Cloud Computing at SAP

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Title of the presentation This is the subtitle

Frank StienhansBST Innovation

July 15th 2009

Cloud Computing @ SAPSAP UK Worldtour SAP 2009 / SAP World tour / Page 1

As a difference to the previous presentations, today will be the first time that we will talk about Cloud Computing to a broader audience.So far we had pointed conversations with SAP customers approaching SAP with regards to this topic. #

Copyright 2008 SAP AGAll rights reserved SAP 2009 / SAP World tour / Page 2No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice.Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors.SAP, R/3, mySAP,, xApps, xApp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned and associated logos displayed are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary.

The information in this document is proprietary to SAP. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. This document is provided without a warranty of any kind, either express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, or non-infringement.SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence.The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages

Weitergabe und Vervielfltigung dieser Publikation oder von Teilen daraus sind, zu welchem Zweck und in welcher Form auch immer, ohne die ausdrckliche schriftliche Genehmigung durch SAP AG nicht gestattet. In dieser Publikation enthaltene Informationen knnen ohne vorherige Ankndigung gendert werden.Einige von der SAP AG und deren Vertriebspartnern vertriebene Softwareprodukte knnen Softwarekomponenten umfassen, die Eigentum anderer Softwarehersteller sind.SAP, R/3, mySAP,, xApps, xApp, SAP NetWeaver, Duet, Business ByDesign, ByDesign, PartnerEdge und andere in diesem Dokument erwhnte SAP-Produkte und Services sowie die dazugehrigen Logos sind Marken oder eingetragene Marken der SAP AG in Deutschland und in mehreren anderen Lndern weltweit. Alle anderen in diesem Dokument erwhnten Namen von Produkten und Services sowie die damit verbundenen Firmenlogos sind Marken der jeweiligen Unternehmen. Die Angaben im Text sind unverbindlich und dienen lediglich zu Informationszwecken. Produkte knnen lnderspezifische Unterschiede aufweisen.

Die in diesem Dokument enthaltenen Informationen sind Eigentum von SAP. Dieses Dokument ist eine Vorabversion und unterliegt nicht Ihrer Lizenzvereinbarung oder einer anderen Vereinbarung mit SAP. Dieses Dokument enthlt nur vorgesehene Strategien, Entwicklungen und Funktionen des SAP-Produkts und ist fr SAP nicht bindend, einen bestimmten Geschftsweg, eine Produktstrategie bzw. -entwicklung einzuschlagen. SAP bernimmt keine Verantwortung fr Fehler oder Auslassungen in diesen Materialien. SAP garantiert nicht die Richtigkeit oder Vollstndigkeit der Informationen, Texte, Grafiken, Links oder anderer in diesen Materialien enthaltenen Elemente. Diese Publikation wird ohne jegliche Gewhr, weder ausdrcklich noch stillschweigend, bereitgestellt. Dies gilt u. a., aber nicht ausschlielich, hinsichtlich der Gewhrleistung der Marktgngigkeit und der Eignung fr einen bestimmten Zweck sowie fr die Gewhrleistung der Nichtverletzung geltenden Rechts.SAP bernimmt keine Haftung fr Schden jeglicher Art, einschlielich und ohne Einschrnkung fr direkte, spezielle, indirekte oder Folgeschden im Zusammenhang mit der Verwendung dieser Unterlagen. Diese Einschrnkung gilt nicht bei Vorsatz oder grober Fahrlssigkeit.Die gesetzliche Haftung bei Personenschden oder die Produkthaftung bleibt unberhrt. Die Informationen, auf die Sie mglicherweise ber die in diesem Material enthaltenen Hotlinks zugreifen, unterliegen nicht dem Einfluss von SAP, und SAP untersttzt nicht die Nutzung von Internetseiten Dritter durch Sie und gibt keinerlei Gewhrleistungen oder Zusagen ber Internetseiten Dritter ab.Alle Rechte vorbehalten.

Organization and Disclaimer

DescriptionDisclaimer1. The following content represent ideas and prototypes not product announcements or commitments to productize2. SAP is very interested in understanding the use cases and requirements you see.

