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BEST PRACTICE
MOBILITY 4.0VOLKSWAGEN‘S D³ STRATEGY
CIO TALK EUROGATEOPEN TELEKOM CLOUDSHELL MAKES HISTORY
SECURITY EVALUATIONS
Issue 3 / 2016
BES
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ANYTIME, ANYPLACERewriting tomorrow’s work playbook
—
FlexibilitätClosed for everybody else
OPeNFOR YOUR
AZ_210x290_OTC_Flexibilitaet_EN.indd 1 25.10.16 11:24
EDITORIAL
3
WORK IS BECOMING MORE DIGITAL, flexible and con-nected. And one of the biggest drivers of this trend is, in my view, the convergence of real and virtual mobility. In no more than ten years, increasingly autonomous cars will allow us to spend less time driving and more time working on the road. By 2035, a steering wheel will probably be as foreign a concept to tomorrow’s children as phone hooks or rotary dials are to to-day’s youth. Industry 4.0 and the Internet of Things will funda-mentally transform how we develop and manufacture all kinds of devices, from cars to machinery to electronics. However, they will also change how we use these things – when, where and how we work with them.
For example, our clothing may soon figure prominently in interactive communications, as pioneered by Fashion Fusion, one of our group’s innovation projects. New technologies such as artificial intelligence, augmented reality, 3D printing and collaborative robots will either change current work mod-els – whether ours or our customers’ – or give rise to entirely new ones. How will organizations and their employees re-spond to the fast-growing importance of freelancing, co-working and virtual teams? More and more high performers now support organizations as independent contractors in-stead of permanent employees. Plus, technology will tilt the playing field even further as it gains the ability to replace more and more human production capability. Organizations will only manage this transition gracefully if they have secure cloud platforms and reliable connectivity. Ideally, they will in-stitute centralized data management with clear interfaces, too. After all, as Klaus Holzhauser, the Managing Director of PAC Germany says in the interview in this issue, users don’t want products or technologies; they want solutions to their challenges. And today, you can only find the right solutions by partnering and being willing to open up. That’s a statement that has many layers.
WORK 4.0 NEEDS PARTNERS.BOTH INTERNALLY AND EXTERNALLY.Reinhard Clemens, Member of
the Board of Management at Deutsche
Telekom, and CEO of T‑Systems
All these changes are driven by technological innovations that must not be ignored, lest we fall behind in areas that matter to our business: the labor market, productivity, or the intelligence needed to organize our work in newer, more ef-ficient ways.
Personally, I am most interested in how this trend affects employees at our organizations. After all, the more closely our physical and cyber worlds are connected by the Internet, big data and high-performance computing, the more “anytime, anyplace” working becomes a viable option. But that’s what it should remain – an option, not a requirement. Giving people greater freedom in where and when they work should trans-form work in a way that simultaneously satisfies the needs of three different sets of stakeholders: the organization, its fluid, virtual teams and the individual employees.
It’s the latter group – the “employee side of digitization”, as it’s called in our top story by Georg Pepping, T-Systems’ Director of Human Resources – that an organization has to consider in everything it does. Especially since employers ex-pect employees to possess new skills: discipline, personal responsibility and the ability to optimize the use of their en-ergy, talent and creativity.
In that sense, trust-based corporate management and re-sponsible self-management by employees also call for a new form of partnership. And partnership is as important to Work 4.0 as technology. One cannot exist without the other.
Best regards,Reinhard Clemens
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INTRO
5
IT titans’ new buildings
More massive, modern and spectacular
Facebook’s headquarters in Menlo Park is a miniature city (above).
Apple is the furthest along with its headquarters in Cupertino (below).
Star architect Sir Norman Foster designed a spaceship with a lush
green oasis and an underground auditorium.
ROOM FOR CREATIVITY.
SILICON VALLEY’S IT TITANS ARE
COMPETING TO BUILD THE MOST
MASSIVE, MODERN AND SPECTACU-
LAR BUILDING. WHO WILL COME UP
WITH THE MOST UNUSUAL DESIGN?
GOOGLE HAS DEVISED A 75,000
SQUARE METER GLASS-CANOPIED
CAMPUS USING LIGHT MATERIALS.
ITS VISION: OPEN SPACE FOR
TOMORROW’S FLEXIBLE, MOBILE
WORKERS. THE TARGET MOVE-IN
DATE IS 2020.
— —
INTRO
7
SHINING STAR.
WITH HER LONG GREEN TRESSES,
HATSUNE MIKU IS A FULL-BLOWN J-POP
STAR. SO HOW IS SHE DIFFERENT
FROM OTHER SINGERS? SIMPLE:
SHE’S A HOLOGRAM, PROGRAMMED
BY DEVELOPERS IN SAPPORO.
SHE PACKS CONCERT HALLS IN JAPAN.
NOW SHE’S TAKING EUROPE AND
AMERICA BY STORM.
Flesh-and-blood pop stars can only dream of this level of fame:
Hatsune Miku has over 2.5 million followers on Facebook. Her fans
compose songs and write lyrics for her: from heavy metal to pop to
ballads that Hatsune Miku sings on stage as a hologram backed by a
live band. Corporations such as Google and Toyota have already
launched ads featuring the virtual singer.
Hatsune Miku
Virtual singer
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INTRO
9
Nick D’Aloisio
Messages for smartphones
—
<1>
<1>
<2>40
30
37
12
24
Eurogate CIO Wolfram Müller (left) and Patrick Molck-Ude,
Director of the Telecommunications Division at T-Systems.
Published by: Roger Voland, T-Systems International GmbH Heinrich-Hertz-Str. 1 64295 DarmstadtPublication Manager:Gina DuscherExecutive Editor:Tatjana GeierhaasEditor-in-Chief:Thomas van Zütphen (responsible for content)Organization: Anke EchterlingArt Direction: Jessica WinterLayout: Silke WeißbachGraphics Manager: Susanne NarjesOperation Manager:Maike Bamberg
Translation: Native SpeakerAuthors of this issue:Sven Hansel, Roger Homrich, Michael Hopp, Heinz-Jürgen Köhler, Thorsten Rack, Guido Reinking, Anja Steinbuch, Thomas van ZütphenPublisher:HOFFMANN UND CAMPE X A trademark of HOFFMANN UND CAMPE VERLAG GmbH Harves te huder Weg 42 20149 Hamburg Tel. (040) 441 88-451E-Mail: [email protected]
General Managers: Christian Backen, Alexander UebelProduction Manager at HOFFMANN UND CAMPE X: Sandra HeiskeProduction: Wym Kor� Litho: Olaf Giesick Medien-produktion, HamburgPrinting: NEEF + STUMME premium printing GmbH & Co. KG, WittingenCopyright:© 2016 by T-Systems. Reproductionrequires citation of source and submis -sion of a sample copy. The content ofthis publication does not necessarilyrefl ect the opinion of the publisher.
Read it yet?Best Practice Online:www.t-systems.com/bestpractice
Questions and [email protected]
ABOUT THIS PUBLICATION
MOBILITY
12 WARNING: NEW FREEDOM.
WORK 4.0. Real and virtual mobility are pushing the traditional bound-aries of our working world into entirely new dimensions. Technologies such as 3D printing, voice control, artifi cial intelligence, M2M and IoT have rewritten the work playbook. Companies and employees sound freer – but is that something they want and can manage?
20 MOVING TARGETS.
ANALYZE IT. According to Klaus Holzhauser, the Managing Director of Pierre Audoin Consultants Germany, mobile working requires cautious investment and genuine partners.
22 MISTAKEN MEASUREMENTS.
PIONEER. US economist Erik Brynjolfsson believes that the value created by digitization should be measured differently in the future and that machines will never overtake people.
24 TAKING AUTOMOBILE LITERALLY.
AUTOMOTIVE. How connectivity, artifi cial intelligence and predictive analytics are transforming the automobile of the future. The directions taken by BMW, Audi and VW.
29 DRIVING CHANGE WITH D³.
VOLKSWAGEN GROUP. “D cubed” is how Chief Digital Offi cer Johann Jungwirth describes the largest European carmaker’s approach to digital transformation – for customers, for products and for the company.
CONTENTS
11
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/Get
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Issue 3/2016
BEST PRACTICES
34 SKEPTICS NO MORE.
SALESFORCE. ContiTech, REWE, Zalando and Ströer Digital switched to the CRM market leader with support from a German service provider.
37 A BIG MOVE FOR BIG DATA.
SHELL. 69 IT environments, 7,000 servers, over 100 mission-critical systems – T-Systems took on the largest data center relocation in Shell’s history. And pulled it off on spec, on time and on budget.
40 CLOUD COVER.
OPEN TELEKOM CLOUD. Even mid-market enterprises such as communications provider Schwaiger or software licensing specialist Octopus are turning to public cloud services. But they’re choosy when it comes to legal certainty and data protection.
42 HOW HACKING HELPS.
SECURITY EVALUATION SERVICES. Who do you call to see how your latest product innovation stacks up? Regardless of your industry, if it’s hardware or software, you can call the programmers, engineers, mathematicians, cryptologists and physicists at T-Systems’ testing center.
44 A STATE GOES IP.
GOVERNMENT NETWORKS. North Rhine-Westphalia generates more data traffi c than any other German state. It now uses a single IP transmission standard for data and telephony with speeds of up to 10 gigabits per second.
30 CIO TALK WITH EUROGATE.
SECURITY NETWORK. Wolfram Müller, CIO at Europe’s largest container terminal operator, talks about cybersecurity in the Internet of Things, 99.8 percent IT performance and the advantages of having a “spider in the web”.
<1> It helps to
think big when
securing data
used in public
cloud services.
<2> Shell hired
T-Systems to
handle the
biggest data
center move in its
history.
Downloadedit yet?Scan the code forthe Best Practice+App or visit:itunes.apple.com
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Anytime, anyplace.WORK HAS CHANGED. PEOPLE USED TO GO TO THE OFFICE, SIT
AT A DESK AND DO ALL THEIR WORK THERE. NOT ANYMORE:
DIGITIZ ATION HAS ADDED A NEW DIMENSION TO HOW WE WORK .
“EVERY DAY” HAS BECOME “ANY TIME”. “HERE” HAS BECOME
“ANYPL ACE”. WE ALREADY VIEW MOBILIZ ATION AS THE COMPLETE
DIGITIZ ATION OF WORK . BUT WHEN TIME AND PL ACE CONVERGE
IN THE REAL AND VIRTUAL WORLDS, WE NEED FIRM RULES
TO MANAGE THIS NEW FREEDOM PROPERLY.
Mobility
Work 4.0
FOCUS
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Mobility
Work 4.0
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ASSIGNED DESKS DIED SURPRISINGLY QUICKLY. First, the lap-top arrived – now you can work anywhere! Their fate was fi nally sealed when cell phones morphed into smartphones.
And now? Do you still make your own phone calls or do you let your jacket handle it? – Wait, what?
These innocent questions may still throw you off today, but you won’t even hear them tomorrow. It’s all a matter of looking ahead. As Claudia Nemat, Member of the Deutsche Telekom AG Board of Management, Europe and Technology, put it, “There’s no law re-quiring you to use smartphones for all your telecommunications. Don’t get me wrong: it’s a wonderful invention, just as the rotary phone was in its day. But one day, they will both end up in a museum for our grandchildren to admire.”
