SOD zur SIS Cloud Computing Strategie

Siemens IT Solutions and Services

Bright IT Services: Statement of Direction for the Siemens IT Solutions and Services Cloud Computing StrategyVersion 1, May 31, 2010

Contents

The purpose and contents of the document ……………….........…...…….....…......... 2

Management summary …………........……..................................................……….. 3

Cloud Computing terminology ……..................................................................... 6

Cloud Computing reference architecture ……..................................................... 7

Siemens IT Solutions and Services’ Bright IT Services portfolio ……..........……… 14

Security services ……......................................................................................…… 15

Infrastructure as a Service (IaaS) portfolio ............................................................ 21

Platform as a Service (PaaS) portfolio ……………………………..……...............…......... 24

Software as a Service (SaaS) portfolio …………..........................................……..….. 28

The concept of Community Clouds ...................................................................... 42

Bright IT Services Consulting portfolio ................................................................. 46

Bright IT Services business environment …............................................................ 49

Operational Framework for Cloud Services ................................................................ 49

Strategy and future outlook ……..................................................................…… 52

Appendix – Glossary ......................................................................................... 57

Author information and Links ........................................................................... 60

2

1. The purpose and contents of the document

The IT trend “Cloud Computing”, which is currently often discussed with our custom-

ers, is being marketed by Siemens IT Solutions and Services under the name “Bright

IT Services”. This document discusses the strategic Cloud Computing direction of

Siemens IT Solutions and Services, and sets out the main components of a hybrid

Cloud Computing solution.

It represents the framework document – or master document – for a series of

topic-specific white papers that will ultimately make up the scope of the “Bright

IT Services” portfolio.

The following subjects will be covered:

Infrastructure as a Service (IaaS) – virtualization, desktop and data-center services,•

Platform as a Service (PaaS) – development and runtime environment for hybrid •

Cloud Computing applications and middleware product portfolio of our partners.

Software as a Service (SaaS) – e.g. Content & Collaboration as a Service.•

Community Clouds, e.g. Media Cloud and Healthcare Cloud.•

Security services, such as Identity and Access Management, and Enterprise Rights •

Management.

Cloud Computing Consulting and Business Services.•

Operational Framework for Bright IT Services.•

The Statement of Direction (SOD) describes where Siemens IT Solutions and Services

is going with its “Bright IT Services” in the medium and long term, and it shows what

solution approaches, and what added value we are already able to offer to our

customers with regard to this innovative subject. Attention is drawn here to existing

strategy papers and publications by Siemens IT Solutions and Services, such as, for

example the Cloud Computing white paper entitled “Cloud Computing: Business

models, value-added dynamics, and customers benefits”, and to various press

releases. Please follow the link at the end of this document to our official Internet

Web Site.

Siemens IT Solutions and ServicesSiemens IT Solutions and Services

3

2. Management summary

Advantages of Cloud Computing from the customer’s perspective

Even if confidence in Cloud-based solutions with respect to the necessary security

has to be built up initially, many of our customers are giving a great deal of thought

to the subject of Cloud Computing, principally for economic reasons. The advantages

are obvious. In future, our customers will no longer need to have their own perma-

nent hardware and software infrastructure for their applications; and they will conse-

quently save procurement and administration costs, and the cost of updating and

maintaining software. They will be able to book the required IT resources ad hoc via

a Web interface, and they can pay for the services actually required, as incurred and

according to use (pay-per-use). Furthermore, when testing new, innovative applica-

tions, and during peak load periods (e.g. during fiscal year-end closing), they will be

able to access the necessary IT resources dynamically and with almost unlimited scal-

ability. In the current economic situation, the associated shift from capital expendi-

ture (CAPEX) to operational expenditure (OPEX) is very opportune. Hand in hand

with this goes the trend towards the standardization of IT services, which can result

in further cost advantages.

Adaptation of the Siemens IT Solutions and Services business model

As an IT service provider, Siemens IT Solutions and Services is required to adjust its busi-

ness model (e.g. for IT outsourcing) to the prevailing circumstances. In this respect,

Cloud Computing involves both opportunities and risks. Thus, for example, the financial

risk (the setting up of a virtualized, scalable, and multi tenant capable IT infrastructure)

and the technological risk (system failures and software errors) are borne by Siemens IT

Solutions and Services. As we act in many cases as the prime contractor, we are respon-

sible for the service level agreements that have been reached with our customers. This

applies in particular when we ourselves make use of the IT services and Cloud services

of partners. The careful selection of our partners – e.g. Microsoft, Oracle, and VMware –

is therefore a decisive factor in ensuring success. Partners as well as customers provide

confirmation to us of our recognized strength in the market, covering the entire

value-added chain – starting with Consult, including Design and Build, and ending with

Operate – with the ability to integrate the business processes of our customers, and to

provide general end-to-end solutions all of a piece. Because of this strength, we are


4

considered capable of setting up, monitoring, and operating hybrid Cloud Computing

solutions (the integration of IT services from various sources), in which tasks we act

not only as a competent consultant, but as an integrator, mediator, and aggregator as

well. For Siemens IT Solutions and Services, Cloud Computing is only promising if it

succeeds in reaching a critical mass as quickly as possible, in order to achieve econo-

mies of scale. For this purpose, we need a broad and balanced portfolio of “Bright IT

Services” that stands out clearly and over the long term from the portfolio of our

competitors. In addition, we must inform the market (analysts, vendors, and potential

new customers), as well as our established regular customers, about our Bright IT

Services portfolio, ensuring that we do this comprehensively and in a suitable way (via

MarCom). The aim is to establish ourselves as a “Trusted Business Advisor” in the Cloud

Computing market – an advisor who generates sustained added value for customers.

Siemens IT Solutions and Services’ unique selling points with Bright IT Services

In the “Bright IT Services” portfolio, Siemens IT Solutions and Services is not just

restricted to consulting and provision of IaaS-based, PaaS-based, and SaaS-based

solutions. We will set ourselves apart from our competitors – in particular by means

of the following unique selling points:

Security services• – e.g. Identity and Access Management and Enterprise Rights

Management. In this area, we benefit from the very high requirements and

capabilities of the Siemens group with regard to IT security and compliance;

and, in numerous projects, we have acquired the necessary security expertise

at all levels. With our DirX portfolio, there is a separate world-class product suite

available for Identity and Access Management.

System integration• – this means consulting and the implementation of hybrid

sourcing solutions (mixed forms of on-premise applications and partner applica-

tions from the Cloud) within the context of customer-specific system-integration

projects. Siemens IT Solutions and Services has extensive knowledge and wide-

ranging experience in the implementation of all types of system-integration pro-

jects; and, over the years, it has built up a toolbox of prefabricated components,

thus enabling it to carry out customer projects quickly, cost-effectively, and

flexibly, using as a basis different technologies such as, for example, SAP, Java,

.NET, Open Source, SOA / BPM, and Web 2.0.


5

Community Clouds• – By making use of the above-mentioned unique selling points,

and by supplementing these capabilities with our knowledge of various industries,

we are able to set up and operate so-called “Community Clouds” that are specific

to certain sectors (e.g. for healthcare, for the media, and for the public sector). Our

cooperation with the Siemens Sectors strengthens this approach, especially in the

energy, healthcare, and industry sectors.

Consulting• – Our vendor-independent consulting, and our considerable experi-

ence in consulting relating to – and in implementing – system-integration projects

and IT outsourcing projects, supplemented by our Cloud Computing Consulting

offering consisting of Cloud Awareness Workshop, Cloud Quick Check and Cloud

Assessment, Business Case Calculation, and Architecture Consulting, together with

ready-made templates for dealing with contractual, legal, and billing-related ques-

tions, in many cases speed up the efficient implementation of Cloud projects for

our customers.

The Siemens IT Solutions and Services strategic direction for Cloud Computing is

as follows: to market “Bright IT Services” actively, and to fully exploit and continue

developing the unique selling points described above so that, in addition to providing

our IT outsourcing offerings, we will also be able to offer our customers attractive

Cloud services with the best price / performance ratio on the market.

Figure 1:Overview of the main components of the “Bright IT Services” of Siemens IT Solutions and Services. We see ourselves as a trend-setter with a convinc-ing architecture and message.


6

3. Cloud Computing terminology

The following of IT or business trends is often linked with a mass of new concepts

and slogans, which, to begin with, everyone interprets differently and uses for his or

her own business strategy, until recognized organizations responsible for standardi-

zation – e.g. the “National Institute of Standards and Technologies (NIST)” – ensure a

uniform terminology. To make certain that we put out uniform statements – and that

we mean the same thing when doing so – in our dealings with the outside world

(marketing) and in discussions with analysts, partners, and customers, it is enor-

mously important that we settle on a common language and common terminology.

As far as possible, Siemens IT Solutions and Services uses the Cloud Computing

terminology of the “National Institute of Standards and Technologies (NIST)”. The

main Cloud Computing terms are listed and explained in the appendix. Further

information can be found under the following link:

http://csrc.nist.gov/groups/SNS/cloud-computing/cloud-def-v15.doc


7

4. The Cloud Computing reference architecture

The generally valid basic version of the Siemens IT Solutions and Services Cloud

Computing reference architecture is illustrated and described below. Versions

derived from this for the detailed representation of, for instance, Community Cloud

or security subjects are advisable, and they will have project-specific features and/or

building blocks.

The Cloud Computing reference architecture illustrated here has the following

characteristics:

It follows the basic principles of the TOGAF model (The Open Group Architecture •

Framework), and maps the “Information System Architecture” component.

It represents the characteristic of a generally valid Cloud Computing reference •

architecture specific to Siemens IT Solutions and Services (such as can be found in

a similar form in the case, for example, of the National Institute of Standards and

Technology), and it describes the planned target situation.

It is set up as a layer model, which means that an upper layer is dependent on the •

one below, or is based on its functionality.

It is based in general on the characteristics of a service-oriented architecture, •

e.g. loose coupling, and it accesses via standard service interfaces the individual

service blocks, which are themselves self-contained.

Figure 2:The basic version of the Cloud Computing reference architec-ture of Siemens IT Solutions and Services.


8

Public Cloud and Private Cloud

In order to indicate that Siemens IT Solutions and Services supports hybrid Cloud

Computing variants (e.g. on-premise and off-premise applications and services linked

to each other), a “Private Cloud”, shown in blue, and a “Public Cloud”, shown in white,

have been placed under the reference architecture. For illustrative purposes, the two

“clouds” are shown next to each other. In fact, however, they come one behind the

other; i.e. both “clouds” can include all the components shown – one being developed

by the Public Cloud provider, and one being developed by Siemens IT Solutions and

Services, as required by our Bright IT Services portfolio and the customer scenario

concerned.

Siemens IT Solutions and Services has no direct influence on the form of the Public

Cloud. Although we know the geographical location of the server farms / containers

belonging to the provider / partner concerned, we have no direct influence on the

operation of the data centers or the hardware that is used. There are, however, various

certifications for Public Cloud providers, such as Safe Harbor, Cyber Trust, and ISO / IEC

27001, which we carefully check within the context of our partner strategy. For the

implementation of hybrid Cloud solutions, we make use of the service interfaces that

are provided by the Public Cloud provider in the layer concerned.

