1Entire contents © 2006  Forrester Research, Inc. All rights reserved.

ATW-2006ATW-2006 Applications Technology WorkshopApplications Technology Workshop

1313thth-17-17thth February 2006 February 2006

SAP NetWeaver, Today and TomorrowJohn R. RymerVP, Application Development & InfrastructureForrester Research

February 14, 2006

Prepared for Oracle

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Theme

NetWeaver is the foundation of SAP’s value to enterprise customers, but not an independent

middleware suite.

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NetWeaver Today

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NetWeaver 2004 is a middleware suite

Web AS ABAPWeb AS ABAP

KW FeaturesKW Features

MI FeaturesMI Features

XI FeaturesXI Features

BW FeaturesBW Features

BI ContentBI Content

Web AS JavaWeb AS Java

Web AdminWeb Admin

NWDINWDI

Adobe DSAdobe DS

XIXI

BW ComponentsBW Components

PAWPAW

IKSIKS

Portal platformPortal platform

KMCKMC

Adapter EngineAdapter Engine

Content ServerContent Server

TREXTREX

BW BW Precalculations Precalculations

ServiceService

J2SE Adapter J2SE Adapter EngineEngine

ABAP stackABAP stack Java stackJava stack OptionsOptions

NetWeaver 2004

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NetWeaver has strong potential, but modest penetration

01,0002,0003,0004,0005,0006,0007,0008,0009,000

10,000

Inst

alla

tions

DW, BI,

MDM

Solution Mgr.

AppDev

Portals MDM ESASolutionsProgram

SAP reports having 32,000 customers in

total

Installations of NetWeaver Components

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Customers seem to use NetWeaver for modest purposes

• Many use DW and have for many years

• Many customers use Portal for Intranet apps

• Use of content management is very limited

• Usage of XI is apparently limited

» No large-scale references available for 2 years

• MDM is limited to product information management

» SAP doesn’t sell customer data integration

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From Forrester Wave™: Application Server Platforms, Q1 2005, March 2005

Forrester Wave™: Application Server Platforms, Q1 ’05

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July 2005, Tech Choices “The Forrester Wave™: Integration Suites, Q3 2005”

Forrester Wave™: Integration Suites, Q3 ’05

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February 2006, Tech Choices “The Forrester Wave™: BI Reporting And Analysis Platforms, Q1 2006”

Forrester Wave™: BI Analytic Reporting, Q1 ’06

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February 2006, Tech Choices “The Forrester Wave™: BI Reporting And Analysis Platforms, Q1 2006”

Forrester Wave™: BI Enterprise Reporting, Q1 ’06

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SAP was excluded from these Forrester Waves because it had no product or solution

• SOA And Web Services Management (solutions), Q1 2006

• Enterprise Service Bus, Q4 2005

• Enterprise Content Management Suites, Q3 2005

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Only certain NetWeaver components are strong, others are not

• Web Application Server• DW• Portal for Intranets

• Portal for Internets• Mobile Infrastructure• Knowledge Management• Analytics

Strong Adequate

• Identity management

• Enterprise service bus

• Web services management

Missing• XI• Content Management• MDM• Development tools• Operational management

Weak

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Forrester Business Technographics contains clues about the strength of SAP’s NetWeaver opportunity

• Business Technographics is:

» Credible, detailed, and actionable demand-side data based on 11,100 executive surveys in 2006

» Enhanced through the TD&S offering, which gives clients personalized access to the data set

» The basis for custom business research at Forrester

• Our custom business research is differentiated by the combination of technology expertise, vertical expertise, and quantitative expertise

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SAP customers have about the same level of interest in portal servers as customers of other majors

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SAP customers have about the same interest in EAI servers as customers of Oracle, others

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SAP customers have about the same interest in application servers as customers of Oracle, others

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SAP customers are as interested in BPM as the customers of other major vendors

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Plan to purchase data suggest that SAP customer demand for key middleware is good