One company that’s looking ahead is Levi Strauss, the jeans manufacturer. It is already developing fabrics that integrate touch interactivity into trousers and jackets. They can send commands to smartphones or other devices so that users can make calls or send text messages. That means, according to Nemat, “telecommunica-tions will increasingly become a feature of our clothing”. The trend will even extend beyond clothing, driven by augmented reality, 3D printing and other technological innovations, and include virtual reality headsets, smart headphones, bracelets and rings.
Initiatives like Fashion Fusion, which Deutsche Telekom has incorporated into its long-term innovation strategy, are anything but playthings, as Jan Mantel will attest. “People and things – from machines to smart clothing – will form a relationship at home and work that will change the way organizations think, operate and act in every industry.” The Crisp Research analyst recommends “driving the use of mobile devices and wearables across the enterprise”. And there are excellent reasons to do so.
Germany quietly crossed a big threshold recently. According to a study conducted by HTW Berlin, a research university, 54 per-cent of productive employees in Germany were mainly or exclu-sively mobile workers at the start of the year. This marked the fi rst time that people who worked “solely or primarily at a particular sta-tionary workstation” were in the minority.
FROM WORKPLACE TO WORKSPACEThis change would be impossible without digital workstations pow-ered by a combination of artifi cial intelligence, software-defi ned products and increasingly sophisticated voice control on the one hand, and IT applications such as the cloud, big data and predic-tive analytics on the other. For Experton advisor Wolfgang Schwab, the terms “digital workplace”, “Workplace 4.0” or “future work-place” are misnomers. Instead, he talks about a “digital workspace where virtually all areas of our conventional desktop world and the modern mobile domain come together”. It sounds like a gradual process, but the infrastructural requirements would make many a CIO break out in a cold sweat. The truth about virtual desktop infra-structure and application streaming, management, security and mobility solutions is this: quite a few organizations believe they can handle the growing integration requirements themselves, without any outside help. They’re mistaken, unfortunately.
54% of productive employees in
Germany are mainly or
exclusively mobile workers.
25megatrends have been identifi ed by the
University of St. Gallen that will massively change how we work in the next 30 years.
You can see all the megatrends at:www.t-systems.com/survey/work-4-0
<Copy> Thomas van Zütphen
“THERE’S NO LAW REQUIRING YOU TO
USE SMARTPHONES FOR ALL YOUR
TELECOMMUNICATIONS. INSTEAD,
OUR CLOTHES WILL INCREASINGLY
TAKE OVER THIS FUNCTION.”
Claudia Nemat, Member of the Deutsche Telekom AG Board of Management,
Europe and Technology
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Mobility
Work 4.0
most importantly, meet its own rigorous security standards for mobility management. The same “full mobility, maximum secu-rity” philosophy was behind the solution’s implementation at CORPUS SIREO, one of the top real estate asset managers in Germany and Europe. “Being an innovative mobile-fi rst company, we saw a signifi cant improvement in security, performance, IT in-tegration and end-user support when we combined Mobilelron’s EMM suite with Deutsche Telekom’s deployment model,” con-cluded Jens Gruse, Director IT at CORPUS SIREO.
Other solutions that support real and virtual employee mobil-ity include the electronic land register or Teamwire, a social col-laboration solution adopted by health insurer BARMER. Electronic land registers, which are already being used by land registry offi ces in the States of Schleswig-Holstein and Baden-Württemberg, provide mobile access to land register data so offi ce staff can process requests – and customers can look up information – faster and more responsively while maintaining
23% of people worldwide say that virtual
interactions can be “just as good” as
being there in person. *
88% of organizations will invest as much or more in digitizing their business processes in 2016 as they did in previous years.
What will Work 4.0 change at organizations?Digitization will signifi cantly change our work processes and the way we work. Change is coming; the only question is what will change, and how quickly. First, what we actually do at work will evolve as intelligent systems replace many human ac-tivities. Second, we will see the emergence of new forms of col-laboration that are more digital, mobile, e� cient and connected. Deutsche Telekom and the University of St. Gallen looked at all the advances brought about by Work 4.0 and then projected how they will a� ect the way we work in the future. Exponential change is a feature of digitization, so organiza-tions have to address trends and harbingers of change as early as possible. Technical change happens at an ever-accelerating pace, but behavioral shifts take much more time. If organiza-tions want to seize the opportunities presented by digital trans-formation, they have to devote at least as much attention to the employee side of digitization as they do to technology. That doesn’t mean, however, that they can neglect the bigger techno-logical picture or its main technological themes: connectivity, platforms and data security.
What are the key capabilities of a digital organization? I would describe networked collaboration as one, if not the, key capability of a digital organization. “You and me”, our in-house answer to Facebook, plays a major role. But so does fl exible, mobile working – which brings us to the Future Work program. Here, the focus is on technology: unifi ed communications, mobile device management and security as a service. These are all good things, but they represent only part of Future Work. We also need supporting o� ce concepts: open plan o� ces, desk sharing, mobile and activ-
ity-based working. Mobile working, after all, is about enabling me to collaborate with di� erent people in di� erent roles wherever and whenever I need. There’s another aspect to Future Work that is at least equally important: the neces-sary, accompanying change in leadership. In Future Work, fl exible work hours and workplace rules will soon be the norm. Trust-based self-management by and for employees will replace conventional top-down, control-based manage-ment. So we have several aspects coming together – and that’s what makes it really exciting. I am convinced that or-ganizations that can reconcile all three aspects will succeed in signifi cantly improving employee satisfaction and productivity.
How can human resource departments support this development? I believe that HR can make three main contributions. First, it can put workforce transformation on the agenda. A business transformation will only succeed if I can qualitatively and quantitatively change the workforce to support transforma-tion. That’s something that has to be developed strategically, just like technology. Second, HR can develop expertise in advising managers on what they do and how they do it. Third, it can strategically improve the leadership and corporate culture and drive necessary systemic changes in employee behavior. You see, Work 4.0 is not an end in itself. It is supposed to make organizations and employees more productive and successful. But I believe that you can only achieve and maintain this balancing act if you build on four equally stable pillars: trust-based management, fl exible work environments and secure and highly available co-working.
Interview
“ADDING MORE TO NEW EMPLOYEE SKILLS.”
Georg Pepping, Director of Human Resources, T-Systems
“Devising a DIY solution,” warns Experton in its fi rst-ever Digital Workspace Vendor Benchmark 2016, “is probably economically inferior to managed services or wholesale outsourcing in the vast majority of cases.” The increasing demands of the digital transfor-mation process and the simultaneous decrease in staffi ng levels will put even more pressure on business.
MEGATRENDS HIT THE JOB MARKETBut that’s not all: futurologists at the University of St. Gallen have identifi ed no fewer than 25 emerging megatrends that will shape the next generation of work. Megatrends, we may recall, are devel-opments that take up to 30 years to completely unfold, but that im-mediately start to affect every area of our lives and jobs and cannot be stopped by anyone or anything.
The researchers’ theses sound like a nightmare for managers at various departments – from production to sales to HR (see inter-view with Georg Pepping, p. 17):Thesis 1: Tomorrow’s jobs have no clear organizational allocation. Thesis 2: Machines learn to think, become intelligent and essen-tially omnipresent through networking. Thesis 3: Permanent employees lose importance while globally available skills of specialized experts gain importance.
So who within the organization will be responsible for structuring, moderating and implementing everything? Who will organize the work amid constantly changing teams, managers, work sites and work hours? Who will integrate all the important IT Infrastructure Library (ITIL) processes for physical, virtual, mobile and cloud-based workspaces? These are remarkable examples – and they cover only three of the 25 theses that the Swiss univer-sity has proposed together with Shareground, Deutsche Telekom’s innovation unit.
GERMAN INDUSTRY HALFWAY TO FINISH LINEGerman organizations can take heart from the Digital Offi ce Index (DOI) published by Bitkom, Germany’s leading IT industry associa-tion. The paper, presented at CeBIT 2016, concludes, “The stage has been set for a digitized working world.” The study describes where organizations have already digitized their processes and where they can still improve. The current DOI of Germany’s industry is 50, where 0 is “not digitized at all” and 100 stands for “com-pletely digitized”. While that means Germany is only halfway to a digital offi ce, it also proves that companies have read the writing on the wall. 42 percent of the 1,108 fi rms surveyed intend to keep their investment in digitization high; 46 percent said they planned to invest even more in digitizing their business and administrative processes in 2016. The investment pays off, too, according to orga-nizations that have taken this route.
All told, 74 percent of the companies say that the implementa-tion of new software solutions “has had a positive impact on the performance of internal offi ce and administrative processes”. At the same time, nearly two-thirds (63 percent) state that they “signifi -cantly improved customer satisfaction by optimizing processes”.
One example is Xella, a building materials company. Its nearly 7,000 employees in 20 countries have been using T-Systems’ En-terprise Mobility Management (EMM) services since this summer. The solution builds on suite technology that was developed by Mobilelron, a strategic partner of the Deutsche Telekom subsid-iary, and then deployed in a private cloud. Now, Xella can scale up mobile device management, improve productivity by empow-ering employees to easily manage their devices themselves and,
* GFK, http://www.gfk.com/global-studies/global-study-overview/
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strong security. “An electronic land register adds real value for ordinary citizens, especially when it comes to closings, fi nancing and the entry of security rights and ownership,” said Elmar Stein-bacher, Undersecretary of the Baden-Württemberg Ministry of Justice and European Affairs.
SECURITY TAKES CENTER STAGEThe growing convergence of real and virtual mobility at the work-place, in employee productivity and in maintaining a work-life bal-ance has put one aspect at center stage: security. “These environments have to be highly secure in order to make ‘anytime, anywhere, any device’ modes of work reliable and securely avail-able,” said Klaus Holzhauser, the Managing Director of Pierre Audoin Consultants in Germany (see interview, p. 20). This is par-ticularly true for health insurance carriers where employees use social collaboration platforms to improve their productivity and drive the internal transfer of knowledge. BARMER, for example, has ensured security by having T-Systems exclusively host and operate its Teamwire solution as a managed service at well-pro-tected, ISO-certifi ed data centers in Germany.
At the same time, collaboration and shared collaboration gen-erally require employees to leave their secure corporate network, according to Klaus Holzhauser. This is a real concern, especially since the researchers at Shareground and the University of St. Gal-len expect collaboration to play a growing role in work processes. The “geographical location of the service provider” will no longer play any role in the future. Instead, work will be as mobile as capital. The “demise of geographically located workplaces” will occur alongside a shift from “a presence to an event culture”. Managers must learn that they need to motivate rather than control workers. The art of management will be to establish and maintain personal ties despite using impersonal technical channels.
Especially for HR managers among others future work mod-els pose big risks: “Flexible forms of work and cooperation lead to employees always having one foot in the labor market,” said Stefanie Kreusel, Chairwoman of Syntra, Deutsche Telekom’s management network. Systematic staff development will be-come much more diffi cult, especially in a market where employ-ability depends less on formal qualifi cations and more on technical ability in robotics, augmented reality or similar fi elds. This skill will not be lost on competitors keen to attract new talent,
either. After all, machines and self-learning processes can’t com-pletely replace human labor and ingenuity.
