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1 The New Economics of SAP Business Suite powered by SAP HANA 2013 SAP AG. All rights reserved. 2

2 COMMON MYTH Running SAP Business Suite on SAP HANA is more expensive than on a classical database SAP AG. All rights reserved. 3

3 The TCO equation is elusive Database hardware is just a small fraction of overall costs SAP HANA H/W costs impact a small fraction of the TCO equation Hardware Software Significant reductions in all other TCO drivers far outweigh H/W costs Continuous Improvement Operation Data Footprint Replication & ETL Search & Accelerators SAP AG. All rights reserved. 4

4 SAP Business Suite powered by SAP HANA Reducing Total Cost of Ownership Data Footprint Setup Testing Reducing Cost Increasing Efficiency TCO Landscape Simplification Data Center Integration Asset Utilization SAP AG. All rights reserved. 5

5 Combining transactions and analytics on a single in-memory platform Landscape Simplification Transactions Analytics Transactions Analytics Eliminates Operational Reporting costs OLTP Replication ETL Replication OLAP SAP HANA simplifies SAP HANA platform OLAP + OLTP Eliminates ETL Costs Eliminates Data Services Costs One data copy SAP AG. All rights reserved. 6

6 Projected operational reporting savings with SAP HANA Landscape Simplification SAP Business Suite on Any Database 4 Year NPV = $1,740,000 SAP Business Suite on HANA Initial Investment Reporting Server ETL License Maintenance Costs Ongoing Costs Staffing Costs No Additional H/W No Additional S/W No Additional Staff No Additional Maintenance 4 CPUs (32 Cores) 10 TB Storage $10K per Core $180,000 $320,000 20% Acquisition Cost $100,000 1x FT Administrator 1x FT Developer $300,000 * Cost Assumptions: $25K per CPU. $8K per TB, 8% Cost of Capital, 4 year linear depreciation for initial investment SAP AG. All rights reserved. 7

7 SAP Tailored data centre integration A new flexible approach to integrate SAP HANA into datacenters Data Center Integration Integrated Appliance Approach Tailored Datacenter Approach Application OS Operating System Database Virtualization Virtualization Server Server Network Shared Network Storage Vendor chooses appliance components Mandatory Memory/Core Ratio Prepackaged SW, HW, and Service Higher Cost Enterprise Storage Re-use existing H/W- Only Buy What You Need Buy compute and storage separately Lower Cost SAP AG. All rights reserved. 9

8 A leading CPG company achieves 60% savings with tailored data center vs. appliance delivery Data Center Integration Original System HANA Appliance Cost Certification Pre-configuration Propriety File- System OS-maintenance Persistent Storage Network Adaptors CPU Customer pays for H/W, S/W, Certification, Packaging, and Services Memory UNIX OS Any Database HANA Tailored Data Centre Cost CPU Memory 60% Savings Customer pays for CPU & Memory only Customer manages own configuration Same cost as original system but real-time performance Uses Free standard file system (NFS) Re-uses existing OS support contract Reuses existing storage Reuses existing networking components SAP AG. All rights reserved. 10

9 Customers saving with SAP HANA tailored data centre integration Data Center Integration 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 SAP AG. All rights reserved. 12

10 Now supporting virtualization in production environments for SAP Business Suite powered by SAP HANA Asset Utilization Any DB ERP CRM DB 1 DB 2 Hardware 1 Hardware 2 SAP HANA ERP CRM DB 1 DB 2 Virtualized HANA Hardware 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 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 SAP AG. All rights reserved. 13

11 Less storage and database administration costs with a single copy of the data Data Footprint SAP Business Suite on Any DB DBA DBA DBA DBA Indices Aggregates Data Cubes 70 to 90% Data Footprint Reduction SAP Business Suite on HANA DBA 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 Row Store SAP AG. All rights reserved. 15

12 Customers savings with smaller data footprints Data Footprint 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 5,000 Unused custom code retired 86% Faster Backups 5 hours to 40 minutes SAP AG. All rights reserved. 16

13 Wide range of deployment options to reduce TCO and speed time to value Setup Costs Private Cloud Hybrid Model 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 SAP AG. All rights reserved. 17

14 Customers saving with lower setup costs and faster time to value Setup Costs 70% less TCO with SAP HANA Enterprise Cloud vs. on-premise $3 million 5 year projected savings 4 months to rollout in Brazil 4 Weeks to go live with SAP HANA Enterprise Cloud 1 Week to invoice first production Complete ERP manufacturing sol. 2 Months to go live with on-premise By unifying our software landscape on SAP HANA, we not only achieved a lower TCO but have also paved the way for future innovation 2 Months to go live with on-premise Real-time insight into operations supporting management of drill ships, reduction of time to value for analytics, and simplification of the IT landscape SAP AG. All rights reserved. 18

15 Reduced certification requirements for non-production SAP HANA systems Testing Costs Standard non-certified H/W for testing Storage: any local or shared storage on standard disk Network: standard networking components Behind every production system, there are an average of 5 non-production Memory: starting at 128GB only OS: SUSE Linux 11.x or Red Hat >6.5, SAP AG. All rights reserved. 19

16 SAP HANA TCO SAP Business Suite on HANA TCO evolution Benchmark Appliance Delivery High End (Mainframe) Tailored Data Centre Delivery Mid End (Propriety Unix) Virtualization Standard HW for testing Multiple DBs Simplification Low End (X86/Linux) Planned SAP AG. All rights reserved. 20

17 FACT TCO of running SAP Business Suite powered by SAP HANA is lower than classical databases SAP AG. All rights reserved. 24

18 THANK YOU 2013 SAP AG. All rights reserved. 25

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