Cloud Overview


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  • Starting point to set the stageRecent survey data released in the last month, that compliments the direction SAP is taking.Expand, and reference the acquisition of SFSF and Ariba.
  • New data that also supports the demand for agility, speed, fleibility…In the early days of cloud adoption “Cost” was the prime reason for adopting cloud solutionsAccording to Forrester NOW CIO’s and IT executives No. 1 reason for cloud  Improve business agility.This was only considered by 32% of enterprises Forrester surveyed in 2009 as a key benefit of SaaS. Transition to next slide for SAP position 
  • At SAP we see the Cloud as a way to deliver new possibilities to our customers– that will help them run better, faster. These new possibilities include:New economics that make it possible to do more with ITMore closely aligning IT with business needs Greater business agility More fluid team collaboration Increased context aware decision makingSpeeding up the development and deployment of custom appsAccess to innovations from an ecosystem of independent software developers
  • More great perspective from Saugatuck:Most would agree that the cloud evolution will ultimately reach some larger percentage of cloud pure-play as highlighted in the graph. The flexibility of a “loosely coupled” application strategy, and a strong partnership with a vendor is critical to the success of this cloud journey. In addition - reference the co-innovation methodology, “state of mind” that is now the foundation of our cloud strategy moving forward. No vendor is in a better position than SAP to collaboratively innovate, and manage the evolution of business process requirements.
  • To rip out the old applications and servers and simply replace them with external cloud services usually does not create a good business case. To obtain business agility, companies would rather keep in-house solutions, streamline and consolidate them as best as possible, and then add new, innovative business processes with cloud services.Agility, speed, mobility…and increased usability requirements make coupling a cloud service back to the core architecture necessary. This helps a company maintain customer and user satisfaction, without disrupting the core…complimentary.
  • - Reference the value of innovation, and co-innovation with customers and partners. How SAP is leading the industry in the cloud here and integrating the cloud strategy collaboratively with CIO’s globally…establishing new standards, routes to value, and accelerating global business. -Reference recent SAPPHIRE NOW discussion with customers, and the value of the cloud community SAP is building. Between SAPPHIRE NOW, and SuccessConnect…no other vendor has assembled more cloud customers, users and partners.
  • Focus on solutions that help customers manage their most important assets: people, money, customers and suppliersDesign and deliver solutions as a loosely coupled SuiteCustomers can adopt at their own pace and their own wayWhen used together these solutions offer the value proposition of a suiteOffer standard integration with SAP Business Suite (on-premise) to support customers’ hybrid landscapesOffer unified and open platform for our customers and partners to create and run new apps in the cloud (and/or extend SAP cloud solutions) putting the "Business" back in Social Business.Continue to offer fully integrated suites for mid-market customers and subsidiaries of large enterprise (ByD) and small customers (B1 OnDemand)To deliver on the value of Cloud 2.0 for our customers, we will focus our effort in 4 key Line of Business areas where we see customer demand has shifted to the Cloud, which is applications designed to manage:People – where we are leveraging SuccessFactors’ leadership in delivering world class HCM solutionsCustomers – where we have launched the SAP Sales OnDemand solution as a new way to close dealsSuppliers – where we combine the capabilities of SAP Sourcing OnDemand, SAP Contract Management OnDemand, and Crossgate to provide customers with a new way to enable cost savings through sophisticated sourcing, comprehensive contract management and superior supplier managementMoney – where we bring SAP best practices to financial management in the Cloud. We give the ability extend applications in an open manner. These apps can be developed either by the customers themselves, or by partners.Show how customers can leverage investments on-premise with out of the box integrationOur goal is to help customers manage end to end processes – consequently we believe in a hybrid approach where On Prem investments link to cloud solutions seamlesslyShow how we are giving partners a choice to work with 3rd party PAASWith our approach, customers now have a one stop shop for their cloud applications – integrated with their on prem. They no longer need to look beyond SAP
  • SAP’s product strategy consists of 5 orchestrated pillars - Cloud, Mobile, Analytics, Applications, and In Memory database, all powered by HANA, and with one consistent GTM approach to meet the needs of customers in all the industries we serve.In this presentation, I’d like to focus on one of these pillars – the Cloud pillar - and give you an overview of our Cloud Strategy.
