SAP S/4HANA on Microsoft Azure

SAP and Microsoft Accelerating the Intelligent Enterprise

Speaker’s Name February 2021 Agenda

The Journey to Cloud and SAP S4/HANA – What Customers Are Saying

SAP And Microsoft, A Partnership You Can Trust

Simplifying and Accelerating A Customer’s Journey to SAP S/4HANA on Microsoft Azure

Expanding Opportunities for Partners to Drive Transformation

SAP and Microsoft – A Shared Commitment To Our Partner and Customer’s Success

Microsoft – Partner Facing 3 Market Momentum – Cloud and SAP S/4HANA Transition Underway…

Enterprises are migrating to cloud providers . . . and SAP customers are on the move to SAP S/4HANA at an accelerated pace . . . by 2027 . . .

of SAP customers globally are planning on deploying SAP 73% S/4HANA2 80%

Are going to deploy SAP By 2025, 80% of enterprises S/4HANA to the cloud3 will have shut down their 72% traditional data center vs. 10% in 20201

1 How to Prevent Toxic Data Center Assets From Limiting Digital Transformation, March 2020 Gartner 2 IDC White Paper, sponsored by Microsoft, Addressing Enterprise Cloud Priorities with Microsoft Azure, June 2020 3 IDC Executive Summary, sponsored by SAP, SAP Customers on the Move to SAP S/4HANA, June 2019

Microsoft – Partner Facing 4 Journey to SAP S/4HANA – Customers Want to Move, But….

They are getting widely differing points of view from Systems Integrators, Hyperscalers, and SAP on how to transition legacy SAP systems to the cloud and begin the move to SAP S/4HANA

Multiple POV’s are creating confusion, hindering decision making, and keeping companies from beginning the journey to the Public Cloud and SAP S/4HANA

They are forced to put siloed puzzle pieces together themselves – involving multiple cycles with all parties, reconciliation, validation, RFIs and RFPs, and elongating the process

Customers need clarity and a prescriptive harmonized set of recommendations, leveraging industry best practices, jointly backed by their strategic partners

Microsoft – Partner Facing 5 The Expanded Microsoft and SAP Partnership

SAP customers broadly favor Azure as their choice to run SAP S/4HANA in the cloud

25+ 90% year customer overlap, SAP runs on Microsoft Ongoing global partnership serving most of today’s Azure and Microsoft investments and an largest enterprises* runs on SAP aligned ecosystem

“The case for digital transformation has never been “New ways of working, collaborating and interacting more urgent. By bringing together the power of completely transform how we operate. By integrating Azure and Teams with SAP’s solutions, we will Microsoft Teams across our solution portfolio, we will help more organizations harness the power of the bring collaboration to the next level, jointly cloud so they can more quickly adapt and innovate determining the future of work and enabling the going forward” frictionless enterprise” Satya Nadella Christian Klein CEO of Microsoft CEO of SAP SE

*Sources include SAP and Microsoft benchmarking and customer reference points Microsoft – Partner Facing 6 Simplify Move your customers with confidence to SAP S/4HANA on Microsoft Azure, based on a shared approach that reduces complexity, mitigates risk, and aligns partner and customer The Microsoft and benefits. SAP Partnership

A strategic alliance between Accelerate SAP and Microsoft, leveraging Drive immediate time to revenue with Microsoft Azure and SAP the expertise of our strategic S/4HANA, based on a joint reference architecture, industry services partners, to simplify market approved journeys, and a shared Engagement. and accelerate a customer’s journey to RISE with SAP on Microsoft Azure. Innovate SAP customers broadly favor Transform and evolve your offerings, developing and delivering Microsoft Azure as their choice to run continuous innovation on top of SAP and Microsoft, and SAP S/4HANA in the cloud creating new opportunity for customers.

Microsoft – Partner Facing 7 Expanded Investments & Services

Market Approved Journeys Jointly created roadmap for SAP S/4HANA and other SAP solutions, by industry Leveraging specialist expertise and best practices

Engagement And Services A Catalyst and Actionable Plan Assessment and discovery bringing together the customer, SAP, Microsoft Azure, and System Integrators, along with a Services Plan for a successful lift and shift to the Intelligent Enterprise The SAP and Microsoft Essential Architecture Jointly developed technical blueprint Strategic Incorporates the required SAP and Microsoft Azure technologies to run the customer’s applications Partnership Optimized Platform Expanded Foundational services delivering continuous innovation on SAP Cloud Platform Extended integration across SAP solutions and third-party applications, including accelerated and automated migration and deployment and strengthened security and resilience

