SAP Cloud Strategy


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December 09 Presentation to OMG

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  • When 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.
  • SAP Cloud Strategy

    1. 1. SAP Cloud Strategy - Timeless Software<br />Frank Stienhans on behalf of Kaj van de Loo<br />SAP<br />
    2. 2. Decades-Long RelationshipsWith the World’s Largest Enterprises<br />Trading Industries<br />Consumer Industries<br />Financial Services<br />85% of the Forbes 500 <br />Process Manufacturing<br />Services<br />PublicServices<br />DiscreteManufacturing<br />SAP is in a unique position to transform change into an opportunity for our customers<br />
    3. 3. Our Basic AspirationWhat we want to Achieve<br />Business Solutions that create<br />INSTANT VALUE TO PEOPLE EVERYWHERE<br />To deliver this, we need the ability to<br /><ul><li>Build diverse application content across roles, industries, geographies
    4. 4. Maximize its reach across all kinds of consumers
    5. 5. Deliver this in containersthat span multiple technology generations
    6. 6. Maximize the easeand efficiency and minimize the costand disruption of its construction, deployment, integration, support, change
    7. 7. While preserving the promise and integrity of our relationship to customers
    8. 8. Across generations of change</li></ul>Our endeavor is to deliver Timeless Software<br />© SAP 2009 / Page 3<br />
    9. 9. Evolving System LandscapesBeyond SOA<br />From system centric…<br />…to layered<br />?<br />Co-Existence<br />Harmonization, Adaptation, Integration, Unified Lifecycle Mgmt<br />On Demand<br />BusinessApplications &<br />Services <br />On Premise Business Applications <br />and Services <br />Virtualization<br />Dedicated<br />Resources <br />Shared <br />Resources<br />Cloud<br /><ul><li>Focus on individual systems
    10. 10. On premise only
    11. 11. Central ITonly
    12. 12. Each system has its own stack
    13. 13. Integration is mainly point-to-point
    14. 14. Models are solely descriptive
    15. 15. Each system has own lifecycle
    16. 16. Focus on business needs
    17. 17. Any deployment model
    18. 18. Reaching out to Lines of Business
    19. 19. Systems can share infrastructure
    20. 20. Integration is logicallycentralized
    21. 21. Models are executable
    22. 22. Lifecycle and change managed cross-system</li></ul>© SAP 2009 / Page 4<br />
    23. 23. Harnessing the CloudFor the Benefit of our Customers<br />Extend the reach of SAP systems through cloud based access, ultimately reaching everybody everywhere in entirely new ways<br />?<br />Co-Existence<br />Harmonization, Adaptation, Integration, Unified Lifecycle Mgmt<br />Offer a portfolio of valuable On Demand applications, ultimately leading to the next generation Networked Solutions with hybrid deployment models<br />On Demand<br />BusinessApplications &<br />Services <br />On Premise Business Applications <br />and Services <br />Virtualization<br />Dedicated<br />Resources <br />Shared <br />Resources<br />Cloud<br />Leverage cloud infrastructure to increase the business agility and to lower the TCO of our customers, ultimately enabling new types of applications<br />
    24. 24. SAP ActivitiesOn Premise Applications on On Demand Infrastructure<br />?<br />Co-Existence<br />Harmonization, Adaptation, Integration, Unified Lifecycle Mgmt<br />On Demand<br />BusinessApplications &<br />Services <br />On Premise Business Applications <br />and Services <br /><ul><li>Customers
    25. 25. Cloud infrastructures promise lower IT costs and higher business agility – very relevant attributes for SAP On Premise Solutions
    26. 26. First adopters experiment with SAP solutions in the cloud. POCs with selected customers.
    27. 27. Market
    28. 28. The cloud ecosystem is rapidly evolving. New cloud infrastructures and tools are appearing on the market.
    29. 29. Cloud infrastructures can be used today for non-mission critical use cases.
    30. 30. The offerings need to mature in the domain of IT Integration and SLA qualities, before being leveraged for mission critical scenarios
    31. 31. SAP
    32. 32. Since 2007 SAP is validating the usage of SAP solutions in cloud infrastructures, starting with
    33. 33. Management solutions for virtualized SAP landscapes, including cloud deployment, in development</li></ul>Virtualization<br />Dedicated<br />Resources <br />Shared <br />Resources<br />Cloud<br />
    34. 34. SAP ActivitiesOn Demand Infrastructure Technology and IaaS<br />?<br />Co-Existence<br />Harmonization, Adaptation, Integration, Unified Lifecycle Mgmt<br />On Demand<br />BusinessApplications &<br />Services <br />On Premise Business Applications <br />and Services <br /><ul><li>Partnerships with Technology Providers
    35. 35. SAP is working with infrastructure technology providers to further the development of On Demand infrastructure technology suitable for deployment of SAP applications
    36. 36. Partnerships with Service Providers
    37. 37. SAP is working with providers of infrastructure On Demand to further the availability of low TCO infrastructures for SAP applications
    38. 38. Standardization
    39. 39. Standardization of interfaces to On Demand infrastructure is in our customers’ and SAP’s best interest
    40. 40. SAP is among the original supporters of the Open Cloud Manifesto</li></ul>Virtualization<br />Dedicated<br />Resources <br />Shared <br />Resources<br />Cloud<br />
    41. 41. SAP ActivitiesOn Demand Business Applications, Tools, and Services<br />?<br />Co-Existence<br />Harmonization, Adaptation, Integration, Unified Lifecycle Mgmt<br />On Demand<br />BusinessApplications &<br />Services <br />On Premise Business Applications <br />and Services <br /><ul><li>Business ByDesign
    42. 42. Full extended business suite for SME provisioned On Demand by SAP
    43. 43. Large Enterprise On Demand
