{"id":2901,"date":"2010-06-16T20:12:00","date_gmt":"2010-06-16T20:12:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2010\/06\/16\/whitepaper-wednesday-cloud-computing-technology-in-procurement\/"},"modified":"2023-07-26T13:54:19","modified_gmt":"2023-07-26T17:54:19","slug":"whitepaper-wednesday-cloud-computing-technology-in-procurement","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/whitepaper-wednesday-cloud-computing-technology-in-procurement\/","title":{"rendered":"Whitepaper Wednesday – Cloud Computing Technology in Procurement"},"content":{"rendered":"

Welcome back to another installment of Whitepaper Wednesday here on the Purchasing Certification Blog. Today, I\u2019ll be reviewing a whitepaper from Supply & Demand Chain Executive and Ariba.<\/p>\n

Don\u2019t miss updates on Procurement & Supply Chain, Subscribe here!<\/p>\n

Speaking of Ariba and whitepapers, they recently updated their site and, on my first visit, I couldn\u2019t find their whitepapers on the new site! I was pretty disappointed as they built up a really good library over time. (katieaustin.tv<\/a>) <\/p>\n

Fortunately, I was a little smarter or more patient (or both) this week and I was able to find the link to their whitepapers and other resources. It doesn\u2019t appear that they date the whitepaper links, but hopefully that will be a feature that they\u2019ll add (or re-add) in the near future.<\/p>\n

This whitepaper, though listed as a whitepaper on Ariba\u2019s site, isn\u2019t so much a whitepaper as it is a digital edition of Supply & Demand Chain Executive Magazine. But I\u2019m going to review it because it sort of answers a common question: \u201cWhat the hell is the cloud?\u201d<\/p>\n

And, actually, it takes some reading deep into the whitepaper to get a usable answer to that question. Part of the reason that this cloud is so murky is that Ariba is using it as somewhat of a trademark or label for its latest offerings (i.e., Ariba Commerce Cloud) in addition to using it in a descriptive manner to describe cloud computing. After reading how these terms are used in such an intertwined manner, I can understand how someone asked if she could \u201cbuy the cloud\u201d at Ariba\u2019s conference as reported by Spend Matters. Though Spend Matters poked fun at this individual, the way the label is used doesn\u2019t exactly lend superior clarity to the term or the service.<\/p>\n

For example, in describing Ariba\u2019s offering, the whitepaper said \u201cCommodity managers manage their global categories and suppliers in the Ariba Commerce Cloud. Supplier report cards are tracked and commodity teams survey key stakeholders around the globe to determine how suppliers are performing with both objective and subjective data in the Cloud. Negotiation plans are approved and all projects are tracked with complete transparency to ensure sourcing decisions are made based on auditable lowest total cost data in the Cloud. Global spend data are scrubbed from SAP and encoded into a UNSPC-structured (sic) format that allows for spend visibility, reporting and analysis in the Cloud.\u201d<\/p>\n

I don\u2019t know about you, but this description certainly makes \u201cthe Cloud\u201d sound like something that can be purchased.<\/p>\n

So, allow me to dredge up what the whitepaper considers definitive characteristics of cloud-based commerce, the practice (not necessarily Ariba Commerce Cloud, the service or platform). All the way on page 17, the whitepaper shares its first definition of cloud computing from Maureen Fleming, program director for business process automation and deployment at analyst firm IDC: \u201cIt\u2019s consumer and business services delivered and consumed in real time over the Internet.\u201d<\/p>\n

With that definition not being very specific \u2013 because it could apply to millions of websites that have been active for many, many years \u2013 the whitepaper goes a little deeper by saying that \u201ctypically Cloud-based applications are distinguished by their strong use of standards and strong self-service capabilities. In addition, Cloud-based offerings typically provide for a pay-as-you-go model.\u201d<\/p>\n

OK, so how is that any different from the software-as-a-service models that have been hyped up since the mid-2000\u2019s?<\/p>\n

After all, even one of the CPO\u2019s interviewed for one of the articles in this whitepaper said that \u201cCloud computing to me seems to be a new buzzword for something that has been around for quite some time, at least in concept\u2026Cloud computing basically allows IT infrastructure, software, best practices and standards to be shared across an entire community in a way that allows individuals to only pay for what they use, while leveraging an infrastructure that is far greater than one could cost-effectively build on their own.\u201d<\/p>\n

If you\u2019re confused, that\u2019s understandable. Fortunately, some additional excerpts shed some light on the distinction between SaaS and cloud computing.<\/p>\n

Much of the distinction comes from the fact that different companies will be interacting via the same technology instance. The whitepaper says \u201cThe next wave of productivity is all about collaboration and aims to attack the inefficiencies that remain between companies to enable more effective collaboration among trading partners. Industry watchers say \u2018Productivity 3.0\u2019 will be fueled by Cloud-based platforms that allow businesses to share common business processes in areas like product development and commerce.\u201d<\/p>\n

This distinction is solidified further with a quote from Ariba\u2019s CEO, Kevin Costello. After he said \u201cThe key to extending and improving collaborative trading relationships lies in open systems that can be easily accessed regardless of their architecture or delivery model decisions,\u201d Supply & Demand Chain Executive simply wrote \u201cTranslation: Cloud-based solutions.\u201d<\/p>\n

The last page of content in the whitepaper goes clears up the skies a bit for understanding why the cloud model is different than what we\u2019ve seen in the past. Article author W. Lamar Chesney, executive vice president and chief procurement officer at SunTrust Banks, Inc., writes \u201cthe Cloud comprises both the on-demand solutions that power one company\u2019s internal processes as well as the electronic networks connecting companies and their ecosystems of suppliers, partners and customers. Cloud computing, in a sense, is the \u2018utility\u2019 that provides a channel for the data and information exchange, process integration and transparency between buyer and supplier interactions through a low-cost means of integration.\u201d<\/p>\n

So, that\u2019s a little more clear for me. If you\u2019re still asking \u201cwhat the hell is the cloud?\u201d after reading this review, I can understand. But, perhaps you can get an even better understanding by reading the full whitepaper yourself. You can download your own copy from Ariba\u2019s website (registration required).<\/p>\n","protected":false},"excerpt":{"rendered":"

Welcome back to another installment of Whitepaper Wednesday here on […]<\/p>\n","protected":false},"author":12,"featured_media":4043,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2901","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\nWhitepaper Wednesday - Cloud Computing Technology in Procurement - Next Level Purchasing Association (NLPA)<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/whitepaper-wednesday-cloud-computing-technology-in-procurement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Whitepaper Wednesday - Cloud Computing Technology in Procurement - 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