Functional description of the individual layers and components:

Web browser, virtual desktop, smart client •

In general, a distinction can be made in this context between three different end-

user interaction interfaces for stationary and mobile devices: firstly, a conventional

standard Web browser, such as Internet Explorer, Mozilla Firefox, or Google

Chrome; secondly, a virtualized desktop that runs on a server, and that presents

the user interface (browser content) remotely (remote presentation); and thirdly, a

fully developed smart client that uses local user interface plug-ins, such as, for ex-

ample, Microsoft SilverLight. The smart client communicates with the Cloud appli-

cations in the backend over a network (LAN, Internet, or mobile network), which is

not shown in the above layer model. The smart client must support particular char-

acteristics and functional properties, such as, for example, automated configuring

(for instance, collecting software updates from the server), automated deploy-

ment, intelligent user interaction mechanisms (such as Flash applications, complex


9

tables, high-quality graphics / animations (including in 3D), and asynchronous

plausibility checks e.g. during form inputs), and, above all, an offline capability as

well. This is achieved by having the data managed in a sandbox provided by the

operating system. A sandbox is a security mechanism belonging to the operating

system. In the sandbox, the user has full scope for taking action by means of the

Web browser; but he or she may not, for instance, access other resources managed

by the operating system (e.g. a DVD drive). Web 2.0, Asynchronous JavaScript

over XML (AJAX), HTML5, mashups, Simple Object Access Protocol (SOAP), Really

Simple Syndication (RSS feeds), Representational State Trans-fer (REST) Protocol,

and JSON (JavaScript Object Notation) are technologies that help implementing

these characteristics and functional properties. A fully developed smart client is

not always necessary for most hybrid Cloud solutions; a commercial Web browser

is often sufficient. A portal or a market-place application specific to Siemens IT

Solutions and Services or to a customer can, of course, be launched via the Web

browser, so that, for example, Cloud resources (e.g. pure storage, SaaS application,

or even a complex hybrid cloud application) can be ordered, set up, and launched

direct from there. Further, an overview of called-up services can be procured, and

these can be paid for via this self-service portal.

Identity and Access Management (IAM) and Auditing •

As a cross-sectional function, this service layer takes care of authorization (user /

roles / rights management, access rights, single sign-on, and so on), authentication

(Public Key Infrastructure, Smart Card, certificates, encryption, etc.), Federated

Identity Management (OpenID, access to resources in trusted domains), and log-

ging for the complete tracking of all changes to data and transactions that have

been carried out (in accordance with compliance rules). Enterprise Rights Manage-

ment (ERM) also comes under this service block. ERM is a technology in which a

policy is provided along with a file, service, or e-mail, setting out who may do what

with the file, service, or e-mail concerned. Further details can be found in the sec-

tion 5.1 “Siemens IT Solutions and Services’ security services”.

Management and provisioning services•

These are general services that are necessary for operation, and are supported by

the underlying platform. They are used for monitoring the applications and the

Cloud IT infrastructure, for supporting the deployment and dynamic instantiation

of services, and for checking compliance with service level agreements. Further-


10

more, they support the characteristics that are familiar from autonomic comput-

ing, such as “self-healing”, “self-configuring”, “self-protection”, and “self-optimiza-

tion”. The following are some of the most important management services that are

available via a specified interface:

Service ordering - functions (e.g. Shopping Cart) to order Bright IT Services,

Policy services - forthestorageandactiveuseofstatutory,company-specific,or

customer-specificrules.Inthecaseofcomplex,hybridCloudapplications,itis

possible to envisage the following scenario. During runtime, the Cloud application

asks the Policy Service Manager which resources it may use from the on-premise

environment and / or from the Public Cloud, and how it has to deal with sensitive

customerdata(storagelocation,persistencelevel,securityclassification,etc).If

necessary, Enterprise Rights Management services can be used for implementation,

A - metering service that is needed for measuring the use of resources (low-level

resources such as computing time, storage volumes, and network bandwidth).

This service obtains its data from the virtualized IaaS layer. Among other things, it

supplies basic data for the Billing Service. It is also needed for producing statistics

and preliminary calculations, and for determining the basic load that can be used

toprovidecustomerswithasuitablebillingmodel(usage-relatedbillingorflatrate),

A - logging service for monitoring operation (error and event logging in order to be

able to initiate fallback, recovery, and compensation transactions, etc.).

A - monitoring service that checks the availability and behavior of applications and

network resources during operations going on at the time.

Cloud applications and services•

Siemens IT Solutions and Services provides complete, immediately useable

Software as a Service (SaaS) solutions, such as “Project Server on Demand”,

and “Content & Collaboration (C&C)” solutions based on OpenText Livelink and

Microsoft SharePoint, “Software Asset Management as a Service”, and much more

besides. The respective detailed descriptions can be found in section 5.4 “Software

as a Service portfolio (SaaS) of Siemens IT Solutions and Services”.


11

Cloud middleware and core services•

These are typical “Platform as a Service” aspects, such as the development of a

hybrid Cloud solution in an integrated development environment, and the execu-

tion of this solution in a secure runtime environment. Here, Siemens IT Solutions

and Services will use and support the complete Java and Microsoft .NET Stack

(application development tools, application server, integration server, etc.). In

addition, a series of core services will be made available for functions that are

needed again and again, and which are linked to them when required. In this

respect, core services such as “Billing” and “SLA Reporting” have a high customer /

tenant reference. The most important services are:

Software Lifecycle Management - (version control of applications and services,

patch management, service update by a staging concept, etc.).

Billing Service - – This service is customer-process-related or application-related.

A hybrid Cloud application calls this service via a programming interface. Depend-

ing on the business SLAs, the Billing Service will have to determine during run-

time which resources (e.g. the storage of a document in SharePoint) have actually

been used, both in the Public Cloud and in the Private Cloud. This requires com-

prehensive uniform cross-Public/Private-Cloud system management. If necessary,

different billing variants (of the Public Cloud providers) will have to be mapped /

convertedtoabillingmodelspecifictoSiemensITSolutionsandServices.

The Billing Service must be able to produce usage-dependent billing of all the

resources of a client that have been used, and it must then forward this billing to

the customer via a payment service. The Payment Service has interfaces to a SAP

R/3 billing module, or to an online payment service, in which the customer pays

by credit card over the user portal for the services it has used.

SLA Reporting - : This service is used to check how far the agreed service-level

parameters have been met for each client. Raw data that is provided by other

management services, such as Metering, Monitoring, or Logging, is compiled into

clearly set-out management reports. Analyses and statistics can be used as a

marketingtool,inordertodemonstratehowefficientlythesystemisdesigned

in terms of performance and costs.

Archive, Backup - : These are services that are used for data backup and long-term

archiving. In some cases the backup functions can be supported by a Hierarchical

Storage Manager concept.


12

Business Process Management - (BPM) including Business Activity Monitoring

(BAM)andWorkflowsupport,includingaBPELengine(BusinessProcess

Execution Language) and a service repository / registry.

Hybrid Resource Manager - : This is one of the most important components. If nec-

essary, it will have to be developed in cooperation with a partner, such as Micro-

soft. The Hybrid Resource Manager acts not only as runtime supervisor, but also

as a resource dispatcher as well. It monitors the processes of the hybrid Cloud so-

lution (intra-Cloud and inter-Cloud), ensures cross-Cloud dynamic SLA-controlled

allocation of resources (elasticity), carries out scaling at runtime (“scale-out”),

and, in conjunction with the policy services, makes certain that the service level

agreements (business SLAs) are complied with. In close coordination with the

runtime environment (application server), it also takes care of persistence, so that

the current status of a distributed Cloud application will always be securely saved.

Working on the assumption that many Cloud applications are composite appli-

cations or Enterprise mashups, no resources must be blocked, and the communi-

cation behavior of the individual components and Web services will, in general,

have to be implemented asynchronously by means of queuing technologies.

Another component of the hybrid resource manager is a Storage Management

Service, which decides at runtime where which items of data are to be stored. For

example,inaHealthcare-Cloudapplication,thestrictlyconfidentialpatientdata

(master data, diagnostic data, physician’s report, etc.) can be saved in a relational

on-premise database, and X-rays can be kept as so-called “blobs” in a low-cost

Cloud store. With the storage variants, a distinction is made between “Simple

CloudStorage(correspondingtoafilesystem)”,“SimpleDatabaseService(corre-

sponding to an entity (key / value) memory)”, and “Relational Database Service”

(i.e. hosted databases).

Service Bus - (in the sense of an Internet Service Bus, not to be confused with an

Enterprise Service Bus): The Service Bus works internally with Cloud Gateway

Services, which, among other things, ensure that only outbound connections can

be set up during interprocess communication. This is necessary so that it will be

possible to access services in the Public Cloud or on-premise applications of part-

nersandcustomers,securelyandinapermissibleway,acrossfirewallboundaries.

Further characteristics and functions of an (Internet) service bus include broad-

casting, service naming / registration, event control, content-based routing,


13

publish / subscribe, transparent service mediation, and automated protocol

optimization. In future, the Service Bus will support technologies such as VPN

tunnels,IPsec,andIPv6,sothattheycanbeusedtodefineso-called“overlays”.

AnoverlayspecifiesallthecomponentsofahybridCloudsolution,combines

them into a logical unit, and makes possible the secure communications of all

componentsthataredefinedintheoverlay,suchassmartclients,virtualized

resources, and Cloud services and applications. Siemens IT Solutions and Services

is evaluating the relevant technology roadmaps of our partners (e.g. Microsoft),

and is checking that they will be implemented in good time.

By means of EAI adapters – such as those provided by the Microsoft BizTalk Server

or within Oracle Fusion Middleware – the Service Bus is also able to access

application functions of SAP R/3.

Cloud IT Infrastructure•

This service layer is used to provide a virtualized, multi tenant capable IT infra-

structure (virtual servers, computing resources, grids), virtual storage (RAM disks,

cache, hard disks), and virtual network (VPN, DMZ, routers, gateways, etc.) as

services (IaaS). In this area, Siemens IT Solutions and Services uses proven, highly

available virtualized resources (servers, storage), with hardware redundancy via

failover clusters and RAID disks.

Hardware•

This includes non-Cloud-specific hardware, such as servers, disks, network, routers,

and so on, together with “Cloud-in-a-Box” components, such as those provided by

Cisco or IBM. The use of Intel- or AMD-based hardware is recommended, since Intel

and AMD support virtualization in their processor architectures.


14

5. Siemens IT Solutions and Services’ Bright IT Services portfolio

This section gives a detailed description of the following for every Cloud

Computing stream:

our specific deliverables (our available offerings).•

our unique selling points (USPs), and the advantages for customers.•

our medium-term strategic direction (one-year horizon setting out what we are •

planning, in the sense of a roadmap).

