Osmb Keynote Jan2009 Yolton Final

Open Source @ SAP
Deriving business value from co-innovation
Mark Yolton
Senior Vice President
SAP Community Network
29 January 2009

© SAP 2008 / Open Source @ SAP / M. Yolton / Page 2
The world is becoming
more customer and
user centric ...

Open Innovation at LEGO
http://factory.lego.com/

Open Innovation at DELL
http://www.ideastorm.com/

Open Innovation at PEUGEOT
http://www.peugeot.com/fr/design/concours-de-design.aspx/

... and SAP teams up
with customers, too ...

Customer-Focused Ecosystem
Always connected, always on
© SAP 2008 / Page 12
Trusted and Relevant Partner
Solutions and Services
Communities of Innovation
Industry
Value Networks
Business Process
Expert Community
Enterprise Services
Community
SAP Developer
Network
Channel
Partners
Software Solution
Partners
Technology
Partners
Service
Partners
Customers
Industry
Standards
User
Groups
Customers

Communities at SAP
Two types
Large, open, focused on the individual
Private, orchestrated, focused on companies
Web 2.0 technology
Blogs
Wikis
Forums
Ratings
Successful by many measures
More than 1.5 million members
25,000 new members per month
>700,000 unique visitors monthly
20 million pages consumed per month
>6,000 posts per day

The majority of the SAP Business Suite
enterprise services were defined and/or
reviewed by the Enterprise Services
Community, e.g.:

SAP tapping into the „Wisdom of the Crowds“
via Innocentive

On the SAP EcoHub customers can search for,
comment on and rate SAP solutions

A growing number of SAP-related community
projects, e.g. ESME
http://blog.esme.us/

SAP Mentors
Role models for the community, providing passion and energy
Mentors take on a leadership role
Create a sense of belonging
Candid feedback and direction to SAP
Trusted semi-private
communication channel
Special status to exceptional and high-value members of our
SDN, BPX, and Business Objects communities
Picture: Dennis Howlett

From Co-Innovation to
Co-Development ...

Open Source is
becoming increasingly
important ...

October 28, 2008
“Microsoft opens new
open source technology
center”
http://www.linuxnewstoday.org/linux-news-oct-2008-archives/1108-oct-28-2008-linux-news.shtml

October 29, 2008
“EC to publish open
source procurement
guidelines”
http://www.heise-online.co.uk/open/EC-to-publish-open-source-procurement-guidelines--/news/111826

November 3, 2008
“Firefox breaks 20%
market share mark in
October”
http://mozillalinks.org/wp/2008/11/firefox-breaks-20-market-share-mark-in-october/

November 17, 2008
“Gartner: 85 percent of
companies using open
source”
http://news.zdnet.com/2424-9595_22-249842.html

So, why is Open
Source successful?

No License Costs
Vendor Independence
Easy to Evaluate
Developer Productivity
Shared Development Costs
Access to Latest Technologies / Developments
Community Experience
Interoperability
No Hidden Backdoors
Customization Support for Multiple Operating Systems
Has Become A De-facto Standard
Influence on Features
Low TCO

... but the border
between open source
and closed source is
blurring ...

Two completely different worlds in the past
closed
source

December 1, 2008
“The open-source business model
that relies solely on support and
service revenue streams is failing to
meet the expectations of investors”
[Stuart Cohen, CEO of Collaborative Software Initiative,
former CEO of the Open Source Development Labs]
http://www.businessweek.com/technology/content/nov2008/tc20081130_276152.htm

November 17, 2008
“The idea of simply selling
support fell by the wayside for
most companies at least one
year ago.”
[Dave Rosenberg, Co-founder of MuleSource]
http://news.cnet.com/8301-13846_3-10098692-62.html

December 2, 2008
“We're definitely seeing convergence in
the market: proprietary vendors embracing
open-source complements, and open-
source vendors embracing proprietary
complements.”
[Matt Asay, General Manager of the Americas and Vice
President of Business Development at Alfresco]

December 11, 2008
“Duffner said he expects to see
more mixed source
environments.”
[Robert Duffner is the Director of Platform Strategy at Microsoft]
http://searchwinit.techtarget.com/news/article/0,289142,sid1_gci1342176,00.html#

October 1, 2007
“So for us, the business goal is to
optimize this hybrid mix of proprietary
and open-source software to give our
customers what they need.”
[Bob Sutor, Vice President of Standards and Open Source for the
IBM Corporation]
http://m.linuxjournal.com/article/9797

August 19, 2008
“Maybe “commercial open
source” isn’t an oxymoron
after all.”
http://www.itbusinessedge.com/blogs/osb/?p=436

October 13, 2008
“The line between proprietary
software and open source
software is becoming
increasingly blurred ...”
http://blogs.the451group.com/opensource/2008/10/13/open-source-is-not-a-business-model/

December 24, 2008
“Typically we now see an "open
core" freely available with
"exclusive" or proprietary
features only available when you
pay.” [Dave Rosenberg, Co-founder of MuleSource]

The “pure plays” seem to have lost in
importance today
closed
source
closed
source
closed
source

SAP has an active role
in Open Source...

10 Year Anniversary

... SAP started
supporting Linux as
early as 1999?
Did you know …

... most of the key Linux players
have a presence in the SAP
LinuxLab?
Did you know …

... SAP has support for
OpenOffice.org and the
OpenDocument Format (ODF)?
Did you know …

... SAP web applications can be
accessed using Mozilla Firefox?
Did you know …

... SAP offers a client that runs on
Linux?
Did you know …

... SAP has been shipping the
source code together with the
business applications since
the beginning?
Did you know ...

