1. Frank Stienhans on Behalf of oCTO SAP frank.stienhans@sap.com April 6th 2010 SAP Cloud Infrastructure StrategyVirtualization Week Presentation Ingo Sauerzapf Office of the CTO SAP ingo.sauerzapf@sap.com © SAP 2008 / Page 1

2. More than 92,000 customers in 120 countries 1,5 million developers & experts 47,000 SAP employees Run their business on more than 2 million machines © SAP 2008 / Page 2

3. Enabling SAP solutions for Cloud Infrastructures © SAP 2008 / Page 3 SAP Global Cloud Services Licensing Usage Metering Appliances Consume Share Consume Share Consume Share Customer ITNetwork SAP IT Network Appliances Appliances Appliances Cloud Controller Multi-Tenant Cloud Controller Cloud Controller Run Run Run Run Run External Cloud Internal CloudInfrastructure Internal CloudInfrastructure External Cloud Infrastructure (IaaS) Private Private Public

4. 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

6. Cloud Introduction

7. SAP Solutions in Cloud Infrastructures

8. SAP Cloud Infrastructure Strategy© SAP 2008 / Page 5

9. Cloud Computing Definition Application Providers Platform Providers Infrastructure Providers Service Providers 400,000 Developers + ISVs Definition from Consumer Perspective Trends Cloud Computing allows On Demand Software Provisioning with Zero-Installation & Automatic Configuration at low cost and immediate access in Scalable Data Centers. Selected Cloud Consumers & ISVs © SAP 2009 / SAP World tour / Page 6

10. Abstraction + Elasticity Concepts of Clouds

11. Trends and Value of Cloud Computing Increase Business Agility, Increase R&D Efficiency Utility Computing On Demand Fulfillment Industrialization of IT From inflexible and long-term contracts to payment of metered usage From long running customer projects to immediate fulfillment of customer needs From Manufacturing to Automation and Standardizationof IT Business Value Breakthrough Consumption Experience of SAP Solutions Reduce IT Costs/CAPEX for SAP, Customers and Partners © SAP 2009 / SAP World tour / Page 8

12. Traditional Hosting vs. Amazon CloudHosting Costs of ERP for Development Traditional Hosting © SAP 2009 / SAP World tour / Page 9

13. Cloud ScalabilityAmazon Customer: Animotohttp://blog.animoto.com/ On April 14th 2008 Animoto provided a new plugin for facebook … External Clouds for dynamic workloads Internal Clouds for constant workloads © SAP 2009 / SAP World tour / Page 10

15. Testing (Manual, Automated, Scalability)

16. Training

17. Demo / Workshops / Events

20. On Premise: Provisioning of productive landscapes

21. On Demand: Provisioning of productive services75% of all systems 50% of all costs © SAP 2009 / SAP World tour / Page 11

23. Cloud Introduction

24. SAP Solutions in Cloud Infrastructures

25. SAP Cloud Infrastructure Strategy© SAP 2008 / Page 12

27. No single Cloud Infrastructure today is ideal for all use cases (SLAs, Integration, Costs)

28. Every Cloud Infrastructure so far has significant proprietary elements in their interface, creating lock-in effect for consumers

29. SAP, Customers and Partners are interested in Standardization of Cloud APIsSAP Employee SAP Employee Metering Provisioning Configuration SAP Solution SAP Cloud Enabling Services powered by SAP NetWeaver CE ! ! Cloud Infrastructure Configuration Metering Virtualization © SAP 2009 / SAP World tour / Page 13

30. Cost Characteristics of Cloud InfrastructuresReal World Examples of using one SAP ERP SystemUpdate November 1st 2009 © SAP 2009 / Page 14 Monthly Consumption Customer Demo incl. 1 week Development 7.5% Local Development 10h / Workday 30.0% Central Systems 24h / 7 days 100% Workshop 1 day 1.4%

31. Cloud Production Chain SAP MII SAP NetWeaver Deploy Deploy SAP NetWeaver SAP MII OS Create Appliance Create Appliance Instantiate Instantiate Instantiate OS + SAP NetWeaver OS + SAP NetWeaver + SAP MII SAP Partner / Customer New Content Cloud Instances Virtual Appliance Library Operating System © SAP 2009 / SAP World tour / Page 15

32. Effect Automated Functional Tests(SAP Internal) Parallelize test case execution via Cloud Computing at No additional cost Allocated machines Automated Test Controller Cloud Services External Cloud Internal Cloud T T T T T T T T Legend Test Case time Machine 8 night hours © SAP 2009 / SAP World tour / Page 16

