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Introduction to SAP’s Cloud Strategy Peter Lorenz, EVP OnDemand Solutions Corporate Officer, SAP AG Orlando, May 2011

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Introduction to SAP’s Cloud Strategy

Peter Lorenz, EVP OnDemand Solutions

Corporate Officer, SAP AG

Orlando, May 2011

© 2011 SAP AG. All rights reserved. 2

Cloud Software EconomyNew Level of Your Business

Consumption based

CAPEX free

Easy to buy

„Apps“ on

platform

Hardware

Network

New reliable delivery

Integration

Best of both worlds

(OnDemand /

OnPremise)Collaboration &

ExtensibilityService

Cloud Providers

SpeedNew Business Apps

Collaborative

New UX

Mobile

Scalable &

Cost-efficient

Here to stay

Impact / Opportunity

Cloud Software Economy

...

Customer Needs are Driving Market TrendsOn Premise, On Demand and Cloud Co-Existence

• Hybrid business solutions and networks

are becoming the norm

• Companies will choose services

• for different purposes

• from both public and private clouds

• integrated with on-premise solutions

• Openness and ecosystem strength will be

key success factors for providers

• Orchestration of hybrid solution landscapes

will become key

• Collaboration is central aspect of cloud

applications

• Significant TCO reduction through

migration of existing ERP installations to the

cloud

Public Cloud

PrivateCloud

PartnerCloud

Local / OnPremise

© 2011 SAP AG. All rights reserved. 3

• SAP & partners provide blueprint and

best practices on how to evolve from

today‟s on premise installation to a

private cloud infrastructure

• Leverage public cloud infrastructure

for SAP Business Suite

• SAP‟s private cloud landscape

management system reduces

repetitive tasks to few hours, e.g. start /

stop system, copy system, provide new

client, …

• Significantly more cost effective use

of existing physical infrastructure

through virtualization

© 2011 SAP AG. All rights reserved. 4

SAP Business Suite in YOUR Private CloudEvolve an on premise infrastructure into a private cloud setup

© 2011 SAP AG. All rights reserved. 5

Cloud Requirements

Hardware Trends

SaaS

Public Clouds

Virtualization

Social appsAnalytical apps

Immediate

useViral

adoption

User-driven

purchase

Any device Pull Effect 1-Click

Install

Eco-System

Play Partner

solutions

Community

driven

Free &

Open

Service

MashUp “PaaS”