Luckily, the researchers have some comfort to offer, too: non-linear thinking is and will remain a human domain. According to the experts at the University of St. Gallen, the automation of work is fi nite. Entrepreneurial ability, creativity and the control of machines are “hard-to-replace skills”. So does that mean we can open the creativity fl oodgates? Maybe not.
There’s no question that the ability to meaningfully combine and interpret data from billions of machines, robots and things is an essential, irreplaceable human skill. However, working with big data differs from traditional data analysis in one signifi cant way: hypotheses will disappear as a necessary tool within the next three decades. Because pretty soon, there will be more than enough data on everything and everyone. Scientists refer to this admittedly theoretical sounding prospect as the “end of theory”.
<Contacts> Work 4.0:
Teamwire:
Electronic land register:
Enterprise Mobility Management Services:
<Links> www.t-systems.com/solutions/dynamic-workplace
www.t-systems.com/solutions /mobile-enterprise
50DOI On a scale of 0 to 100, the current Digital O� ceIndex (DOI) of Germany’s industry is 50.
45% of Cloud work environments are mainly relevant for mobile workers, according to IT decision makers at German companies.
“FLEXIBLE FORMS OF WORK AND
COOPERATION LEAD TO EMPLOYEES
ALWAYS HAVING ONE FOOT IN THE
LABOR MARKET.”
Stefanie Kreusel, Chairwoman of Syntra,
Deutsche Telekom’s management network
—
The lines between real and virtual mobility are blurring everywhere – from work to productivity to work-life balance. What challenges has this trend thrown up for organizations?There are two sides to this issue. First, there’s the technology. You want your environments to be highly secure. Only then will you see the blossoming of the “anytime, anywhere, any device” modes of work that have been enabled by the wide-spread convergence of virtual and real mobility. Only then will these modes of work be reliably and securely available. Remember: virtual mobility requires employees to leave their secure network. Systems have to be available in real time; if they aren’t, collaboration and shared collaboration will break down. Finally, user friendliness drives user acceptance. If you implement easy-to-use systems with easy-to-handle security, employees will see no need to build their own solutions.
So what’s the second side?Organizing your people. And this is where a fundamental, but often underestimated issue comes up: preserving team spirit despite anytime, anywhere collaboration. In other words, when project teams stop meeting face-to-face because collabo-ration has become virtualized, I need a ‘virtual break room’ where they can meet regularly. Otherwise, they’ll start feeling isolated and alone, which will destroy their motivation and productivity. HR departments, for their part, have to decide how much they want to protect employees from having – or even wanting – to be truly available 24/7. Responsible manag-ers shouldn’t have to wait for works council representatives to point out the risky waters that they’re steering their company into. If they do, they’ve done something wrong.
What technologies – from augmented reality to artifi cial intelligence – do you think will need to be integrated the soonest?We think that there’s no honest way to tell right now. Artifi cial intelligence (AI), for example, has countless use cases at vary-
<Interview> Thomas van Zütphen
SECURITY IS TOP PRIORITY
FOR MOBILITY.
Conversation with head of PAC Germany Klaus Holzhauser about
real and virtual mobility.
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Mobility
Analyze IT
ing degrees of maturity. Some are still in the research and development phase, making their future impact hard to pre-dict. One thing is clear, though: automation is ‘merely’ taking repetitive tasks o� our hands at this early stage. AI can take automation to the next level, though, by giving rise to learning machines that can partially replace human intelligence in its current role.
The automotive industry is one of your research specialties and a key mobility sector. But isn‘t this industry known for “covering its brakes” when it comes to IT investment?They do cover their brakes, but I don’t think that’s a bad thing. The market is highly volatile, so companies are reasonably cau-tious. They tend to avoid long-term commitments to large IT projects or related milestones and investments. However, OEMs and auto parts suppliers have all seen the writing on the wall and are willing to invest in major trends such as IoT, connected cars and new mobility standards. The other side of IT investment – conventional IT in corporate server rooms – is still dominated by cost optimization.
Five years ago, you highlighted the importance of predictive analytics for future mobility applications, particularly those that have to be highly secure. Where do things stand today?Predictive analytics has become a key technology in all the use cases that we view as fundamental to future mobility sys-tems in an IoT context. Its scope extends all the way to public transit and covers all mobility systems that depend on inter-actions to minimize the likelihood of failures – such as fatal tra� c accidents – in an increasingly complex, interconnected environment. To put it another way, predictive analytics, and everything that entails – including the cloud, which is the only platform that can process and analyze such vast amounts of data – has become so important that it’s impossible to imagine smart travel and transportation without it.
One of the questions that PAC Horizons 2017 will tackle is this: What changes should IT providers make to be viewed as ‘service providers’ in the truest sense of the word? And what standards, in your opinion, will they have to live up to? There are two sides to this issue. First, if you want to emphasize the partnership aspect of business, I almost think IT user orga-nizations have a bigger burden to bear than IT service provid-ers. They have to stop looking at their providers as suppliers whose only job is to deliver fast, cheap products. Instead, they need to treat them as partners in the development of smart, cost-e� ective solutions. In return, though, they should be free to expect providers to continuously improve their knowledge of corporate and industry processes and their capabilities in cut-ting-edge technologies within the quality categories used by user organizations and their customers. Not only that, but IT service providers should also actively pass on to customers any cost savings they generate in their own production environ-ment. They’ll only do that, though – and here we come full circle – if they see that their customers treat them fairly and even-handedly. And by customers, I also mean the departments that the providers aren’t actively serving. That’s a problem I often see: many IT decisions are driven by extremely aggressive pric-ing and purchasing terms. That hurts the IT provider, obviously. But it also hurts the customers’ own user departments. At the end of the day, I fi rmly believe that users don’t want products or technologies; they want solutions to their challenges. And today, you can only fi nd the right solutions by partnering and being willing to open up.
<Contact> [email protected]
<Links> collaboration.t-systems.com
pac-online.com
Klaus Holzhauser,
Managing Director
Germany, PAC
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Mobility
Pioneer_Erik Brynjolfsson
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“We don’t measure productivity growth correctly.”
HE BELIEVES IN COOPERATION. If man and ma-chine don’t work together, mankind will end up losing, warns Erik Brynjolfsson. Often casually at-tired with an open collar, this professor of eco-nomics and information technology is at the center of the debate about the future of work in our digital era of computers and artifi cial intelli-gence. His recommendation? To “race with the machines” as technological innovation picks up the pace signifi cantly over the next several years. His viewpoint puts him at loggerheads with Rob-ert Gordon, a US economist who has pronounced technological innovation dead (see the top story in Best Practice issue 2/2016).
While Robert Gordon and Nobel laureate Paul Krugman pooh-pooh the value created by digital transformation, Brynjolfsson is a fervent believer that digital progress adds value. “We just don’t measure productivity growth correctly.” At fi rst glance, free services like Wikipedia, Skype and Google don’t seem to add anything to gross do-mestic product. “But when you look closer, you see that they certainly do add value.” While re-searching at the Massachusetts Institute of Tech-nology (MIT), Brynjolfsson developed a method to
ERIK BRYNJOLFSSON, A US RESEARCHER, IS CONVINCED
THAT THE DIGITAL ECONOMY GENERATES VALUE.
<Copy> Anja Steinbuch ductivity and the ranks of millionaires are at all-time highs – but employment rates and average incomes are down. Our society is becoming increasingly di-vided. Automation and digitization are turning the world of work upside down. “The middle class is dis-appearing,” warns the economist. New jobs are only available for unqualifi ed or highly qualifi ed workers. So who’s to blame?
REINVENTING EDUCATIONTechnological progress has been driving these changes in the labor market for the past ten years. “But that’s nothing compared to what’s yet to come,” says Brynjolfsson. Technology is growing exponentially more powerful, and innovation is moving faster than expected. For example, com-puter chips double in processing power roughly every two years. Robots are already diagnosing medical disorders and scanning millions of docu-ments for attorneys in order to fi nd the perfect precedent for a particular case. Self-driving cars were considered science fi ction only a few years ago. Today, prototypes bristling with sensors and self-learning systems are cruising the streets.
How many jobs will be lost to digitization and automation? It’s a common question, but Brynjolfsson believes that it misses the point. What
measure the value that innovative IT companies generate. Using this method, he has found that disruptive business models like online networks and digital services create 300 billion dollars in value each year – value that isn’t captured by the statistics or by the critiques that Gordon and Krug-man based on them.
HARNESSING TECHNOLOGY, STIMULATING THE ECONOMYBrynjolfsson has been researching economics and productivity since the 1980s. In his book “The Sec-ond Machine Age”, he describes the differences between the fi rst and second industrial revolutions: “Computers and other digital advances are doing for mental power what the steam engine and its de-scendants did for muscle power.” This is a different technology, though – one that will have a much broader impact. Brynjolfsson’s vision has been ap-plauded by politicians and industrialists – but he believes it should be more widely embraced. Denial is not an option, he warns. “There is too much stagnation in Europe and the US,” he says. Policymakers need to promote entrepreneurship and eliminate obstacles that prevent start-ups from harnessing new technology to stimulate the econ-omy. His current assessment is this: prosperity, pro-
“WE HAVE TO RACE
WITH THE MACHINES.”
Erik Brynjolfsson,
Professor of economics and
information technology
Résumé
Erik Brynjolfsson (born 1962), mathematician
and microeconomist, teaches at the Massachu-
setts Institute of Technology (MIT) in Cam-
bridge and is one of the leading experts on the
economic consequences of the IT revolution.
His book, “The Second Machine Age”, describes
in great detail the impact of the IT revolution
on labor markets and society.
Europe may
either add
1.25 trillion euros
of gross
industrial value,
or lose
605billion euros
of value
by 2025, according to
Roland Berger Strategy
Consultants*
really matters is the number of new jobs created to sustain society as we know it. “The choice is ours,” he insists.
“Tomorrow’s jobs will be created in new com-panies and new industries with new products or services,” says Brynjolfsson. He has three sugges-tions to help make this vision a reality: “First, we have to reinvent education. Don’t just memorize facts; computers can already do that, after all. In-stead, our curricula should also teach creativity and soft skills.” Second, entrepreneurship should be promoted; it should be easier to establish new companies. And third, we have to rethink our anti-trust laws and tax policies. A negative income tax could help absorb the negative impact of automa-tion on low-income families. That requires a coun-try with a mature democracy and a strong government, notes Brynjolfsson. One such coun-try is Switzerland. “Few countries are better pre-pared for change than Switzerland.” It considers groundbreaking ideas such as an unconditional basic income. “I see Switzerland as a model for the future,” says Brynjolfsson.
<Contact> [email protected]
<Links> www.t-systems.com/digital-transformation
ebusiness.mit.edu/erik
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WHILE THE ELECTRIC CAR is not the blockbuster everyone thought it would be – at least not in Ger-many – the connected car is conquering the market without fi nancial incentives or special lanes. Every day, customers adopt brand-new services enabled by fast, stable and secure Internet connections.
One of them is BMW. “Digitization will mas-sively change how we use cars in the years to come. Soon, we will have digital services that completely connect us to the world around us, on the road and at home,” explained Dieter May, Senior Vice Presi-dent Digital Services and Business Models at BMW
From automobile to autopilot.