34. Cloud Landscape: Dynamic SAP NetWeaver Cluster Load Monitoring Service Dynamic Provisioning Controller Provisioning Service SAP NetWeaverCluster SAP NetWeaver Web Dispatcher SAP NetWeaverDialog Instance SAP NetWeaverCentral Instance SAP MaxDB Instance Amazon Web Services © SAP 2009 / SAP World tour / Page 18

35. External Cloud Systems per MonthMarch 2008 – March 2010 © SAP 2008 / Page 19

36. External Cloud System Hours per MonthMarch 2008 – March 2010 © SAP 2008 / Page 20

37. Use Cases for AWS within SAPApril 2010 © SAP 2008 / Page 21

39. Cloud Introduction

40. SAP Solutions in Cloud Infrastructures

41. SAP Cloud Infrastructure Strategy© SAP 2008 / Page 22

42. Mission Bring on Premise Solutions as near to the IT characteristics of On Demand Services as possible without requiring significant changes for existing SAP Solutions and define architectural implications for new SAP solutions. On Demand IT characteristics include Low Business Solution TCO High Business Agility allowing immediate reaction to changing business needs Self Service Approach with immediate fulfillment for all general IT processes Immediate consumption ability of SAP/partner solutions/services Foster Network Effect for consumers and providers Create a win5 situation for customers, SI partners, solution providers, cloud providers, SCN community © SAP 2008 / Page 23

43. Thinking DirectionCustomer / Partner Perspective Deployment OD: On DemandOP: On Premise Cloud Management Tools OD/OP … IBM HP BMC Microsoft Sol Man Stratus Cloud Services OD/OP Cloud Service & Content Providers Cloud Controller::REST, SOAP Platforms Appliances Business Events Cloud ControllerLight weight, Throughput, Consumable, Open OD/OP SAP Extensions Business Processes Patches SLA Decision Engine Security Tier 1 Processes & Threads Upgrades Utilization … Migration Licensing GCS::REST Platform::REST Tier 2 GCS::REST Scalability High Availability Backup Memory Usage > 1000 Tier 3 Partners System Provisioning & Monitoring IO SLA Tracking > 1 Mio [SCN Members] Cloud Infrastructure::REST Services > xxx Mio [SAP Users] Cloud Infrastructures Reviews [VMware ]based [Xen]based [Unix]based … Amazon Microsoft IBM Terremark T-Systems AT&T HP Billing Internal External

44. Summary This cloud strategy will revolutionize the way we do Business with our customer and partners. It will reduce TCO on all sides: customers, partner and for SAP itself. SAP will leverage the cloud for providing additional service offerings by SAP and partners. © SAP 2008 / Page 25

45. Thank you! © SAP 2008 / DKOM 08 / <Session ID> Page 26 © SAP 2009 / SAP World tour / Page 26

46. SAP Partners Integrating providers for Management Tools / Service Network Service / Infrastructure Integration Service / Infrastructure Backup Service / Infrastructure Cloud Processing Service / Machines Cloud Storage Service / Infrastructure Virtualization Solution Providers Security Enforcement Service / Infrastructure GRC Service / Solution DB Service / Software IT Process Automation Service / Solution Load Balancer Service / Infrastructure Guest OS Guest Hardware a.s.o. Permutations possible e.g. Storage Infrastructure with Backup Service © SAP 2008 / Page 27

47. What SAP can do Only SAP can Evolve SAP solutions to fully embrace virtualization and clouds Evolve SAP Business Models towards dynamic cloud environments Reduce SAP Solution footprint Provide a new deployment channel for SAP solutions, which is highly automated and highly efficientleading to accelerated consumption of SAP and partner solutions SAP can do best Automate SAP based IT processes like landscape provisioning and upgrades Provide guidance on offerings in the cloud / virtualization marketplace Bring service providers closer to customersin a highly automated and highly efficient wayleading to acceleration of SAP related projects for customers SAP can significantly contribute to Reach SLA levels in the cloud / virtualized environment comparable to traditional hosting Increase the utilization of Customer Data Centers Standardization of interfaces to cloud and virtualization offerings © SAP 2008 / Page 28

48. What you can do today What can you already do today: Use virtualization technologies certified and provided by SAP Virtualization technology provided by technology partners SAP Lifecycle Management tools (Adaptive Computing Controller, SAP Solution Manager, …) Plan for organizational implications which is flexible enough for a later cloud usage Admin skills Security concepts Standardized processes Financial implications (Accounting, …) Be prepared for later cloud usage of On-Premise Apps Implement Virtualization & Cloud task force in your company An accounting model Security Implications related to external cloud offering (prepare mid- and long-term strategy) Observe offerings (cloud provider, security provider, …) Check local legal requirements (PersonenbezogeneDaten, …). Define a business case Optimize organization alignment (business and IT) to get benefit from proactive peak management.