According to the reports, at the Sapphire conference in Orlando, SAP has unfolded a new strategy for private cloud computing. The official sources have announced that its ERP (enterprise resource planning) software would run on the Vblock systems.

The Vblock systems are backed by Cisco, EMC and VMW, which combines the servers, networking equipment, storage, management, and security and virtualization components in a stack for building private clouds.

As per the experts, the performance and cost efficiency are increased by the cloud computing as the applications sits on a virtualized pool of infrastructure which shifts the resources in response to the demand.

The new system is in stark contrast to the traditional setups, as in the traditional setups a customer might build a more powerful system than what is needed. This is done to enhance the response to peak periods, whereby some part of the infrastructure may remain idle.

Reports suggest that Levi Strauss & Co. has worked with the vendors and consultants on the lab-based tests that disclosed that running SAP on Vblock led to more cost savings.

The experts however claim that, given the themes of cost-savings and an easier management system, working with Levi’s was apt at the initial stages. They further claimed that Levi's global SAP implementation was marked by serious issues.

Reports however suggest that, SAP is clearly thinking beyond the woes of a single customer when it is considering pushing the private clouds.