THREE THINGS WILL REVOLUTIONIZE THE FUTURE OF MOTOR VEHICLES:
CONNECTIVIT Y, ARTIFICIAL INTELLIGENCE AND PREDICTIVE ANALY TICS WITH
BIG DATA . TODAY’S CARS ALREADY FIND THEIR OWN PARKING SPACES,
AUTOMATICALLY PAY PARKING FEES, REPORT THEIR STATE OF WEAR TO AUTO
REPAIR SHOPS AND FIND THE CHEAPEST GAS STATION. CARS OPEN THEIR
TRUNKS TO ACCEPT PACK AGES IN PARKING SPACES OR SEND ESSENTIAL DATA
TO SHOPPERS’ CELL PHONES ON THE SHOWROOM FLOOR. AS CARS BECOME
MORE CONNECTED, THE Y ARE ALSO GAINING AUTONOMY. DRIVING FROM THE
DEALERSHIP TO THE PARKING SPACE OR FROM THE GAS STATION TO THE
REPAIR SHOP IS JUST THE FIRST STEP.
2.8cmare added to the braking distance when
a self-driving vehicle going 100 km/h is
stopped remotely over a 5G network.
2.40 meters would be added under the
current standard.
has a latency of 1 millisecond.
Humans cannot perceive a delay that
short. However, 25 milliseconds can
be too much for a driverless vehicle or
a surgical robot. 5G will respond
within around one millisecond.
5G
Group. “Cars will become smart devices: intelli-gently networked, seamlessly integrated and per-fectly tailored to each user’s unique needs. We’ve demonstrated this vision in the fi rst version of BMW Connected.”
DATA CENTERS ON WHEELSBMW Connected supports seamless communica-tions between the car and the driver’s smartphone, Apple Watch or other devices. For example, an electronic smartphone calendar can communicate with the car navigation system. Using real-time traf-
<Copy> Guido Reinking
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Mobility
Automotive
fi c information, it then displays the perfect time to leave in order to arrive at the next scheduled ap-pointment on time. Not only that, but the destina-tion is already loaded in the navigation system when the driver gets into the car. BMW Connected also helps import locations and special points of interest from other apps. Drivers of hybrid or BMW i vehicles can even check their vehicle’s range or state of charge while still outside the car and adjust their travel plans accordingly.
Thanks to a solution jointly developed by BMW and T-Systems, BMW Connected users can surf the
Source: www.sueddeutsche.de
Source: www.mobileworldlive.com
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nizes cyber attacks launched against the car and immediately takes countermeasures, for example if a hacker tries to disable the windshield wipers dur-ing a rainstorm. The self-learning system doesn’t just spot anomalies in a single vehicle, though; it also tracks irregularities across entire fl eets. The re-sulting insights are bundled into constant security updates for the entire vehicle network.
Integration is the secret to e-mobility success. This has been demonstrated in Austria by the SEAMLESS project (Sustainable Effi cient Austrian Mobility with Low Emission Shared Systems). The SEAMLESS consortium, comprising T-Systems, the Austrian Institute of Technology and Austria Post, is working on a multimodal mobility solution. This sys-tem, which will initially focus on corporate fl eets, lets users choose from a variety of transit options: not just cars, but also buses, trains and other means of transportation. SEAMLESS should be market-ready in two years. When it launches, users in the Vienna metro area – and later in other Aus-trian cities – can simply enter their travel dates and destinations and then reserve and pay for the best possible form of transportation, from bike sharing to electric cars to train tickets.
There has been over
30% annual growth in car-sharing
members in North America and
Germany since 2000.
WHAT WILL TOMORROW’S CAR DEALER-SHIP LOOK LIKE? Can brick-and-mortar busi-nesses survive in the Internet age? These questions hit home for Germany‘s 7,400 inde-pendent car dealers. They currently operate around 38,000 dealerships, but that number is dwindling. Now, a new answer has come from the Audi Center in Stuttgart: digitization. “By the time customers come to the showroom, they’ve already researched their desired model on the Internet,” said Aaron C. Arena, General Manager of Audi Center Stuttgart in Feuerbach. A few years ago, the average new-car buyer walked into dealerships fi ve times before clos-ing the deal. Today, it’s only 1.4 times. That raises the stakes for each visit.
The Audi Center in Stuttgart, the largest in Europe, has therefore invested in a T-Systems Customer Experience Management (CEM) module: “Showroom Proximity”. Arena ex-plained, “We’re starting to digitize car dealer-ships.” The moment customers reach the dealership door, they are invited to download the CEM app onto their smartphone. The app steers them through the showroom. As they
approach each car on the sales fl oor, an “iBea-con” device in the vehicle beams information onto their smartphone via Bluetooth. They can download vehicle data, product images and videos from the cloud onto their smartphone with a single click.
Customers don’t just see technical details and upgrade options. “They also see special fi -nancing offers and sales promotions,” said Arena. Customers can save the information and compare it at their leisure once they get home. Dealers, for their part, know exactly what mod-els visitors looked at, and they can provide spe-cifi c information or suggest a test drive or one-on-one consultation to prospects who have provided their contact details.
There’s another benefi t, too. The system is available outside regular dealership hours, on Sundays and holidays, for example, and at showroom windows. T-Systems engineered the CEM solution with the Stuttgart Audi Center and developed the interface for software and vehicle data so it would specifi cally address auto deal-ers’ needs. It now plans to extend the module to include used-car sales and auto service.
Showroom practice
AUDI’S POCKET-SIZED CAR SALESMAN.
Internet from their car at maximum LTE speeds. The solution supports a wide array of end-user devices, from BMW Touch Command to laptops, tablets and mobile phones from various manufacturers. All told, up to ten devices can link up to the BMW WLAN hotspot at a time. The devices communicate via a SIM card embedded in the vehicle and a WLAN hotspot obtained through Deutsche Telekom’s HotSpot Drive service. That makes it pos-sible to access the Internet across Europe and in non-European countries. Users can easily sign up for rate plans after registering for the service and switch between them as needed.
Reinhard Clemens, Member of the Board of Management Deutsche Telekom AG and CEO of T-Systems, noted, “We are providing cars with the best possible networks. Car digitization depends heavily on IT and telecommunications. Being an ex-perienced automotive industry partner, we are thrilled about this alliance.” This also marks the fi rst time that motor vehicles are being equipped with an integrated eSIM. This device can be updated over the air and, unlike old SIM cards, doesn’t have to be physically replaced. eSIM is the brainchild of Giesecke & Devrient (G&D). The banknote, credit card and SIM card specialist has been working with
“CARS WILL BECOME
SMART DEVICES,
PERFECTLY TAILORED
TO EACH USER’S
UNIQUE NEEDS.”
Dieter May, SVP Digital Services and
Business Models BMW Group
Fully autonomous driving systems
are expected to reduce accidents
by 45% on highways,
and 27% on state roads.
Deutsche Telekom in international committees for years to develop an open eSIM standard that is not only versatile, but also reliably wards off abuse, data theft and hacking attacks on cars. Security matters: fi rst-generation connected cars are vulnerable, as successful hacks have repeatedly demonstrated.
Connected cars account for 80 percent of new vehicles. Many see this as the start of a beautiful friendship: automobiles are moving from dumbly following orders to intelligently interacting with driv-ers. Others, by contrast, are worried: these “data centers on wheels” will be juicy targets for cyber-criminals. That’s why security comes fi rst when digitizing motor vehicles. Effective cyber protection is the only way for connected cars to travel safely on the data superhighway. To address this concern, T-Systems and Deutsche Telekom have developed an end-to-end security solution – a form of cyber defense as a service – for the entire automotive eco-system, from mobile security to backend security.
PROTECTING CARS FROM CYBER CRIME 24/7The solution’s core is an application known as Embedded Security Locks, or ESLOCKS for short. This cloud-based intrusion detection system recog-
Mobility
Automotive
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Source: www.swissre.com
Source: www.mckinsey.de
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The digital transformation of the automotive industry is running on four di� erent tracks: production, product, sales and in-house data administration. Which area do you think o� ers the greatest profi t potential?We’ve defi ned three main tiers at Volkswa-gen: digital customer, digital products and digital company, or “D cubed”. Our activi-ties revolve around the customer, the user and the person. Digital transformation needs to be taken seriously. Some trends are here-today, gone-tomorrow hype. Not digitization, though. It’s here to stay. Digi-tal transformation will disrupt many dif-ferent industries. And we know from experience that established players don’t always emerge from disruptions as the winners. That’s why we’re proactively driv-ing this change ourselves at every level in order to be one of the winners.
Connectivity is an important aspect of digitization. How connected do we have to become in order to see signifi cant improvements in tra� c safety? How can we get to the point where all makes of vehicles speak the “same language” worldwide?We’re not primarily focused on getting the vehicles to speak the same language. The
real disruption of the automotive industry is happening simultaneously along three di� erent axes: the transformation from the internal combustion engine to the electric motor; the move from human drivers to self-driving vehicles; and the shift from owned to shared mobility. We will see the biggest improvement in tra� c safety – which could potentially reduce tra� c accidents by up to 90 percent – when we introduce safe driver-less vehicles.
What’s your mobility vision? What stages do we still have to complete to fi nally achieve the goal of autonomous driving? Or is that not the real goal?The real goal and vision is this: mobility for everyone! We have a huge opportunity to democratize mobility and improve social mobility by introducing self-driving vehi-cles and rolling out sizable shared auton-omy fl eets across the globe. We can enable sustainable, personal mobility for everyone – even the blind, sick, old, very young or less well-o� – and signifi cantly improve their quality of life. And we can reclaim the 38,000 hours of time that the average per-son spends at the steering wheel. In the fu-ture, we’ll be able to read, study, work, relax, play with the kids or enjoy the scenery during the drive.
Interview
DIGITAL TRANSFORMATION IS HERE TO STAY.Volkswagen Group CDO Johann Jungwirth on the challenges faced by auto manufacturers due to digitization and how VW is driving change at three levels: the customer, the product and the company.
Much of the development focuses on electric cars. “People going on long trips get cars with enough battery charge to reach their destination. If you’re only driving a short way, you are given a car with less charge,” explained Fritz Vogel, Part-ner and CEO of Enio. The Austrian start-up speci-alizes in smart, connected charging infrastructure and operates 3,000 charging stations in Europe. As a member of the SEAMLESS consortium, Enio is seeking ways to charge vehicles primarily du-ring peak periods for green power production since clean electricity will be cheap, or even free, during these times.
E-MOBILITY NEEDS INTERACTIVE CHARGING INFRASTRUCTURE“Car sharing is the ideal application for electric cars,” said Vogel. It avoids many of the drawbacks that stop companies and individuals from buying a vehicle. Car sharing users don’t have to worry about range, charging infrastructure or high sticker prices. They pick up a car that is charged enough for their trip. And the operating costs are virtually unbeatable thanks to lower energy costs than diesel or gasoline. The system will fi rst be
VPN: THE SECURE TUNNELAt the same time, T-Systems is working to refi ne central information portals for carmakers. Drivers who log into the portals can communicate with their cars from anywhere and download relevant vehicle data. In the remote online version, they can even turn on the car’s block heater or lock or unlock its doors from afar. The systems also help drivers in the event of an accident, breakdown or maintenance event – including scheduling appointments at a repair or service shop.
