L1_S4HANA_Private_Cloud.pptx

S/4HANA GTM & Solution Management
SAP S/4HANA, private cloud edition
Solution Overview

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© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Yesterday’s ERP could not keep pace…even before COVID-19
60%
Of human tasks will be
automated by 2025
Strategic Priorities
Outcome-based Engagements
• Move to outcome- or performance-based
engagements
• Adopt intelligent bid management to
increase predictability and decrease risk
20%
Of revenue will come
from products <3 years
old by next year
Enabling New Business Models
• Monetization of data
• Innovative partnerships
• Efficient order fulfillment and delivery
Serving the Segment of One
• Provide solutions that fit the needs of
a single customer
• Capture customer requirements and
enable mass customization
Quickly adapting to change –
foreseen and otherwise –
is the critical, central capability
for every organization.
Systems and technology must
be an enabler to this change,
not an impediment.
Simon Ellis
Program Vice President, IDC

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Today: An SAP S/4HANA offering to address the new reality
Value
• Shift from Capex to Opex
• Elastic consumption-driven pricing
• Reduce existing maintenance cost
• Utility level resilience
Simplicity
• Simplified governance and delivery
• Software provider acts as orchestrator
• One hand to shake, one SLA
• Retain existing SAP ERP investments
with a simplified conversion path
Innovation
• Shorter innovation cycles
• Lower investment threshold
• Faster ability to scale up or down
• Leverage hyperscaler infrastructure
+ +

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SAP S/4HANA Private Cloud: Traditional flexibility & scope + cloud value
SAP S/4HANA Private Cloud
Designed to provide innovation and
cloud value while allowing customers
to retain their investments by converting
their existing system/s
 Rapidly convert your existing ERP/ECC
environments to a modern, cloud-based
architecture
 Safeguard the investments you have
made to tailor your ECC landscape
 Convert to operational expense with
a subscription-based commercial model
 Transform to a pure SaaS-based
landscape at your pace
 Extend and customize your ERP
landscape with modifications and
partner add-ons
• Full S/4HANA scope including LOB
and industry processes, supporting
25 industries
• Code enhancement & code
modifications
• Expert configuration via full
IMG access
• Operating Expense via subscription-
based commercial model

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• Why SAP S/4HANA, private cloud edition?
• Scope
• Comparisons
• Summary
Agenda

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Address Business Objectives
• Greater resilience and agility as you
navigate rapidly changing market conditions
• Focus on operating your core business,
instead of operating your IT systems
• Single vendor accountability for ERP
license, hyperscaler infrastructure, and
operations
Why SAP S/4HANA Private Cloud?

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Address Strategic Objectives
• Move to the cloud at your own pace with a
“concierge service”
• Retaining investments in existing SAP ERP
landscape
• Transition from CapEx to OpEx with a
single subscription

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Address Product Needs
• Scope and flexibility to enable mission
critical processes
• Utilize existing enhancements and partner
add-ons for competitive differentiation
• Resilience and low-TCO infrastructure

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SAP S/4HANA Private Cloud is designed to maximize customer ROI
Attractive subscription pricing and generous cloud
extension policy resulting in ~20% lower TCO1
compared to on premise deployment
Lower TCO
High flexibility
All-in user-based pricing and hyperscaler infrastructure
allow quick scaling while eliminating sticky CAPEX
and in-house deployment costs (typically account for
30-50% of TCO1)
Faster time to go live
Cloud-based deployment allows for much faster
implementation and realization of business benefits,
typically within 6 to 12 months, depending on the
complexity
Great ROI -30-
50%
-20%
6-12
months
1. Based on assessment of average 5-year TCO cost

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• Why SAP S/4HANA, private cloud edition now?
• Scope
• Comparisons
• Summary
Agenda

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SAP S/4HANA, private cloud edition – Key benefits and values
Technical Benefits Operational Benefits
Business Benefits
• Full scope of SAP S/4HANA
scope incl. LOB and industry
processes, supporting 25
industries
• Wide range of defined
partner add-ons
• 64 Country/Region
versions in 39 languages
• Your SAP concierge service
to move to the cloud
• Access to S/4HANA
Extensibility Framework
• Side-by-side and In-App
extensions
• Code enhancement &
code modifications
• Expert configuration
(full IMG access)
• Scalable platform
• Resilience and TCO of
hyperscaler infrastructure
• Technical operations done
by SAP
• Upgrade installation on
customer request
Strategic Benefits
• System conversions and
brownfield migrations into
the cloud
• Application and technical
operations out of ONE hand
• Safeguarding prior
investments into
SAP systems