DescriptionProduct Organization: SAP Business Solutions and Technology (BST)Large Enterprises: SAP Business Suite, SAP Large Enterprise On Demand SME: SAP All in One, SAP Business byDesign, SAP Business One Technology: SAP Business Objects, SAP NetWeaver

DescriptionOrganization: SAP BST Innovation CenterExplore innovation potential of new market and technology trends includingOn Demand, Virtualization, Cloud Computing, Web 2.0, Co-Innovation Communities, Rich User Experiences SAP 2009 / SAP World tour / Page 3

Often new market trends do not fit into one particular organization, they span accross #

DescriptionAgendaIntroductionValueGeneral Use CasesConclusionsCloud Computing Agenda SAP 2009 / SAP World tour / Page 4

ThemeWhat could you do, if SAP would incorporate advanced forms of virtualization into our product and service offerings?

Today I will show you what you can do when SAP would incorporate advanced forms of virtualization into our product and service offerings #

Cloud Computing Definition SAP 2009 / SAP World tour / Page 5Trends

Cloud Computing allows On Demand Software Provisioning with Zero-Installation & Automatic Configuration at low cost and immediate access in Scalable Data Centers.Definition from Consumer Perspective

Application ProvidersPlatform Providers

Infrastructure ProvidersService Providers

400,000 Developers + ISVs

Selected Cloud Consumers & ISVs


Trends and Value of Cloud Computing SAP 2009 / SAP World tour / Page 6From Manufacturing to Automation and Standardizationof IT BusinessIndustrialization of ITFrom inflexible and long-term contracts to payment of metered usageUtility ComputingFrom long running customer projects to immediate fulfillment of customer needsOn Demand Fulfillment


Increase Business Agility, Increase R&D Efficiency

Breakthrough Consumption Experience of SAP Solutions

Reduce IT Costs/CAPEX for SAP, Customers and Partners

There are 3 trends behind Cloud ComputingIndustrialization of IT: standardizing and automating manual processes in the IT BusinessUtility Computing: from inflexibile and long-term contracts to metering of resource usage and payment based on usageOn Demand Fullfillment: from long running customer projects to immediate fulfillment of customer needs

This results in value-It increases R&D Efficiency as Software & Hardware provisioning does not require planning any more. It increases agility of R&D-These new capabilities allow defining an entirely new consumption experience of SAP solutions-In addition the high degree of efficiency in the Cloud Computing principles result in massive cost reduction for SAP, customers and Partners #

Traditional Hosting vs. Amazon CloudHosting Costs of ERP for Development

Traditional HostingAmazon ec2Min Term500 / month0.30 / hourProvisioning TimeMin 1 week6 min

Traditional Hosting SAP 2009 / SAP World tour / Page 7

When used 24/7, Amazon EC2 costs 300 SAP employees as direct users from 16 countries> 4000 systems provisioned> 180.000 Hosting Cost SavingsCustomer Validation started

SAP 2009 / SAP World tour / Page 9Minimize Cost of consuming SAP Solutions(TCO)New Product InnovationsNew Service Innovations

On Demand Architecture #

Cloud Use Cases SAP 2009 / SAP World tour / Page 10

DescriptionNon-Mission Critical Use Cases: Current Potential Development / Patching / Customizing Testing (Manual, Automated, Scalability) Training Demo / Workshops / Events Trial / Evaluation

DescriptionMission Critical Use Cases: Future Potential Disaster Recovery, On Premise: Provisioning of productive landscapes On Demand: Provisioning of productive services

DescriptionCloud Computing is a maturing approach Integration with customer IT: Network, Operations, Billing Service Level Agreements: Security, High Availability, Performance

SAP EmployeeSAP Employee Cloud Self Service

Amazon Web Services[ ec2 | s3 | SQS ]MeteringProvisioningConfiguration

ConfigurationMeteringSAP Cloud Enabling Services powered by SAP NetWeaver CESAP Solutionhosted on EC2

SAPAmazon AWS (Cloud Infrastructure)DEMO 1


SAP Employee

SAP 2009 / SAP World tour / Page 11Amazon NetworkCloud SegmentSAP Network

Demo: Provisioning of an ERP systemUsage MeteringBilling


SAP EmployeeLock-in Danger

Cloud InfrastructureMeteringProvisioningConfiguration

ConfigurationMeteringSAP Cloud Enabling Services powered by SAP NetWeaver CESAP Solution


SAP Employee

SAP 2009 / SAP World tour / Page 12!!