To shield data and in-car systems from hack-ers, the vehicle communicates with the OEM’s con-nected car platform over a secure virtual private network (VPN). This specially protected connection allows data to be securely transferred. The architec-ture also acts as a gateway to external service providers and anonymizes requests sent from the car in order to meet customers’ demanding privacy expectations. One manufacturer already has up to 2.5 million vehicles registered on the platform that T-Systems operates for it.
Connecting vehicles to drivers, central back-ends and the surrounding environment is essential for autonomous mobility. However, since self-
Organizations see the biggest challenges ofcar connectivity in:
72 % Bundling third-party services
70 % Defi ning the billing method
55 % Changing the corporate strategy
52 % Splitting up income among partners
43% of Europe’s 250 automotive companies
are already working on implementing
projects for connected cars.
Mobility
Automotive
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used with Austria Post’s corporate fl eet. However, SEAMLESS is also working with a car sharing pro-vider that serves smaller communities. The proj-ect therefore has the potential to give tremendous impetus to e-mobility.
“Like many innovations, car sharing relies on cloud applications that intelligently link data and information from multiple sources and provide anytime, anyplace access to it,” explained Dr. Marc Schmickler from T-Systems. The SI expert is convinced that “the implementation of innova-tions cannot be permanently separated from an organization’s standard IT set-up, but rather re-quires an integrated strategy for a holistic digital concept”.
One fast, painless way to the cloud is Cloudi-fi er, a managed service offered by TSI Global IT. It quickly and reliably transforms applications to cloud services on a defi ned schedule for a fi xed price, or simply builds cloud-native applications from the ground up for customers. “Cloudifi er is a customer promise that enables organizations to easily and rapidly deploy business ideas and in-novation projects while retaining full cost and per-formance control and visibility.” Ill
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driving vehicles produce and consume vast amounts of data – from road conditions to nearby hazards to speed limits and traffi c information – conventional cellular networks struggle to keep up. That is why T-Systems is collaborating with the German Research Center for Artifi cial Intelligence to build a communications system based on the future 5G mobile network standard. The German state of Saarland, in particular, is supposed to serve as the nation’s pilot region for this vital technology that will enable safe, secure driverless cars. Once the system is rolled out, it will provide smart traffi c management by communicating directly with vehi-cles, preventing accidents and traffi c jams and thereby improving safety and reducing pollution. Simply alerting vehicles to available parking spaces during peak periods could reduce downtown traffi c volumes by up to 30 percent. In the end, rush-hour chaos could become a calm, orderly procession. All thanks to connected mobility.
<Contact> [email protected]
<Links> www.t-systems.com/automotive
www.t-systems.com/cloudifi er
Source: PAC, Connected Car in Europe, 2015
Source: PAC, Connected Car in Europe, 2015
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Mobility
CIO Talk_Eurogate
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Mr. Müller, how important is security for Eurogate and its IT right now? Every one of our employees has a fine awareness of security. They realize that an IT or security incident could have a devastating impact on the economy if it crippled Germany’s three most important ocean ports, Hamburg, Bremerhaven and Wilhelmshaven.
How do you expect an IT or security service provider to help you prevent that from happening?My ideal provider is a partner, not just a supplier. This can be a really constructive relationship – take, for example, our open-ended discussion about minimum requirements for IT providers. For my part, I care less
“I want partners, not suppliers.”A CONVERSATION WITH EUROGATE CIO WOLFRAM MÜLLER AND
PATRICK MOLCK- UDE, DIRECTOR OF THE TELECOMMUNICATIONS (TC)
DIVISION AT T- SYSTEMS, ABOUT ICT SECURIT Y THAT LEAVES HACKERS
IN THE DUST, CYBERSECURIT Y IN IOT SCENARIOS AND INVESTMENTS
IN NEW FORMS OF CUSTOMER REL ATIONSHIP MANAGEMENT.
<Interview> Thomas van Zütphen
Facts and figures
Eurogate is Europe’s leading shipping
line-independent container terminal operator
and logistics group with twelve locations in
Europe and North Africa. The company
handled 8.2 million standard containers
(TEUs) at its three German terminal locations
alone. This year, Eurogate’s Hamburg site
was named the Best Container Terminal in
Europe for the third year in a row.
about my partner’s current service portfolio, and more about the support I get in tackling the challenges I face as Eurogate’s CIO. That brings us to industrial IT security – an issue that I think will become increasingly im-portant for the advanced automation of logistics processes. I’ve been rese-arching the market for some time, but see no indications that anyone understands this issue or is developing solutions to address it.
How exactly did everything get started – what kicked it all off?What kicked it off was a simple question: Where can we make mutually beneficial changes in how we work together? We started out two years ago by exploring where Eurogate wanted to go strategically. It didn’t take long to come to a conclusion: Given the direction in which competition Ph
otos
: Chr
istia
n Ke
rber
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Mobility
CIO Talk_Eurogate
Renewed the provider
contract early: Eurogate
CIO Wolfram Müller
(left) and Patrick
Molck-Ude, Director of
the Telecommunications
(TC) Division at
T-Systems.
and market conditions were drifting, we had no choice but to start loo-king at terminal automation. That immediately took us to security. After all, we’re not going to automate operational processes in an outdoor environment if there’s no way to control them over a network.
That’s one way to get into the security fast lane instead of always being one step behind the latest generation of exploits. But why is Eurogate different from other organizations in this respect?I’d surmise that 95 percent of all security discussions between organiza-tions and IT providers revolve around e-mail and internet use. Don’t get me wrong: It is a problem, and it could adversely affect Eurogate – but it wouldn’t really hurt us. We need to cast our net farther in our operational processes. You see, our machines, equipment and devices that communi-cate over MPLS, WLAN and LAN have to be protected from unauthorized access in an open space, not an enclosed building. You can physically secure a factory, but not an outdoor facility like ours. Our only chance is to proactively scan equipment for abnormal behavior and then try to find a logical explanation for any anomalies. This is the security challenge for Industry 4.0. So we sat down and developed something entirely new together.
That certainly makes sense. So what’s so unusual about it?It costs resources, i.e. money. What’s unusual is that both partners agreed to pursue this idea without knowing where it would take us, and that each partner is paying for its share of the project. That way, not only do we stay equal partners, but we’re both highly motivated to earn back the money that we have invested. That doesn’t always happen.
So what security solution did this approach produce?First, it allowed us to reimagine our partnership as a vehicle for tackling a new service: the development of a security center. However, we would not have reached that point if you had not reorganized Sales & Services
or provided greater freedom through the contributions of your emplo-yees Bernd Wagner and Thies Rixen. This has shown me that T-Systems knows how to listen to its customers and pursue new avenues with them, even if it requires new investment. Next, we developed this idea into a proof of concept (PoC) model that we modified for industrial use, executed at the Eurogate terminal in Hamburg and trialed until this August. It’s an all-in-one platform that, in near real time, detects abnormal behavior of systems and infrastructure and directly repels malware. A security information and event management (SIEM) system provides systematic threat detection, vulnerability management and various behavior analyses.
What exactly did you find out?We found out that the T-Systems PoC, developed with support from Alien-Vault, identified more incidents than my entire suite of security tools. That proved, first, that we really needed to do more and, second, that the new platform identified more attacks sooner than our existing toolset. And, believe me, Eurogate is already extremely well-equipped when it comes to security. None of our auditors or assessors had recommended that we take any additional action.
What did you do next?We had to figure out how to integrate this new, objectively useful process into a reporting system that worked 24/7, 365 days a year. The sooner we got it ready, the better.
Why the rush all of a sudden?We wanted to roll out the solution to all our German terminals relati-vely quickly because we could be attacked at any time and place. In many cases, cybercriminals are interested in data – either because they want to learn from it, because they sell it or because they use it for blackmailing victims. Eurogate doesn’t have any really valuable data in that sense, though.
How does the security center work to help protect you from hacking attacks?The center is operated by T-Systems and staffed 24 hours a day. When-ever an alert, anomaly or irregularity occurs, T-Systems first checks for a technical explanation using a security dashboard. If it can’t find one, it sends a notification to our IT team via a special process chain so they can hunt down an operational cause. Next, Application Support looks for pro-cess changes that could have triggered abnormal behavior, evaluates the results and takes action. One day, we may have a provider handle certain types of critical issues directly. But this current division of labor is al-ready a huge improvement in our workload.
Because you couldn’t see the big picture otherwise?That’s right. An in-house team would only see the threats currently fa-cing us. Today, though, Eurogate has a “spider” in the cybersecurity web: T-Systems. It monitors a large number of customers and so can col-lect much more information and come to entirely different conclusions. It’s like forensic analysis: Where did an incident come from? What was the possible driver? I can’t afford to go into that depth of analysis as a single company.
So what do you focus on?My main job as the CIO is to ensure that IT support is constantly available as a tool or workbench. We need high IT availability in order to maintain our performance in vessel loading and unloading.
How would you quantify your current IT performance?We have 99.8 percent availability with over 200 systems and all the IT infrastructure for three ports. In other words, our total downtime for all German sites in 2015 was six hours, and none of our outages lasted more than 30 minutes.
Can you even improve on 99.8 percent?Theoretically, yes. But I’ve never had the ambition to reduce our error rate to zero. Instead, I wanted to lay the technical and organizational founda-tion for (a) quickly and reliably identifying the root causes of errors in a highly complex IT infrastructure and (b) streamlining our error resolu-tion process as much as possible.
What do you think will be the ‘next big thing’ in ocean freight transportation?We’re looking into automating our container handling, as I mentioned earlier. We are currently planning a pilot project to test whether and how we want to tackle this issue.
<Contact> [email protected]
<Links> www.t-systems.com/magenta-security
www1.eurogate.de/en/Terminals/Hamburg
“EUROGATE HAS A SPIDER
IN THE CYBERSECURITY WEB:
T-SYSTEMS. THEY CAN RELAY
US THEIR INSIGHTS FROM
MONITORING A LARGE
NUMBER OF COMPANIES.”
Wolfram Müller, CIO Eurogate
“DIGITIZATION AND AUTOMATION
REQUIRE ORGANIZATIONS TO
SECURE AND PROTECT THEIR NET-
WORK DATA COMMUNICATIONS.”
Patrick Molck-Ude, Director of TC Division, T-Systems
Résumé
After graduating from
college with degrees in
IT and engineering,
Wolfram Müller worked
at a transregional utility
company before switch-
ing to Siemens AG. He
then served in multiple
leadership roles at debis-
Systemhaus – and at
T-Systems starting in
2001 – until becoming
the CIO of the Eurogate
Group in 2006.
Phot
os: C
hris
tian
Kerb
er
— — —
SalesforceBEST PRACTICES
35BEST PRACTICES
Salesforce
OPEN ARMS INSTEAD OF ARM’S LENGTH.Cloud computing is now mainstream. But a few years ago, only mavericks were in the cloud. One of them was Salesforce. When the US company started out in 1999, software as a service (SaaS) was still called “rental programs”. Today, Salesforce has been named by Gartner as the clear market leader for customer relation-ship management (CRM) software with a 20% market share – not to mention its cloud solutions for customer service, marketing, communities and other applications.
