The document discusses the rapid evolution and adoption of cloud technology in business, highlighting the increasing reliance on cloud solutions, particularly as millennials influence customer and workplace dynamics. By 2016, it predicts that over 75% of IT spending will be cloud-based and emphasizes the need for organizations to adapt to new technologies and customer demands. It also outlines SAP's strategy in implementing cloud solutions to enhance business operations and customer engagement.

1. Ariba LIVE Roma | 9 April 2014
Rob Glickman | VP Cloud Marketing, SAP
SAP: The Cloud Built for Business

2. 2© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Unprecedented Pace of Change
5Bmiddle class
growing to 5 billion
will strain resources
15Bweb-enabled devices
are creating an
intelligent, connected
universe
Data
Doubling
every 18 months
create opportunities
and risks for value
creation
75%New enterprise IT spend
will be cloud-based or
hybrid by 2016
Millennials
will transform
customer demands and
the workplace
1Bpeople in social network
will rewire business
and personal
boundaries
New +
Disruptive
business models
will accelerate change
and innovation

3. 3© 2013 SAP AG or an SAP affiliate company. All rights reserved.
5Bmiddle class
growing to 5 billion
will strain resources
15Bweb-enabled devices
are creating an
intelligent, connected
universe
Data
Doubling
every 18 months
create opportunities
and risks for value
creation
75%New enterprise IT spend
will be cloud-based or
hybrid by 2016
Millennials
will transform
customer demands and
the workplace
1Bpeople in social network
will rewire business
and personal
boundaries
New +
Disruptive
business models
will accelerate change
and innovation
Since the year 2000, 52% of Fortune 500 is gone
75% of all IT purchases cloud LoB 2016
The market for public cloud services will top $107 billion by 2017
…And 60% of that $107 billion on SaaS
10-fold explosion of new cloud (SaaS) "apps” in next four years.
Driven by a tripling of "developers"/contributors.
7 million new cloud jobs by 2015
Over the next seven years, emerging markets cloud spending will
grow 7x, vs. 3x in developed markets.
Growth engines coming from emerging markets like Brazil, China,
India who have social running through their veins
• Employees as Consumers
• IT as enabler of Business
The line between consumer and enterprise
blurs more everyday…

4. MORE BUSINESSES
TAPPING INTO THE
CLOUD…
75%
+
New IT expenditures will be for Cloud or
hybrid systems by 2016
80% Of new IT decisions will involve LoB execs;
53% of IT decisions will be led by LoB execs
70%
+
CIOs will embrace a “cloud first” strategy
by 2016
Sources: Saugatuck, IDC

5. © 2013 SAP AG. All rights reserved. 5
…Is Creating Pressures across All Functions and Industries…
Procurement & Operations
Cost & Complexity
Finance
Risk & Regulation
Sales & Marketing
Time to market
Service
Demanding Clients
• On-boarding new customers
• Lack of visibility into customer base
• New non-traditional competitors
• High collaboration and social
requirements
• Pressure for greater returns on
cash and investments
• Capital holding requirements
• Regulatory rules & auditing requirements
• Increasing liquidity and cash return requirements
• Erosion of margins
• High levels of IT spend; complex system landscapes
• Pressure on internal costs to serve and operate
Increased pressure on decision makers across the enterprise
HR
Changing Workforce
• Aging workforce experienced but out of
touch with new tech requirements
• Tech-savvy Millennials work differently
• Increased use of contingent workers
IT
Changing Workforce
• Complex systems landscapes
• New technology adoption, management
• Integration and cost efficiency challenges

6. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 6
Direct engagement with
business executive audiences
We achieve a deeper level of customer intimacy with more
coordinated engagement throughout the customer lifecycle
Land and expand approach
Frequent user and app upsells
Focus on customer satisfaction,
adoption, and time to implement
Focus on usage, successful
references, renewals
Usage data and community
feedback – frequent innovation in
rapid release cycles
High trust in daily transaction
volumes, secure data
Seamless innovation releases
Source: Bain & Co. 2013 and SAP analysis
Customer-Centricity Is a Key Part of Our Cloud DNA
CUSTOMER

7. 7© 2013 SAP AG or an SAP affiliate company. All rights reserved. 7
Influence buying
behavior
Deliver a 360 view of
the customer
Improve overall
engagement
Grow lifetime value
Align people with
goals and objectives
Increase customer
satisfaction
Increase operational
efficiency
Deliver 360° view of
spend and vendor
relationships
Discover new
business
opportunities
Customers Seek Outcomes Not Products
Enable employees to
develop themselves
Accelerate time to
productivity
Reduce COGS

8. © 2014 SAP AG or an SAP affiliate company. All rights reserved.
T-Mobile clip

9. 9© 2013 SAP AG or an SAP affiliate company. All rights reserved.
OBJECTIVE
Empower a global sales force to reach and
engage customers whenever, wherever
and however they want to do business.
SOLUTIONS
SAP ECC + SAP SRM 7.0
SAP Cloud for Sales (incl. Retail Execution)
SAP CRM for Service, Marketing, TeleSales
AT A GLANCE
BENEFITS
Live in 4 weeks
E2E integrated across cloud, CRM &
ERP for quote-to-contract
Mobile apps in hands of sales reps, incl.
Retail Execution
Navigate complex customer orgs &
buying processes
EMPOWERING A GLOBAL SALES FORCE

10. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 10
• Full deployment
in weeks
• Mobile grade user
experience = less
training
• Multiple innovation
releases per year
• Customer feedback
a cornerstone of
updates
• Rapid process
configuration
• Faster adoption
• No lengthy upgrade
cycles
• Packaged integration
Lower CapEx &
faster Time to Value
Cloud Delivers the Agility and Innovation Your Business Needs
Faster deployment More frequent
innovation updates
Agile deployment,
configuration and
integration
• Lower initial solution
and deployment fees
• No maintenance or
upgrade costs
• Prepackaged
integrations

11. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 11
Cloud: Enabling New Engagement Models
Mine social media
activity for instant
insights to turn
customer interest
into sales
Empower your
workforce with
improved training
and regulatory
compliance
Improve liquidity
and reduce risk
with more dynamic
and flexible finance
and payments
Extend your
purchasing
systems with a
global network of
connected buyers
and sellers
Create your
own process
extensions and
new applications
with an agile cloud
platform

12. 12© 2013 SAP AG or an SAP affiliate company. All rights reserved.
Employee Central – Core HR in the Cloud Employee
Central

13. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 13
R&D
Collaborate with
experts anywhere
PR
Quickly determine
best response
IT
Drive projects and
issue resolution
Operations
Shipment updates HR
Engage every
employee
Finance
Pricing exceptions
Marketing
Improve campaign
planning
Service
Catch customer
satisfaction
problems early
Specialist
Sales
Improve deal
teams and strategy
SAP Jam: Social Collaboration across Your Entire Network
Supporting company-wide or cross-departmental social processes
Any Employee

14. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 14
Plan the trip
Trip approval
Book the trip
On Trip
Expense Report
Audit
Approval
Reimbursement
SAP Cloud for Travel and Expense
A People-Centric End-to-End Solution
Travel
Email
Credit
Cards
Travel Plan / Itinerary
Management
Mobile
GPS /
Maps
Budgeting for managers
e-Receipts / OCR
BW Integration
Service –
Partner
Operational Data
Analytics

15. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 15
SAP Jam Capabilities
Millions of subscribers and growing!
External
collaboration
Collaborate with customers,
partners, suppliers
Structured
collaboration
Brainstorm, problem solve, make decisions with business tools
(ranking, pro/con tables, etc.)
Business
process social
Social in applications and processes, i.e. social opportunity management, social
campaign management
Security and Administration
Enterprise
social networking
Groups, feeds, discussions, etc.

16. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 16
UST Global: Saving Millions on Travel Expense
with the SAP Cloud for Travel and Expense solution

17. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 17
SAP Cloud Strategy
Best-of-Breed Cloud Suite
• All Lines of Business
• #1 in HCM, Procurement, Business Networks, Social
Collaboration
• Advanced Cloud Social Sales, Marketing, and Service
• End-to-end Cloud ERP Suites (ByD and BusinessOne)
Transformational Integration
• On-Premise-to-Cloud
• Cloud-to-Cloud
• Third-Party-to-Cloud
Flexible, Secure Deployment
• Public, Private and Managed Service Offerings
• International security standards - SAS-70 Type II, ISO
27001, SSAE, PCI, and more.
• Physical security
• Global datacenters
Unified Cloud Platform
SAP HANA Cloud platform will serve as the foundation for
the full portfolio of Cloud solutions from SAP
Delivered by SAP, a
Trusted,
Experienced
Business Partner

18. 18© 2013 SAP AG or an SAP affiliate company. All rights reserved.
SAP Accelerating in the Cloud
Some with more than 2
million users.
Public, private and
managed service
offerings
Industry’s most
comprehensive
Cloud portfolio
The leading
social business
platform
The largest and
most global
business network
Largest business
Cloud deployments
Annualized run
rate in Cloud
business
Industry’s largest
base of Cloud
users
More business
professionals use
Cloud solutions from
SAP than from any
other vendor on the
planet.
Market-leading public
apps (#1 in HCM,
Procurement,
Business Networks
and Social
Collaboration) covering
all lines of business
More users than
Chatter, Yammer, etc.
Over 1.4 million
connected companies
in 190 countries
transacting over half a
trillion in commerce
annually. - the size of
any other business
network
…
SAP is now the
largest cloud
provider at-scale
with over 130% YoY
subscription revenue
growth
35M 30+ 12M 2M+1.4M
While others have been talking about the cloud, SAP has quietly transformed itself into a force to be
reckoned with:
€1B+

19. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 19
Welcome to the cloud
built for business

20. © 2014 SAP AG or an SAP affiliate company. All rights reserved. 20
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Appendix

22.  Physical Security
– Video and Sensor
Surveillance
– Access Logging
– Security Guards
– Fire Detection and
Extinguishing System
– Uninterruptible Power
Supply
– Biometric Access Control in
certain Locations
 Network Security
– Network Admission Control
– Intrusion Prevention Systems
– Network Filtering
– 2-factor Authentication
– Proxies
– Internet Content Filtering
 Secure Operations / Internal
Control Framework
– Asset Management
– Change Management
– Incident Management
– Anti Virus & Malware Management
– Backup / Restore Management
– Identity & Access Management
 Threat & Vulnerability Management
– Security Patch Management
– Penetration Testing
– Vulnerability Scanning
– 24 x 7 Security Monitoring Center
 Advanced IT Security
Architecture
– Isolated, separated
Landscape per Customer
– Security hardened
Systems
 Secure Product
Development
Lifecycle
 Customer data flow control
– Regional Data Storage
(e.g. EU-, US-Cloud)
– HEC Compliance Monitor
(Extention to SAP Cloud in planning)
Security
SAP Cloud
*) scheduled for early 2014
The implementation of technical
and organizational Security and
Data Protection measures is
regularly audited and verified by
achieving different certifications
and attestations.
© 2014 SAP AG. All rights reserved. 22