SAP Company and Products Nina Johanssen

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Last update 2013-04-03 by CMD Content

SAP - Company and Strategy

SAP – Products and market position

Total market potential and opportunity size

SAP Ecosystem

2 About SAP • Vision: Make the world run better • Mission: Make every company a best-run business • About 232k customers across 24+ industries and in all market segments • Focus on five market categories: • Applications • Cloud • Mobile • Analytics • Database & Technology

• Strong partnership with IBM; Tens of thousands of joint customers

3 Overview of the company SAP AG

Legal Executive Board name SAP AG

Company public, NYSE symbol: SAP

Founded 1972, Walldorf, Germany

• Hasso Plattner (founder): 9.95% Shares • Klaus Tschira (founder): 7.58% • Dietmar Hopp (founder): 6.13%

Bill McDermott Jim Hagemann Snabe Joined SAP 2002 Joined SAP 1990 Market value about 50 Bil Euros Co-CEO, Strategy + Sales Co-CEO, Development

Luisa Deplazes Delgado Werner Brandt Gerhard Oswald Vishal Sikka Lars Dalgaard Joined SAP 2012 Joined SAP 2001 Joined SAP 1981 Joined SAP 2002 Joined SAP 2012 Human Resources CFO COO CTO SAP Cloud

4 SAP milestones over 41 years SAP Business Suite SAP All-in-One SAP Business One SAP Business byDesign

Business Analytics mySAP.com Technologies (In-Memory) New Dimension Mobility Applications Cloud One-Step-

R/3 Business Client/Server § €16.2 Bill. Revenue (2012)

R/2 § 64,400 Employees § > 232,000 Customers Mainframe in >122 Countries (R/1) § €5.1 M revenue § €424 Mill. Revenue § €6.3 Bill. Revenue § > 4,600 certified Partners § €0.3 Mill. § 60 Employees § 3,200 Employees § 25,000 Employees Revenue § 50 Customers § 2,800 Customers § 15,000 Customers (resellers and services) § 9 Employees in 2 Countries in 35 Countries in 120 Countries

1972 1979 1992 2000 2013

5 Historical evolution of SAP main products

Market potential Market And main acquisitions Acquisition of

SAP Business Suite and SAP Netweaver Acquisition of Analytics Partner Composite Applications SAP Composite Applications Acquisition of EnterpriseBusiness Process Platform Services Repository Platform CRM SRM ERP Process Components (Supplier) (internal) (internal) SAP New Acquisition of SAP R/3: Dimensions Integrated Open Acquisition of ERP architecture solution SAP CRM

SD FI Sales & Financial Distribution Accounting MM CO Materials R/3 Mgmt. Controlling SAP APO PP AM Production Fixed Assets Planning R/3 Mgmt. SAP BW SAP SAP QM Client / Server PS Quality Project Manage- ABAP/4 System Business R/2 ment PM WF Plant Main- Acquisition of Workflow Business tenance HR IS Human Industry Resources Solutions One byDesign

1972 1992 1999 2002 2004 2007 2008 2010 2012 2013

6 SAP Strategy: 5 Market Categories

Database & Applications Analytics Mobile Cloud Technology

#1 #1 #1 #4 #3 extending leadership growing again accelerating fastest growing accelerating

13.3% 18.3% 11.1% 4.5% 4.3%

12.5% 18.1% 10.5% 3.9% 3.8% Market Share* Market Share* Market Share* Market Share* Market Share*

Growth drivers: Growth drivers: Growth drivers: Growth drivers: Growth drivers: Suite on HANA Predictive Analytics Unified Mobile Platform SAP Business Platform Hybrid GTM (net new) Visualizations Afaria in the Cloud OEM Volume Business Positioning Business 360 Solutions BI 4.0 Adoption Suite on HANA Networks User Experience RDS for Ariba HANA based Apps Source: SAP 2013

7 SAP Aspiration

8 SAP new segment structure

Source: SAP 2012

9 Breakdown of SAP Revenue 2012

In Billion € Total: 16.2 Billion € (+14% YoY) SW License 3,1 4,7 Cloud Subscription and Support Cloud Service 0,3 Product Support 0,1 Consulting and other 8,2 services

