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SAP on AWS AIG’s Journey to AWS running SAP HANA - ENT202 - New York AWS Summit

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In order to increase business agility and reduce costs, a large number of enterprise customers are moving their entire SAP landscapes, including their production environments, to AWS. Some examples of enterprise customers running their core businesses on AWS are BP, Kellogg's, Brooks Brothers, and AIG. In this session, learn how SAP customers are running mission-critical workloads on AWS, and understand how we guide Fortune 50 companies as they rapidly adopt emerging technologies and accelerate greater innovation on AWS.

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SAP on AWS AIG’s Journey to AWS running SAP HANA - ENT202 - New York AWS Summit

  1. 1. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Carl Bachor SAP Sales Leader, Amazon Web Services Mick Scott, CIO, Architecture, AIG Rajesh Salaria, Director Finance Operations, AIG ENT202 SAP on AWS: AIG’s Journey to AWS Running SAP HANA
  2. 2. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. The Alliance CustomerAdoption 2008 SAP as a Customer S/4 HANA SAP IQ / ASE SAP Business Suite HANA One HANA Developer Edition A1 / B1 RDS Solutions BOBJ SAP HANA for B1 BW on HANA BW on HANA (4TB) Today X1 (2TB) BW/4 HANA X1 (14 TB) X1e (4TB) HEC on AWS SCP on AWS FAST Migrate Engineering Milestones SAP on AWS BW/4 HANA X1 (50 TB) Hybris on Aurora FAST Migrate ASE on MP Nitro (C5 / M5) for SAP NS2’s Secure HANA Cloud HANA as a Service SCP | AWS Interoperability EC2 Bare Metal for HANA 2016 2017 2018 SAPGUI on Amazon AppStream
  3. 3. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. One-way or two-way doors… Traditional infrastructure barriers present significant hurdles in accelerating the speed in which SAP customers innovate. SAP on AWS changes the equation by enabling you to experiment and operate without compromises…
  4. 4. © 2017, Amazon Web Services, Inc. or its Affiliates. All rights reserved. Self-service platforms without compromises We are creating powerful self-service platforms that enable thousands of people to boldly experiment and accomplish things that would otherwise be impossible or impractical.
  5. 5. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. The AWS SAP 360o Strategy Transform to the SAP Digital Core faster Extend SAP joint interoperability solutions and services Integrate SAP SaaS by enabling the connected enterprise Enable SAP solutions through the certified AWS partners Re-platform to achieve immediate cloud benefits without disruptionBPO/AMS
  6. 6. © 2018, Amazon Web Services, Inc. or Its Affiliates. All rights reserved. AIG’s journey to AWS running on SAP HANA
  7. 7. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Disclaimer American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today AIG member companies provide a wide range of property casualty insurance, life insurance, retirement products, and other financial services to customers in more than 80 countries and jurisdictions. These diverse offerings include products and services that help businesses and individuals protect their assets, manage risks, and provide for retirement security. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange. Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIGinsurance www.twitter.com/AIGinsurance | LinkedIn: www.linkedin.com/company/aig. These references with additional information about AIG have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. The AIG logo is a trademark of American International Group, Inc. All rights reserved. All other product and company names are trademark or registered trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.” The views expressed in this presentation are those of the speakers and do not represent the views of AIG.
  8. 8. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Agenda 1 2 3 4 About us Vision Recommendations 5 What’s next Roadmap & outcomes
  9. 9. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. AIG's journey to SAP HANA and AWS American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today we provide a wide range of general insurance, life insurance, retirement products, and other financial services to commercial and individual customers in more than 80 countries and jurisdictions. Mick Scott, CIO Architecture Rajesh Salaria, Director Finance Operations General Insurance Life and Retirement InvestmentsBlackboard
  10. 10. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Why are we transforming? How are we transforming? Improved customer experience Data-driven insights Increased speed to market Operating stability and security Cultivate skilled and engaged employees who will add value as trusted partners and subject matter experts Emphasize data as a business asset and provide analytical platforms and tools to improve decision-making capabilities Deliver quality technology that will enable business capabilities, and do so in a timely and cost effective manner Modernize applications and infrastructure to deliver value through fit-for-purpose solutions while ensuring operating stability AIG’s modernization program