<Copy> Roger Homrich
PROSPECTIVE CUSTOMERS WERE fascinated by Salesforce’s cloud-based approach from the start. It eliminated the headache of installing, hosting and refi ning software. However, German compa-nies, famously cautious about data protection, tended to keep cloud-based software at arm’s length.
Deutsche Telekom and Salesforce have been targeting the Austrian, German and Swiss markets in particular as part of their strategic partnership since 2014. Deutsche Telekom’s subsidiary T-Systems provides the German data center that hosts the Salesforce platform, offering customers extremely high availability, short latencies and contracts governed by German law. Many Salesforce customers also rely on T-Systems’ consulting and inte-gration services and benefi t from its extensive cloud expertise, which partly comes from being one of the world’s largest cloud ERP hosting providers. These businesses frequently need help integrating new cloud software with existing ERP systems or other applications in their IT environment. Only then will they have seamless business processes. If they wish, T-Systems customers can even get everything they need as a single-source turnkey solu-tion since T-Systems and Salesforce are the sole suppliers of Salesforce licenses in the German market.
So what has the partnership done for customers? To fi nd out, it helps to look at Ströer Digital, REWE digital, ContiTech and Zalando.
STRÖER DIGITAL – FROM SILOS TO SYNERGYdmexco, the digital marketing and advertising expo in Cologne, hosted a special debut in 2016: Ströer unveiled a brand that incor-porated all the products and technologies from its three digital sub-sidiaries Ströer Digital, InteractiveMedia and OMS. According to Christopher Kaiser, CEO of the Ströer Digital Group, this move marked the technological start of Ströer’s “one platform” philoso-phy, which the multi-channel media company had underpinned by developing new cross-platform products.
One platform: What Ströer Digital preaches to the outside world through its single brand, it also practices in its IT environ-ment. Various acquisitions over the years had produced a motley collection of isolated CRM systems. Each business unit was trapped in its own data silo, making seamless customer relation-
DECISIONS, DECISIONSHowever, neither the functional departments nor the IT team wanted to juggle two different CRM systems. So the organization’s users and IT support staff sat down together and took a good, hard look at both solutions. “When we started, we really didn’t know which one we would end up with. So we carefully weighed the pros, cons and costs of each system,” explained Bierbrauer. They fi nally chose Salesforce, implementing it fi rst in CBG before recently star-ting to roll it out to all the other ContiTech business units. “Salesforce is a better overall fi t for our organization’s strategic plans. Its high quality adds a lot of value for us and for our custom-ers. And that’s our number one priority.”
T-Systems had a capable team in charge of the migration since the platform – which previously ran in the US – would have to be hosted at a german data center. “We wanted to migrate the system instance from the US to Germany at an unprecedented scale and speed. It was certainly not business as usual,” explained the ContiTech CIO.
The project wrapped up in time and on budget in August 2016. Salesforce is now being used by around 650 ContiTech em-ployees in 15 countries worldwide. The other eight business units will be transitioned to the platform starting in 2017. From that point on, employees in Mexico, the United States, South Africa, China and other nations will access the Salesforce software in the cloud. “We always know where our customer data is stored. We’ve found a reliable partner in T-Systems,” said Bierbrauer.
REWE DIGITAL – FRESH TO YOUR DOORMore and more people are ordering their groceries online and hav-ing them delivered right to their front door. Customers generally care a lot about quality and reliability, but these criteria are espe-cially important for groceries. After all, if people order fruit, vegeta-bles, meat, frozen goods or dairy products online, they expect the food delivered to their door to be just as good as the merchandise sold at the brick-and-mortar store around the corner.
Knowing this, REWE has made customer service for online shoppers a top priority, including providing a delivery service. REWE has grouped its digital activities under REWE digital since 2014 and is currently Germany’s market leader (IFH 2016).
ship management impossible. “That’s why we decided to build a single CRM and sales system for all our business units from scratch,” said Benedict Marzahn, Senior Manager Corporate Development at Ströer Digital Group.
MATURE SOLUTION, MINIMAL CUSTOMIZINGSalesforce was the clear choice. InteractiveMedia, a digital marke-ting fi rm acquired by Ströer in 2015, had been using Salesforce for roughly ten years, “giving us a mature solution that required mini-mal customizing and integrated seamlessly with our ERP system through an interface,” explained Marzahn. Since then, Ströer Digital has nearly doubled the number of its Salesforce Sales Cloud users to 350. By the end of 2016, three-quarters of its planned users will have transitioned to the platform – with no limit on the number of users who can join them.
But having a single, multi-unit CRM tool wasn’t the only reason why Benedict Marzahn preferred Salesforce. “We also gained a standardized contract structure, easier administration and solid data protection conditions. The strategic license partnership between T-Systems and Salesforce was helpful, too. It greatly simplifi es the basic conditions that we have and want to uphold when handling personal customer data.”
CONTITECH – FLEXIBLE SOFTWARE FOR FLEXIBLE PRODUCTSThere’s a little bit of ContiTech in everything: from agricultural, mi-ning and printing machines to railroad and aerospace equipment all the way to automobiles. Between its nine business units, which generated around EUR 5.4 billion in revenue in 2015, ContiTech has customers seemingly everywhere – and that poses a huge sales management challenge. In the past, the Conveyor Belt Group (CBG) business unit of ContiTech had addressed this challenge with SAP Cloud for Customer (SAP C4C). “Then, in early 2015, we acquired Veyance Technologies in the US,” said Gerold Bierbrauer, ContiTech’s CIO. “Veyance had been managing its sales activities with Salesforce for several years.”
“WE ALWAYS KNOW WHERE
THE CUSTOMER DATA IS
STORED SINCE WE HAVE A
GERMAN CONTRACT PARTNER
IN T-SYSTEMS.”
Gerold Bierbrauer, CIO ContiTech
Ströer Digital
The specialist for
out-of-home advertising
consolidated the CRM
applications at all its
business units into a
single Salesforce
platform.
ContiTech
After acquiring Veyance
Technologies, ContiTech
migrated its new
subsidiary’s Salesforce
platform to Germany.
Illus
tratio
n: C
indy
Sch
mid
Zalando
The cloud platform
provided by T-Systems
and Salesforce gives
Zalando 24/7 access to
all process-related
information on its
merchandise fl ows.
—
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Shell
THE BIG MOVE: MISSION COMPLETED.
Houston is well-known for historic missions. Since 1961, it has been the hometown of the Lyndon B. Johnson Space
Center, responsible for the fl ight control of US manned space programs such as the Space Shuttle, Apollo
and Gemini. State-of-the-art technology, years of training and rigorous preparations were the critical success
factors of more than 160 space fl ights.
BEST PRACTICES
38
Shell data center relocation
Houston
headquarters
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tratio
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ONE VIEW TO THE CUSTOMERCustomer centricity is clearly essential for REWE’s digital business and “that’s why we need the best possible IT tools for that challenge,” said Robert Zores, Chief Technology Offi cer of REWE digital. The company is consistently focused on customers’ needs, improving every day and expanding at a swift pace. It needs soft-ware that can support rapid business growth. For customer service, the company chose Salesforce’s Service Cloud, which scales well and integrates readily with REWE digital’s IT architecture over API interfaces, according to Zores.
“We need to be able to track all the information we have on each customer across communication channels,” explained Zores. Salesforce’s cloud solution shows the customer service represen-tative all the inquiries on a single dashboard – regardless of whether the REWE delivery service was contacted by phone, e-mail, mobile app or social media. “If a customer requests a 2 pm delivery,but suddenly can’t make it home until 2:30 pm, we need to be able to receive and process the postponement request as quickly as possible. This is where Salesforce helps us.”
QUALITY INCLUDES DATA PROTECTIONThe new solution has only been up and running since August 2016, but it is already paying dividends: better internal processes and communications leave more time for representatives to advise and serve customers. REWE digital had looked into Salesforce once before, but then opted for another CRM system. “We believe that quality includes meeting rigorous data protection standards when handling customer data. That was one of the reasons we didn’t use Salesforce in the US cloud.” All that changed once Salesforce and T-Systems joined forces. T-Systems provides Salesforce solutions from a data center in Germany and offers Salesforce customers contracts governed by German law.
ZALANDO – BIG, BUT NIMBLEIt’s an enviable problem. Online fashion retailer Zalando has 18 million active customers and 130 million website visits every month. That much success can slow down a fast online retailer. After the last annual report came out, stock market investors
“WE BELIEVE THAT QUALITY INCLUDES MEETING
RIGOROUS DATA PROTECTION STANDARDS WHEN
HANDLING CUSTOMER DATA.”
Julia Martin,
Software Development REWE digital
wondered whether a 10,000 employee company could remain nimble enough for the digital world. After all, e-commerce demands fast responses and intimate customer knowledge.
And Zalando’s response? To put powerful digital tools at its employees’ fi ngertips and improve its customer service further. To accomplish that, it implemented Salesforce with help from Deutsche Telekom. The cloud platform, provided at a German data center, provides 24/7 access to all process-related information on customers and merchandise fl ows. Now, employees can view and con- tribute to processes at any time or place. They can instantly see what’s happening in their team and at the company. “We won’t be successful otherwise,” said Philipp Erler, CIO at Zalando.
360° VIEW OF CUSTOMERSThe Deutsche Telekom Salesforce cloud makes Zalando even more agile. It not only streamlines workfl ows, but also improves productivity and internal collaboration because everyone is always using the same data. “How often do customers visit our webshop? How long do they stay? What do they buy?” Erler constantly asks these questions. Zalando’s customer service representatives craft a customized, personalized shopping experience based on infor-mation about each user’s purchases, returns, communications or surfi ng behavior. Customers also contact Zalando through a variety of channels: e-mail, social media or regular mail. “We look at every-thing they tell us and learn from it,” he explained.
Employees need to have all the information ready in order to provide a seamless experience, close attention and personalized service. Salesforce Service Cloud combines all the channels and information, enabling a comprehensive, holistic service approach tailored to the customer’s unique needs. Data security was a big factor in Zalando’s decision to go with Deutsche Telekom and Salesforce. “Customer data is sensitive material – and our most precious asset. That’s why we care so much about having Deutsche Telekom on board,” said Erler.
<Contact> [email protected]
<Link> www.salesforce.com
REWE digital
Thanks to the
Salesforce Service
Cloud, the com-
pany can quickly
accommodate
customer requests
for last-minute
schedule changes
in its nationwide
delivery service.
—
Copyright © Free Vector Maps.com
Phot
os: F
1onl
ine,
JRob
bins
Pho
togr
aphy
<Copy> Thorsten Rack
TODAY, THERE ARE STILL MISSIONS, involving state-of-the-art technology and rigorous preparations, that begin in Texas’s largest city and end with a smooth landing. One of them is a recent project undertaken by T-Systems for Shell.
According to the 2015 list of the Fortune 500, Shell is the fifth largest company in the world. German ICT specialist T-Systems has been providing Shell sites worldwide with computing power and storage since 2008 – operating from four global data centers in the Netherlands, Malaysia, the US and Germany.
However, Shell’s US data center, the Houston Information Center, was built over forty years ago. A good reason for Shell, being a frontrunner in the use of advanced technologies and innovative approaches, to move to a new, more advanced datacenter. In March 2014, a contract was signed for the Houston Information Center Accelerated Exit Migration Program, the largest under-taking of its kind in the company’s history.