• SAP has as good an opportunity to sell major middleware categories to its base as most other vendors have in their bases

• Caveat: Some SAP customers may buy middleware as part of a mySAP upgrade without recognizing it as middleware

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SAP has a small developer community

0

1,000

2,000

3,000

4,000

5,000

6,000

MSDN IBM*Works

OTN SDN

Membership Comparison, Major Developer Programs

(000s)

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These are the technology partners of an applications company, not an open middleware company

• Bull

• Citrix

• Dell

• EMC

• Egenera

• Enterasys Networks

• Fujitsu

• Fujitsu Siemens

• Hewlett-Packard

• IBM

• Intel

• Lexmark

• Microsoft

• MySQL

• Network Appliance

• Novell

• Oracle

• Palm

• Realtech

• RedHat

• Sharp

• Siemens Communications

• StorageTek

• Sun

• Teradata

• Unisys

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NetWeaver is not a good choice as open middleware

• SAP tried and failed to sell middleware once; it now sells solutions based on NetWeaver

• ABAP is relevant only to SAP applications customers

• SAP’s roster of tools/technology partners is too small

• Developer community is too small and too SAP-specific

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The license crunch: SAP customers struggle with the mySAP tie-in to NetWeaver

• To get to NetWeaver, customers strongly encouraged to upgrade to more expensive mySAP licenses

• Many in the base resist the added cost

• SAP doesn’t promote the alternatives, and most customers don’t know about them

• Pricing of MDM and XI is complex

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NetWeaver has strengths, particularly for SAP shops

• #1 strength: NetWeaver is the foundation of the core-context vision for enterprise apps

• #2 strength: SAP market momentum is strong

• #3 strength: Good synergy between SAP applications and NetWeaver = solutions focus

• #4 strength: Feature set is comprehensive enough for most SAP shops

• #5 strength: Formal relationship with Microsoft on Mendocino

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Oracle has many advantages over SAP in middleware

• Fusion Middleware contains proven components

• Fusion Middleware is more comprehensive

• Fusion Middleware is a substantial business for Oracle

• Fusion Middleware is competitive as open middleware

• Fusion Middleware embraces standards

• Fusion Middleware is aggressively priced

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With mySAP Business Suite (2005), SAP is taking a harder line on NetWeaver

• The suite requires NetWeaver

• This is the strongest linkage between a major upgrade and NetWeaver yet

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NetWeaver Tomorrow

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NetWeaverNetWeaver

Computing GridComputing Grid

Databases

Enterprise Services Enterprise Services

RepositoryRepository

De

ve

lop

me

nt

To

ols

Op

s M

gt

To

ols

Exchange InfrastructureExchange Infrastructure

Master Data Master Data ManagementManagement

Business Business AnalyticsAnalytics

Data LayerData Layer

Business Process CompositionBusiness Process Composition

Business Process PlatformBusiness Process Platform

ComponentsComponents ProcessesProcesses UsersUsers AgentsAgents Data Data TypesTypes

mySAP Business SuitemySAP Business Suite 33rdrd Party Applications Party ApplicationsComposite Composite ApplicationsApplications

NetWeaver will provide BPP

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Major points about BPP NetWeaver

• ABAP will evolve and continue to coexist with Java/J2EE

• NetWeaver will be the only middleware choice; database and tools choices will be broader

• BPP provides common datatypes, objects, components, and services

• The core of BPP NetWeaver is a new Enterprise Service Repository

• SAP assumes partners should usually control the UI

• SAP’s development and administration tools are likely to lag

• SAP has embraced BPEL as part of BPP

• SAP has already begun work with partners on BPP mySAP

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BPP NetWeaver is still not a good open middleware choice

• ABAP still a core platform and language

• The value of BPP’s common services to non-mySAP customers is not clear

• Development and operations tools lag

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John R. Rymer

+1 408/327-4357

jrymer@forrester.com

www.forrester.com

Thank you