Cloud

computing

Hybrid Private Clouds

OnDemand

Channel

Partners

App Store Buying

Experience

Influencers Subscrip-

tion

Pay-per-

use

“Free” & Open

Source

Mashup

Multi-tenancy

In-memory database

New Ways to

Sell & Buy

Co-innovation &

Ecosystem Resellers

Solution Partners

Service partners

SAP Store at the core of an

e-channel for SAP

Consistent E2E experience

Cloud Ops. &

Infrastructure

On Demand

Solutions• SAP Business ByDesign

as OD suite

• LOB Solutions

• Analytics; Collaboration

In-memory ready cloud

Best service at Lowest Cost

Global – 7x24

© 2011 SAP AG. All rights reserved. 6

Our Strategy for SuccessFour Key Areas of Innovation and Investment

© 2011 SAP AG. All rights reserved. 7

Speed /

TCO / Scalability

SocialMobile

Insight / Decision

On Demand Solutions – “Natively” Built for CloudKey Design Principles

User Experience• Multiple Renderings on multiple devices

• UI Model independent from rendering

Simplicity• Roles concept & Intuitive navigation

• Business driven configuration

Personalization, Adaptability &

Extensibility

Network centric & Collaborative• Public semantic Model

• Mash Up of services & feeds

• Social network integration

Insight• InMemory analytics

• Procedural & algorithmic logic

Massively scalable• Multi Tenancy

• Minimal resource consumption

On Demand

SolutionsUser Experience

Adaptability

Functional Core Capabilities

LoB On Demand

SAP Sales OnDemand

SAP Travel OnDemand

SAP Service OnDemand

SAP Career OnDemand

SAP Carbon Impact

SAP Sourcing OnDemand

Suite On Demand

SAP Business ByDesign

SAPBusiness ByDesign

for Subsidiaries

Partner Add-ons

Personal Productivity

On Demand

SAP BusinessObjects

BI OnDemand

SAPStreamwork

Comprehensive Solution PortfolioSeamlessly Integrated for a Hybrid World

© 2011 SAP AG. All rights reserved. 8

© 2011 SAP AG. All rights reserved. 9

• Support for 35 End-to-End Business

Processes

• Intuitive User Experience

• Target Architecture & TCO ready for

volume

• Strong customer momentum

• Key releases in 2011

• FP2.6 – new countries and SAP Business

ByDesign studio

• FP3.0 – functionality enhancements, new

countries and ByDesign Studio enhancements

• SAP Business ByDesign as platform

for other On Demand solutions

• Key partnerships around SME and

subsidiaries

Comprehensive On-Demand PortfolioSAP Business ByDesign – Complete Suite

© 2011 SAP AG. All rights reserved. 10

SOD Video

© 2011 SAP AG. All rights reserved. 11

• SAP Business ByDesign is built on

a Platform for On-Demand

Applications

• Platform ensures consistency,

efficiency and ease of integration

for solutions

• Additional On-Demand Solutions

use the platform

• Sales OnDemand as first LoB

OnDemand Solution

• Joint foundation – technology

platform and Cloud operations

• Partner solutions will use this

platform as well

SAP Cloud / Operations

OD Technology Platform

ByDesign Application

Platform

Business ByDesign

Content

| Sales

OnDemand

SalesOD

Content

© SAP 2010, Peter Lorenz Page 11

Application Platform for SAP Business ByDesignServing On-Demand Solutions for Line of Business as well

...

SaaS

PaaS

IaaS

New Ways to

Sell & Buy

Co-innovation &

Ecosystem Resellers

Solution Partners

Service partners

SAP Store at the core of an

e-channel for SAP

Consistent E2E experience

Cloud Ops. &

Infrastructure

On Demand

Solutions• SAP Business ByDesign

as OD suite

• LOB Solutions

• Analytics; Collaboration

In-memory ready cloud

Best service at Lowest Cost

Global – 7x24

© 2011 SAP AG. All rights reserved. 12

Our Strategy for SuccessFour Key Areas of Innovation and Investment

© 2011 SAP AG. All rights reserved. 13

CO-INNOVATION WITH PARTNERSEXAMPLE: BYDESIGN SOLUTION PROGRAM

(Micro) vertical

Solutions

Mashups

Integrated

Software and

Services

Add-on

Solutions

Forms &

ReportsByDesign

Platform

Solution Reach

■ Build a vibrant partner ecosystem

current: 50 Resellers; 15 Solution

Partner (Pipeline: hundreds)

■ Increase solution reach with

additional functionality

■ Different extensibility use cases

■ 2010: Concept validation with

partners

■ 2011: Platform developer service

■ Development / test environments

■ SAP Business ByDesign SDK

■ Further services

© 2011 SAP AG. All rights reserved. 14

Platform-as-a-Service Offering for Solution PartnersDeveloping Add-Ons and Templates for SAP Business ByDesign

■ SAP‟s proven OnDemand Business

Application Platform

■ PaaS offering includes

■ Software Development kit

optimized for development

efficiency.