Situation TodayPrivate and Public Cloud Infrastructures are a dominant trendNo single Cloud Infrastructure today is ideal for all use cases (SLAs, Integration, Costs)Every Cloud Infrastructure so far has significant proprietary elements in their interface, creating lock-in effect for consumersSAP, Customers and Partners are interested in Standardization of Cloud APIs

Standardized Cloud API, Allowing Innovation on Massive Scale on providing Software SolutionsThe great successes of Standardization: USB, DirectX #

Cost Characteristics of Cloud InfrastructuresReal World Examples of using one SAP ERP System SAP 2009 / Page 13Workshop 1 day 1.4%Customer Demo incl. 1 week Development7.5%Local Development10h / Workday30.0%Central Systems24h / 7 days100%Monthly Consumption

Cloud Production Chain(SAP Internal)VirtualApplianceLibraryCloud InstancesNew ContentOperating SystemOSInstantiateOS +NWInstantiateOS + SAP NetWeaverCreate ApplianceOS + NW +Suite CompositeCreate ApplianceSuite CompositeDeploySAP NetWeaverDeploy SAP 2009 / SAP World tour / Page 14

Fully automated.Creating a patch for a certain release #


Automated Functional Tests(SAP Internal) SAP 2009 / SAP World tour / Page 15timeAllocated machines

T8 night hours

TTTTTTTParallelize test case execution via Cloud Computing at No additional costAutomated Test ControllerCloud ServicesAmazon ec2Virtualization

Test CaseMachineLegend

Ideal Cloud Computing InfrastructureAutomatic Operations

Abstraction LayerHardwareVirtualization

Abstraction LayerApplicationVirtualization(HW) Virtualization, Application Virtualization and Cloud ComputingSAP Solution & PlatformOperating SystemHardware

Reap the benefits & Do not pay the price of complexity SAP 2009 / SAP World tour / Page 16

Virtualization has a clear value proposition in lowering costs and it has a great future.At the same time Virtualization increases the complexity of IT.What you should get is something what allows you to reap the benefits of virtualization without getting in touch with the complexity of operations underneath.And that is the primary focus of this project. #

SAP NetWeaver CE in the Cloud Trial Usage

Amazon Web ServicesMeteringProvisioningConfigurationSOA InterfaceVirtual Appliance: Developer StudioNWDSVPN ClientCloud Plugin

ConfigurationMeteringSAP Cloud Services hosted on EC2 and powered by SAP NetWeaver CE

VPN ServerNW CECustomer: SAP NetWeaver CEhosted on EC2

CustomerSAPAmazonin control ofSAP Cloud Account AdministratorDEMO 2

SAP Employee


SAP 2009 / SAP World tour / Page 17

The same cloud services we just enhanced it to be a Multi-Tenant application, build using SAP NetWeaver CE running in the Amazon CloudI will leverage here in a Virtual Appliance: Developer StudioI want to highlight here another trend, called desktop application virtualization, which packages desktop applications and makes them redistributable. The difference to normal virtualization is that it does not contain the operating system, so I do not have to deal with the challenges of redistributing an OS: Unix, Linux, Windows and also not how to patch them.Another value I experienced yesterday. Literally at the San Francisco Airport waiting for my flight to London, my laptop died. I shot a mail to Darren, requesting a looner laptop for the presentation today.It took IT 1 hours to provide me with a laptop only with Windows and Office installed. It took me 5 min to copy one virtual appliance file from my old harddisk to the new laptop, and this scenario was running again.


Cloud Segments SAP 2009 / SAP World tour / Page 18

GateSAPSAP CloudFirewallVPNApplianceCloud Segment

CloudAccounting &Operations (Multi-Tenant)




Cloud Segment


Cloud Segment

GateGate= Appliance for Secure Network Integration

Cloud Landscape: CRM

CRM DBCRM ServerCRM Application

BW DBTREX ServerAnalyticsBW ServerSAP CRM Landscape


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