… SAP has invested in
these open source
companies?
Did you know …

... SAP was a founding member of
the Eclipse Foundation and has a
leading role in a number of Eclipse
projects?
Did you know …

So, why does SAP do
Open Source?

A few specific examples of
how customers, partners and SAP benefit
Customers
SAP’s Linux support enables customers to run SAP solutions on reliable and cost-effective
platform which reduces TCO
SAP’s support for Firefox and OpenOffice.org gives customers choice, platform and vendor
independence on the desktop
Partners
Partners can reuse their Eclipse skills when developing with the SAP NetWeaver Developer
Studio which reduces development costs and simplifies the reallocation of developers
SAP’s support for open source opens the SAP ecosystem to partners focusing on open
source (e.g. Novell with respect to Linux)
SAP
SAP Hosting like any customer runs SAP software on Linux and commodity hardware in order
to reduce cost of operation
SAP’s usage of Eclipse technology leverages a de-facto industry standard while allowing a
shared development approach at the same time

Customers want choice and protection of
investments
Database
Operating
System
Third-Party
Application
Composite
Application
Business Process
Platform (BPP)
Frontend
Domain
MaxDBDB2

Success Stories available at: www.novell.com/sap
Novell and SAP share satisfied customers

• Novell is at the heart of SAP applications:
- 1,000+ joint customers
- 5,000+ Installations
• Novell is the only OS providing a fast
installation wizard for SAP Business All-
in-One solution
• Doubled customer base YOY with the
SUSE® Linux Enterprise Server Priority
Support for SAP offering
• SUSE Linux Enterprise is the only OS that
runs SAP BI Accelerator
• SUSE Linux Enterprise is the Reference
Platform for SAP development
• SAP Hosting service runs on SUSE Linux
Enterprise Server
Novell® and SAP – The Power of Partnership

Eclipse has become a broadly used “standard”
for development and management tools

How Siemens benefits from SAP’s Eclipse
strategy
“NetWeaver's support for common standards and
Open Source is very important to Siemens because it
helps to protect investments, reduce costs, and
increase flexibility for both ourselves and our
customers. For example, due to SAP's usage of
technologies like Eclipse as well as SAP’s support for
SOA standards, users of the Siemens Energy
Management Suite can reuse their existing Java EE,
SOA and Eclipse skills.”
Jens Neuhaus
Solution Architect, Siemens AG

More customers can choose SAP and its
partners’ solutions due SAP’s open platform

So, how does SAP do
Open Source?

SAP supporting open source
Criteria
Customer demand
Market share
Long-term viability of the open source technology / project
Availability of reliable support (internally or external support partner)
Quality of the open source technology
Customer Benefits
Choice
Vendor independence
Low TCO
Benefits for SAP
Larger addressable market
Vendor independence
Low TCO

SAP integrating / embedding / using
open source
Criteria
Problem fit
Market share
Long-term viability of the open source technology / project
Availability of reliable support (internally or external support partner)
Quality of the open source technology
Permissive license
Quality of the code (both from a technical and legal point of view)
Customer Benefits
Reuse of skills and technology
Developer productivity
Interoperability
Benefits for SAP
Standards support based on open source standards / reference implementations
(OEM) vendor independence

SAP contributing to open source
Criteria
Open source technology used, included and/or supported by SAP
Permissive license
Open governance / participation model
Quality of the code (both from a technical and legal point of view)
Customer Benefits
Comprehensive end-to-end support
Long-term viability of the open source
technology
Investment protection
Benefits for SAP
Shared development costs
Influence on feature roadmap
Investment protection

And what does this all
mean?

What customers care about
What else matters to
organizations
Problem fit of solution
Integrated easy-to-use solutions
Compliance, security and
reliability
Availability of support
and services
Product liability & indemnification
Long-term viability of a selected
solution
Predictable & reliable release
cycle
Why customers want
Open Source
Influence on product roadmap
Ability to customize
Ability to quickly react to changes
Interoperability with open and
closed source solutions
Reduced vendor dependence
Low TCO
Developer productivity

... and how SAP addresses these needs
Comprehensive portfolio covering all
key business areas
Solutions for small, midsize and large
organizations
Integrated product stack
Broad and increasing support for
standards and open source
Diligent integration of open source
technologies
Customizability
Large, global community
Co-Innovation and collaboration
Long-term end-to-end support
© SAP 2008 / Page 62

Summary
The border between open source and closed
source is blurring
“Open source companies” sell closed source add-on
components on top of their free open source technologies
“Closed source companies” integrate, support and contribute to
open source technologies
SAP is an active supporter of and contributor
to open source
Linux, Eclipse, OpenOffice.org, Firefox, etc.
More code contributions planned for the future
SAP addresses customer needs by offering
the best of both worlds
Customer choice via support for open source and open
standards
Customer influence via collaboration and co-innovation
Investment protection by using standard technology
Integrated solutions, security, reliability, long-term viability and
global end-to-end support

Mark Yolton
Senior Vice President
SAP Community Network
http://bpx.sap.com
http://sdn.sap.com
http://boc.sap.com
http://sapteched.com
T +1 650-687-4656
E mark.yolton@sap.com
Thank You! Danke schön!
https://www.sdn.sap.com/irj/sdn/standards-and-opensource

Osmb Keynote Jan2009 Yolton Final

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