■ Public Solution Model ensures

stable access to existing

business capabiltiies

■ Life Cycle Management as part

of PaaS offering to ensure

update and continuous

improvements

■ Commercial Infrastructure as

new way to sell and buy

Application

Platform

(PaaS)

Core

Edge

BuildCertify &

Publish

Solution

Partner

Integrated into

Visual Stuido

Public Solution

Model

© 2011 SAP AG. All rights reserved. 15

Our Featured Co-speaker

Eric RenouardExecutive Director

Global SAP Technology

Copyright © 2010 Accenture All Rights Reserved. 16

Accenture SAP Business ByDesignStrategic joint program for go-to-market and

solution development

Strategy/market position

Build base capabilities

Go to MarketStart up

2010 2011

Enablement Enablement of

resources for GTM

and Solution

development

• Deep-dive

workshops with

SAP

• „SAP on Cloud‟

session at TechEd

• Comprehensive

ACN PoV on SAP

ByD; shared with

SAP

• SAP ByD

Solution Factory

launch in

Bangalore

• Methods,

estimation models

• Global training

across centers

Go-to-Market Large Enterprise (LE)

subsidiaries

Mid-market for

specific industry / geo

• Joint

announcement of

partnership at SAP

Influencer Summit

in CA

• Joint participation

at ASLC

conference in

Miami

• LE subsidiary

business case

• Joint go-to-

market planning

• 5 target

customers; First

pilot project

• SAP Sapphire

• Sales campaign s

for LE subsidiary

targeting over 150

joint clients

Solution

Development Micro-industry and

add-on solutions

• Assessment for

Chemicals template

and x-industry add-

on solutions

• Solution

development kick-

off for Chemicals

template and x-

industry add-ons

• Chemicals

template R1

• First add-ons on

SAP Store

• Assessment and

development of

other Industry

solutions

© 2011 SAP AG. All rights reserved. 17

Accenture’s first SAP Business ByDesign Add-on

© 2011 SAP AG. All rights reserved. 18

Accenture’s first SAP Business ByDesign Add-on

© 2011 SAP AG. All rights reserved. 19

Accenture’s first SAP Business ByDesign Add-on

New Ways to

Sell & Buy

Co-innovation &

Ecosystem Resellers

Solution Partners

Service partners

SAP Store at the core of an

e-channel for SAP

Consistent E2E experience

Cloud Ops. &

Infrastructure

On Demand

Solutions• SAP Business ByDesign

as OD suite

• LOB Solutions

• Analytics; Collaboration

In-memory ready cloud

Best service at Lowest Cost

Global – 7x24

© 2011 SAP AG. All rights reserved. 20

Our Strategy for SuccessFour Key Areas of Innovation and Investment

© 2011 SAP AG. All rights reserved. 21

Solution

Partner

Customer

SAP Store

Community

Application

Platform

(PaaS)

Solutions and

Services (SaaS)

Add-ons

Billing & Collection

Consume Remote Services

Integrate Remote Services

Publish

Cloud Computing Infrastructure

On Demand Lifecycle Management & Operations

External Web Services

Core

Edge

BuildCertify &

Publish UseSell &

Deploy

| Sales

OnDemand

Find &

Subscribe

Core Solutions

Pay & Usage

A Platform for Partners to Build and Sell Cloud Add-onsCovering development through sales and customer support

New Ways to

Sell & Buy

Co-innovation &

Ecosystem Resellers

Solution Partners

Service partners

SAP Store at the core of an

e-channel for SAP

Consistent E2E experience

Cloud Ops. &

Infrastructure

On Demand

Solutions• SAP Business ByDesign

as OD suite

• LOB Solutions

• Analytics; Collaboration

In-memory ready cloud

Best service at Lowest Cost

Global – 7x24

© 2011 SAP AG. All rights reserved. 22

Our Strategy for SuccessFour Key Areas of Innovation and Investment

© 2011 SAP AG. All rights reserved. 23

Cloud Operations & InfrastructureContinuous Investment into SAP Cloud

Highest Compliance Standards

ISO 27001, SAS 70 Type II, ISAE 3402 certificate

SAP Data Centers

SAP data center location in Germany

US data center to open in Q2 2011

APA in preparation

Scalability and In-Memory Ready

Scalable operations through full Multi-tenancy

enablement

Latest blade technology with 144 GB – 2 TB Main

memory

In-memory database will further improve

performance and reduce cost

Integration with Service Backbone

Continuous, proactive monitoring

SAP support network

ISO 27001certification

SAS 70 Type II certification

Energy efficiency certificate

“Premium Standard Data Center"