Source: SAP 2013

10 Addressable Market based on SAP BS in 2013

Market opportunity 2013 Market size SAP ecosystem in Bill. $

Total addressable SAP Eco-System 40

Hardware 8

Consulting & System Integration + AMS 28

Software (3rd parties) without SAP solutions 4

SAP new license revenue in 2011 = 4,0 Bill. € 4

Rule of thumb for SAP projects: SW : HW : Service = 1 : 1 : 1 to 4

Source: IBM Market Intelligence

1111 SAP Topics to present during Master Class

Will be covered in this session Will be covered in other sessions

Will not be covered

12 Good SAP Source to look for many more details

Link to http://www.sap.com/solutions/index.epx

13 Place photo here

SAP Products Content

SAP main product lines

SAP Business Suite and SAP Business All-in-One

SAP Business ByDesign

SAP Business One

SAP Business Analytics

SAP license pricing – basic methodology

Product maintenance strategy

15 Content

SAP main product lines

SAP Business Suite and SAP Business All-in-One

SAP Business ByDesign

SAP Business One

SAP Business Analytics

SAP license pricing – basic methodology

Product maintenance strategy

16 SAP main product lines covering business applications

Large Accounts 23k

Small And Midsize Accounts 60k

17 SAP Core Business Products Target Installed Remarks market base

SAP Business Suite Very large 23k • New Business Suite 7 customers • SAP Netweaver v 7.31 • Maintenance extended until 2020

SAP Business Large and 23k • based on SAP Business Suite All-in-one higher • indirect channel only midmarke

SAP Business One Small and 37k • doubled number of installs in Medium 2-3 years Enterprises • indirect channel only

SAP Business Small 1k • offered only as SaaS byDesign Enterprises • hosted only by SAP

18 Typical customer initial project sizes

SAP SAP Business SAP Business One All-in-One Business Suite

50 k€ 1 Mil € 10 Mil € Total initial costs (10 users) (200 users) (1000 users)

SAP license (discounted) 20 k€ 250 k€ 2.5 Mil €

Implementation 20 k€ 500 k€ 5 Mil €

HW + Middleware 10 k€ 250 k€ 1 Mil €

19 Content

SAP main product lines

SAP Business Suite and SAP Business All-in-One

SAP Business ByDesign

SAP Business One

SAP Business Analytics

SAP license pricing – basic methodology

Product maintenance strategy

20 SAP Business Suite – Basic Components

Core Applications § SAP ERP Enterprise Resource Planning § SAP CRM Customer Relationship Management § SAP PLM Product Lifecycle Management § SAP SCM Supply Chain Management § SAP SRM Supplier Relationship Management Technology Stack - Netweaver § BW Business Warehouse § PI Process Integration § Portal § MDM Master Data Management § KM Knowlede Management Application Lifecycle Management § SAP Solution Manager Databases § IBM DB2 § Oracle § MS SQLServer § SAP Sybase ASE, (SAP MaxDB), SAP HANA

21 SAP Netweaver Platform

Installations worldwide Application Lifecycle Management § More than 35,000 on SAP ERP § Close integration with SAP Solution Manager 7.1 § More than 17,000 BW Business Databases supported Warehouse § IBM DB2 § More than 10,000 Portal § Oracle § More than 5,500 PI + BPM § MS SQLServer § SAP Sybase ASE, (SAP MaxDB), SAP HANA

22 SAP Business Suite 7

n Closed loop between strategy/decision Finance Operations Marketing and action n Flexible, end-user centric environment

SAP + ISV + CustomerComposites Composites via Galaxy n Define most critical Enterprise Services Enterprise Service as innovation basis Repository n Differentiating customer processes build on top of Business Suite n Non-disruptive path to SOA

EhP EhP EhP n Best practice processes n Built for Lines of Business in their industry n Harmonized User Experience n Incremental adoption SRM PLM ERP SCM CRM IS n Reduced cost of implementation and operation SAP NetWeaver n Innovation without disruption with Enhancement Packages

23 SAP Business Suite is covering the needs of different Line of Businesses (LOB)

Finance Human Resources Information Technology Manufacturing Marketing Procurement

Service R&D, Engineering Sales Sustainability Supply Chain

24 SAP specific industries solutions are mainly built on SAP Business Suite or SAP Business All-in-One

Aerospace & Defense Automotive Banking Chemicals Consumer Products Defense and Security

Engineering, Healthcare High Tech Higher Education Industrial Machinery Insurance Construction and Ops. and Research and Components

Life Sciences Media & Entertainment Mill Products Mining Oil and Gas Professional Services