By making our existing portfolio – above all, our so-called “Push” portfolio – “Cloud-

capable”, we are more and more becoming a wide-ranging provider of Cloud solutions.

The following diagram provides a rough overview of our Cloud Computing Pipeline

(as of April 2010), showing the Cloud Computing components that are either already

available, or that are undergoing evaluation or development.

Figure 3:Overview of the Bright IT Services of Siemens IT Solutions and Services that are either already available, or are undergoing evalua-tion or development.


15

5.1 Siemens IT Solutions and Services’ Security services

When Cloud services are being provided, the IT resources of a company are exposed

to both well-known and new threats. Siemens IT Solutions and Services has analyzed

these threats systematically, and has segmented them within the framework of a

Cloud Computing security reference architecture. As part of this, suitable counter-

measures (controls) have been defined for most of the Cloud-specific threats, using

as a basis the existing security frameworks (NIST, ISO 2700x, etc.). As the situation is

at present, some of the new challenges in the area of security cannot be satisfactorily

countered. These so-called “control challenges” in multi tenant IT solutions include

security monitoring and the ability to ensure that data is reliably deleted. Altogether,

there are currently about ten known Cloud-specific weak points that come under the

heading of “control challenges”. This need not necessarily lead to the conclusion that

Cloud solutions are in principle unsuitable from a security point of view. After all, even

traditional IT environments do not have a complete high level of security through out.

The decisive issue here is to decide what security architecture is economi cally appro-

priate with reference to each specific case in view of the risks involved.

In addition to the technical aspects, legal and organizational aspects also have to be

taken into account when Cloud services are being used. There are legal complexities

Figure 4:Security consulting offerings of Siemens IT Solutions and Ser-vices make it possible to control complex, secure Cloud solutions.


16

involved when services are being provided with the aid of distributed and virtualized

IT infrastructures. Because of this, new contractual models, as well as compliance

and data-protection requirements, pose new challenges for both user and provider

alike. As part of the Cloud Security Consulting offering (see section 5.6), customers

are given comprehensive advice about all Cloud-related security domains – starting

with the requirements of the business processes concerned and helping the custom-

ers methodically to choose suitable provisioning models.

The paradigm shift in the provision of IT services that is associated with Cloud Com-

puting, however, also requires general rethinking regarding the conception of security

mechanisms. Instead of concentrating on shielding one’s own IT as comprehensively

as possible against the outside world, the new protection concepts focus on the

information itself, with the aim of protecting it against unauthorized use outside the

company’s IT system as well. A paradigm shift is carried out: instead of the use of the

conventional perimeter approach, the information itself is now protected:

Perimeter approach Information-centric protection

Threat Denial of services, viruses,

Attacks from outside

Theft of intellectual property,

Attacks from inside

Approach Firewall, protection against

penetration attempts,

Antivirus programs

Enterprise Rights Management,

Role-based access protection

Solution Protection of the infrastructure Protection of information

These include, for instance, role-based Identity and Access Management for users

and roles, and protective mechanisms for data objects and data encryption. One

point to be borne in mind is that passing on roles and access rights is particularly im-

portant in hybrid Cloud environments. Role-based Identity and Access Management

solutions must make reliable provision for this.


17

In order to support a particularly secure use of Cloud services, Siemens IT Solutions

and Services provides not only the Cloud Security Consulting offer, but also other

services that link these key technologies with the convenient “on-demand” business

models of Cloud Computing.

Enterprise Rights Management as a Service (ERMaaS)

TraditionalITsecurityconceptsthatarebasedascomponents,forexample,onfire-

walls and encrypted transmission paths, have their limits. In these purely perimeter-

orientedsecuritysolutions,thefocusisfirstandforemostonauthorizedaccessto

corporate infrastructures such as networks, databases, and applications, and on the

secure transport of corporate data. However, once the user has possession of the

information, the company, as the owner of the data concerned, no longer has any

control over how it is used or passed on.

The only remedy is to have a security concept that is directed at the data that is to

be protected, and that protects this data from unauthorized access over its entire life

cycle. Enterprise Rights Management (ERM) offers precisely this document-related

protection, and it provides, as it were, a security envelope for data that can only be

opened by users who have a suitable digital key. In addition to being restricted to the

authorized subject, access to digital contents can also be restricted with regard to

other characteristics.

ResourceREQUEST

Federation (trust)with other Identity

Infrastructures

Web/ApplicationService

Security Plugin/Proxy

User

REQUEST ACCESS

Authentication + Authorization

Certificate

Identity & Security Infrastructure Services

Identity & Policy Stores

...Identity Data Identity DataIdentity DataPolicy Data

Identity Management

Meta-Directory Synchronization

Access Control Services

AuthorizationAuthenticationSingle SignOn Federation

ProvisioningSelf-Service

Public Key Services

Local RegistryAuthority

TrustCenter

Figure 5:Infrastructure ser-vices for identity and security.


18

Although the added value of ERM is recognized in practice, introducing this inno vative

approach is a great challenge for many companies, and it has not yet been imple-

mented on a widespread basis. Up to now, there has been a lack of implementation

methods, operating models, and standard (technical) market solutions that would

make it possible for ERM to be introduced easily and at a favorable price. Using its

sound ERM experiences and its skills as an IT integrator, Siemens IT Solutions and

Services is currently developing an ERM solution (based on the Microsoft’s Rights

Management Server) as a Cloud service that will provide companies with an invest-

ment option and low-risk way of implementing ERM for selected scenarios – starting

with SharePoint and Microsoft Office documents. This offer will probably be available

from May 2010. In a subsequent version, a solution based on Microsoft Global File

Protection and Information Vault (IVault) technology will also be made available in

fall 2010. The use of these new technologies will then make it possible to protect any

object formats.

Figure 6:The Enterprise Rights Management (ERM) concept.


19

Unique selling points for Enterprise Rights Management:

Siemens IT Solutions and Services has many years of experience in consulting

relating to security solutions, and in implementing and operating such solutions for

both internal and external customers. We combine profound knowledge of the sector

with ERM expertise and technological knowledge of the ERM solutions currently

available. Siemens IT Solutions and Services is one of the first providers of an “ERM

as a Service” solution on the market.

Identity and Access Management on Demand

An intelligent Identity and Access Management (IAM) system effectively and effi-

ciently guarantees access to, and use of, business-critical data. It also makes it

possible to control and check such data in conformity with compliance regulations.

IAM is therefore one of the main pillars of Cloud services in general, and of ERM

in particular. The constantly increasing number and complexity of identities and

authorizations that have to be managed are facing many companies with new and

sometimes insoluble challenges:

The increase in security and productivity through the prompt granting or •

prompt withdrawal of rights.

The transparent way in which rights are granted and monitored on the basis of roles.•

The rapid handling of increasing user numbers.•

The simplification of access to a variety of applications through single sign-on.•

The incorporation and handling of external partners by means of •

federation concepts.

The optimization of compliance with statutory regulations (regulatory compliance).•

With its DirX product family, Siemens IT Solutions and Services, as a recognized

specialist in IAM services and solutions, provides everything that is needed for the

explicit standardization, centralization, optimization, and automation of existing IAM

customer solutions. The entire range of knowledge and technical products of Siemens

IT Solutions and Services will shortly be available – probably from June 2010 –

including a flexible “on demand” service.


20

Unique selling points for Identity and Access Management (IAM):

Siemens IT Solutions and Services has many years of experience in successful

consulting relating to IAM projects, and in carrying out such projects, and it has

already gained more than 300 customers. Analysts assess us as being one of the

leading vendors of IAM solutions, and they recommend the use of our DirX product

family. Because of the close dovetailing with our ERM solution, a comprehensive

security solution can be provided from the Cloud.

Figure 7:Overview of the DirX portfolio of Siemens IT Solutions and Services.


21

5.2. Siemens IT Solutions and Services’ Infrastructure as a Service (IaaS) portfolio

The purpose of the IT infrastructure is to meet the basic requirements of applications

with regard to computing capacity and memory, and to utilize them through desk-

tops and by connecting to internal and external networks. Conventional concepts

involve high levels of investment, limits on capacity imposed by hardware, and

considerable expenditure when configurations that have already been set up have

to be changed. Virtualization and, to a much greater extent, the Cloud models are

aimed at reducing these cost drivers. Instead of limiting them, the basic components

of the infrastructure serve the applications accessing them in a flexible, usage-

oriented, and cost-optimized way. In this respect, Infrastructure as a Service solu-

tions focus on Siemens IT Solutions and Services Private Cloud scenarios that involve

specific requirements in the Enterprise environment – e.g. security in general and

the security of data.

Server on Demand

Our customers are provided with virtual servers for the Windows or Linux operating

systems in a highly automated environment. The focus here is on a Private Cloud

environment, and the main target is therefore Enterprise customers who have the

relevant requirements with regard to:

security•

management of the environment•

availability•

recoverability.•

Specified standard configurations can be selected via an order and configuration

portal. This is based on our “T-shirt size models”, which cover a wide range of different

requirements with regard to computing capacity. These are specified combinations

of processor performance and memory. Owing to the fact that all the components

involved are consistently automated, fast provision times can be achieved – something

that in future will enable customers to enjoy a great deal of flexibility in the dynamics

of the demands that they place on a modern IT infrastructure.


22

The service will be available from the second quarter of 2010, and it will be developed

step by step. It will also include further flexible billing models, up to and including a

purely usage dependent model. The basic IaaS architecture is likewise the basis for

Cloud offerings superimposed on it – e.g. SAP and Desktop. The solution is based

largely on the VMware virtualization platform. In future, it will be possible to use the

architecture to map Private Cloud scenarios throughout the world via our “Global

Production Center”.

In the next development stages of the service, variable access to the entire memory

and computing capacity of the global data centers will open up further ways of

making full use of capacity – e.g. for the purpose of covering peak-load periods.

Storage on Demand

Our customers are provided with memory capacity based on usage. This capacity

is available in various performance / availability classes, and is appropriate to the

business-process requirements of the customer concerned. Because of the highly

automated environment, fast provision times are achieved. Storage on Demand

enables customers to have the greatest possible flexibility, both in their regular

planned business, and when they need to adjust capacity to changing requirements.

Figure 8:The IaaS architecture in the context of a general Cloud Com-puting architecture design.


23

The focus here is on a Private Cloud environment, and the main target is therefore

Enterprise customers who have the relevant requirements with regard to:

security•

management of the environment•

availability•

recoverability.•

Specified performance and availability options can be selected via an order and

configuration portal. The various storage capacities are provided in virtual and dedi-

cated environments. The service will be available from the second quarter of 2010,

and it will gradually be developed into tailor-made, application-specific standard

storage solutions.

Desktop as a Service

In general, the term “Desktop as a Service” means the provision of a desktop “on

demand” – i.e. in a highly flexibly way and in accordance with requirements. Siemens

IT Solutions and Services is already able to offer solutions in this area. These provide,

for example, server-based Windows 7 on platforms belonging to the partners VMware,

Microsoft, and Citrix. Because they are provided centrally from a data center, these

desktops can be used in a highly flexibly way. They are also quickly available, and

they can be billed precisely to the minute within a “pay-per-use” model.

