even faster is enabling inshorts to pursue its goal of expanding into every corner of India. To capture the wave of new mobile consumers, inshorts realizes that it needs to start by finding out exactly where they are. Using Google Maps Platform, the company has launched a location-based social video app called Public, which offers news that’s highly localized to specific Indian communities and relevant to what they want to read.

As a developing nation, India’s mapping landscape is constantly changing. There were 722 administrative regions when inshorts began its work, but by 2018, 10 new districts had been added to this number. Because Public serves rural and suburban audiences, it’s crucial that it can stay on top of these rapid and sometimes confusing changes. According to Manish, Google Maps Platform not only offers granular geo-location through the Geolocation API but adapts to mapping changes in near real time. It’s a capability that inshorts is harnessing to make the Public app into its next success. “The app is experiencing tremendous growth in the tier two and three cities,” shares Manish, “In the short span of six months, it has already become the category’s number-one ranked app on the Google Play store.”

Tell us your challenge. We’re here to help.