    44. 44. Native On Demand LOB applications for established markets (eSourcing, CRM…)
    45. 45. Business Intelligence On Demand
    46. 46. BI tools offered On Demand by SAP, e.g.
    47. 47. Information On Demand and other Services
    48. 48. Information and data such as benchmarks offered On Demand by SAP
    49. 49. Data quality services such as address cleansing offered On Demand by SAP
    50. 50. Business Communications Management
    51. 51. Contact center solution (from WICOM acquisition) offered On Demand by SAP
    52. 52. Other/Future</li></ul>Virtualization<br />Dedicated<br />Resources <br />Shared <br />Resources<br />Cloud<br />
    53. 53. SAP OpportunityHybrid Deployment Models<br />?<br />Co-Existence<br />Harmonization, Adaptation, Integration, Unified Lifecycle Mgmt<br />On Demand<br />BusinessApplications &<br />Services <br />On Premise Business Applications <br />and Services <br /><ul><li>Obvious opportunity for SAP: Complement On Premise offerings with integrated On Demand offerings
    54. 54. Suite/ERP for subsidiaries or business partners
    55. 55. Complementary applications, especially “cloud native” ones
    56. 56. Tools and services, especially “cloud native” and highly data dependent ones
    57. 57. Provided by SAP or partners
    58. 58. Extend qualities of On Premise solutions to the On Demand world
    59. 59. Lifecycle management
    60. 60. Compliance
    61. 61. Integrated processes
    62. 62. Master data management
    63. 63. Ultimately leading to Networked Solutions combining On Premise and On Demand components into a holistic solution</li></ul>Virtualization<br />Dedicated<br />Resources <br />Shared <br />Resources<br />Cloud<br />
    64. 64. SAP ActivitiesCloud Based Access<br />?<br />Co-Existence<br />Harmonization, Adaptation, Integration, Unified Lifecycle Mgmt<br />On Demand<br />BusinessApplications &<br />Services <br />On Premise Business Applications <br />and Services <br /><ul><li>Customers
    65. 65. Many SAP customers offer their customers, partners, and others access to their SAP systems, usually indirectly, to a very limited set of data/functionality, and not for a fee
    66. 66. BPO Offerings
    67. 67. SAP is not a BPO provider, but rather powers and supports BPO providers offering services on top of SAP applications
    68. 68. Portfolio includes Human Resources Outsourcing based on ERP HCM, Finance and Accounting/Procurement Outsourcing based on ERP and SRM, B2B Collaboration, and others such as Utilities and Real Estate Management
    69. 69. BPO providers typically offer cloud based access to their systems
    70. 70. SAP Opportunity
    71. 71. Increase the reach and usage of our applications by making cloud based consumption easier</li></ul>Virtualization<br />Dedicated<br />Resources <br />Shared <br />Resources<br />Cloud<br />
    72. 72. SAP ActivitiesWhat about PaaS?<br />?<br />?<br />Co-Existence<br />Harmonization, Adaptation, Integration, Unified Lifecycle Mgmt<br />On Demand<br />BusinessApplications &<br />Services <br />On Premise Business Applications <br />and Services <br /><ul><li>No current offering
    73. 73. An SAP platform should have the purpose of extending and complementing applications, not exist in isolation
    74. 74. Platforms one could imagine include:
    75. 75. Platforms to extend horizontal applications
    76. 76. Vertically oriented platforms, including industry specific frameworks and services
    77. 77. Platforms offered by one company, such as a bank, to its ecosystem of partners and customers</li></ul>Virtualization<br />Dedicated<br />Resources <br />Shared <br />Resources<br />Cloud<br />
    78. 78. Achieving Timeless SoftwareSAP‘s next steps in a nutshell<br />Enabling<br />Enabling change and integration<br />Enable our portfolio for key forms of external consumption<br />Extend end to end lifecycle management from on premise SAP to other vendors, legacy, custom, on demand, …<br />Manage the change of all containers and content: Different layers of the software stack, configuration and policies, master data and identity, processes, …<br />Provide better support for automated and integrated testing of all changes<br />Ensure compliance when implementing changes across systems<br />Evolve programming model <br />Enable dramatically higher efficiency and coherence across different types of content construction and different existing programming models<br />Evolve runtime <br />Enable application-optimized data management<br />Flexible deployment and optimizations across layers<br />Innovating<br />© SAP 2009 / Page 12<br />
    79. 79. © SAP 2009 / Page 13<br />Copyright 2009 SAP AGAll Rights Reserved<br />No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.<br />Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.<br />Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. <br />IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iSeries, pSeries, xSeries, zSeries, eServer, z/VM, z/OS, i5/OS, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation.<br />Linux is the registered trademark of Linus Torvalds in the U.S. and other countries.<br />Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries.<br />Oracle is a registered trademark of Oracle Corporation. <br />UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.<br />Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc.<br />HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology.<br />Java is a registered trademark of Sun Microsystems, Inc.<br />JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. <br />SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. <br />Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in other countries. Business Objects is an SAP company.<br />All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.<br />These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (&quot;SAP Group&quot;) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warrant.<br />