In the next few years, therefore, the “Desktop as a Service” service will replace the

classic monthly flat-rate models used for providing a desktop. With this service,

companies are able to book desktops flexibly to meet their requirements and in

accordance with their workload, and they can pay for them precisely to the minute.

This is an unbeatable advantage in today’s highly flexible working world.

This model is realized by the completely flexible use of virtualized desktops from

a data center belonging to Siemens IT Solutions and Services. So-called “virtual

machines”, which users access over a network, are operated on servers with the

platforms of our partners. The users have the same user experience and usability as

they have previously had on their local PC. If a user logs off, the virtual machine will

be “frozen”, and physical resources such as CPU and memory will be released for


24

other applications or for another desktop. Customers only pay for the number of

hours they have worked, and they therefore become highly flexible with regard to

the proportion of the IT costs that they pay for desktops.

5.3. Siemens IT Solutions and Services’ Platform as a Service (PaaS) portfolio

For a wide variety of reasons (e.g. data security, the protection of intellectual property,

etc.), end-to-end solutions and support for cross-company processes from the Cloud

are predominantly implemented through the use of Community Clouds, which repre-

sents a hybrid Cloud model. Business-critical processes and applications continue to

be operated “on premise” in your own data center, and they are linked via suitable

Cloud platforms with services from the Cloud to form Enterprise mashups. The

integration is carried out over standard Web services interfaces.

As described in the management summary above, Siemens IT Solutions and Services

is ideally set up for designing, implementing, and operating hybrid Cloud solutions.

Siemens IT Solutions and Services has many years of experience in carrying out

integration projects in heterogeneous system environments on .Net, Java, and Open

Source partner platforms.

To implement hybrid Cloud solutions, and in Community Clouds, Siemens IT

Solutions and Services uses standard Cloud PaaS platforms belonging to its partners,

such as:

Microsoft Windows Azure and Windows AppFabric,•

Oracle Fusion Middleware Cloud Platform,•

VMware vSphere Platform and vCloud Initiative.•

As part of the Bright IT Services initiative, solutions and services are developed, made

available, and executed on these PaaS platforms.


25

Microsoft Windows Azure

Apart from the disadvantage that Windows Azure is only available in data centers

hosted by Microsoft itself, the Microsoft platform has one particular advantage –

namely, that the same functionality that is provided in Windows Azure in the Microsoft

Public Cloud will be made available via Windows AppFabric “on premise” in the long

run. This will make it possible to develop and integrate services very efficiently, either

locally or in the Cloud. A distribution service based on Windows Azure is currently

being developed by Siemens IT Solutions and Services. This will make it possible to

distribute data packets via the Cloud to different terminals from a supply system that

generates the orders and provides the data packets that are to be distributed. The

terminals can be in different locations, and they will need an agent that connects

them with the distribution service. This will report the result of the data transfer to the

supply system via a feedback mechanism. One application scenario for customers is

the distribution of software packages and virus patterns. This service will be available

from the beginning of August 2010, and it will be possible to use it in different sce-

narios. Preparations are under way to expand the distribution service by adding further

functionalities. The following diagram shows the main Windows Azure components,

together with a possible integration and interoperability scenario involving the

Microsoft Public Cloud and a Private Cloud, such as can be provided and operated by

Siemens IT Solutions and Services.

Figure 9:Integration of Micro-soft Azure Services with “on-premise” IT.


26

Oracle Cloud platform

The Oracle Cloud platform based on Oracle Fusion Middleware (OFM) is the platform

with the most comprehensive functionality. It includes a BPEL engine (Business

Process Execution Language) that can be used to model business processes, and SOA

components that make it possible to connect to services in the Cloud over standard

interfaces. In addition, the platform provides a separate, fully integrated identifi-

cation and access management environment. The Oracle Cloud platform is based on

an Oracle-specific virtualization environment (Oracle VM), but it can also run in a

VMware environment.

Using Oracle Fusion Middleware as a basis, an offer is being drawn up for the provi-

sion of a test and development Cloud. Depending on what the customer requires,

test and development tools can be flexibly configured and made available. The offer

is intended to facilitate standardization when test and development tools are being

used in projects.

The offer is expected to be available from the beginning of June 2010. An evaluation

of whether further services should be provided on the Oracle Cloud platform is

currently being carried out.

Figure 10:Oracle PaaS platform based on Oracle Fusion Middleware (OFM). The main components of OFM are shown.


27

The VMware Cloud platform

VMware is one of the leading providers of virtualization technology for storage and

servers. Through the acquisition of SpringSource, and as a result of integration into

the existing product line, it has extended its range to a PaaS stack. Further function-

alities for the provision and billing of services will be available from the beginning of

Sept. 2010.

A City Cockpit service that offers the existing City Cockpit solution from the Cloud

is provided on the basis of the VMware Cloud platform. The City Cockpit solution

provides data and analyses for a wide variety of different uses (e.g. CO2 emissions at

an inner-city intersection) that have been specified by customers in a Web portal in

the form of a cockpit. The offer will be available from the beginning of Sept. 2010,

and it will be made available within the framework of a development partnership

with VMware.

Using the VMware Cloud platform as a basis, an offer is also being drawn up for the

provision of a test and development environment from the Cloud. Depending on

what the customer requires, test and development tools can be flexibly configured

and made available. The offer is intended to facilitate standardization when test and

development tools are being used in projects. The offer is expected to be available

from the beginning of Sept. 2010. An evaluation of whether further services should

be provided on the VMware Cloud platform is currently being carried out.

Figure 11:The VMware PaaS platform based on vSphere.


28

5.4. Siemens IT Solutions and Services’ Software as a Service (SaaS) portfolio

According to an assessment by Gartner, the world’s SaaS market from 2008 to 2013,

given a growth rate of 32% (CAGR), will be worth about 20.2 billion US dollars. The

research company “Saugatuck Technology” believes that the development of SaaS

solutions is already in the area of “mainstream adoption”. It is assumed that SaaS

will become an integral part of the IT infrastructure, of the application development

environment, and of the application environment of users in 2014. In its Bright IT

Services portfolio, Siemens IT Solutions and Services is already offering a large

number of “Software as a Service” solutions that are at different stages of develop-

ment. These are described below. The specific deliverables are also shown, and our

unique selling points are highlighted.

5.4.1 Dynamic PLM Service (DPS)

Dynamic PLM Service (DPS) is a bundled Product Lifecycle Management solution

of Siemens IT Solutions and Services including operation, services, as well as a

pre-configured, ready to use PLM application. Modules and variants of the service

are selectable as options, and billing is based on use (pay-per-use model).

The current focus is the Manufacturing Industry. It is planned to tailor DPS to differ-

ent industry branches in the future. The service is preconfigured, but it can, within

certain limits, be adapted to suit customer’s needs. DPS enables our customers to

manage the life cycle of their products effectively, and, because of the usage based

price model, it will provide a great deal of flexibility.

In addition, the main advantages for customers is that they no longer need to invest

a lot of money in IT and implementation; they achieve rapid availability with fewer

risks associated with introduction; they enjoy a high quality of service; and, not least,

they are able to utilize the enormous experience of Siemens.


29

Dynamic PLM Service is based on Teamcenter. With Teamcenter, Siemens PLM

Software is providing a suite of PLM modules that leads the market. The Siemens

Industry sector serves as the basis for a proven best-practice implementation of

Teamcenter for Discrete Manufacturing. In addition to these elements, Siemens IT

Solutions and Services adds its various strengths; including excellent operations and

service; and the necessary know-how to make this implementation Cloud capable.

This perfect combination is a unique selling point of Siemens IT Solutions and

Ser vices in the context of the Dynamic PLM Service.

Characteristics of the Dynamic PLM Service:

Flexible drawing up of contracts: Usage-oriented, monthly payment; short notice •

periods / contractual tie-in; guaranteed, comprehensive service in accordance with

service level agreements.

Easy commissioning: Industry-specific or business-specific configurations; •

standard capabilities for integration into CAD and ERP applications; combining

individual solution components into a complete package by Siemens IT Solutions

and Services.

PLM-specific topics: Use of a flexible file-storage model (in the data center •

belonging to Siemens IT Solutions and Services, operated in the customer’s

network, or provided by the customer itself).

The following diagram shows the envisaged functional modules of the Dynamic

PLM Service:

Figure 12:Overview of the envisaged functional modules of the Dynamic PLM Service.


30

5.4.2 Software Asset Management as a Service (SAMaaS)

The focus here is on license management of the next generation in the Cloud.

Companies need software for their business. The relevant license costs can add up

to a considerable amount. Siemens IT Solutions and Services now provides a simple,

cost-effective way of managing these software assets via the Cloud. Thanks to

“SAM as a service (SAMaaS)”, license compliance and cost reductions are only a click

of the mouse away.

Keeping an eye on software licenses is a laborious, but necessary, business –

particularly in economically difficult times. Companies simply cannot afford to keep

on paying license fees for software that is never used (keyword “under-utilization”),

or to pay penalties for failing to comply with license contracts.

Professional license management – also known as Software Asset Management

(SAM) – is now indispensable to every medium-sized or larger company.

Corporate SAM gives IT management a comprehensive overview of all digital assets

in the organization, and it provides an accurate check of the results of the IT operation.

Because SAM creates the required transparency, and therefore makes effective cost

management possible, it is becoming a prerequisite of efficient software procurement.

With the new “SAM as a service (SAMaaS)” service, Siemens IT Solutions and Services

is providing license managers in a company with a flexible and outstanding analysis

tool. At the same time, it can help avoid the security and process-related risks that

result from the failure to comply with state regulations and laws – e.g. the Sarbanes

Oxley Act (SOX) and the 8th EU Company Law Directive (“EuroSOX”).

SAMaaS is based on the successful software platform Enterprise Compliance Manager

(ECM) of ManageSoft – one of the leading companies in the field of Digital Asset

Management. In contrast to many other tools that come from the technical world

of system management, ManageSoft ECM is clearly orientated to the application and

the needs of license managers – i.e. it is commercially oriented.

The SAM application covers all aspects of software-license management – including

the logistical, financial, and legal aspects – over the entire life cycle of the software,

and it follows completely the relevant process concepts of ITIL SAM and ISO/IEC

19770-1.


31

SAMaaS is provided as a favorably priced Cloud service that the customer’s license

managers can use easily via their Web browser, and without having to concern

themselves with IT matters.

The SAM application is operated and maintained for the customer (client) in a secure

environment within a Siemens data center. License managers therefore always have

the latest library available for automatic software recognition. They also have the latest

list of unique software-package order numbers from the vendors, together with

the license terms and conditions. They are thus able to guarantee that the installed

software will be assigned automatically in the best possible way to the license that has

been acquired. Companies that are only interested in a SAM solution do not need to

conclude a comprehensive outsourcing contract for an IT infrastructure with Siemens

IT Solutions and Services.

