January 2012 SAP CLOUD COMPUTING: A BASIC PRIMER Updated

Outline Cloud Model SAP & IaaS SAP & SaaS SAP & PaaS The Future Cloud adoption Real World Examples 2

Purpose A CLOUD abstracts the underlying hardware from the buyer, is elastic in scaling to demand and bills the buyer on a pay-per-use basis. It provides a way to increase capacity or add capabilities on the fly without investing in new infrastructure, training new personnel, or licensing new software, and you only pay what you “consume”. 3

Cloud Computing Model 4 * Based on NIST

SAP & Cloud: Infrastructure as a Service SAP does not provide IaaS SAP does support running SAP business applications (like SAP ERP or SAP CRM) on cloud based infrastructure SAP’s backend business applications that are normally run on premise can now be run from services like Amazon Web Services SAP offers useful guidelines on running SAP on Amazon Web Services 5

SAP & Cloud: Infrastructure as a Service To be supportable by both Amazon Web Services and SAP, AWS offers a number of instance types (server sizes): Instance Type                          ECU      SAPS High-memory Double Extra Large         13.0       3700 High-memory Quadruple Extra Large       26.0       7400 Network Security: Amazon Virtual Private Cloud (VPC) enables you to build up a private, isolated section of the AWS Cloud, where you can launch AWS resources in a virtual network that you define. SAP and AWS Support: To receive support from both SAP and AWS for the operation of SAP production systems on AWS you have to establish a service desk relationship with one of the Support Providers that are both SAP certified and an AWS Solution Provider. 6

SAP & Cloud: Software as a Service SAP Business ByDesign. A complete integrated ERP application based on the well know SAP ERP (part of SAP Business Suite) environment SAP Business ByDesign is focused on small- to medium sized companies that require ERP process support, but cannot afford to spend a year on an ERP implementation Business ByDesign 2.5 now features in-memory analytics, support for mobile devices, a new user interface based on Microsoft’s Silverlight technology, and multi-tenant architecture. Prices ranging from $11 to $199 per user per month. Google integtration allows Google Apps such as Google Docs and Gmail 7

SAP & Cloud: Software as a Service SAP Success Factors: On-demand human-resources software Industry’s most well-adopted employee performance management solution on the market Comprehensive learning management (LMS) capabilities LMS has proven scalability to meet the needs of SAP’s large enterprise global customer base and mid-market customers 8

SAP & Cloud: Software as a Service 9 … SAP Business Objects BI OnDemand, SAP Carbon Impact, SAP Sales and SAP Sourcing: Line-of-business solutions. These applications provide a complete business process "out of the box" with very little configuration required

SAP & Cloud: Software as a Service 10 … SAP StreamWork: Online collaboration platform targeted to the business users Intended for project collaboration, planning work, facilitating meetings, brainstorming, decision making ... Functionality is continuing to expand with an increasing list of plug-ins

SAP & Cloud: Platform as a Service “River “is a cloud-based development environment which supports lightweight extensions to on-premises ERP (SAP Business Suite) software. It is based on SAP's purchase of Coghead in 2009. Currently runs on Amazon although SAP have stated that it is designed to work with multiple 'clouds' 11

12 * As published by Gartner

The Future 13

SAP does have some challenges: Provide a platform for customers who wish to deploy their own applications and can interact with SAP’s solutions (Project “River”) Addition of process manufacturing and other industry-specific functionality Integration between the SAP cloud based offerings and the (on premise) SAP Business Suite applications Development of a SaaS-capable reseller channel A viable software development kit (SDK) that will allow third parties to create extensions to Business ByDesign. 14

General Implementation steps for cloud adoption Evaluate the Bad and Good Applications for the Cloud Find a vendor that meets those security, legal, and compliance requirements (see slide 17: listing Providers and Enablers) Prepare your IT portfolio for the cloud which can fall anywhere between installed applications and cloud services Include planning to test, deploy, monitor and measure ROI 15

16 * Source –Bessemer Venture Partners

17 AWS & SAP Case Study The Recovery Accountability and Transparency Board (RATB) uses the following AWS services: Amazon Elastic Compute Cloud (Amazon EC2), Amazon Simple Storage Service (Amazon S3), Amazon Elastic Block Storage (Amazon EBS), Elastic Load Balancing (ELB), and Amazon CloudWatch. The solution leverages SAP BusinessObjects and Microsoft SQL Server for reporting services that show how and where the money is being spent

One Company’s Approach to the Cloud AMAG's SaaS portfolio: Okta's on-demand ESSO service for authentication Concur Technologies for travel and expense reporting, EchoSign for e-signatures, Epicor (formerly Spectrum) for human resources management, Google for applications and e-mail, SumTotal Systems for learning management and Tungle for e-calendaring 18

Real World News Published: 28 Jul 2010 Amazon Web Services poster child, Eli Lilly has walked away from using the cloud computing service after failing to come to terms over legal indemnification issues. Sources close to Eli Lilly say the pharmaceutical giant was at its wits end trying to negotiate a contract with AWS that would push some accountability for network outages, security breaches and other forms of risk inherent in the cloud, to Amazon Web Services. But it got nowhere, these sources said. 19