Public Sector Retail Telecommunications Transportation and Logistics Utilities

Wholesale Distribution 25 SAP Enterprise Resource Planning (ERP) SAP ERP Manager Self Services Training and support center costs, Self Services access to information, shorter Cycle Employee Self Services times, reduce data entry admin

Strategic Enterprise Mgmt Powerful business intelligence and Analytics Business Analytics performance management platform

Financial & Mgmt Acct General ledger, special purpose ledger Financials Corporate Governance and sub ledger, cost management, and Financial Supply Chain.. profitability analysis

Employee Relationship Mgmt Administration, payroll, benefits, online Human Capital Employee Lifecycle Mgmt recruiting, organizational management, Mgmt Employee Transaction Mgmt... compensation, workforce analytics Order to Cash Cycle End-to-end logistics operation, support Operations Purchase to Pay Cycle of complete cycles, such as the order- Production Fulfillment... to-cash and purchase-to-pay cycles

Travel Mgmt Enables fully shared service Corporate Services Real Estate departments, low admin & travel Environment & Health... costs, observe corporate guidelines

26 SAP Customer Relationship Management (CRM) Integrated external and internal processes

Interaction Center Analysis and Planning § Customer Analytics § Channel Analytics Collaboration § Enterprise Portals § Exchanges

Employees have the ability to Uniform commitment toward the Customers’ Perception of the familiarize themselves with the customer throughout the entire company is homogeneous complete insight of any customer organization

27 SAP Supplier Relationship Management (SRM) Optimize supplier selection, increase collaboration, compress purchasing cycle times § Procure to pay § Catalog management § Centralized sourcing § Centralized contract management § Supplier collaboration § Supplier evaluation

28 SAP Supply Chain Management (SCM) Management of materials, information, and profitability

Product design/ Sales and Procurement Manufacturing Distribution R&D Marketing

§ SCM enables thorough management, planning and monitoring of all processes in the logistical chain, linking all logistical business processes from design to sales. § Supply chain management is the most comprehensive approach to logistics related planning, execution and controlling so far. § Uses enabling IT-technologies with respect to both processing capabilities and communication, such as LiveCache, Internet or EDI.

§ In certain industries up to 60-80% of a company’s expenditure is associated with SCM.

29 SAP Product Lifecycle Management (PLM) Manage products from initial concept to maintenance Enabling to get the right product to market at the right time and at the right cost. SAP PLM is not limited to physical manufactured goods - it can be used in process and in service industries.

§ Key areas of functionality: § Development and exploration of product § Program and project management § Integration with operational systems, such as third-party CAD systems (e.g. CATIA) and SAP software (ERP, CRM, SCM, SRM…) § Quality management throughout every phase of the product lifecycle § Support of decision making regarding product design, development, pricing, quality § Enterprise asset management

30 SAP Business Suite Innovations Road Map

Source: SAP Release Strategy 2012

31 Typical example introducing SAP Business Suite Customer Project § Company: Mondi Group § Solution: SAP ERP, SAP BW, SAP SCM § Headquarter: Vienna § Scope: Implementation of SAP ERP Financials, Sales, Logistics, Human Capital § Employees: 31‘000 Management, Quality Management, § Locations: 101 Locations in 31 countries SCM APO, Production § Products: Paper § Locations: Poland, Czech Rep., Bulgaria, Switzerland, Germany, Sweden, Austria, Russia, Slovakia, Slovenia § SAP Users: 4‘500 Project Milestones 2006 2007 2008 2009 2010 Pilot First Rollouts Global Delivery Business Case Czech Republc Templates Bulgaria Poland Switzerland Germany Sweden

Austria, Russia, Slovakia Russia Slovenia

32 SAP Environments are Growing in Size and Complexity

Development

SRM

SD FI Sales & Financial SAP Business Suite Distribution Accounting MM CO Materials SAP NetWeaver Mgmt. Controlling PP AM Composition Production Fixed Assets Planning R/3 Mgmt. Test/QA SCM QM Client / Server PS Quality Project Manage- ABAP/4 System ment PM WF Plant Main- Workflow tenance HR IS Human Industry Resources Solutions SAP PLM SAP SRM SAP SCM SAP CRM SAP ERP Industry Applications Complementary Applications