OVER 100 BUSINESS-CRITICAL SERVICES, BUT ONLY ONE DESTINATIONFor the relocation to the Houston West data center, clearly defined goals were set out by Shell IT leadership: no disruptions, no down-time, and Phase 1 was to be completed by the end of June 2015. T-Systems’ task was not just to migrate IT resources to the new fa-cility, but also to decommission and dispose of old property. This comprised no less than 69 business-critical IT application land-scapes and more than 7,000 IT infrastruc-ture assets (e.g. servers, storage filers, switches and racks) on 3,500 square meters of raised floor space. It was a huge project, so John Kiest, Program Director at T-Systems USA, put together an international team comprising as many as 220 T-Systems pro-fessionals to master it. As Kiest reported, “The goal for Phase 1 was to move all Shell business-critical landscapes and 102 essen-tial IT services. This included applications for oil production and energy trading, and two large SAP landscapes for Shell’s Down-stream Business Unit in the US”.
15 months and over 7,166 man days later, Kiest and his team proudly declared
Self-check
You want to move to another
data center? Here are some things
you should do:
1. Identify all the hardware
and software that needs
to be moved from one data
center to the other.
2. Determine site architecture
and design specifications based
on the “footprint” required in
the new data center.
3. Complete capex approvals
for required new equipment.
4. Submit procurement
requests.
5. Complete high-level design
for the migration architecture
and processes based
on the estate to be moved.
6. Commence migration planning
based on the high-level
design and the agreed-upon
migration paths.
7. Begin sta ng up the
teams (as required) to do
the migration work.
8. Complete migration wave
planning and set it out in
writing.
9. Begin to execute
migration waves in
accordance with plan.
10. As waves complete, do the
necessary logical and
physical decommissioning
and disposal.
Contact us for more
information
this mission accomplished. “Apart from two agreed step-outs, we completed the migra-tion of all Shell’s business-critical services to the new data center on time, and under budget – without a single situation,” said Kiest. “Our success was down to careful planning, and close collaboration and com-munication among all participating teams – including Shell and our technology part-ners, HP and AT&T.” Each and every step was carefully defined, agreed, prepared and executed – with a consistent focus on always making sure someone was in charge, and someone was on duty. This in-cluded weekends, when all stakeholders had to maintain sufficient resources avail-able 24 hours a day to be able to intervene if there were complications.
NEW VIRTUALIZATION TECHNOLOGY MINIMIZES TESTING EFFORT Phase 2, which began immediately after Phase 1, was no less strenuous: the busi-ness-critical IT landscapes had been suc-cessfully migrated. But now the team had to tackle the remaining systems and decom-mission and dispose of the legacy assets in order to allow Shell to put the building on the market for sale. “This meant handling an IT volume that was five to six times greater. But we had far less time than in the previous phase,” emphasized Kiest, “So we thought about how we could migrate the maximum number of services with the leanest possible process.” They were assisted by an innova-tive network technology recommended by T-Systems colleagues in Germany: Cisco’s Overlay Transport Virtualization. This solu-tion enabled T-Systems to migrate 550 vir-tual servers for a huge number of dynamic cloud hosted applications and services with-out having to change their IP addresses. This greatly reduced the effort on Shell’s part for testing and approval. “It was a great piece of advice and a prime example of our transat-lantic teamwork, as well as our strong part-nership with Cisco,” attested Kiest.
The move went smoothly. But there was still work to be done. The T-Systems team turned to the hardware that was now surplus to requirements – 7,200 servers, storage devices, tape libraries, server
7200 Servers
storage devices and
other hardware
assets had to be
decommissioned
69IT landscapes
had to be migrated
from the old
data center to the
new one
220 professionals
of T-Systems
managed
the big move
“THE HOUSTON IC ACCELERATED EXIT
MIGRATION PROGRAM WAS A VERY
SUCCESSFUL ONE, ESPECIALLY FROM A
BUSINESS CONTINUITY POINT OF VIEW.”
Doutie Nadema,
Manager Shell Supplier Services Platforms and
ITSO representative on ERP LT (Run Better)
enclosures and other assorted IT assets. They had to be either sold off or disposed of. By late June 2016, this task too was com-pleted, and the legacy data center was handed over on time to Shell’s Real Estate department.
A MIX OF TRANSITION AND TRANSFORMATIONT-Systems has now been hosting Shell’s IT infrastructure from the new data center for around six months. And as John Kiest ex-plained, this has done more not just im-prove the availability and reliability of IT services: “This was not just a simple transi-tion. It meant transforming infrastructure, improving efficiency and being ever ready for future changes and technology disrup-tions. For example, we implemented new storage networks and tape libraries, and we shifted a large number of applications from the legacy DCS 2.5 to the new DSC 3.0 plat-form.” Shell Supplier Services Platform Manager Doutie Nadema also expressed her appreciation for the results of the migra-tion program: “The Houston IC Accelerated Exit Migration Program was a very success-ful one, especially from a business continu-ity point of view.”
The complicated multi-million migra-tion was completed without any major mis-haps. That’s an excellent outcome for Shell and T-Systems. As Kiest pointed out, “From the outset, we had said that failure is not an option. And through constructive coopera-tion, transparent governance and commu-nication at all levels, plus clearly defined escalation paths, we succeeded.” It is an experience that should stand T-Systems and Shell in very good stead with other pro-grams of this type. High on the agenda is the ongoing activity to consolidate data center resources in three large data halls in the European Global Data Center in Amsterdam, the Netherlands.
<Contact> [email protected]
<Links> cases.t-systems.com/shell
www.shell.com
BEST PRACTICES
39
Shell data center relocation
The Houston
West data center:
new home of
Shell’s IT.
HoustonTexas
—
CLOUDS ARE JUST BORING clusters of water vapor – right? Not at all. Nephology, the sub-branch of meteorology that studies clouds, has detailed over 100 different cloud genera, species and varieties, each with its own special characteristics and features. Clouds can be harvested, too. In Chungungo, Chile, engineers set up plastic nets that capture fi ne droplets of water from clouds rolling in over the mountains above their homes from the Pacifi c Ocean. Thedroplets run down the nets and into pipes that carry the water sev-eral kilometers into the arid valley. This method extracts up to 110,000 liters of water a day. IT clouds are similar. They, too, come in a dizzying array of varieties and sub-types and can sometimes – but certainly not always – be “harvested” just as effectively as the fogcatchers in Chile.
Open Telekom Cloud
WHY CLOUDS AREN’T ALL THE SAME.Cloud computing is booming. Especially in public clouds. But CIOs and CEOs have to tread carefully when picking public clouds, lest the booming they hear becomes the ear-shattering thunderclap of data theft instead of the soothing hum of a secure, profi table business. Here’s what to look out for.
<Copy> Sven Hansel
Public clouds are big business. According to the Cloud Monitor pub-lished by Bitkom and KPMG, over one-fourth (26 percent) of German companies use public cloud services. Last year, only 16 percent did. That blistering pace seems set to continue, too: eco, the German e-commerce association, and Arthur D. Little, a consultancy, forecast that public cloud services will grow as much as 40 percent a year until 2019 – making it a “turbo segment”, in their words. They expect the growth to fuel demand for IT integration solutions and on-site customer service – as well as improved legal certainty and better data protection.
CUSTOMERS PREFER GERMAN DATA PROTECTION LAWSThose last two items are absolutely critical for Schwaiger, a German mid-market enterprise. The Bavarian communications company provides a full suite of home automation solutions: from solar-pow-ered alarm systems on the roof to WiFi speakers in the living room right down to humidity sensors in the basement. Its devices send data to a data center where it can be accessed by homeowners with a smartphone or tablet app. “Data protection and data security are top priorities for us,” said Bernd Wrana, the head of IT at Schwaiger. “Trust is crucial in home automation. That’s why we wanted to switch our entire system to a provider who met the most stringent standards possible.” The entire process initially went through a foreign-based data center. However, many customers wanted the security afforded by German data protection laws, widely regarded as among the strictest in the world. And these laws only apply if the company’s headquarters and the cloud provider’s
In the Chilean
highlands,
plastic nets
harvest water
droplets from
real clouds.
1. CUT COSTSGrowing start-ups like Octopus benefit heavily from the Open Telekom Cloud’s pay-per-use model. There are no fixed costs, providing more financial leeway to invest in business expansion.
2. SAVE TIMEThe Open Telekom Cloud is ready quickly. Octopus’s cloud, for example, was up and running after one week and one technical call. New digital business ideas can be implemen-ted quickly at minimal risk in a public cloud. One feature appeals to start-ups like Octopus: a self-service portal for confi guring the product. Users simply confi gure their servers and upload their applications. Larger organizations like another aspect: the Open Telekom Cloud’s automation dashboard. It lets users activate hundreds of virtual servers in a fl ash.
3. STAY FLEXIBLEThe Open Telekom Cloud is based on OpenStack. Being a true open source architecture for cloud computing, it allows customers to quickly and painlessly switch providers. That avoids vendor lock-in. OpenStack supports fast changes to alternative cloud services, too.
THREE REASONS TO GO WITH THE OPEN TELEKOM CLOUD
It’s still not clear what data protec-tion requirements apply to cloud services. Why is that? Are the laws especially unclear for German organizations using foreign-based cloud services?The problem arises when you transfer personal data to foreign servers. Data transfers within the European Union (EU) or the European Economic Area (EEA) are generally uncompli-cated since § 4b of the German Data Protection Act (Bundesdaten-schutzgesetz, BDSG) grants preferen-tial treatment to countries in these regions. Once the data leaves the EU/EEA, though, the law requires data recipients to ensure an adequate lev-el of data protection. Companies in the US, for example, rarely o� er this level of data protection and so Ger-man enterprises can’t store personal data on US servers. An exception had been carved out by the Safe Harbor Privacy Principles jointly adopted by the European Commission and the US Department of Commerce. However, the European Court of Justice (ECJ) overturned the Safe Harbor Privacy Principles in October 2015. German companies had to respond quickly since data protection authorities threatened to issue a decision on sanctions at the end of January 2016. Any organizations that failed to act by that deadline (e.g. by adopting standard EU contract clauses) would face fi nes of up to EUR 50,000. It wasn’t an idle threat, either – some fi rms were indeed fi ned. Now we have a successor agreement, the US Privacy Shield. However, I expect to see the
Privacy Shield and the standard EU contract clauses land before the ECJ soon since nothing substantial has changed since the 2015 ruling. The use of US servers will, in my view, re-main on shaky legal ground for years to come.
Do you think public cloud services pose other typical legal risks?Public cloud services have the draw-back that users don’t know where their data is stored. Obviously, this doesn’t apply to private clouds or to providers who situate all their servers in Ger-many. Another risk is cyber attacks, which are easier to launch against a public cloud. To reduce this risk, orga-nizations should entrust their data and applications to large hosting providers with advanced defense systems.
How can organizations ensure their cloud services comply with data protection laws?Organizations should make sure that all data identifying specifi c employees or specifi c customer or supplier con-tacts is stored on servers located in the EU/EEA, preferably in Germany, since these regions have the strictest security standards. Moreover, they should use cloud providers who already have valid security certifi cations (such as ISO 27018) recognized by regulators in preparation for the EU General Data Protection Regulation, since the certifi -cations will become absolutely essential for cloud computing in 2018.