  • Although the market sees social, mobile and big data as separate trends– we see all of them as essential elements of our Cloud solutionsOur Cloud solutions are designed to work the way people do: social / collaborative, mobile and insightful
  • The 1st area of differentiation is to let you consume on demand software as you need to meet business needs.Design and deliver solutions as a loosely coupled SuiteCustomers can adopt at their own pace and their own wayWhen used together these solutions offer the value proposition of a suiteLet’s say you are a heavy equipment manufacturer just entered into a joint venture in China. You will need a procurement solution to help source supplies, financials to roll up to the parent, and talent management to ensure the new team is aligned with goals across the parent companies. The JV needs to be up and running in 90 days. With SAP you can
  • Our product strategy is differentiated by 4 key factors.The first is the fact that we are the only company that is purposefully designing native integration of solutions with each other and with on premise investments. We do this not only because we recognize the importance of your on premise investments, but also because we believe in the value of end to end business processes. Putting the "Business" back in Social Business.SAP will deliver a reasonable level of consistency in user & customer experience across all Cloud solutions, regardless of which technology they are built onAll solutions will share a common set of services e.g. identity, business objects etc.They will also provide a seamless UI experience and SSO to the end-userThey will communicate with each other (and with external applications) via shared services and web service APIsSAP believes in choice – one size doesn’t fit all – We have an open + 1 strategy of the whole stack from the infrastructure to screen/UI.  SAP offers its own platform SAP NW Neo or JPaaS for building java based applications. All our platforms (internal and platforms that will be exposed as a service) will be powered by in-memory and mobile first principle.We believe the “next generation cloud applications” will be built on heterogeneous technology ( similar to any Web 2.0 companies, Google, Facebook….etc) and connected through networksSAP will provide choice to customers and partners to use the technology they want to build and run new Cloud applications, and/or extend SAP solutions SAP offers its own Platform-as-a-Service (NetWeaver Neo) to customers and partners to build and run Cloud applicationsSAP platform capabilities are being wrapped into web services that can be easily consumed by other solutions, and evolve without negatively impacting these solutionsThese services can also be used by customers and partners together with 3rd party technologyto maintain the “integrated experience” with SAP Cloud solutions
  • The third area of differentiation is designing our products for people centric usability. Our solutions will have a consumer like user experienceOur solutions will also all be mobile enabled – mobile firstWe are designing in social collaboration into all of our solutions.A true social strategy is about empowering people to work from wherever they are, think and interact in new ways, tackle business challenges in new ways, and to connect more directly with each other and with the data that matters. SAP is unmatched in its enterprise footprint in terms of applications, data, and processes and is in a unique position to deeply integrate and embed social and collaborative technologies to help people work better together, whether in the cloud or on-premise. Only SAP can deliver a seamless social experience across an entire business process, a multitude of applications and data, and an extended network of employees, customers, and partners to enable business-critical work from anywhere and to eliminate social collaboration silos.
  • A forth differentiation I’d like to point out is the synergistic impact of our complete portfolio in strengthening each of the individual pillars. We will deliver LoB solutions as a loosely-coupledsuite of best of breed appsCustomers will adopt these solutions at their own pace and in their own wayWe stay committed to the value proposition of the suite, and will offer across all of our solutions:One throat to chokeConsistent user experienceOne source of truthProcess integrityWe are the only company that can combine and orchestrate SAP’s unparalleled application leadership, our leadership in Mobile platforms, and Analytics with our Cloud offerings to give customers a true advantage through IT.
  • Cloud Overview

    1. 1. Developing Cloud StrategiesBridging the gap between IT and Line of BusinessSven DeneckenSAP, Vice President, Strategy and Co-Innovation
    2. 2. Drivers to the CloudAccording to a recent Saugatuck Technology survey, CIOs and senior business leaders see the following drivers to theCloud: 61% see mobile devices significantly improve value and usefulness of Social Cloud solutions 65% agree, that the most important long-term benefits of Cloud are greater business flexibility and agility vs. cost savings 46% agree to the statement, that embedding “social” capabilities into important business workflows is critical to their company’s success SAP will deliver the next generation Cloud:  Consumer-like user experience with “mobile first” development approach  Support greater business flexibility and agility via rapid innovation cycles with significant customer co-innovation  Social collaboration is an embedded , integral part of our product design  Additionally –  Real-time data and content, B2B exchanges, and analytics  Open integration for heterogeneous IT environments, in addition to native point-to-point integration with SAP solutions  Harmonized user experience, data models and processes across solutions without losing flexibility and speed Source: Saugatuck Technology, 2012 Cloud Business Solution Survey, Global, N-228 (Feb 2012)© 2012 SAP AG. All rights reserved. 2