SAP NetWeaver

Integration Enhancement packages Enhancement packages CRM

Production

PLM ERP

SAP R/3 System Different Stages SAP Business Suite Landscape

33 SAP All-in-One – Business Suite technology simplified for volume Midsize Companies / Subsidiaries

Large Up & Running SAPSAP ERPERP Enterprises Company Scenarios SAP Business SAPCRM CRM All-in-One SAP BW SAP Business Suite on NetWeaver tailored to the needs of SAP PLM midsize companies; easy to install, implement, and maintain, and provides a full range of business functions

SAP Business Suite Preset Forms Complete set of business functionality for all requirements

34 SAP All-in-One – Business Suite technology simplified for volume

35 How SAP most important midmarket solution is rated by Gartner

Source: Gartner June 2012

36 Evolution to Enable Micro-Verticals: SAP Business All-in-One

37 SAP Rapid Deployment Solutions (SAP RDS)

Target: § Pre-customization of specific business processes How to: § Bundling of SAP Best Practices, templates and tools Benefits: § faster implementation § lower project risk § lower costs § fixed price

38 Examples of SAP Rapid Deployment Solutions

39 SAP Business All-in-One: § SAP Business All-in-One implementations average 3–6 months Focus on rapid implementation § SAP Business One implementations averages 4 to 6 weeks % 50 Small Enterprises Midsize Enterprises Large Enterprises 40

30 24% 21% 20 16% 16% 14% 9% 10

0 < 3 4 – 6 7 – 9 10 – 12 13 – 15 > 15 months months months months months months Implementation Time

40 Content

SAP main product lines

SAP Business Suite and SAP Business All-in-One

SAP Business ByDesign

SAP Business One

SAP Business Analytics

SAP license pricing – basic methodology

Product maintenance strategy

41 SAP Business ByDesign An on-demand business solution for midsize companies

Redesign in August 2010 New Version 4 released in Aug 2012

§ Localization for China, France, Germany, India, UK, US, Austria, Switzerland, Canada, Mexico, Australia and in addtition now for Denmark, Italy, the Netherlands and Spain. § Fully multi-tenancy enabled § Enable partners to extend: additional scale and reach § New, rich client user interface § Real-time analytics § Mobile support Source: www.sap.de/businessbydesign

42 SAP Business ByDesign Starter Packages

• ERP – Starterpackage: 24,000 Euro – Price per user and month: 133 Euro

• CRM – Starterpackage: 9,900 Euro – Price per user and month: 79 Euro

• PSP (Profesional Service Provider) – Starterpackage: 34,900 Euro – Price per user and month: 133 Euro

43 SAP Business ByDesign: Example of a configuration done by the “public” SAP online configurator • Parameters: ERP Starter Pack • Users: 20

44 Price comparison for 5 years

Software license 135 € 3500 € per user per month OTC Maintenance 0 22% per year

Hosting and Operations 0 10 € / month / user

Total costs per user 8,100 € 7,250 € for 5 years

In both comparisons the implementation services are not included. For SAP Business All-in-one there are big efforts to reduce the implementation costs. On SAP Business ByDesign there are little experiences so far. In practice both solutions are priced similar.

45 Content

SAP main product lines

SAP Business Suite and SAP Business All-in-One

SAP Business ByDesign

SAP Business One

SAP Business Analytics

SAP license pricing – basic methodology

Product maintenance strategy

46 SAP Business One Support for standard horizontal business processes § financial management § warehouse management § inventory management § sales force automation § Purchasing § Payment

47 SAP Business One (about 37,000 installations globally) – Easy to learn, easy to use Implementation in weeks not months – Embedded integration with SAP Business Suite Using SAP NetWeaver platform – Embedded analytics from the SAP® Business Objects™ portfolio Improved decision making – Flexible, powerful, and easy to configure Strong SDK and customization tools – One solution – global reach 40 country versions and localizations – Strong reporting tools Including Drag & Relate® – Native CRM functionality Including SFA and service

