December 09 Presentation to OMG

1. SAP Cloud Strategy - Timeless Software Frank Stienhans on behalf of Kaj van de Loo SAP

2. Decades-Long RelationshipsWith the World’s Largest Enterprises Trading Industries Consumer Industries Financial Services 85% of the Forbes 500 Process Manufacturing Services PublicServices DiscreteManufacturing SAP is in a unique position to transform change into an opportunity for our customers

4. Maximize its reach across all kinds of consumers

5. Deliver this in containersthat span multiple technology generations

6. Maximize the easeand efficiency and minimize the costand disruption of its construction, deployment, integration, support, change

7. While preserving the promise and integrity of our relationship to customers

8. Across generations of changeOur endeavor is to deliver Timeless Software © SAP 2009 / Page 3

10. On premise only

11. Central ITonly

12. Each system has its own stack

13. Integration is mainly point-to-point

14. Models are solely descriptive

15. Each system has own lifecycle

16. Focus on business needs

17. Any deployment model

18. Reaching out to Lines of Business

19. Systems can share infrastructure

20. Integration is logicallycentralized

21. Models are executable

22. Lifecycle and change managed cross-system© SAP 2009 / Page 4

23. Harnessing the CloudFor the Benefit of our Customers Extend the reach of SAP systems through cloud based access, ultimately reaching everybody everywhere in entirely new ways ? Co-Existence Harmonization, Adaptation, Integration, Unified Lifecycle Mgmt Offer a portfolio of valuable On Demand applications, ultimately leading to the next generation Networked Solutions with hybrid deployment models On Demand BusinessApplications & Services On Premise Business Applications and Services Virtualization Dedicated Resources Shared Resources Cloud Leverage cloud infrastructure to increase the business agility and to lower the TCO of our customers, ultimately enabling new types of applications

25. Cloud infrastructures promise lower IT costs and higher business agility – very relevant attributes for SAP On Premise Solutions

26. First adopters experiment with SAP solutions in the cloud. POCs with selected customers.

27. Market

28. The cloud ecosystem is rapidly evolving. New cloud infrastructures and tools are appearing on the market.

29. Cloud infrastructures can be used today for non-mission critical use cases.

30. The offerings need to mature in the domain of IT Integration and SLA qualities, before being leveraged for mission critical scenarios

31. SAP

32. Since 2007 SAP is validating the usage of SAP solutions in cloud infrastructures, starting with Amazon.com

33. Management solutions for virtualized SAP landscapes, including cloud deployment, in developmentVirtualization Dedicated Resources Shared Resources Cloud

35. SAP is working with infrastructure technology providers to further the development of On Demand infrastructure technology suitable for deployment of SAP applications

36. Partnerships with Service Providers

37. SAP is working with providers of infrastructure On Demand to further the availability of low TCO infrastructures for SAP applications

38. Standardization

39. Standardization of interfaces to On Demand infrastructure is in our customers’ and SAP’s best interest

40. SAP is among the original supporters of the Open Cloud ManifestoVirtualization Dedicated Resources Shared Resources Cloud

42. Full extended business suite for SME provisioned On Demand by SAP

43. Large Enterprise On Demand

44. Native On Demand LOB applications for established markets (eSourcing, CRM…)

45. Business Intelligence On Demand

46. BI tools offered On Demand by SAP, e.g. crystalreports.com

47. Information On Demand and other Services

48. Information and data such as benchmarks offered On Demand by SAP

49. Data quality services such as address cleansing offered On Demand by SAP

50. Business Communications Management

51. Contact center solution (from WICOM acquisition) offered On Demand by SAP

52. Other/FutureVirtualization Dedicated Resources Shared Resources Cloud

54. Suite/ERP for subsidiaries or business partners

55. Complementary applications, especially “cloud native” ones

56. Tools and services, especially “cloud native” and highly data dependent ones

57. Provided by SAP or partners

58. Extend qualities of On Premise solutions to the On Demand world

59. Lifecycle management

60. Compliance

61. Integrated processes

62. Master data management

63. Ultimately leading to Networked Solutions combining On Premise and On Demand components into a holistic solutionVirtualization Dedicated Resources Shared Resources Cloud

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. BPO Offerings

67. SAP is not a BPO provider, but rather powers and supports BPO providers offering services on top of SAP applications

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. BPO providers typically offer cloud based access to their systems

70. SAP Opportunity

71. Increase the reach and usage of our applications by making cloud based consumption easierVirtualization Dedicated Resources Shared Resources Cloud

73. An SAP platform should have the purpose of extending and complementing applications, not exist in isolation

74. Platforms one could imagine include:

75. Platforms to extend horizontal applications

76. Vertically oriented platforms, including industry specific frameworks and services

77. Platforms offered by one company, such as a bank, to its ecosystem of partners and customersVirtualization Dedicated Resources Shared Resources Cloud

78. Achieving Timeless SoftwareSAP‘s next steps in a nutshell Enabling Enabling change and integration Enable our portfolio for key forms of external consumption Extend end to end lifecycle management from on premise SAP to other vendors, legacy, custom, on demand, … Manage the change of all containers and content: Different layers of the software stack, configuration and policies, master data and identity, processes, … Provide better support for automated and integrated testing of all changes Ensure compliance when implementing changes across systems Evolve programming model Enable dramatically higher efficiency and coherence across different types of content construction and different existing programming models Evolve runtime Enable application-optimized data management Flexible deployment and optimizations across layers Innovating © SAP 2009 / Page 12

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