1) Running SAP Business Suite on SAP HANA can reduce total cost of ownership compared to classical databases due to lower hardware, software, operations, and maintenance costs. 2) SAP HANA allows combining transactions and analytics on a single in-memory platform, eliminating costs associated with separate systems for operational reporting, extract-transform-load processes, and data services. 3) Customers can further reduce costs through SAP's tailored data center integration approach, which allows using existing hardware and infrastructure rather than requiring proprietary appliances.

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SAP Business Suite
powered by SAP HANA
The New Economics of

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COMMON MYTH Running SAP Business Suite on SAP HANA is more expensive than on a classical database

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The TCO equation is elusive
Database hardware is just a small fraction of overall costs
Hardware
Continuous Improvement
Data Footprint
Replication & ETL
Operation
Search & Accelerators
Software
Significant reductions in all other TCO drivers far outweigh H/W costs
SAP HANA H/W costs impact a small fraction of the TCO equation

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SAP Business Suite powered by SAP HANA
Reducing Total Cost of Ownership
Reducing Cost
Increasing Efficiency
Setup
Testing
Data Footprint
Data Center Integration
Landscape Simplification
Asset Utilization
TCO
1010
01
10

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Combining transactions and analytics on a single in-memory platform
Eliminates Operational Reporting costs
Eliminates ETL Costs
Eliminates Data Services Costs
One data copy
SAP HANA platform OLAP + OLTP
SAP HANA simplifies
1010100101010010010100110101101101110100100010011011001
OLTP
ETL
OLAP
Replication
Replication
Transactions
Analytics
Transactions
Analytics
1010100101010010010100110101101101110100100010011011001
Landscape Simplification

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Projected operational reporting savings with SAP HANA
4 CPUs (32 Cores) 10 TB Storage
Reporting
Server
$180,000
$320,000
ETL
License
$10K per Core
Initial Investment
Ongoing Costs
Maintenance Costs
20%
Acquisition Cost
$100,000
Staffing Costs
1x FT Administrator
1x FT Developer
$300,000
SAP Business Suite
on
HANA
* Cost Assumptions: $25K per CPU. $8K per TB, 8% Cost of Capital, 4 year linear depreciation for initial investment
SAP Business Suite on Any Database
No Additional H/W
No Additional S/W
No Additional Staff
No Additional Maintenance
4 Year NPV = $1,740,000
Landscape Simplification

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SAP Tailored data centre integration
A new flexible approach to integrate SAP HANA into datacenters
Vendor chooses appliance components
Mandatory Memory/Core Ratio
Prepackaged SW , HW, and Service
Higher Cost
Virtualization
Network
Database
Operating System
Server
Application
OS
Storage
Re-use existing H/W-
Only Buy What You Need
Buy compute and storage separately
Lower Cost
Integrated Appliance Approach
Tailored Datacenter Approach
Server
Enterprise Storage
Shared Network
Virtualization
Data Center Integration

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A leading CPG company achieves 60% savings with tailored data center vs. appliance delivery
Original System
UNIX OS
Any Database
HANA Appliance Cost
Certification
Pre-configuration
Propriety File- System
OS-maintenance
Persistent Storage
Network Adaptors
CPU
Memory
HANA
Tailored Data Centre Cost
CPU
Memory
60%
Savings
Customer pays for CPU & Memory only
Customer manages own configuration
Uses Free standard file system (NFS)
Re-uses existing OS support contract
Reuses existing storage
Reuses existing networking components
Customer pays for H/W, S/W, Certification, Packaging, and Services
Same cost as original system but real-time performance
Data Center Integration

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SAP HANA tailored data center integration, helped Geberit drastically simplify IT administration, improve user experience, cut costs, and reduce its database size by seventy two percent
SAP HANA Tailored Data Center Integration allowed Mercedes-AMG to run SAP HANA as servers linked to its enterprise storage within their own data center processes
SAP HANA tailored data center integration allowed MR to migrate applications to SAP HANA while greatly simplifying administration and maintenance and lowering costs without additional training
Customers saving with SAP HANA tailored data centre integration
Data Center Integration

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“AMG-Mercedes is now live in production with SAP HANA and VMware vSphere 5.5 with a 1TB memory configuration, accelerating our move to a software-defined data center.”
Reinhard Breyer, CIO, AMG
Now supporting virtualization in production environments for SAP Business Suite powered by SAP HANA
Lower TCO
Unify and manage SAP HANA with the rest of your virtualized data center
Reduce Time-to-Value
Accelerate and automate provisioning and reduce deployment time
Improve Service Levels
Migrate SAP HANA across hosts in minutes with no downtime or data loss
ERP
Hardware 1
CRM
Hardware 2
DB 1
DB 2
Any DB
ERP
CRM
SAP HANA
DB 1
DB 2
Virtualized HANA Hardware
Asset Utilization

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Less storage and database administration costs with a single copy of the data
Up to 3x data footprint reduction by eliminating aggregates, indices and abolishing data duplication for operational reporting (row / column store)
Additional 4x data footprint reduction through advanced in-memory columnar compression
Reduction in Database Administration efforts required for tuning, backup and recovery
SAP Business Suite
on HANA
SAP Business Suite
on Any DB
Indices
Aggregates
Row Store
Data Cubes
70 to 90%
Data Footprint Reduction
DBA
DBA
DBA
DBA
DBA
Data Footprint

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Customers savings with smaller data footprints
72%
reduction in DB size 350GB to 98GB
70%
reduction in DB size
750GB to 22GB
70%
reduction in DB size
6.2TB to 1.8TB
83%
reduction in DB size after moving to HANA
70%
Performance improvement
of long processes
3 million
Skills and qualification managed by SAP HANA
86%
Faster Backups
5 hours to 40 minutes
5,000
Unused custom code retired
Data Footprint

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Wide range of deployment options to reduce TCO and speed time to value
Lower upfront CAPEX costs with subscription pricing for S/W, H/W and Services
Flexibility to chose between cloud, on-premise or hybrid deployment models
Match consumption with need and pay as you go
Start small, then grow cloud deployment as needed
On Premise
Private Cloud
Hybrid Model
Setup
Costs

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70%
less TCO with SAP HANA Enterprise Cloud vs. on-premise
4 Weeks
to go live with SAP HANA Enterprise Cloud
2 Months
to go live with on-premise
2 Months
to go live with on-premise
$3 million
5 year projected savings
1 Week
to invoice first production
4 months
to rollout in Brazil
Complete
ERP manufacturing sol.
Real-time insight into operations supporting management of drill ships, reduction of time to value for analytics, and simplification of the IT landscape
“By unifying our software landscape on SAP HANA, we not only achieved a lower TCO but have also paved the way for future innovation”
Customers saving with lower setup costs and faster time to value
Setup
Costs

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Reduced certification requirements for non-production SAP HANA systems
Storage: any local or shared storage on standard disk
Network: standard networking components
Memory: starting at 128GB only
OS: SUSE Linux 11.x or Red Hat >6.5,7.0
Standard non-certified H/W for testing
Behind every production system, there are an average of 5 non-production
Testing Costs

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SAP Business Suite on HANA TCO evolution
Tailored
Data Centre
Delivery
Appliance Delivery
SAP HANA TCO
Virtualization
Standard
HW for testing
Low End (X86/Linux)
Mid End
(Propriety Unix)
High End
(Mainframe)
Multiple DBs
Simplification
Planned
Benchmark
2013
2014

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FACT TCO of running SAP Business Suite powered by SAP HANA is lower than classical databases

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THANK YOU