48 SAP Business One Configuration

IBM System x for SAP Standard Configurations for SAP Business One Version 8.8 Suggested Hardware Confi- Max. guration supported IBM System x ™ System- # IBM System Storage / GB concurrent cpu / cores@GHz / Backup Device

users Memory

x3200 M3 – 1 socket / 4C @ 2,4 Internal - 2 x 146 GB IBM LTO Generation 3 25 GHz / 4 GB (RAID 1) SAS Tape Drive ABO

x3200 M3 – 1 socket / 4C @ 2,4 Internal – 2 x 146 GB IBM LTO Generation 3 50 GHz / 6 GB (RAID 1) SAS Tape Drive BBO

x3500 M3 – 2 socket / 8C @ 2,13 Internal – 2 x 300 GB IBM LTO Generation 3 100 GHz / 12 GB (RAID 1) SAS Tape Drive CBO

e.g. Lenovo ThinkCentre M90p , Internal – 500 GB HDD -- 3.2 GHz 4 GB Client

49 SAP Business One in large enterprises Suppliers SAP Business One Germany SAP Business One Suppliers US SAP Business One

Norway Headquarters SAP Business One SAP Business Suite Singapore Distributors SAP Business One SAP Business One Big multinational companies are using SAP Business Suite in their Headquarters + SAP Business One in their subsidiaries § Transparency within the Enterprise § Visibility between different applications § Efficiency across the whole organization

50 SAP Business One references in global enterprises

51 Summary: SAP Solution Portfolio for Small and Medium Enterprises (SME)

Extensible solution with A single application covering Easy to adapt and to run Deep Industry Experience all SME Essentials as SaaS built-in For small businesses For midsize companies For midsize companies seeking an entry level seeking an agile service- with complex industry- ERP solution centric solution on a specific needs and native Cloud platform established IT resources • 10~100 employees • 50 to 1000 employees • 100~2,500 employees • Available on-premise or • Cloud managed and • On-premise deployment partner-managed Cloud serviced by SAP with hosting option option • General industry • Highly industry-specific • Broad partner-provided functionality industry capabilities • End user adaptability • SAP Store and Ecosystem

52 Price comparison of 4 SAP main packages

SAP Business Suite

Software license 135 € 2500 € 3500 € 125 - 3800 € per user per month

Ratio – typical implementation 1 : 1 1-2 : 1 1-2 : 1 3-5 : 1 cost/ license cost

Total costs per user including typical 5000 € - 5000 € 8000 €* 8000 € implementation 12000 € costs

* Note: infrastructure and operations for 3 years it included

53 Content

SAP main product lines

SAP Business Suite and SAP Business All-in-One

SAP Business ByDesign

SAP Business One

SAP Business Analytics

SAP license pricing – basic methodology

Product maintenance strategy

54 What is Business Analytics (BA) or Intelligence (BI)? - Analyze current and historic enterprise data - Discover hidden business trends and patterns - Gain strategic insight and predictive information - Impact strategies, decisions and actions

Common functions • reporting • online analytical processing • analytics • data mining • process mining • business performance management • Benchmarking • text mining • predictive analytics

55 Enterprise BI = Different Users with Different Needs

56 Mapping the right SAP application to the right scenario and user type

57 Gartner Magic Quadrant for Business Intelligence and Analytics Platforms

Source: Gartner (February 2013)

58 Content

SAP main product lines

SAP Business Suite and SAP Business All-in-One

SAP Business ByDesign

SAP Business One

SAP Business Analytics

SAP license pricing – basic methodology

Product maintenance strategy

59 Principles of SAP software licensing – Metrics SAP software prices are based on

- Number of „Named Users“ - Number of “External Community Members” - Business metrics - Number of engines (capacity of installed physical memory, # of installed instances, ...)

Remember: SAP Named User is the most important metric to charge customers for the SAP applications and a mandatory component for all other solutions priced with add-on license charges

60 Principles of SAP software licensing – Basic Metrics

61 SAP Named User categories § SAP Developer User: Allows access to development tools for modifying the licensed software § SAP Business Expert User: enables performance of all roles supported by the licensed software § SAP Professional User: enables performance of operational-related roles supported by the licensed software § SAP Limited Professional User: enables performance of limited operational-related roles (as § defined in licensing agreement) supported by the licensed software § SAP Business Information User: enables use of standard and interactive reports delivered and § created using the software solely for customer’s own purposes § SAP Employee User § SAP Employee Self-Service User § SAP NetWeaver SAP Application (stand-alone) SAP Business Analyst User: enables performance of all roles supported by SAP BusinessObjects solutions that are licensed for stand-alone use § SAP Business Information Viewer User: enables use of standard and interactive reports delivered and created using SA P BusinessObjects solutions licensed for standalone use § SAP Platform SAP Extended/Standard User • Allows access to licensed SAP software exclusively through certified third-party applications § SA P NetWeaver SA P Developer User • Allows access to development tools for developing and modifying the SA P NetWeaver technology platform and third-party and custom-developed applications § SAP Administrator User: Allows access to development tools for the administration and § management of SAP NetWeaver and third-party and custom developed applications

