The shifting trends in the use of modern and innovative infrastructures have led to many companies shifting their computing platforms to the internet. This is because company-wide enterprise systems are not able to compete favorably in the global arena, making companies shy away from traditional computing systems, to more advanced platforms. Enterprise based platforms are limited in terms of functionality; hence the need to migrate to cloud-based platforms that have greater extended functionalities.
Cloud computing as a concept has a wider reach, in terms of service delivery models. This technology offers three models that include Service as a Platform (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) which are used differently, compared to the SAP traditional business model of delivering an enterprise-wide software model that is accessible from multiple points but limited in instances of wide geographical distances.
The platform gives customers various specifications that are not present in SAP, apart from which it is also based on a subscription model that gives customers more flexibility in terms of paying for what is consumed, compared to the SAP model, which is based on one-off fee. This is disadvantageous especially when customers have to pay for what is not used. SAP is more limited in user experience and mobility, giving the clients limited functionality in terms of mobility, especially when virtual teams need access to such a platform. Such business models require well-built infrastructures, and as such, in line with SAPs cloud strategy, SAP needs to own its datacenter.
This is because it will give SAP complete ownership that means more business and revenues. Building one’s infrastructure and operating the same gives a company much capability, in terms of offering products without limitations compared to collocation agreements that may change periodically. The company would leverage its services by building its own datacenter, as this would leverage costs since the company would not incur additional subscription costs that would be passed to the customers hence raising the prices being offered by SAP.
On the other hand, owning a data center would boost SAP’s business since it would support other critical operations running on the cloud, rather than hinder the company’s growth due to binding legal agreements. However, the decision to build would be guided by the operations costs that would be needed at one point to purchase the hardware and software that would drive the SAP’s data centers, while on the other hand, the company would compare its growth strategies with its competitors, who own, run and maintain their datacenters such as Amazon. Apart from this, SAP can increase its revenues by leasing space in its data center infrastructure to other companies in order to grow the cloud market share, in which it can also offer the three cloud computing service delivery models, a driving factor in cloud computing.
The intended HANNA SAP strategy in place would benefit many companies, such as Boston City and the National Basket Association. The city of Boston would benefit from this strategy by enhancing service delivery to the public in which a public portal running on SAP HANNAH platform would be used to provide the public with information. For instance, the platform would offer opportunities for data analysis for predictive strategies that would help the City’s administration to improve service delivery to the public.
On the other hand, the National Basketball Association would use the HANNAH SAP platform to enhance interaction with its fans by developing an online interactive platform where fans can analyze the current trends in games, bring online statistical capabilities and live user interactions. The organization would use the portal to further grow its fan base which on the other hand, would increase ticket sales hence increase the income stream as other companies would advertise on such portals with high traffic.
The company would capitalize on issues dealing with improved consumer engagement and increased user experience so as to be able to sell the idea to the companies. This is because these strategies would help the companies to gain advantages, in that the city of Boston would enhance service delivery while the National Basketball Association would grow its fan base.