The Workplace Services portfolio of Siemens IT Solutions and Services includes a

classic managed service for SAM, in which Siemens can also take over license manage-

ment tasks for the customer. The normal monthly billing of service charges is based on

the number of work-place systems in the organization that are actually managed

within the period concerned.

Siemens IT Solutions and Services also provides its customers with a wide range of

consulting services and professional services in the area of SAM. Its many years of

experience in managing huge and complex stocks of licenses makes Siemens IT

Solutions and Services an ideal partner for companies that have a unique selling point

in relation to their competitors. This enables our customers to control the costs and

risks associated with software licensing and Digital Asset Management:

The SAM application is uniquely aligned with the application and the needs •

of license managers.

The SaaS solution for SAM can also be marketed outside comprehensive •

desktop outsourcing contracts.

We have wide-ranging experience with advanced license management •

solutions in-house.

The entire service chain is covered, including consulting and professional •

services for SAM.


32

In the medium term, the SAMaaS solution will be developed in the direction of

extended configuration capabilities of the “Enterprise Compliance Manager (ECM)”

software platform of ManageSoft. It will also be developed towards extended

language support, which is currently only based on German and English.

5.4.3 Customer Relationship Management on Demand (CRMoD)

The CRM on Demand solution consists of initial professional services components

(Consulting, Customizing, and Integration) and operator components in the SaaS mode

after setup. Siemens IT Solutions and Services covers the complete range, from sales

and marketing solutions up to and including service and maintenance solutions.

From the point of view of platforms, we currently support Oracle/Siebel CRM and

Microsoft Dynamics CRM. The different concepts of these two software partners have

direct effects on the service offering of Siemens IT Solutions and Services:

Oracle/Siebel CRM

Oracle follows a centralist on-demand concept. At present, all operator services are the

responsibility of Oracle itself. In customer projects, Siemens IT Solutions and Services

currently concentrates exclusively on the initial professional services element, and

thus adjusts the solution to the customer processes. In addition, Oracle provides the

“@customer” operation option (Oracle terminology), which can be used in specific

cases. This option can also be made use of by Siemens IT Solutions and Services; but

it requires individual cost calculation and agreement.

Microsoft Dynamics CRM

In this case, Siemens IT Solutions and Services provides the entire service, both the

initial professional services component, and operation of the solution in the SaaS

mode. Siemens IT Solutions and Services is currently in the process of embedding

the Microsoft Dynamics CRM solution into a Cloud environment / operation. This will,

above all, require integration into our TANGO Operational Framework (for ordering

CRM services, SLA monitoring, usage-dependent billing, etc.), and the setting up of

a Web-capable customer interface (portal).


33

CRM on Demand – added value for the customer, and unique selling points:

We provide both CRM on Demand and on-premise CRM – exclusively based on •

the products of leading software providers with whom we have extensive global /

strategic partnerships. In the medium term, hybrid sourcing will also be possible

in the CRM field.

Our data centers meet the highest security requirements, and they ensure a high •

level of service.

CRM projects are always IT integration projects as well. As Siemens IT Solutions •

and Services also has many years of experience with, for instance, ERP, BI, ECM,

and SCM, we are an ideal partner for carrying out such tasks to the benefit of our

customers.

Siemens IT Solutions and Services has more than ten years of experience in con-•

sulting relating to business-critical and complex CRM processes, and in introducing

these processes as well.

With branches in more than 40 countries, Siemens IT Solutions and Services is •

able to carry out international projects anywhere in the world.

Strategic direction / outlook:

An expansion of the Oracle / Siebel CRM on Demand service offering (takeover of •

operation and billing) is the subject of further discussions with Oracle. A suitable

decision will be made as soon as technical and sales conditions have been met.

The details and effects of extending the Microsoft CRM Online Initiative (extended •

Business Productivity Online Suite portfolio) – including to cover standard CRM

solutions – have not yet been determined. Siemens IT Solutions and Services is

therefore concentrating on creating sector-specific CRM solutions in customer

projects, and on reusing them in the SaaS mode.

SAP CRM on Demand is not the focus of our CRM on Demand business at present.•


34

5.4.4 Content & Collaboration as a Service (C&CaaS) based on

Microsoft SharePoint

Using the Microsoft “out-of-the-box” product as a basis, Siemens IT Solutions and

Services provides many expansions to the SharePoint standard. These are supplied

from the Cloud, and are billed on the basis of only two parameters in the pay-as-you-

go mode. The parameters concerned are the number of users, and the disk space used.

Siemens IT Solutions and Services provides additional so-called “use cases” – which

are templates for predefined cases of use – extended functionalities, and WebParts

(e.g. Breadcrumb Navigation, and Global Site Directory (Yellow Pages)). Depending on

the requirement and direction, extended search functionalities, integration into a SAP

portal, or incorporation into a Microsoft Active Directory infrastructure can also be

commissioned by the customer. In addition, customer-specific applications can also

be integrated.

Based on its many years of experience in operating the SharePoint infrastructure at

Siemens AG, Siemens IT Solutions and Services also looks after the SharePoint instal-

lation of external customers. Its current customer base comprises more than 220,000

users and 21 terabytes of data, and it is growing rapidly. Because of SharePoint as a

bulk commodity – as it is also provided by Microsoft itself within the context of its

online services – Siemens IT Solutions and Services will, in the near future, be concen-

trating on supplying higher-value value-added services. This is particularly the case in

view of the fact that the license fees that have to be paid to Microsoft already extend

to the complete online Microsoft package. The transparent integration of these billing

services into customer solutions, and the provision of value-added services on this

platform, will be a challenge for the future. On the other hand, there is the potential

here to develop further components that set us apart from the competition.

5.4.5 Content & Collaboration as a Service (C&CaaS) based on OpenText Livelink

SaaS services based on OpenText Livelink are also provided by Siemens IT Solutions

and Services as a second offering in the area of Content & Collaboration services.

As in the case of the offering based on SharePoint, billing is also usage-dependent

(pay-per-use model), being based on the number of users and on the disk space

actually utilized.


35

The standard package already provides a wide range of functionalities for document,

content, collaboration, and knowledge management. Siemens IT Solutions and Ser-

vices meets additional individual customer requirements by incorporating add-on

modules from OpenText or other third-party providers. These service options are

implemented on request, and they are only billed after they have been provided.

Siemens IT Solutions and Services has been operating the Livelink installation in its

parent company, Siemens, for some years; but it also caters for the external market

as well. With CSM, for instance, one of the customers of Siemens IT Solutions and

Services is a Dutch company in the foodstuffs sector that is active all over the world.

The user base looked after by Siemens IT Solutions and Services comprises more than

50,000 users throughout the world. In the short to medium term, Siemens IT Solutions

and Services will be extending what it has to offer by adding an alternative to its

present range of services. This will involve linking the SharePoint front end to a down-

stream Livelink repository. A further addition to the range is planned; this is, namely,

to complete our portfolio by integrating a transparent archiving solution that can also

be used for e-mail archiving. This will gradually make it possible to develop a compre-

hensive SaaS-based ECM suite, which, in the medium term, will also include records

management and document imaging solutions.

5.4.6 Enterprise Project Management as a Service (EPMaaS)

With EPMaaS, which is based on the Microsoft Office Project Server, Siemens IT Solu-

tions and Services provides a standard, cross-company project-planning and collabo-

ration platform, with integrated resource, risk, time, and cost management, that is

available throughout the world. EPMaaS is based on Microsoft SharePoint technology.

In the standard version, billing is based on the number of projects, the resources that

are entered and actively logged in, and the amount of memory used. In addition,

further add-ons e.g. Corporate Directory Synchronization, and Import Task Lists can

also be integrated. The “Enterprise Integrated Reporting Cockpit” also has the advan-

tage that customer-specific standard management reports can be produced, as it were,

at the press of a button. The project managers or the customers’ project management

office can add their own comments to these reports before they are finalized.


36

The open design structure and Web interface of the Microsoft Office Project Server,

for example, also makes incorporation into an existing SAP landscape possible. This has

been done, for instance, in Siemens and at BWI Informationstechnik, where it has been

used successfully for a number of years.

In future, the new version of the Microsoft Project Server will also completely cover

the upstream processes in the direction of demand and portfolio management.

The integration with other line-of-business solutions for the customer (e.g. SAP time

recording and cost recording) will ensure that errors and duplicated entries are

avoided. During introduction of this kind of solution, Siemens IT Solutions and Services

provides additional consulting solutions, so that EPMaaS can be adapted to customer-

specific requirements, and then integrated into the customer’s IT landscape.

5.4.7 Archiving as a Service (ARCaaS)

Archiving as a Service (ARCaaS) meets the requirements that are imposed by com-

pliance and other statutory provisions regarding the storage of business-relevant

documents and data. In some cases, the period required can be up to thirty years.

Steps must be taken to prevent the archived material’s being subsequently changed,

and there must be a guarantee that the data in question can be accessed within an

appropriate time.

Providing this service from the Cloud – e.g. as a Software as a Service solution –

is a new approach. It primarily has two advantages for the customer: firstly, there is

no longer the need to spend money on setting up an appropriate infrastructure for

archiving purposes; secondly, it is possible to base billing on actual use. The aim is for

the customer to achieve lower operating costs by procuring a preconfigured bundled

solution.

Archiving as a Service – unique selling points:

Plug & Play: Archiving functionality in close conjunction with core applications, •

based on standard programming interfaces (embedding into the existing

IT landscape).

Easy use of archive services at competitive prices.•

On-premise archive services are combined with ARCaaS in a hybrid approach. •


37

Significant cost reduction on the customer side. •

Comprehensive consulting and business process know-how, and proven •

experience in integration projects.

5.4.8 Analytics as a Service (AlaaS)

In the case of Business Intelligence (BI), it is planned to provide the first service based

on BI functionality from about the middle of 2010. The background to this is as follows.

The Third European Money-Laundering Act is in force in all the countries of Europe.

Business partners are required to check whether there is any suspicion of money

laundering in cash transactions and in certain monetary transactions. The planned

BI service will analyze all the relevant information (including information that is freely

available on the Internet), and it will send the customer a rating when requested to

do so (the customer’s name and type of business will be handed over). On the basis

of this, it will be possible to make a decision about whether the transaction should be

completed. The decisive factors are the completeness of the sources that have been

checked, and the quality of the document analysis.

Billing can take the form of various pay-as-you-go variants. These include the sporadic

user who pays via PayPal, volume-dependent call models, and the flat rate. In order

Figure 13:Business Intelligence solution architecture from INTELLI+ for information analysis and business-partner check.