  11. 11. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. cost model to flex with consumption and need build times now 1 hour, reduced from two months application-level disaster recovery at near-zero cost leverage multi-data container concept to host multiple SAP instances on a single HANA database ~$8M annual run rate reduction from reduced hosting costs and elimination of DB2 runtime fees 40% increase in process performance cycles 71% reduction in SAP database size real-time, self-service reporting What have we done? SAP HANA Align to SAP’s software development strategy AWS Implement a variable cost model with greater flexibility to support AIG’s dynamic business needs ▪ Performance: ▪ Architecture: ▪ Availability: Improved User Experience ▪ Variability: ▪ Agility: ▪ Resiliency: ▪ Redundancy: ▪ Cost: Flexible Low Cost Operations “Improve capabilities at reduced costs” AIG’s modernization program
  12. 12. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. SAP HEC Proof of Concept Benchmarked system performance and network latency when hosting one of AIG’s core SAP accounting systems in SAP’s HANA Enterprise Cloud (SAP HEC) 2012 BW on HANA Acquired BW on HANA to create a high performing analytics platform for finance using an in-memory HANA database 2014 Suite on HANA Acquired SAP SoH (Suite on Hana) to align with SAP’s future software development strategy Implementation Re-platform existing AIG Finance Warehouse from DB2 to HANA [on premises] SAP HEC Low Risk Pilot Re-platform AIG’s SAP Governance Risk and Compliance (GRC) system from DB2 to HANA and migrated from on premises to SAP’s HANA Enterprise Cloud (SAP HEC) SAP HEC Constraints Determined SAP HEC unable to support non-HANA components that must be colocated with the HANA system Cloud Hosting RFP Participated in Cloud Hosting RFP lead by AIG Technology Services Cloud Hosting Selection Selected AWS as AIG’s SAP cloud hosting provider despite AWS’ limited experience hosting SAP HANA; made BIG BET AWS would innovate at the pace AIG requires Cloud Hosting Partners Partnership with AWS and 2nd Watch for security, legal and regulatory reviews 2015 2016 2014: HANA Commitment 2015: SAP Cloud PoC, Pilot, and Pivot 2016: AWS Cloud BIG BET, Contracts & Planning 2017-18: Execution AIG’s SAP modernization roadmap
  13. 13. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. 2Q 2017 US CD 04/17/2017 Core Applications Governance Systems PORTAL 08/14/2017 GRC 07/01/2017 EMEA CD/RI 06/12/2017 Central Systems 3Q 2017 SOLMAN 06/19/2017 4Q 2017 1Q 2018 SAP-PO 10/09/2017 SAP FIORI 11/13/2017 Brazil RI 10/23/2017 13 planned migrations to HANA hosted in Amazon Web Services (AWS) over 13 months G Ledger 03/11/2018 BW/BPC 05/14/2018 MDG 11/27/2017 2Q 2018 AIG’S SAP modernization roadmap Legend DB2 on premises → HANA in AWS HANA in HEC → HANA in AWS HANA on premises → HANA in AWS
  14. 14. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY Portal (8/14) US CD (4/14) EMEA CD/RI (6/12) GRC (7/1) SOLMAN (6/19) SAP PO (10/9) Brazil Re (10/23) SAP FIORI (11/13) MDG (11/27) ECC GL (3/12) BOBJ (5/14) BW/BPC (5/14) 2017 Legend 1 1 12 11 Cloud to AWS On premises to AWS Unicode EHP Upgrade HANA 10 DB2 on premises → HANA in AWS HANA in HEC → HANA in AWS HANA on premises → HANA in AWS AWS Announcement NZDT 1Tb 2Tb 4Tb 2014: HANA Commitment 2015: SAP Cloud PoC, Pilot, and Pivot 2016: AWS Cloud BIG BET, Contracts & Planning 2017-18: Execution MAY-2016 SEP-2017 2018 AIG’s SAP modernization roadmap
  15. 15. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Real-time analytics Real-time applications Real-time platform Enable operational reporting In-memory computing Query performance boost Process acceleration 40% BATCH Scalable Operational agility Encrypted database & backups Data compression 71% • Introduced real time reporting (OLAP) from ECC and eliminated BW system • Runtime reduction in ECC of Trial Balance report from 20 min to 8 sec Reduced from 3 to 1 tier application platform Real-time HA/DR Application-level DR Cold DR model Real-time infrastructure On-demand infrastructure Automated provisioning High availability Compliant • 40% Reduction in daily batch runtime for Collections & Disbursements • Encrypted database and backups • 71% reduction in the database size using SAP HANA compression • Near-zero DR footprint – data replication across region and DR server build on demand using automated scripts • Automated provisioning of new infrastructure (2 months to 2 days) • Servers: 99.99% availability • Storage: 99.999999999% availability AIG’s SAP modernization business & technology outcomes
  16. 16. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Proper Prior Preparation Prevents Disaster [P4D] • We began with proof of concepts (sandboxes) that tested HANA performance and network latency between on-premises source system and SAP cloud applications. We then moved to an SAP production pilot supporting a non-critical system • Our delivery method was a highly repeatable process encompassing 5 implementations per system: 4 non-production migrations (SBX, DEV, QA, and pre-production) and then production. Communications • We emphasized early engagement with our business partners to gain their active endorsement and participation. Our marketing message was “increased business capabilities at lower costs.” Partnerships • It was important to select the right partners to reduce execution risk, empower our internal teams to learn from industry leaders, and apply those learnings to future public cloud initiatives (SAP MaxAttention, AWS, 2nd Watch). Evergreen Approach • The foundation for our success was set years before the project. Our investment in the SAP Learning Hub and internal goal setting created highly skilled employees with HANA and cloud certifications that were able to execute the migrations with no external consulting. Benefits Realization • We made the commitment to deliver the project with no additional funding – this required us to our execute initial system early in the budget year and then use the incremental cost reductions to fund our ongoing efforts. We also prioritized our DB2 systems to accelerated the elimination of duplicative DB runtime license fees. What worked for AIG
