Cloud Enabling Solution

Frank Stienhanson Behalf of oCTOSAPfrank.stienhans@sap.com

April 6th 2010

SAP Cloud Infrastructure Strategy

Virtualization Week Presentation SAP 2008 / Page 1Ingo SauerzapfOffice of the CTOSAPingo.sauerzapf@sap.com

CONFIDENTIALAs a difference to the previous presentations, today will be the first time that we will talk about Cloud Computing to a broader audience.So far we had pointed conversations with SAP customers approaching SAP with regards to this topic. #More than92,000 customers in 120 countries1,5 million developers & experts47,000 SAP employees

Run their business on more than2 million machines

SAP 2008 / Page 2

CONFIDENTIALExternal CloudEnabling SAP solutions for Cloud Infrastructures

SAP 2008 / Page 3Cloud ControllerMulti-TenantCloud ControllerCloud ControllerExternal Cloud Infrastructure (IaaS)Internal CloudInfrastructureInternal CloudInfrastructurePrivatePublicPrivateSAP IT NetworkCustomer ITNetworkSAP Global Cloud ServicesUsage MeteringAppliancesLicensingAppliancesAppliancesAppliancesRunRunRunRunRunShareConsumeShareConsumeShareConsumeCONFIDENTIALHarnessing the Cloud For the Benefit of our CustomersOffer a portfolio of valuable On Demand applications, ultimately leading to the next generation Networked Solutions with hybrid deployment models

Leverage cloud infrastructure to increase the business agility and to lower the TCO of our customers, ultimately enabling new types of applicationsDedicatedResources VirtualizationShared ResourcesCloudOn DemandBusinessApplications &Services Co-ExistenceHarmonization, Adaptation, Integration, Unified Lifecycle Mgmt

?On Premise Business Applications and Services Extend the reach of SAP systems through cloud based access, ultimately reaching everybody everywhere in entirely new waysCONFIDENTIALWhen discussing cloud, we use a simple definition of anything IT delivered over a network when the customer demands it. We have identified a simple framework of applications and infrastructure deployed On Premise or On Demand and four main value propositions for our customers and SAP, or cloud use cases:1.) On the infrastructure side, we strive to lower the TCO of our customers by utilizing modern infrastructure On Demand. We are working with the leading technology manufacturers and service providers to ensure that our products run well on the next generation infrastructure. Together with our partners, we are also driving standardization in the area of cloud APIs to ensure our customers a choice of available products and services for private and public clouds.2.) Offering complementary solutions On Demand, thereby also increasing the value of our current On Premise solution. The On Demand solutions can be anything from business services like address verification through tools like BI On Demand and Constellation to complete applications. Our customers will be able to experience a unified Suite independent of the deployment model of each component.As for stand alone On Demand applications, these come in three categories:a.) A full, integrated suite (ByDesign)b.) LOB applications (LE OD)c.) Tools and point solutions (BI OD, Constellation)3.) Designing the next generation network solutions that are hybrid solutions, natively utilizing the cloud as part of the architecture4.) Extending the reach of SAP systems through cloud based access. Customers and partners already do this today. #AgendaHarnessing the CloudCloud IntroductionSAP Solutions in Cloud InfrastructuresSAP Cloud Infrastructure Strategy SAP 2008 / Page 5CONFIDENTIALCloud Computing Definition SAP 2009 / SAP World tour / Page 6Trends

Cloud Computing allows On Demand Software Provisioning with Zero-Installation & Automatic Configuration at low cost and immediate access in Scalable Data Centers.Definition from Consumer PerspectiveApplication ProvidersPlatform ProvidersInfrastructure ProvidersService Providers

400,000 Developers + ISVs

Selected Cloud Consumers & ISVs

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Elasticity

AbstractionConcepts of CloudsCONFIDENTIALIn the past an SAP expert defined the required resources for an SAP Solution in form of CPU, Memory and network bandwidth. After arrival of the hardware the SAP software was installed and configured on those boxes. Human effort of several weeks.The cloud: are Gigantic farms of Hardware distributed across the globe. Waiting to be used.An engine decides on where to place a certain program at a particular point in time.No human is involved.In order to utilize those resource farms, virtualization is leveraged to run several isolated programs concurrently. This allows instant fulfillment of business needs at lowest TCO.

In the past an SAP expert decided on how many resources will be made available for a solution deployment.The future is that a program will always get as many resources as it requires, not more and not less. The human just defines the business priority of that program.-If a program faces increasing or decreasing usage the resources that are available will grow and shrink in realtime.Memory, CPU cores and network bandwidth will change from one millisecond to the next.This allows minimum resource consumption and contributes to high availability at the same time.