    3. 3. Top benefits companies see in Cloud Computing are changing over timeSource: Forrester Research, The Changing Cloud Agenda, Holger Kisker, Ph.d., April 24, 2012© 2012 SAP AG. All rights reserved. 3
    4. 4. The Cloud helps SAP help customers run better, faster  At SAP, we see the Cloud as a way to deliver new possibilities to our customers that will help them run better, faster.  Designed the way people work  Speed up custom app development SAP Cloud  New cloud economics Benefits  More closely align IT with business needs  Greater business agility  More fluid team collaboration  Increased context aware decision making  Access to partner innovations© 2012 SAP AG. All rights reserved. 4
    5. 5. After the storm – the shift to the Cloud acceleratesThrough 2016, Hybrid-Cloud becomes the enterprise platform of choice – a transitional platform, however, enroute to a future dominated by public and private clouds.By 2016, 75 percent or more of NEW enterprise IT spend will be Cloud-based or Hybrid.Source: Saugatuck Technology My company’s preference for deploying new business software (on a A cornerstone of SAP’s cloud strategy is to enable our customers to adopt continuum from On-premise to Hybrid-Cloud to pure-play Cloud) will be: the cloud in an incremental, hybrid solution model  Protect and leverage existing investments  Support change without disruption  Provide customers with the best of both worlds We are focused on delivering four high-value Line of Business solutions for HCM, FIN, Sales and Procurement  All solutions can be consumed at a company’s pace – “Loosely Coupled”  All solutions connect and integrate through open, Cloud-based integration for SAP and 3rd party Cloud solutions as well as existing on premise systems  All solutions can be tailored to customer’s needs, with industry-specific capabilities to be added via extension frameworks without losing the virtues of the Cloud  Provisioning of out-of-the box, extensible content and tools to simplify and accelerate Cloud integration  Fully enabled ecosystem to support our customers in their adoption of the Cloud Source: Saugatuck Technology, 2012 Cloud Business Solution Survey, Global, N-228 (Feb 2012)© 2012 SAP AG. All rights reserved. 5
    6. 6. Cloud deployments increasingly focus on business process innovation Forrester identifies the following trends, valid for companies in more mature and industrialized IT markets in North America and Europe:• Companies improve the core business processes with new SaaS functionality• Companies are using cloud services for new, innovative technologies• Companies subscribe to Cloud services to improve business user satisfaction Source: Forrester Research, The Changing Cloud Agenda, Holger Kisker, Ph.d., April 24, 2012 © 2012 SAP AG. All rights reserved. 6
    7. 7. Adjusting the Cloud StrategyCIOs need to build their cloud strategy based on business agility and innovation.While cost considerations remain to be an important element of any cloud business plan, CIOs need tobuild their strategy around existing assets and complement these assets with new, innovative businessfunctions from cloud service providers that can be quickly implemented to increase business agility.CIOs should discuss collaborative cloud opportunities with their peers.Together with their business partners, CIOs should identify B2B processes that could benefit fromcloud collaboration services and build an ecosystem of industry and IT partners that are able to buildand operate such a collaborative business platform.Source: Forrester Research, Inc. Source: Forrester Research, The Changing Cloud Agenda, Holger Kisker, Ph.d., April 24, 2012 © 2012 SAP AG. All rights reserved. 7
    8. 8. SAP’s focus in the Cloud – Design Principles People Open Centric Integration Customers People Money SAP & Ecosystem Hybrid with existing Apps On-Premise Suppliers One Cloud Platform, Social, Mobile, Big Data© 2012 SAP AG. All rights reserved. 8
    9. 9. The SAP product strategy embraces the Cloud Cloud 24 Industries 11 Lines of Business Mobile Analytics Go to Market Applications Database and Technology Powered by SAP HANA© 2012 SAP AG. All rights reserved. 9
    10. 10. SAP is strongly focused on Cloud Computing SAP Cloud Solutions Choose from a leading portfolio of cloud-based solutions designed to work the way people do: collaborative, mobile and insightful. Built with one consistent Cloud architecture, social and 24 Industries 11 Lines of Business Mobile scalable – leveraging the full power of SAP HANA Analytics Go to Market Applications Database and Technology Powered by SAP HANA© 2012 SAP AG. All rights reserved. 10
    11. 11. The SAP Cloud Difference 1. Our solutions are “loosely coupled” - they can be consumed as you require, at your own speed - to meet your specific business needs Suppliers Customers Financials People© 2012 SAP AG. All rights reserved. 11
    12. 12. The SAP Cloud Difference 2. All SAP cloud solutions will leverage and extend your existing on premise investments, with a focus on end to end process management Money People Customers Suppliers One Cloud Platform, Social, Mobile, Big Data On Premise Investments© 2012 SAP AG. All rights reserved. 12
    13. 13. The SAP Cloud Difference 3. Our solutions offer consumer-grade user experience and are people centric© 2012 SAP AG. All rights reserved. 13
    14. 14. The SAP Cloud Difference 4. Only SAP combines: + + Application leadership Mobility Open +1 platform competitive + = advantage for customers and partners Analytics Cloud© 2012 SAP AG. All rights reserved. 14
    15. 15. Demo
    16. 16. Thank You! @SDenecken