38

to be able to provide this service, Siemens IT Solutions and Services is working with

its partner INTELLI+, which has extensive knowledge in the field of money launder-

ing and in tracking down attempted fraud. Most of the INTELLI+ experts previously

worked in managerial positions at Europol in The Hague, where they were tasked

with tracking crimes involving money throughout the whole of Europe. And they still

have an excellent international network. There are about twenty to thirty analysts

working with the application’s research tool, and it is estimated that they analyze

100,000 to 200,000 text-based sources each day. This work is only possible with

highly automated text-analysis and pattern-recognition tools, which are provided by

Siemens. These innovative tools were developed by Siemens Corporate Research in

Princeton / USA. At the moment, the service has unique selling points in terms of

information content and with respect to the innovative analysis functionalities that

are used, and it enables us to make a convincing entry into the market for service-

oriented analysis tools. None of our competitors is currently able to provide this type

of comprehensive SaaS-based service. A large number of further services are being

planned or prepared for the near future. These will be based on the BI-specific

application architecture that has been developed, and on the analysis tools that are

in use, which are themselves being developed. These services will make it possible

to carry out a statistical analysis of picture, video, and sound documents as well,

and this will considerably extend how the analysis service can be employed.

In general, the aim is to develop sector-specific SaaS-based analysis offers that focus

on the Siemens sectors Industry, Energy and Environment, and Healthcare.

5.4.9 Messaging and other services including the Microsoft Business

Productivity Online Suite (BPOS)

Siemens IT Solutions and Services plans to provide four different SaaS variants, namely,

Microsoft Exchange, Microsoft BPOS, Google Premium Apps, and an Open Source

variant based on VMware’s Zimbra. Microsoft Exchange is delivered in on premise,

dedicated and shared Private Cloud environments to be enhanced with BPOS-S as a

Public Cloud solution to optimize the customer solution over the full range of delivery

models.


39

As a part of the Microsoft Online Service Suite, Microsoft BPOS is attracting great inter-

est among our customers (including Siemens), as well as at Siemens IT Solutions and

Services. Today, Microsoft has migrated about one million Seats, and it already has

two million under contract. Microsoft has therefore risen to become the third-largest

service provider after HP / EDS and IBM. Siemens IT Solutions and Services is currently

negotiating with Microsoft about partner status. The reason for this is that we first of

all want to include Microsoft BPOS in our portfolio as an additional messaging variant

alongside Microsoft Exchange and Google Premium Apps, and then to extend our

range to other services (SharePoint, Office Communication Services, and LiveMeeting).

With solutions based on Microsoft we provide a Premium Messaging service among

the full IT service provisioning and high flexibility on customer requirements. As an

additional recommended solution, Siemens IT Services and Solutions provide two All-

in-One low-cost solutions, which also can cover the full range of delivery models, but

restricted in the range of functionality and feature set.

5.4.10 Google Apps

The partner strategy of Siemens IT Solutions and Services is based on close coopera-

tion with technological market leaders. Google is the leader on the Internet market,

and it occupies a leading position in the Cloud Computing field. For about eighteen

months now, Google has also been operating an extremely aggressive pricing policy in

the Enterprise market. Because of this, Siemens IT Solutions and Services is striving for

a closer partnership with Google. As the first step, this is to include a resale status for

the Google Apps Premium Edition. Siemens IT Solutions and Services wants to provide

its own messaging services and solutions on the basis of this technology. In this way,

the customer will be able to acquire from a single source an individually designed and

integrated overall operating solution for its IT. Other possible fields of cooperation

include Smart Grid and Real-Time Collaboration in the Cloud environment. In this con-

nection as well, Siemens IT Solutions and Services is striving to integrate the Google

technology with existing solutions from other providers, e.g. SAP. Siemens IT Solutions

and Services would like to use Google’s innovative strength, and it is keen on integrat-

ing the new technologies as soon as possible into its own services and solutions.


40

5.4.11 SAPaaS

As far as its efforts with SAPaaS are concerned, the software company SAP is still in

its infancy. The SAP Business ByDesign initiative of SAP that was launched about two

years ago has come to a halt. This is an ERPaaS solution for small and medium-sized

companies. At SAP there are two other SaaS initiatives in addition to the SAP Business

ByDesign solution. They are Business Objects and proprietary SCM or CRMaaS solu-

tions. From the market’s perspective, the SAP delay is unsatisfactory, and the desire

to have SAPaaS solutions is increasing. The idea of replacing the high license costs

and long-term maintenance contracts with favorably priced SaaS solutions is playing

a particular role here.

In principle, Siemens IT Solutions and Services depends on SAP AG’s being able to

develop SaaS-capable solutions. With the products it has up to now, however, SAP

is still a long way from doing this.

Siemens IT Solutions and Services is faced with a demand for SAPaaS solutions from

both existing and potential customers, and it must be able to make an adequate

response. An initial, utility computing based offering from Siemens IT Solutions and

Services are the “Dynamic Services for SAP” which are currently developed and which

will be available in fall 2010. It is expected that an appropriate subscription-based

model for small and medium-sized companies will be provided by SAP with “Business

All in One” later in 2010.

5.4.12 Strategic direction with reference to Software as a Service (SaaS)

It is foreseen that the SaaS provisioning model will develop further in the platform

direction. Following the design of hosting or service-delivery platforms, development

will include software market places. Afterwards, models such as the SaaS aggregator

model will come into use (see section 6.0 Strategy and future outlook). The marketing

and sales activities associated with SaaS – such as preparing and publishing white

papers, organizing and running customer advisory boards and customer information

workshops, training sales staff, etc. – will be constantly strengthened.

By the way, this also applies to all Bright IT Services offers.


41

5.4.11 SAPaaS

As far as its efforts with SAPaaS are concerned, the software company SAP is still in

its infancy. The SAP Business ByDesign initiative of SAP that was launched about two

years ago has come to a halt. This is an ERPaaS solution for small and medium-sized

companies. At SAP there are two other SaaS initiatives in addition to the SAP Business

ByDesign solution. They are Business Objects and proprietary SCM or CRMaaS solu-

tions. From the market’s perspective, the SAP delay is unsatisfactory, and the desire

to have SAPaaS solutions is increasing. The idea of replacing the high license costs

and long-term maintenance contracts with favorably priced SaaS solutions is playing

a particular role here.

In principle, Siemens IT Solutions and Services depends on SAP AG’s being able to

develop SaaS-capable solutions. With the products it has up to now, however, SAP

is still a long way from doing this.

Siemens IT Solutions and Services is faced with a demand for SAPaaS solutions from

both existing and potential customers, and it must be able to make an adequate

response. An initial, utility computing based offering from Siemens IT Solutions and

Services are the “Dynamic Services for SAP” which are currently developed and which

will be available in fall 2010. It is expected that an appropriate subscription-based

model for small and medium-sized companies will be provided by SAP with “Business

All in One” later in 2010.

5.4.12 Strategic direction with reference to Software as a Service (SaaS)

It is foreseen that the SaaS provisioning model will develop further in the platform

direction. Following the design of hosting or service-delivery platforms, development

will include software market places. Afterwards, models such as the SaaS aggregator

model will come into use (see section 6.0 Strategy and future outlook). The marketing

and sales activities associated with SaaS – such as preparing and publishing white

papers, organizing and running customer advisory boards and customer information

workshops, training sales staff, etc. – will be constantly strengthened.

By the way, this also applies to all Bright IT Services offers.

Figure 14:The future of SaaS from Siemens IT Solu-tions and Services’ standpoint.


42

5.5. The Siemens IT Solutions and Services’ concept of the Community Clouds

Cloud services that have been available up to now have mainly focused on horizontal

solutions, and they have paid hardly any attention to industry-specific requirements

with regard to functionality and security. This is a major disadvantage for customers,

since the advantages of Cloud-based IT services cannot be used in these cases.

For instance, in various branches of industry, such as healthcare, and in the public

sector, strict regulation limits prevent the use of Cloud Computing, even though the

basic concept would be of great interest to many companies.

To overcome these restrictions, Siemens IT Solutions and Services is developing

so-called “Community Clouds”. This also provides positioning for our Cloud range,

thereby helping us to align our strategy with vertical solutions that are being devel-

oped and marketed in cooperation with the various Siemens divisions. Community

Clouds are essentially bundles of Cloud-based services that are tailored to the

common needs and requirements of a business community. Business communities

belong typically to a specific branch of industry, e.g. healthcare. Community Clouds

make it possible to implement collaborative business processes “in the Cloud”. At

the same time, they provide a high level of security through the use of hybrid provi-

sioning models. Non-critical information and processes can be dealt with or executed

in the Public Cloud, whereas business-critical services are kept within the company

or in a private Cloud environment of a trusted and established outsourcing partner,

such as Siemens IT Solutions and Services.

A pilot project in the media industry illustrates the characteristics and benefits of

a Community Cloud. At present, media firms are looking for low costs, together

with flexible and simple solutions, in order to improve the efficiency of their media

production. Most media productions involve an extensive ecosystem of partners.

This in turn involves logistical challenges. Above all, the secure transmission of

audio-visual contents across geographical and / or organizational boundaries for the

purpose of cooperation and decision-making is proving difficult. Current solutions

are often based on physical copies of documents and video clips held on media

such as DVD or tape, together with the use of couriers for transport.


43

This has great disadvantages in terms of costs, time, transparency, and security.

The Media Community Cloud represents a secure and flexible platform for the

real-time exchange of data-based digital media contents, and it makes configurable

workflows possible for the purpose of supporting B2B cooperation (in particular

the review and approval process). The solution has been implemented on the basis

of Microsoft Windows Azure as the basic Cloud platform (Public Cloud); but individual

components of the solution are operated either within the media companies them-

selves, or in Siemens IT Solutions and Services data centers (Private Cloud).

The following diagram illustrates the concept of a Community Cloud in the media

environment. For media companies, it provides a process-oriented platform that can

be accessed over the Internet by everyone who is involved in the process.

Thebenefitsforusersaremanyandvaried.Forexample,theWeb-basedarchitecture

makes it possible to produce a solution for an easy, cross-organizational exchange

ofinformation(firewall-compatible,browser-based,andwithouttheneedforthe

customer to install any software). Cross-organizational processes can be set up quickly

and easily, without the requirement for any investment in one’s own hardware or

software. In addition, the solution includes innovative and distributed security

functions, together with federated Identity and Access Management with role-based

access rights.

Figure 15:Media Community Cloud: a uniform business process platform for the media environment.


44

The principle illustrated by the example of Media Cloud is also applicable to many

other processes and industries, such as healthcare and the public sector. Community

Clouds are primarily suitable for customers who want to implement or optimize

cross-organizational processes, or processes in which the participants involved are at

different geographical locations. Their use is also of interest in those situations where

requirementsforresourcessuchascomputingcapacityormemoryfluctuateseverely,

and / or where in-house implementations of individual solutions are not feasible or are

too expensive (because, for instance, of long lead times or the preliminary investment

that is necessary). In addition, the concept makes it possible to bundle and integrate

various solutions in order to reduce the complexity of sourcing for customers.

Third-partyproviderscanalsobeintegratedsothatanindustry-specificnetworkof

user organizations and providers can be set up. The aim is to build up an industry-

specificecosysteminwhichSiemensITSolutionsandServicesprovideskeyfunctions

and sets de facto standards.