  17. 17. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. S/4 HANA • Our SAP ECC General Ledgers contain customizations that compensate for missing sub-ledger functionality. All of the customizations would need to be retained in the general ledger if we were to implement S/4 HANA today. For that reason, we have elected to delay our S/4 HANA implementation until the sub-ledgers are remediated allowing the SAP general ledger customizations to be decommissioned prior to S/4 HANA. Leverage the scalability of the HANA in AWS Platforms • Consolidate two SAP ECC General Ledgers (Oracle DB / on-premises) into the ECC General Ledger on HANA in AWS • Consolidate the non-SAP Life Insurance Collections system into the US SAP Insurance Sub-Ledger on HANA in AWS • Consolidate multiple non-SAP General Insurance Collections systems into the US SAP Insurance Sub-Ledger on HANA in AWS • Deploy Reinsurance Accounting functions residing in the EMEA SAP Insurance Sub-Ledger on HANA in AWS to all countries SAP Analytics Cloud • Move to a flexible cost model (as a Service) • Decision Support ▪ Accelerate business measurements and decision-making (P&Ls and KPIs) by enabling straight through processing from source to report, and seamless drill back from summarized financial balances to source transaction details ▪ Enable self-service data exploration and visualization ▪ Publish machine insights that highlight key expense drivers • Planning ▪ Establish a simplified and effective discipline for planning, budgeting, and forecasting leveraging predictive analytics and driver-based scenarios What’s next for AIG
  18. 18. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Conclusion
  19. 19. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon EC2 Instances for SAP HANA 6 9 12 TBA ✓ EC2 instances in AWS Regions and Availability Zones ✓ Available in Amazon VPC ✓ API driven ✓ Operate through the AWS Management Console & AWS CLI/SDK ✓ Direct hardware access in case of Bare Metal instances ✓ Elastic Storage Capacity with Amazon EBSEC 2 I n s t a n c e s ( V i r t u a l ) Management, Security, and Monitoring Storage HANA Instances Network Hypervisor Management, Security, and Monitoring Storage HANA Instance Network EC 2 B a re M e t a l I n s t a n c e s .244 .488 1 2 4 R3 R4 X1 X1 X1e TB Available Now H2 2018
  20. 20. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. AWS for SAP: The builders platform “Build On” a Strong Foundation Continuous Price/Performance Improvement Optimized User Experience Industry-Leading HANA Platforms EC2 C5 & M5 Instance Families • Based on Intel Xeon Platinum Processors (Skylake) • Powered by the Nitro system • M5 provides 19% SAPS/vCPU gain over M4 C5 provides 26% SAPS/vCPU gain over C4 • SAP Certified EC2 Instances in the Cloud TB • Fully managed application streaming service • Run SAP GUI in a browser • (macOS, Windows, Chromebook, Linux) • Secure Setup and Configuration • Low-latency experience • Centrally manage and stream SAP GUI at scale AWScloud AvailabilityZone Publicsubnet Privatesubnet SAPapplicationsSAPgateway RFCHTTP/ s Network loadbalancer (Internal) Lambdaproxy API gateway AppSync Cognito HTTP/ s HTTP/ s Mobilehub HTTP/ s MobileApps Websites VPClink Other Services Voice IoT HTTP/ s HTTP/ s Applicationloadbalancer (External) Other webservers oData
  21. 21. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. OLTP SAP | AWS interop Innovate at start-up like speed SAP Cloud PlatformOLTPBigData Third-Party Applications CORE SERVICES SECURITY & COMPLIANCE MANAGEMENT TOOLSINFRASTRUCTURE IoT Artificial Intelligence DevOps Enterprise Apps • Machine Learning • Image Recognition • Text to Speech • Conversational Interface • Deep Learning Frameworks • Rules Engine • Device SDK • Device Gateway • Registry • Analytics • Local Compute • App Streaming • Communications • Email • Sharing and Collaboration • Workflow • Mobile Services • API Gateway • Build & Test • Application Lifecycle Management • Containers • Serverless Compute Accelerating Pace of Innovation: 1430 new features/services launched in 2017 Most robust, fully featured SAP technology infrastructure platform SAP HANA as a Service S/4 BW/4 SAP Cloud Platform: Build, Extend, and Innovate SAP Applications w/ ease
  22. 22. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Submit session feedback 1. Tap the Schedule icon. 2. Select the session you attended. 3. Tap Session Evaluation to submit your feedback.
  23. 23. Learn more: aws.amazon.com/sap Questions: SAP-AWS@amazon.com
  24. 24. Submit Session Feedback 1. Tap the Schedule icon. 2. Select the session you attended. 3. Tap Session Evaluation to submit your feedback.
  25. 25. © 2018, Amazon Web Services, Inc. or its affiliates. All rights reserved. Thank you!

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