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One Commercial Construct: ERP, Infrastructure, and Technical Services
Traditional
Advisory &
Implementation
Services
Application
Management
Services
Software
+ Support
Technical
Managed
Services
Infrastructure
Management
SAP S/4HANA
Private Cloud
+
Advisory &
Implementation
Services
Application
Management
Services
Software
+ Support
Technical
Managed
Services
Infrastructure
Management
+

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SAP S/4HANA
Private Cloud
+
Advisory &
Implementation
Services
Application
Management
Services
Software
+ Support
Technical
Managed
Services
Infrastructure
Management
+
SAP S/4HANA, private cloud edition: SAP-provided scope
Infrastructure Management:
• Low TCO
• Highest Flexibility
• Best scalability option
• Availability
• Data Center Availability
Technical Managed Services:
• High Availability & Business Continuity
• SLA: 99,5% for productive system, 95%
for non-productive systems
• Services described by Roles &
Responsibilities matrix
• Wide range of foundational technical
service delivery
• Technical System Operations
• Technical Landscape Deployment
• Technical Upgrade installation
• Continuous Service planning & review
• 24*7 service delivery for PRD, 24*5 for
non-PRD
• Setup of RFC connections
Functional Scope:
• SAP Software + Enterprise Support
based on SAP S/4HANA Enterprise
Management (On-premise)
• Cloud Connectors: SAP Ariba, SAP
SuccessFactors, SAP Concur, SAP IBP
• SAP Adobe Document Services for
printing
• SAP S/4HANA LoB & Industry Add-Ons
• Partner Add-Ons are categorized as
follows:
• Available on SAP price list +
S/4HANA certified: Roadmap of
commercialized Add-Ons available
• Available on SAP price list + not
S/4HANA certified: Currently not
allowed
• Not available on SAP price list +
S/4HANA certified: Can be installed
and managed on customers
responsibility*
• Not available on SAP price list +
not S/4HANA certified: Currently
not allowed
1 2
3
1
2
3

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SAP S/4HANA, private cloud edition: Service Partner-provided scope
Services Provided by
Service / SI Partners:
Typical Advisory & Implementation Services
• Value Discovery & Business Case
• Application Implementation
• Industry/LoB Practices & Business Process
• Application Extension & Application Integration
• System Conversion and Selective Data Transition
• Custom Development
• Data Harmonization and Analytics
Typical Application Management Services:
• SAP Fiori Operations
• Application Security Updates
• Regression Testing
• Data Volume Optimization
• Data Quality Optimization
• System Health Monitoring
• Release Version Upgrade
• Cloud Integration Testing
• SAP Cloud Platform Integration Services
• Functional Application Management
• Technical AMS (output m, batch m, user m)
Examples of Service
Partners Capable of
Providing these Services:
Partners should supplement or adjust as needed
+
+
SAP S/4HANA
Private Cloud
Advisory &
Implementation
Services
Application
Management
Services
Software
+ Support
Technical
Managed
Services
Infrastructure
Management

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• Scope
• Comparisons
• Summary
Agenda

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Our strategic choice for companies
ready to embrace the future of ERP
with a new implementation and
pre-defined content
SAP S/4HANA: The right fit for every organization
SAP S/4HANA Public Cloud SAP S/4HANA Private Cloud SAP S/4HANA On-Premise
Complete, modern, SaaS ERP Cloud value, traditional flexibility & full scope Total control and individualization
As a Product
As a Service
ONE Data Model • ONE Semantic • ONE User Experience
cloud value while allowing customers
to retain their investments by
converting their existing system(s)
Innovative, intelligent ERP for
customers that require maximum
control of their ERP system,
usually in their own data centers
or with existing IaaS partnerships