The Siemens IT Solutions and Services range of services includes system integration

for the purpose of developing the solutions for the customer on the basis of a hybrid

deployment model. Siemens IT Solutions and Services will provide comprehensive

Cloud solutions, and it will therefore reduce the complexity of dealing with a variety

of providers of Cloud-based services that would otherwise be the responsibility of the

customer. Operation of the solution is distributed across different operators from

the point of view of cost, availability, and security. Many elements of the Community

Cloud infrastructure will remain with a partner (such as Microsoft) in the Cloud, while

other parts will be operated in Siemens IT Solutions and Services data centers, or in

data centers belonging to the customer itself.

In the next few months, Community Clouds that are of importance to Siemens IT

Solutions and Services – and, in particular, to the Healthcare, Industry, and Energy

sectors, on which Siemens focuses – will be designed and developed. Siemens

products and services will be incorporated into this concept. In this way, Siemens IT

Solutions and Services will be utilizing the strength and extensive sector experience

of Siemens, and it will be paving the way for the next step in the development of

Cloud Computing.


45

The main unique selling points of this approach can be summarized as follows:

Community Clouds combine the advantages of Cloud Computing with extensive 1.

sector experience and Siemens process know-how.

As a vendor-neutral system integrator and an established outsourcing provider, 2.

Siemens IT Solutions and Services is not only able to develop Community Clouds

and incorporate them into existing customer infrastructures and processes,

but it can also provide the necessary operating services as well.

Siemens IT Solutions and Services has already gained experience in reference 3.

projects with leading partners such as Microsoft. These include, for example,

platform technologies such as Microsoft Windows Azure, which, in future, will

be one of the possible basic components of Community Clouds.


46

5.6. Siemens IT Solutions and Services’ Bright IT Services Consulting Portfolio

Cloud Computing Consulting (CCCon) is a consulting service offering within the

Go-To-Market theme “IT Consulting & Systems Integration” and is designed to comple-

ment the current Siemens IT Solutions and Services’ Cloud Computing initiative. The

first two modules of CCCon – the “Cloud Awareness Workshop” and the “Cloud Quick

Check” are primarily intended to act as a door-opener for follow-up cloud business

with Siemens IT Solutions and Services and its partner solutions.

OnemajorgoaloftheoverallCCConportfoliodevelopmentistoacquiresufficient

know-ledge, know how, market insight and delivery capabilities that will enable

Siemens IT Solutions and Services to guide its target customers from the traditional

on-premise/ dedicated IT organization to the innovative cloud sourcing concepts

of the Siemens IT Solutions and Services Cloud Computing Framework.

The CCCon value proposition is to provide expert advice on how to realize the

benefitsofcloudcomputingbusinessmodels,whilepreserving,totheextent

possible, previous investments, and easing security, continuity and compliance

concernsbytailoringavailablecloudserviceofferingstospecificneedsofthe

customer.

Figure 16:Cloud Computing Consulting (CCCon)building blocks.


47

Therefore Cloud Computing Consulting acts as pre-sales support and as an additional

consultative sales channel for the Siemens IT Solutions and Services Bright IT services

initiative.

The objectives of Cloud Computing Consulting are:

Help customers to understand the benefits and pitfalls of the Cloud Computing •

business model and provide a structured methodology for identifying potential

business areas.

Provide economic models for assessing the total cost of ownership of moving •

to clouds (e.g. for building private clouds, and/or moving data and applications

off-site in a public or hybrid cloud model), thereby preparing a strong business

case for Management buy-in.

Re-architecting and re-designing technologies and processes, to infuse security •

and shield against threats and vulnerabilities in the cloud.

Market Siemens IT Solutions and Services and partner cloud offerings (consultative •

selling) and pave the way for further consulting and high volume enterprise cloud

implementation engagements (e.g. implementation of third-party SaaS systems,

cloud migration, development of new cloud applications etc.).

Use “Cloud Computing” to win new customers and to present Siemens IT Solutions •

and Services to existing customers as a stable and reliable technology partner with

an innovative edge.

Consulting Approach

Although Cloud Computing in general has reached the peak of its hype cycle, the

technology / business model will continue to become the preferred sourcing concept

for all commodity IT resources/services.


48

The key concept to steer the individual customer adoption process is to distinguish

all IT resources into two categories - one that follows a standardization strategy and

the other that supports the differentiation of the customer towards its competitors.

Oncethisisclearlydefined,alloftheresourcesthatareconsideredcommodities

or non-differentiators would generally be in scope for the new sourcing concepts of

the cloud computing business model.

Withinthisbroaderscope,individualapplicationsorresourcesarebrieflyscanned

against a set of parameters (e.g. security and legal constraints, mission criticality,

previous investments, TCO and transformation cost/complexity estimations) and

compared to a market database of mature cloud solutions – preferably of the

Siemens IT Solutions and Services and partner business solutions. Based on the

potentialbenefitsrealizablefromeachofthedifferentfocusareas,aroadmapfor

the individual adoption process can be formulated.

The attractive areas are then evaluated in detail during the “Cloud Assessment” stage

todevelopafull-fledgedbusinesscase,technicalfeasibilityanalysisandproduct/

service recommendations.

Figure 17:Cloud Computing Consulting (CCCon): Initial situation and consulting approach.


49

5.7. Siemens IT Solutions and Services’ Bright IT Services Business Environment

To deliver Cloud solutions successfully, several organizational and technical

conditions need to be in place, such as:

Contractual framework (contracts, terms and conditions)•

Purchasing rules and processes for services from Cloud partners •

(Google, Apple, …)

Export, tax and legal issues for service delivery and customers in •

different countries

Technical and organizational solutions for delivering, servicing and •

operating of Cloud services (Operational Framework, Service Desk and

Application Management).

The Siemens IT Solutions and Services consulting departments, which are responsible

for “Cloud Computing Consulting and Services” coordinate the development of solu-

tions with regard to these topics. Results are (organizational) clarifications, examples

and best-practices to enhance the efficiency (saving efforts and cost), avoid obstacles

and enhance the quality of Cloud service developments.

5.8. Siemens IT Solutions and Services’ Operational Framework for Cloud Services

An important prerequisite for providing our customers with mission-critical Cloud

applications is the seamless integration of the associated order, tracking and billing

processes in the Operational Framework of Siemens IT Solutions and Services,

which we call TANGO. The Operational Framework is of utmost importance for all

the services we provide, and will be appropriately extended in order to be able to

develop and manage future Bright IT services on one comprehensive platform.

This new platform “SieQuence” will be made available on an international basis.


50

The Operational Framework has been designed in a modular way. It provides a portal-

based customer interface and submitted orders are processed in a standardized and

automated way. Solutions for customers who insist on using their own frameworks

can be integrated in the Operational Framework of Siemens IT Solutions and Services

as well, using a standardized interface. The automated provisioning of agreed ser-

vices will be carried out by means of defined delivery interfaces. Processes for billing,

reporting, and contract management are also provided. The Operational Framework

is able to run the involved processes in an fully automated way, without any media

inconsistencies, and eliminates manual processes like order entries based on e-mails,

faxes or phone calls. One of the main tasks of the Operational Framework is the

integration of existing tools and processes in order to reach a very high level of

automation for all the operational processes involved.

The most important functional elements of the Operational Framework TANGO are

shown in the following diagram:

To pave the way for providing Bright IT services in an automated, stable and con-

trolled environment, Siemens IT Solutions and Services will extend the current

version of the Operational Framework TANGO. Existing tools such as Operational

Service Desk (OSD) and M.O.S.A.I.C. will be used as far as possible, will be extended

if necessary, or will be replaced by other suitable tools.

Figure 18:Modular architecture of the Operational Framework TANGO. SieQuence is the branding for the new platform which will be made available using TANGO.


51

The use of an Operational Framework like TANGO will result in the following

benefits for our customers:

Reduction in costs – Significant cost savings in comparison with traditional •

transaction costs, improved productivity due to fewer downtimes, immediate

availability of services via the order portal, and automated transparent cost control

through integrated approval processes.

Transparency – Reporting on the services provided, based on facts and figures: •

quality (service level agreements and key performance indicators), quantities

(the number of resources actually used), and costs (control).

Flexibility – Worldwide support is available round the clock, in several languages.•

Change in behavior – Greater cost-awareness on the part of end users because •

the figures for the use of resources can be broken down to individual user level.

Transparency and ease of handling lead to cost-conscious users.


52

6. Strategy and future outlook

The business roadmap of Siemens IT Solutions and Services below shows how the

Bright IT Services strategy is to be implemented in the short term:

The Bright IT Services business roadmap at a glance – a new way for

outsourcing through Cloud Computing

Siemens IT Solutions and Services consistently develops a general Cloud Computing

service portfolio, which it markets under the name “Bright IT Services”. The develop-

ment is carried out in three sequential phases. These start with the marketing of

existing Cloud solutions, such as Software Asset Management as a Service, CRM on

Demand, Content & Collaboration as a Service based on Microsoft SharePoint and

OpenText Livelink, Enterprise Project Management as a Service, Archiving as a Service,

and many more. These solutions are already established on the market, and they

have all the parameters and characteristics of fully developed Cloud solutions.

In the second phase, which has already been launched, all Push portfolio elements

of Siemens IT Solutions and Services are analyzed and assessed with regard to their

Figure 19:Siemens IT Solutions and Services’ Bright IT Services business roadmap at a glance.


53

Cloud capability. These elements include, in particular, “Analytics as a Service” and

“Storage on demand”. Projects have already been set up to ensure that a pioneering

role can be played on the market in these areas. The Cloud offers that have been

mentioned are still in the initial stage in terms of market penetration. Providers

such as Oracle, IBM, and Microsoft can therefore also be expected to redouble their

efforts in these areas.

The Cloud-related subjects in our Push portfolio fulfill three further preconditions:

firstly, they are of business-critical interest for the customers of Siemens AG; secondly,

they comply with the industry DNA of Siemens AG; and thirdly, they are in keeping

with the system-neutral IT integrator role of Siemens IT Solutions and Services in its

capacity as an IT infrastructure provider.

The IT integrator role of Siemens IT Solutions and Services is not just restricted to

the hybrid sourcing approach in the infrastructure area. Hybrid sourcing means here

that Siemens IT Solutions and Services hosts business-critical applications in its own

highly virtualized and secure data centers, and that, in the case of non-business-

critical applications, it covers the Public Cloud advantages by, if necessary, acquiring

Public Cloud hosting capacity. For this purpose, Siemens IT Solutions and Services

establishes strategic partnerships with efficient and proven partners, such as

Microsoft or VMware.

Highly virtualized data centers that can dynamically scale changes in load, and that

generate Green IT effects, are based on the technical principle of virtualization: here,

users are given an abstracted view, in the IaaS layer, of the hardware – i.e. of servers,

mass storage devices, networks, etc.

In Cloud Computing, however, virtualization is not just possible and necessary

in the area of the infrastructure; it affects all three layers of Cloud Computing –

i.e. IaaS, PaaS, and SaaS.

As far as types of virtualization are concerned, a distinction is made between

oper ating system virtualization (the “container” approach), platform virtualization

(complete or para-virtualization), memory virtualization, network virtualization, and

application virtualization. Virtualization is therefore a core component of IaaS, PaaS,

and SaaS services, and it is essential for ensuring efficient Cloud Computing offers.


