This document discusses SAP's strategy and market position. It notes that SAP has traditionally focused on European corporate workloads but is expanding into new areas like converged infrastructure, in-memory computing, and cloud services. The document analyzes SAP's financials, industry focus, major acquisitions, and growth areas like HANA and cloud. It argues that SAP's strategy of building HANA into an application and data platform while offering hybrid cloud services represents an idiosyncratic approach for the company to address the modern market.

1. ITCandor 2014
Martin Hingley, CEO, ITCandor

2. ITCandor 2014
Agenda
• SAP’s historical attributes
– European
– Corporate workloads for large companies
– Traditional industry sectors
• The new stuff
– Converged Infrastructure and Integrated
Systems
– In-memory
– Cloud
• Why it’s important

3. ITCandor 2014
$0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Americas
Asia Pacific
EMEA
SAP Revenues ($US b) by Quarter and Region
46% of revenues from EMEA in 2013

4. ITCandor 2014
Other
87.3%
Microsoft4.9%Oracle3.1%IBM
2.8%
SAP
0.7%
Symantec 0.7%
Activision 0.5%
Software Market Share 2013 – Total: $914
Billion
A large Enterprise player – like Oracle and IBM – in a massive
market

5. ITCandor 2014
• Customer Relationship Management (CRM)
• Enterprise Resource Planning (ERP)
• Product Lifecycle Management (PLM)
• Supply Chain Management (SCM)
• Supplier Relationship Management (SRM)
SAP provides Corporate Applications to Big
Companies
But it needs to expand to new apps, customers and delivery
techniques

6. ITCandor 2014
$1
$2
$3
$4
$5
$6
$7
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Business Objects
Sybase
Success
Factors
Ariba
HANA One
Business
Suite
SAP Revenues ($US b) by Quarter with Major
Acquisitions and Products
A strong acquisition, SaaS and in-memory product strategy

7. ITCandor 2014
SAP 2013 Revenues by Industry Sector – Total:
$22.4 Billion
Financial
Services
9.7%Public
Services
10.1%
Services
15.8%
Discrete
Manufacturing
17.8%
Consumer
22.5%
Energy & Natural
Resources
24.2%
The ERP Business makes Manufacturing, Retail/Wholesale
strong

8. ITCandor 2014
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
$500
2011 2012 2013
HANA
Cloud subscriptions
SAP 2013 HANA and Cloud Revenues ($US m)
by Quarter
Combined these were (just) 11% of SAP revenues in 2013

9. ITCandor 2014
Degree of integration
Workloadspecificity
Server, Storage Array, Networking
1. Converged Infrastructure
2. Managed Platform
3. Integrated
System
4. Workload-
Optimised
System
5.SoftwareAppliance
IBM PureSystems
Oracle Exa…
VCE vBlock
SAP HANA
NetApp FlexPod
Cisco UCS
Hitachi UCP
Fujitsu DI Blocks
Huawei FusionCube
Dell Active System
HP CI
Teradata
SAS
PivotalNutanix VCP
SimpliVity Omnicube
Converged Infrastructure and Integrated
Systems – The 5 layer model
SAP intends HANA to become an application development
and data platform

10. ITCandor 2014
Multiple dimensional database choice
SAP stole a march, but IBM, Oracle, Microsoft have strong in-
memory resources and strategies

11. ITCandor 2014
Network
Storage
Server
Hypervisor
Infrastructure
Software
Database
Application
Orchestration
BYO IaaS PaaS SaaS
Enterprises need to mix component sources in
adopting Cloud Services
Integrating on and off premise infrastructure, applications
and data Is key to SAP’s success

12. ITCandor 2014
$0
$10
$20
$30
$40
$50
$60
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
SaaS
IaaS
PaaS
Cloud Service Forecast by Type ($US billion) –
2003-2018
Lot’s of opportunity for SAP, partners and Customers here

13. ITCandor 2014
Some Conclusions
• SAP is building beyond its traditional strengths to
address the modern market
• Has an idiosyncratic way to the new stuff:
– Is turning HANA into an application
development and data platform
– Is balancing Cloud subscriptions with a hybrid
services business model
• Its new ambitions stretch its IHV relationships
• A ‘let’s do it’ customer-focused approach