Collaborative Productivity Engage employees and connect to the pulse of your organization with integrated experiences Save time and stay focused integrating critical data and tools from SAP with Microsoft Teams, allowing colleagues and customers to chat, meet, manage, engage and collaborate across the organization

Additional Investment and Co-Innovation Microsoft – Partner Facing 8 Additional Investments in an Optimized Platform and Collaboration As customer needs evolve in the face of growing requirements for remote work and rapid digital transformation, Microsoft and SAP continue to invest, co-innovate, and expand our cloud partnership

Drive collaboration with Microsoft Teams Accelerate Transformation with SAP Integration Across SAP Solutions S/4HANA on Microsoft Azure Helping customers create an intelligent enterprise New investments to: of the future with: • Accelerate migration and increase • Seamless employee collaboration across operational efficiency business workflows • Strengthen security and resilience • Engage business partners and suppliers based • Empower developers with an innovation- on real time data ready platform • Simplify the remote sales experience with embedded in-app collaboration

Microsoft – Partner Facing 9 Accelerate Transformation with SAP S/4HANA on Microsoft Azure

Automate migration and operations, and gain cloud agility and innovation

Accelerate migration and increase operational efficiency • Guidance on setup, reference architecture and data tool usage • Optimized productive provision experience with SAP Cloud Appliance Library (CAL) SAP S/4HANA • Automated migration framework, system installation, operations and monitoring

Strengthen security and resilience • Enhanced network security and threat protection Microsoft Azure • End-to-end authentication and integrated identity lifecycle and SSO • Secure Network Integration with private account connectivity

SAP Business Technology Empower developers with an innovation-ready platform Platform • Deeper integration with SAP Business Technology Platform • Extend and integrate events from SAP S/4HANA to Microsoft Azure and vice versa • Simplified administration and provisioning

Microsoft – Partner Facing 10 Drive Collaboration with Microsoft Teams Integration Across SAP Solutions

Create a seamless collaboration experience without switching applications

Seamless employee collaboration across business workflows SAP SuccessFactors Allow people across your organization to to chat, meet, manage, engage and

collaborate in context and inline Employee

Engage business partners and suppliers based on real time data SAP S/4HANA Seamlessly and quickly share critical business information with your partners and Microsoft Teams

suppliers Supplier

Simplify the remote sales experience with in-app collaboration SAP Customer Experience With direct Teams and SAP Cloud for Customer integration for critical customer Sales meetings

Microsoft – Partner Facing 11 The Microsoft Difference: Why SAP Customers Choose Microsoft Azure

SAP customers broadly Global cloud platform Unmatched security Advanced data analytics favor Microsoft Azure* optimized for SAP HANA and compliance and insights

▪ VMs, large instances, storage and ▪ Use Azure Active Directory for secure • Pool SAP and non-SAP data in Azure and 17% networks certified to run mission-critical user authentication and single sign-on. use advanced analytics to gain real-time SAP workloads w/ high performance and ▪ Azure Security Center and Azure Sentinel and predictive insights with cloud business continuity (up to 99.99% SLAs) offer hybrid cloud threat detection and technologies such as Power BI, machine Azure 56% ▪ Azure offers more regions (>65) than any security monitoring. learning and AI 27% other hyperscaler ▪ Azure offers 90+ industry-specific and AWS ▪ Customers trust Azure to run some of the global certifications, more than any other GCP largest SAP production landscapes in the cloud. world!

Integrate and extend SAP Support app Leading hybrid and multi- A partnership you can applications innovation cloud options trust

▪ Integrate SAP apps with Microsoft Teams ▪ Unleash innovation with low-code/no-code ▪ Microsoft supports you with the leading ▪ Jointly serving our enterprise customers and Office 365 for productivity and Power Platform for professional and hybrid cloud solutions – from the edge to for 25+ years collaboration. citizen developers. your local datacenter to the public cloud. ▪ Microsoft & SAP run SAP on Azure. ▪ Use BTP to build intelligent integration ▪ Support continuous DevOps innovation ▪ Hybrid and multi-cloud management ✓ 120K internal Microsoft users and workflows. with GitHub and Azure services such as capabilities include Azure Arc, Azure access SAP on Azure ▪ Joint roadmap of continued innovation and IoT, cognitive services, and chatbots. Monitor, Azure Governance, and security ✓ SAP migrated 30+ internal business integration to future-proof your investment services. landscapes to Azure

https://www.dsag.de/externe-news/dsag-investitionsreport-2020-wachablosung-zu-s4hana-vollzogen DSAG Jahreskongress 2019