54

In server virtualization, servers are consolidated in order to ensure a more efficient

use of resources. The advantages from the point of view of the user are a reduction

in operating costs (hardware, power consumption, and premises), fewer downtimes

and greater availability, fewer interruptions because of maintenance, and rational-

ized provision and scaling of resources. In the case of application virtualization in the

form of centralized applications that are uncoupled from the operating system, the

advantages are as follows: fewer conflicts between applications, fewer regression

tests for applications, and centralized management of updates and patches. Desktop

virtualization is carried out via devices belonging to an isolated desktop operating-

system environment on servers or standard desktops. This therefore results in fewer

conflicts between applications and the operating system, faster operating-system

migration, and support for older applications under current operating systems.

The aggregator model:

Siemens IT Solutions and Services regards itself as a strategic aggregator of Cloud

Computing services. This makes it possible to implement end-to-end designs, so that

it will be possible to map general business processes with Cloud Computing services.

This aggregator approach is based on the above-mentioned hybrid sourcing approach

in all Cloud Computing layers (IaaS, PaaS, and SaaS). In this way, Siemens IT Solutions

and Services is able to position itself in the market as a full-service Cloud Computing

providerthatcoverstheentireCloudvalue-addedchainbyefficientlybundlingitsown

and other services.

When different Cloud Computing application services are acquired from different

suppliers, integrating them into the existing IT landscape on the customer side is not

the only challenge. In addition, contracts have to be drawn up with the individual

suppliers, and these are often based on very complex contractual structures. Within

the framework of the new IT service delivery model, customers frequently do not just

acquire SaaS components, but PaaS and IaaS components as well.


55

In server virtualization, servers are consolidated in order to ensure a more efficient

use of resources. The advantages from the point of view of the user are a reduction

in operating costs (hardware, power consumption, and premises), fewer downtimes

and greater availability, fewer interruptions because of maintenance, and rational-

ized provision and scaling of resources. In the case of application virtualization in the

form of centralized applications that are uncoupled from the operating system, the

advantages are as follows: fewer conflicts between applications, fewer regression

tests for applications, and centralized management of updates and patches. Desktop

virtualization is carried out via devices belonging to an isolated desktop operating-

system environment on servers or standard desktops. This therefore results in fewer

conflicts between applications and the operating system, faster operating-system

migration, and support for older applications under current operating systems.

The aggregator model:

Siemens IT Solutions and Services regards itself as a strategic aggregator of Cloud

Computing services. This makes it possible to implement end-to-end designs, so that

it will be possible to map general business processes with Cloud Computing services.

This aggregator approach is based on the above-mentioned hybrid sourcing approach

in all Cloud Computing layers (IaaS, PaaS, and SaaS). In this way, Siemens IT Solutions

and Services is able to position itself in the market as a full-service Cloud Computing

providerthatcoverstheentireCloudvalue-addedchainbyefficientlybundlingitsown

and other services.

When different Cloud Computing application services are acquired from different

suppliers, integrating them into the existing IT landscape on the customer side is not

the only challenge. In addition, contracts have to be drawn up with the individual

suppliers, and these are often based on very complex contractual structures. Within

the framework of the new IT service delivery model, customers frequently do not just

acquire SaaS components, but PaaS and IaaS components as well.

The functions of the aggregation of services, and bundled provision for the customer

over a single access point and only one contractual interface, are essential, particu-

larly for the Community Clouds approach. The customer will then hold only one

contract (Business SLA) with Siemens IT Solutions and Services as the aggregator,

and it will obtain the “bundled” services in the Siemens IT Solutions and Services

leasing model. In addition to the aggregation of standard SaaS applications to form

“bundles or ensembles”, it is also conceivable that the standard Cloud services

already established in the market will be enhanced by the addition of components

developed by the aggregator itself, and which will themselves also be operated in

Cloud mode. The range of services provided by these Cloud Aggregators will be such

as to cover complete business processes by means of business services.

Accordingly, an end-to-end business process will be operated in the form of consistent

IT services from different providers. The different SaaS applications will be adminis-

tered on the SaaS platform, and they will be hosted in the aggregator data center,

and, if necessary, in the Public Cloud area of the aggregator (via strategic partnerships

with public IaaS providers, which is the only way service bundles will be at all

possible). In the medium term, Siemens IT Solutions and Services will move towards

becoming a “full-service” Cloud Computing aggregator in the IT market.

Figure 20:The aggregator model from the viewpoint of Siemens IT Solutions and Services (SIS).


56

In addition to using a few of its own proprietary SaaS solutions, Siemens IT Solutions

and Services will increasingly work with strategic and premier partners, such as

Microsoft, Oracle, VMware, and SAP. These partnerships will not be restricted to a

few margin-relevant reseller models. So that the entire value-added chain of Cloud

Computing can be covered, partnerships will have to be formed with all important

providers in the IaaS, PaaS, and SaaS areas. These partnerships should not be based

on “reseller models”, “en-hanced reseller models”, or simple “hosting provider models”.

It is rather a matter of going very early into partnership with software vendors,

with the partnership then being able to develop from an instance of technological

cooperation into a strategic alliance. Siemens IT Solutions and Services’ Partner and

Technology Management is particularly in demand here, both as far as the business

collaboration issues are concerned, and with respect to the technology foundation

as well. It is necessary to establish use cases and carry out proof-of-concepts to check

technological feasibility (e.g. integration of hybrid Cloud solutions when different

vendor platforms are being used).

It is foreseeable that two, but no more than three, de facto standard platforms will

achieve acceptance in the market. These will then be the basis for SaaS and PaaS

solutions of Siemens IT Solutions and Services. In the infrastructure area, Siemens

IT Solutions and Services will prefer to use VMware vCloud.

In the medium to long term, Siemens IT Solutions and Services will become a

trustedbusinessadvisorinthefieldofCloudComputing.Theaggregatorrolewill

play an essential part in this. As a trusted Cloud Computing business advisor, Siemens

IT Solutions and Services will develop from being an assembler of its own and other

CloudComputingservices,tobecomeanefficientCloudaggregatorthathasa

high degree of integration expertise, and that positions itself on the market with

CommunityCloudsalignedtospecificsectors.ThisformoftheCloudaggregator

rolewillgohandinhandwiththesettingupofanefficientanddiversifiedpartner

ecosystem.

In the third phase of strategic positioning, Siemens IT Solutions and Services will

orientate itself to the needs of the Siemens Sectors, and it will be setting up Cloud

Computing pilot projects in 2010.


57

Appendix – Glossary

For the purpose of internal and external communication, and for the sake of

ensuring that there is a uniform official position, Siemens IT Solutions and Services

uses the Cloud Computing technical terms of NIST (National Institute of Standards

and Technologies) within the context of its “Bright IT Services” initiative. The main

terms and concepts are listed below, and additional information is included with

some of them:

Software as a Service (SaaS)

SaaS is a software application delivery model where a software vendor develops

a Web-native software application and hosts and operates (either independently

or through a third-party) the application for use by its customers over the Internet.

Customers pay not for owning the software itself but for using it (pay-per-use

model). SaaS has become the industry preferred term, generally replacing earlier

terms, such as “Application Service Provision” (ASP), “Software On-demand” and

“Utility Computing”. From a technology viewpoint SaaS applications must support

multi-tenancy. The most prominent SaaS providers are Google, Salesforce and

SuccessFactors.

Platform as a Service (PaaS)

PaaS is a software platform delivery model where a software vendor develops

a software platform and hosts and operates (either independently or through a

third-party) the platform for use by its customers over the Internet. Customers pay

not for owning the platform itself but for using it. The PaaS provider offers a stable

development and runtime platform consisting of middleware such as web server,

application server, integration server etc and a whole bunch of proven development

tools (integrated development environment) for the development and deployment

of mission critical web-applications. The most powerful PaaS providers are Microsoft

(Windows, .NET Framework, Visual Studio.NET) and Oracle (Oracle Fusion

Middleware).


58

Infrastructure as a Service (IaaS)

IaaS is the provision of computer infrastructure as a service. Implementations

typically include the following layered components:

Utility computing billing (e.g. per instance hour)•

Platform virtualization environment for running highly standardized •

virtual machines

Computer hardware (Server and Storage – typically set up as a grid for •

massive horizontal scalability)

Computer network including firewalls, load balancing etc.•

Internet connectivity•

IaaS key characteristics are:

Resources delivered as a service include servers, network equipment, memory, •

CPU, disk space, and data center facilities

Dynamic scaling of infrastructure which scales up and down based on application •

resource needs

Variable cost service using fixed prices per resource component•

Multiple tenants typically coexist on the same infrastructure resources •

Enterprise grade infrastructure allows mid-size companies to benefit from •

the aggregate compute resource pools.

The most prominent IaaS providers are Amazon, IBM, Microsoft, HP, CISCO

and VMware.


59

In addition, the “National Institute of Standards and Technologies” distinguishes

between four different deployment models:

Private cloud. The cloud infrastructure is operated solely for one organization.

It may be managed by the organization or an IT service provider and may exist

on premise or “off premise”.

Community cloud. The cloud infrastructure is shared by several organizations and

supports a specific community (e.g., media or healthcare) that has shared concerns

(e.g., mission, security requirements, policy, and compliance considerations).

It may be managed by the organizations or an IT service provider and may exist on

premise or “off premise”.

Public cloud. The cloud infrastructure is made available to the general public or a

large industry group and is owned by an organization (like Google) selling cloud

services.

Hybrid cloud. The cloud infrastructure is a composition of two or more clouds

(private, community, or public) that remain unique entities but are bound together

by standardized or proprietary technology that enables data and application

portability (e.g., cloud bursting for load-balancing between clouds). In general,

cloud software takes full advantage of the cloud paradigm by being service oriented

with a focus on statelessness, low coupling, modularity, and semantic

interoperability.


www.siemens.com/it-solutions

Your contact: Siemens IT Solutions and Services

Winfried GrundnerSIS PTM SITTel.: [email protected]

The Author:

Winfried Grundner – Siemens IT Solutions and Services

Portfolio and Technology Management

In his role as “Platform Strategy Manager”, the author is

responsible for the implementation of the Siemens IT

SolutionsandServices“PlatformStrategy”andthedefinition

of the Siemens IT Solutions and Services “Technology

Direction”.

Link to related information sources:

For more information on Cloud Computing topics, the latest

white papers for example, follow the link below:

http://www.siemens.com/cloud-computing

Siemens IT Solutions and Services GmbH

Otto-Hahn-Ring 6 81739 Munich, Germany Global Info DeskTel.: [email protected]

All hardware and software names used are brand names and/or trademarks of their respective holders.

© Siemens IT Solutions and Services GmbH, 2010. Rightofmodifications reserved.

SOD zur SIS Cloud Computing Strategie

Technology

cloud services

services bright

services portfolio

business services

security services

services consulting

services business environment

services business model