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SAP S/4HANA Offerings – How do customers choose?
Customers who desire:
• A complete, modern, native SaaS ERP
solution with the full benefits of
public cloud
• The fastest path to innovation and
the lowest TCO
• A clean Cloud ERP solution without
converting old/legacy ERP processes
and configurations.
• To reimagine business processes and
take advantage of standardized best
practices
Customers who desire:
• A rapid conversion of their existing
ERP/ECC environments to a Cloud-based
architecture
• The flexibility of a traditional on-premise
application as well as subscription-based,
cloud economics
• Gradual transformation to a pure SaaS
landscape at their own pace
• Full, extensive, ERP functionality including
partner add-ons with the ability to extend
and enhance
Customers who require:
• Complete control and ownership of
their application and data landscape
• The ability to manage unique, customer-
specific needs which cannot be
addressed by public cloud or private
cloud offerings
• The utilization of their existing IT
departments, infrastructure, budget,
and IaaS vendor agreements
• Specific compliance with industry- and
country-specific regulatory requirements

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License Model Software Subscription * Perpetual Software
Implementation Partner / SAP / Customer
Content Ownership SAP / Partner / Customer Partner / SAP / Customer
Application Management
Services
SAP * Partner / Customer / SAP ECS
Content Lifecycle
Management
SAP * Partner / Customer / SAP ECS
Product Support SAP * SAP * SAP / Resell Partner
Technical Operations SAP * SAP * Partner / Customer / SAP ECS
Infrastructure Hyperscaler / SAP *
Hyperscaler / SAP*
customer DC on request**
Customer DC / Hyperscaler / SAP / Premium
Supplier / Partner
* Included in SAP Subscription
SAP S/4HANA Cloud family – License, Delivery & Operations View
** part of the Cloud@customer offering at additional charge

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Deployment Type New Implementation Conversion, Selective Data Transition, (New Implementation)
Extensibility
Within S/4Extensibility Framework,
embedded custom code
and SAP Cloud Platform
Customize & Extend
Modifications Not allowed not recommended, but allowed
Release Upgrades
included and mandatory
(limited flexibility option)
Customer owned, installation
on request included
not included
Upgrade entitlement 2 times per year yearly yearly
Minimum Upgrade
frequency
2 times per year
5 years (stay in mainstream
maintenance)
not limited (maintenance to be considered)
Model Company
Enterprise Mgmt Layer Included and
optional
MC not included, Best Practice
activation included and optional
not included
3rd Party Add-ons Certified Public Cloud add-ons allowed
Defined list of S/4HANA qualified add-
ons allowed*
allowed
Partner Templates
Dedicated Public Cloud
templates planned
allowed
* still under evaluation
SAP S/4HANA Cloud family – Characteristics

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reduction in TCO
including one time migration
costs.
reduction in sticky costs due to
more flexible operational
environment.
potential acceleration in deploy-
ment speed as operational
lead times fall.
33% 87% 2+ Months
Lower Total Cost
of Ownership
Reduction of In-house
Sticky Costs
Faster
Deployment
SAP S/4HANA Private Cloud Edition delivers considerable benefits
in comparison to the existing ERP Central Component (ECC) environment

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• Scope
• Comparisons
• Summary
Agenda

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SAP S/4HANA customer momentum remains very strong
as of April 2020
SAP S/4HANA Customers
15,100+
Live Customers
7,100+
Reduction in days
sales outstanding
48%
Shorter delivery
lead time
30%
Increase in operational
efficiency
60%
Faster report
generation
80%
Faster material
requirements planning
95%
Visibility of inventory
across all locations
100%
Examples of SAP S/4HANA benefits these customers have reported:

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[Placeholder for Analyst/Partner/User Group View]

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SAP S/4HANA Private Cloud: Traditional flexibility & scope + cloud value
SAP S/4HANA Private Cloud
cloud value while allowing customers to
retain their investments by converting
their existing system/s
Built for customers who desire:
 A rapid conversion of their existing ERP/ECC environments to a modern,
Cloud-based architecture
 The flexibility of a traditional on-premise application
as well as subscription-based, cloud economics
 Gradual transformation to a pure SaaS landscape at their own pace
 Full, extensive, ERP functionality including partner add-ons with the
ability to extend and enhance
Key features include:
• Full S/4HANA scope incl. LOB and industry processes, supporting 25 industries
• Elasticity, resilience and TCO of cloud infrastructure
• System conversions and brownfield migrations into the cloud
• Access to S/4HANA Extensibility Framework
• Side-by-side and In-App extensions
• Code enhancement & code modifications
• Expert configuration via full IMG access
Partners should supplement or adjust as needed

Partner logo
Contact information:
F name L name
Title
Address
Phone number
Thank you.

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