Microsoft – Partner Facing 12 SAP S/4HANA on Microsoft Azure

RISE with SAP on Microsoft Azure Customer Path to SAP S/4HANA

RISE with SAP SAP S/4HANA Cloud (Public or Private)

SAP S/4HANA SAP S/4HANA SAP S/4HANA On- Public Cloud Private Cloud** Premise

License Model Software Subscription ** Perpetual Software

SAP Business Technology Implementation Partner / SAP / Customer Platform 1 Content Ownership SAP / Partner / Customer Partner / SAP / Customer Offer

Application Management Contract SAP * Partner / Customer / SAP ECS Services SAP Responsible Business Business Process Content Lifecycle Company SAP * Partner / Customer / SAP ECS Network Intelligence Management Starter Pack

Product Support SAP * SAP * SAP / Resell Partner

Technical Operations SAP * SAP * Partner / Customer / SAP ECS Custom Code Analyzer, SAP Readiness Check, Customer DC / Azure / SAP / SAP Learning Hub Azure / SAP * Azure / SAP* Partner

* Included in SAP Subscription ** HEC bundled subscription also available

Microsoft – Partner Facing 13 Partner Opportunity with SAP S/4HANA Private Cloud Edition

Differentiated Offering & Customer Lifetime Value RISE with SAP S/4HANA Private Cloud Edition*

▪ The enhancement of our relationship will accelerate Typical Partner Application SAP S/4HANA adoption and market momentum Management Services: ▪ Participate in deals in a lead role for advisory, • SAP Fiori Operations Typical Partner Advisory & • Application Security Updates implementation and management of Application Layer Implementation Services • Regression Testing • Value Discovery & Business Case • Data Volume Optimization ▪ Establish a customer relationship to drive business • Application Implementation transformation journey/application modernization, Advisory & Application • Data Quality Optimization • Industry/LoB Practices & Business Implementation Management • System Health Monitoring Process Services Services advisory and implementation • Release Version Upgrade • Application Extension & Application ▪ Product integration between SAP Apps and Teams Integration • Cloud Integration Testing • System Conversion and Selective • SAP Cloud Platform Integration BTP Interoperability and Security (AAD, SAP IAS) will Microsoft & SAP Shared – Partner Facing Data Transition SAP S/4HANA Services facilitate up-sell to extended workloads (e.g., Data/AI, • Custom Development on Microsoft • Functional Application Management IOT, Teams) • Data Harmonization and Analytics Azure • Technical AMS (output m, batch m, user m) ▪ Joint SAP & Microsoft co-innovation and committed Software Technical roadmap for continued innovation around SAP + Support Managed S/4HANA and Teams creates new opportunities for Services + Infrastructure + incremental partner revenue Management ▪ Explore the best alternatives to enable customer transformation and develop a path to SAP S/4HANA on Azure

*Source: SAP marketing assets

Microsoft – Partner Facing 14 Partner Call to Action We are very excited to announce this new Partnership. It is a huge milestone in our momentum with SAP and offers us the ability to showcase Azure differentiation in the market

Call to Action

Align Align your SAP and Microsoft Practices with our new Partner direction

GTM Incorporate our partnership in your GTM activities and connect and collaborate across our joint sellers

Innovate Adopt and customize Industry Market Approved Journeys to create unique customer value

Turbocharge Our partnership will accelerate your customer’s decision to move to SAP S/4HANA

Plan Review your business plan to identify which customers you can migrate in 2021 and 2022

Engage With your Microsoft Account Managers and let’s really go after the market!

Microsoft – Partner Facing 15 Thank you!

microsoft.com/sap sap.com/microsoft Appendix For use by presenters as desired

Microsoft – Partner Facing SAP Solutions Non-SAP Applications & Database

SAP Business Objects Office 365 Microsoft Active Directory Power Platform Microsoft Teams

SAP BW/GRC

SAP ECC/SOH

SAP BTP

SAP Commerce Cloud

SAP Digital Supply Chain

SAP SuccessFactors

SAP Concur LEGEND

SAP SaaS services sold on Azure

SAP SaaS services on SAP DC SAP Procurement SAP Solutions deployed on Azure

Microsoft Services : Value Enhancers Microsoft – Partner Facing 18 SAP Essential Architecture on Microsoft Azure

Applications SaaS Applications 1 Any-Premise Applications

SAP Integrated SAP Customer SAP S/4HANA Cloud SAP S/4HANA SAP BW/4HANA SAP HANA Microsoft O365 OneDrive Teams Business Planning Experience

SAP Concur SAP SuccessFactors SAP Fieldglass SAP MDG …….. LinkedIn SharePoint …..