In the past administrators ignored that the earth spins around every 24h. Most of the program usage shifts around in 24h from east to west.In the age of cloud computing the program will travel around the globe in 24 hours in order to be near to where the user is.Automatically, uninterrupted and in real time. This allows the best end user performance

End of course if you buy resources off peak hours youll get a better deal. #Trends and Value of Cloud Computing SAP 2009 / SAP World tour / Page 8From Manufacturing to Automation and Standardizationof IT BusinessIndustrialization of ITFrom inflexible and long-term contracts to payment of metered usageUtility ComputingFrom long running customer projects to immediate fulfillment of customer needsOn Demand Fulfillment

ValueIncrease Business Agility, Increase R&D Efficiency Breakthrough Consumption Experience of SAP SolutionsReduce IT Costs/CAPEX for SAP, Customers and PartnersCONFIDENTIALThere are 3 trends behind Cloud ComputingIndustrialization of IT: standardizing and automating manual processes in the IT BusinessUtility Computing: from inflexibile and long-term contracts to metering of resource usage and payment based on usageOn Demand Fullfillment: from long running customer projects to immediate fulfillment of customer needs

This results in value-It increases R&D Efficiency as Software & Hardware provisioning does not require planning any more. It increases agility of R&D-These new capabilities allow defining an entirely new consumption experience of SAP solutions-In addition the high degree of efficiency in the Cloud Computing principles result in massive cost reduction for SAP, customers and Partners #Traditional Hosting vs. Amazon CloudHosting Costs of ERP for Development

Traditional HostingAmazon ec2Min Term500 / month0.30 / hourProvisioning TimeMin 1 week6 minTraditional Hosting SAP 2009 / SAP World tour / Page 9CONFIDENTIALWhen used 24/7, Amazon EC2 costs 1 Mio[SCN Members]> xxx Mio[SAP Users]GCS::RESTPlatforms

Processes & ThreadsMemoryBusiness ProcessesBusinessEventsPlatform::RESTPatchesIOSAPUpgradesUtilizationBillingMigrationOD/OPOD/OPExtensionsCloud Management Tools

StratusIBMHPBMCMicrosoftOD/OPSol ManCONFIDENTIALCloud ControllerCloud ManagementGlobal Cloud ServicesRevenue Share with Content and Service ProvidersUsage tracking for everythingService Registry, everybody can accessInsight:SLA tracking for achieving transparence in SLAs globallyReviews #Summary

This cloud strategy will revolutionize the way we do Business with our customer and partners.It will reduce TCO on all sides: customers, partner and for SAP itself.SAP will leverage the cloud for providing additional service offerings by SAP and partners.

SAP 2008 / Page 25CONFIDENTIAL SAP 2008 / DKOM 08 / Page 26Thank you!

SAP 2009 / SAP World tour / Page 26CONFIDENTIALDKOM 08 #SAP PartnersIntegrating providers forManagement Tools / ServiceNetwork Service / InfrastructureIntegration Service / InfrastructureBackup Service / InfrastructureCloud Processing Service / MachinesCloud Storage Service / InfrastructureVirtualization Solution ProvidersSecurity Enforcement Service / InfrastructureGRC Service / SolutionDB Service / SoftwareIT Process Automation Service / SolutionLoad Balancer Service / InfrastructureGuest OSGuest Hardwarea.s.o.Permutations possible e.g. Storage Infrastructure with Backup Service

SAP 2008 / Page 27CONFIDENTIALWhat SAP can doOnly SAP canEvolve SAP solutions to fully embrace virtualization and clouds Evolve SAP Business Models towards dynamic cloud environmentsReduce SAP Solution footprintProvide a new deployment channel for SAP solutions, which is highly automated and highly efficientleading to accelerated consumption of SAP and partner solutionsSAP can do bestAutomate SAP based IT processes like landscape provisioning and upgradesProvide guidance on offerings in the cloud / virtualization marketplaceBring service providers closer to customersin a highly automated and highly efficient wayleading to acceleration of SAP related projects for customersSAP can significantly contribute to Reach SLA levels in the cloud / virtualized environment comparable to traditional hostingIncrease the utilization of Customer Data CentersStandardization of interfaces to cloud and virtualization offerings SAP 2008 / Page 28CONFIDENTIALWhat you can do todayWhat can you already do today:Use virtualization technologies certified and provided by SAPVirtualization technology provided by technology partnersSAP Lifecycle Management tools (Adaptive Computing Controller, SAP Solution Manager, )Plan for organizational implications which is flexible enough for a later cloud usageAdmin skillsSecurity conceptsStandardized processesFinancial implications (Accounting, )

Be prepared for later cloud usage of On-Premise AppsImplement Virtualization & Cloud task force in your companyAn accounting modelSecurity Implications related to external cloud offering (prepare mid- and long-term strategy)Observe offerings (cloud provider, security provider, )Check local legal requirements (Personenbezogene Daten, ).Define a business case Optimize organization alignment (business and IT) to get benefit from proactive peak management.

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