Read the full interview at
www.t-systems.com/interview-drwulf
Interview
LEGAL RISKS LURK OUTSIDE GERMANY.Three questions answered by Hans Markus Wulf, IT law expert at SKW Schwarz, a highly regarded law fi rm with more than 25 IT and data protection attorneys.
“WE WANTED TO SWITCH OUR
ENTIRE SYSTEM TO A PROVIDER
WHO MET THE HIGHEST
STANDARDS POSSIBLE.”
Bernd Wrana, Head of IT, Schwaiger
data center both are located in Germany. Schwaiger thus migra-ted its entire HOME4YOU home automation solution to the Open Telekom Cloud, hosted at Deutsche Telekom’s highly secure data centers in the German state of Saxony-Anhalt.
Does that mean that data from a lowly basement sensor really belongs in a German cloud? Yes, in some cases, accor-ding to Hans Markus Wulf, an attorney and partner at SKW Schwarz (see interview). Even foreign companies agree – in-cluding Swiss-based Octopus Cloud Inc. Its cloud service helps companies with complex software licensing for Microsoft SPLA or VMWare vCAN by generating licensing reports at a keystroke – a process that otherwise takes hours or even days to com-plete. The Swiss start-up has opted for the Open Telekom Cloud, largely for its superior data protection and data security. And so even international customers know their data is in excellent hands at German data centers. Clearly, this cloud offers more.
<Contact> [email protected]
<Links> cloud.t-systems.com/open-telekom-cloud
www.t-systems.com/solutions/cloud-security
BEST PRACTICES
41
Open Telekom Cloud
Phot
os: M
artin
Ber
netti
/AFP
/Get
ty Im
ages
, PR
—
<Copy> Thorsten Rack
Security Evaluation Services
ON A MISSION: HACKERS FOR HIRE.
Working as a developer for MI6, the British secret service, sounds like a dream job – occasionally dangerous, but never boring. Who knew that you could
pursue a similar career at T-Systems? Of course, you don’t get the weapons and cars that Q develops for James Bond. But hasn’t everyone dreamed of “legally”
breaking into an ATM machine and scooping out piles of colorful bills?
THAT’S EXACTLY WHAT T-SYSTEMS SECURITY EVALUATION SERVICES (SES) DOES. Robert Hammelrath, the current head of SES, has been on the team since the start. “With all the cyber-crime today, manufacturers have to show customers that they take data security seriously and have done everything they can to minimize risks,” explained the expert for security analysis and testing. “We can help corporate clients maximize their IT security with Verified Security, our hardware and software testing and cer-tification service.” All the security tests conform to international standards such as Common Criteria (CC) or Information Technol-ogy Security Evaluation Criteria (ITSEC).
REGULAR CLIENTELE: FINANCE AND AUTOMOTIVEThe automotive industry has been a regular SES client since digital tachographs were introduced in 2000. “The current de-vice generation monitors driving and break times in order to im-prove traffic safety. Our test makes sure that no one can improperly modify tachographs once they leave the factory,” said Hammelrath.
SES’s bread-and-butter business also includes financial companies, pay TV operators and the federal government. Around 80 percent of its clients are multinational corporations. One of its most important, longstanding customers is the German Federal Office for Information Security (BSI). Even the leading lights of the worldwide payment industry ask T-Systems SES to subject their products to its demanding IT security tests.
“Every one of these clients has been tasked with protecting their products from tampering. How they go about it, though, is entirely up to them,” explained Hammelrath. “We only care about two things: Do they meet the right criteria for their specific appli-cation? And is their security strong enough?” Hammelrath and his team handle up to 150 orders a year. Some orders are fin-ished in two to three days; others may take several years.
SECURITY CHECKS START EARLY IN DEVELOPMENT “Many manufacturers bring us on board as advisors in the de-velopment phase. That way, they can build products that meet minimum security requirements from the very start,” explained the SES head.
Financial service providers often avail themselves of SES’s ser-vices as well. They have the keypads on their ATMs exhaustively tested for tamper protection so clients can enter their PINs with confidence. At the first sign of mischief, integrated security mech-anisms have to sound an alarm and immediately delete any stored number codes.
SES has around 30 people working at its high-tech labora-tory – mathematicians, cryptologists, physicists, engineers and programmers. “Half of them act like stereotypical hoodie-wearing hackers, just like you see in movies,” explained Hammelrath with a grin. “The other people are also hackers, but of a different mold: they aren’t afraid to slice up microchips or keypads into thou-sands of pieces with drills, files and cutting mills.”
AS HIGH-TECH AS Q’S LABORATORYSES’s toolkit ranges from hacking software and burglary tools to an exotic microscope known as a “focused ion beam” (FIB). This advanced instrument costs two million euros and would look perfectly at home in Q’s research laboratory. The T-Systems ex-perts use it to probe microchips for vulnerabilities and hack them if required.
Hammelrath has received some off-the-wall requests during his tenure as the head of SES. “We got an odd request to test a trash can that used identification tags for weight-based billing. So we subjected it to our standard battery of tests to verify its tamper-proofness. Another time, someone asked us to certify timing rings for racing pigeons. Unusual requests like these always add a welcome variety to our day.”
<Contact> [email protected]
<Links> www.t-systems.com/solutions/verified-security
www.t-systems.com/solutions/cyber-security
“VERIFIED SECURITY, OUR HARDWARE AND
SOFTWARE TESTING AND CERTIFICATION
SERVICE, HELPS CORPORATE CLIENTS
MAXIMIZE THEIR IT SECURITY.”
Robert Hammelrath, Head of Security Evaluation Services T-Systems
BEST PRACTICES
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Security Evaluation Services
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BEST PRACTICES
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State government network
North Rhine-Westphalia
A STATE KEEPS ITS WORD.
NRW goes IP. North Rhine-
Westphalia uses a single IP
network for its 700 agencies
spread across 4,000 o� ces.
THIS CHANGE WILL MAKE LIFE EASIER for citizens and public servants. But it requires long-term planning for Germany’s most populous state. Poorly planned infrastructure could bring data communications to a standstill. The entire state – including the smallest of government offi ces in rural back country areas – needs a fl exible, powerful communications network that can handle growing data volumes. “This is a huge challenge for the state government net-work in terms of security and data volumes,” said Hartmut Beuß, CIO of the State of NRW.
BROADBAND AT THE RANGER STATIONKnowing this, NRW’s network planners started preparing the state government network for a broadband future over a decade ago. There was push-back, though. Today’s mainstream digital policies were controversial schemes back then. Why should the tiniest members of NRW’s sprawling network of 4,000 government offi ces receive high-speed connections to the state government’s wide area network?
No one asks this question any more. As digitization has gained momen-tum, calls for more bandwidth have become standard fare in every political speech that touches on the state’s future. “We want to future-proof our infra-structure even more, which is why we focus on maximizing our fl exibility,” said Beuß. At the end of August, he awarded a competitive bid contract to T-Systems to modernize North Rhine-Westphalia’s state government network.
Locations will be connected to the state government network at speeds of up to 10 gigabits per second. Offi ces with greater data demands can get more. It takes very little time to step up bandwidths to the next higher level. That allows the state to only provide locations with the capacity they currently need and keep costs low until their needs change.
“A digital society requires a digital government”, said Ralf Jäger, Interior Minister of North Rhine-Westphalia (NRW), as he announced a new e-government law that went into effect on July 16, 2016. Soon, the state’s residents will spend less time standing in line at government offi ces. Instead, they will be able to do more online – from fi ling applications to checking for offi cial notifi cations of decisions.
<Copy> Roger Homrich
THE MAGIC WORD IS IPThe network uses a single IP transmission standard for data and telephony, making it cheaper to operate and faster to make changes. Jörg Flüs, who over-sees IT planning and IT management at IT.NRW, sees two big benefi ts to the IP network: “First, we don’t have to operate two different technologies side by side. Second, we’re using a technology that has proven its worth to us over several years.”
North Rhine-Westphalia is now equipped to handle the further increase in data rates fueled by e-fi ling and voice over IP telephony (VoIP). By 2022, all government offi ces will use the network for sharing digital fi les, searching in fi les and downloading documents. Not only that, but the IP network can sup-port VoIP telephony for phones at around 120,000 work stations spread amongst 4,000 locations in 700 state government agencies and institutions.
ENCRYPTION FOR SECURITYA whopping 20 percent of the total investment is earmarked for security and data protection. Flüs said, “We have a closed user network with dedicated lines that we protect with appropriate technology.” IT.NRW and CIO Beuß plan to look into other security options.
Thanks to the new state government network, North Rhine-Westphalia is in a good position for the near- and medium-term future, concluded CIO Beuß: “We can now tell state offi cials, ‘Don’t worry about network capacity any more. We’ve got the infrastructure.’”
<Contact> [email protected]
<Links> www.t-systems.com/solutions/egovernment
www.land.nrw/en
“THIS IS A HUGE
CHALLENGE FOR THE
STATE GOVERNMENT
NETWORK IN TERMS OF
SECURITY AND DATA
VOLUMES.”
Hartmut Beuß, CIO of the State of NRW
The network of the future
IP technology transfers all types of services over one
network using an internationally standardized
protocol, which acts much like a common language.
And it does so at high speeds and improved quality.
In the older ISDN world, networks are split into
multiple bearer channels for transferring data –
including one dedicated voice channel. The voice
channel occupies bandwidth even when no one is
making a phone call. Now, systems and services can
communicate seamlessly. The IP protocol supports
communications in the Internet of Things, too.
Grocery store managers can monitor their cooling
systems while on the road; technicians can manage
and service machines remotely. Organizations often
have higher Internet speeds after switching network
technologies.
AZ_210x290_OTC_Nerds_EN.indd 1 25.10.16 11:54
50 minutes a dayThe average time spent by
over 1.2 billion people in their cars.
That adds up to more
than 110,000 years per day.
Good to know
_ 46
5.1 billion US dollars
Total 2014 investment in
start-ups that offer new mobility
services such as car sharing and
ride sourcing. In 2010, this number
was only 44 million US dollars.
450 to 750 billion US dollars
The potential value of the global market
for car-generated data by 2030,
according to McKinsey estimates.
130 percent Total growth in Germany’s mobile
commerce business
between 2013 and 2014.
1.3 billion
The number of parcels attributable to
e-commerce in Germany in 2015,
according to expert estimates. That
equals nearly 16 parcels per person.
The German courier, express and parcel
delivery industry transported a
total of 2.8 billion parcels in 2015.
10 secondsThe time it takes to credit electronic
funds transfers to payee accounts with
“instant payments”, a program being
developed by the European
Central Bank and large European
fi nancial institutions.
More or less
NINE FACTS FROM DEAD STOPS TO TOP SPEED.
Eight terafl ops
The speed of the computing platform
that Volvo plans to install in its
vehicles in a fl eet trial in 2017.
That’s as much computing power as
150 Apple MacBook Pros.
Up to 2.5 percentThe percentage of economic
value added that is lost to delays caused
by traffi c jams.
15 daysZara’s turnaround time for getting new
clothing designs from the drawing board
to the storefront. That makes the Spanish
fast-fashion chain many times faster
than the competition.
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