Qualtrics SAP Ariba ………

Business Technology Platform Platform Services

Analytics Database & Data Mgt Integration Suite Intelligent BPM Enterprise Extensions Digital Experience SAP Analytics Cloud1 HANA DB SAP CP Integration Workflow Web IDE Portal Azure Database Cognitive Services

SAP Data Warehouse 1 HANA Data Lake API Management Business Rules Enterprise Messaging Mobile Services Azure IoT Hub Cloud Key Vault

Web Analytics SAP HANA Cloud OData Provisioning Process Visibility Extension Factory UI5 Azure IoT Edge Power Platforms

Data Intelligence Open Connectors Inbox ABAP Environment Conversational AI Azure Blockchain Logic Apps

Edge Services Intelligent RPA SAP Graph ….. Azure ML Service Event Grid

Azure VM, Azure Storage, Azure Virtual Network, Azure Active Directory

1 SaaS offerings Microsoft – Partner Facing 19 Market Approved Journeys define jointly created industry roadmaps for SAP S/4HANA and other SAP solutions They create a foundation that Partners can build on to reduce customer risk and accelerate adoption leveraging their own additional unique industry and advisory services expertise

Market Approved Industry Journey Framework Industries Journeys specify: Journey Stages IM&C • Industry-specific business Strategic Priorities outcomes customers can LIFT RESHAPE CREATE expect after migrating Retail to SAP S/4HANA on Microsoft Azure, organized by journey stages Oil & Gas # 1 Business Capabilities • Microsoft and SAP product components that may be Fashion part of a larger customer solution architecture to # … address their unique needs Microsoft & Industry Consumer Products within the target industry SAP Reference Solutions Processes Automotive # n

Microsoft – Partner Facing 20 Leaders in Digital Transformation are moving SAP Solutions to Azure

Microsoft – Partner Facing 21 SAP customers broadly favor Azure as their choice to run SAP S/4HANA in the cloud

“As part of our overall transformation we transitioned to SAP S/4HANA, running it on Microsoft Azure provides the velocity, availability, scalability, and elasticity we need for more visibility and better efficiency across our business. The pandemic “When it comes to our customers delivering personal protective equipment (PPE) struck as we were in the middle of our SAP implementation, so by using Teams, we can’t be late, so we rely on SAP and Microsoft to provide the digital backbone we were able to continue to work on the project, stay on schedule, and keep that’s essential to keeping our supply chain running smoothly. The combination of everyone informed. The combination of SAP and Microsoft was especially helpful Microsoft Teams with our SAP solutions has given our employees the ability to during a challenging time.” work from anywhere while ensuring orders are delivered on time to our customers —John Hill, Chief Information Officer & Senior Vice President of Business supporting the people putting their lives at risk working on the front line.” Planning, Carhartt —Helge Brummer, Vice President, Technical Infrastructure, Support & Operations, Coats

“SAP S/4HANA has given us real-time visibility into our inventory, which is crucial for us as a pharmacy and healthcare retail company during the pandemic. We chose to run SAP S/4HANA on Azure because of its agility and flexibility to scale up and out quickly to meet our business needs. Now we have access to our data in one place so we can offer the best possible customer experience online and in our stores. Microsoft Teams coupled with SAP solutions helped us overcome business continuity challenges and enabled our employees to collaborate very effectively despite the shift from office to remote work.” —Francesco Tinto, Senior Vice President, Global Chief Information Officer, Walgreens Boots Alliance

Microsoft – Partner Facing 22 Customers choose SAP S/4HANA on Microsoft Azure

• SAP S/4HANA performance on Azure • SAP S/4HANA for Fashion, Hybris Marketing, CAR... • Saving 40% on S/4HANA maintenance • CoreToEdge as partner • Orchestration layer • Real-time stock levels, merchandise, supply chain • Quickly create and resize VMs • Stores run more smoothly • Azure far more secure than OP • Customers get better service • IT same size, while demand grows • Better manage coordination between HQ, production • Read the whole story… and 400 stores – while they add 100 more • Read the whole story...

Microsoft – Partner Facing 23