SAP Main Products and Solutions 62 Example of Entitlements of “very light” SAP Users § SAP Employee User: enables performance of the following roles solely for the customer’s own purposes: § Standard and interactive reports § Talent management self-services § Travel planning self-services § Desktop procurement self-services § Room reservation self-services

§ SAP Employee Self-Service User: enables performance of the following roles solely for the customer’s own purposes: § Employee records maintenance § Employee time and attendance entry § Employee directory § Portal access

63 SAP list prices for SAP Application users Prices per user Ltd Dev Prof Emp ESS Remarks in Euro Prof

at least 10 Prof Users, at least 25% of Business Suite 6000 3800 1500 400 125 employee base

there are “product options” ERP 6000 3200 1300 400 na priced separately

CRM 6000 5000 1650 na na

SCM 6000 5000 2500 na na

SRM 6000 3000 1000 350 na

PLM 6000 3700 1500 na na

64 Price example

Company with 4000 employees based on SAP user prices Ltd Dev Prof Emp ESS Remarks Prof

Business Suite at least 10 Prof Users, at least 25% of 6000 3800 1500 400 125 Price in Euro employee base

requested # of minimum # of SAP named users (25% 10 50 50 100 800 licenses = 1000) to buy the whole suite

Total price per 60 75 40 100 add 60 k€ for Payroll Processing for 190 k€ 4000 Master records user category k€ k€ k€ k€ (product option for SAP ERP)

Total - not includes also SAP NetWeaver 525 k€ restricted as run-time for SAP discounted Business Suite

less 10% 472 k€ standard volume discount discount

65 Price example for “Industry Packages”

• Product Options + Industry Packages – priced on key business metrics – in addition to “Named Users” • Example of SAP Industry Package – SAP Vehicle Management for Automotive – Metrics: # of vehicles in units of 25,000 – Basic price = 60 k€ (up to 25,000 vehicles) – each additional unit = n * 50 k€ – Price for a company managing 500,000 vehicles • Units = 20 • Price = 60 k€ + 19 * 50 k€ = 1.010 k€

66 Database pricing (via SAP OEM channel)

Database OEM License Annual Annual Database Price** Standard Enterprise Price in % of Support (18%) Support (22%) SAV* DB2 LUW 8% 80,000 14,400 17,600 DB2 pureScale 8%+2% 100,000 18,000 22,000 DB2 z/OS 13% 130,000 23,400 28,600

MS SQL Server 8% 80,000 14,400 17,600 Oracle 15% 150,000 27,000 33,000 Oracle RAC 15 + 3 % 180,000 32,400 39,600 Sybase ASE 8% 80,000 14,400 17,600

*SAV (SAP Application Value) used in above example: € 1,000,000

67 Content

SAP main product lines

SAP Business Suite and SAP Business All-in-One

SAP Business ByDesign

SAP Business One

SAP Business Analytics

SAP license pricing – basic methodology

Product maintenance strategy

68 SAP Active Global Support (AGS)

AGS is a global organization with 6000+ employees in 50+ countries

Supports 232,000+ customers in 122+ countries

Supports more than 1 Million systems, of which are 300,000 productive

Delivers worldwide per year:

n Solutions for more than 2 Million customer messages

n About 40,000 proactive service sessions (such as GoingLive Check, EarlyWatch Check)

Maintains all SAP software that is in unrestricted shipment

n Creation and improvement of SAP Notes

n Collection, production, and provision of SAP Support Packages

n Creation of legal changes to meet changes to laws

n Structured product feedback to development

69 SAP Product Support Offerings: Standard, Enterprise and MaxAttention Tiered support model:

§ SAP Standard Support basic support to keep customer‘s Priced at 19%; will be adjusted to SAP solutions stable and up-to- inflation on an annual basis date § SAP Enterprise Support focus on optimizing cost of 22% of license fee; step-up to 22% operations and performance of a for purchase until July 2008 customer‘s solution landscape Fees are negotiated individually § SAP MaxAttention Support for very large customers, with the customer. about 300-400 worldwide. It includes additional services, e.g. named contact person at AGS. § For each SAP product there is a pre-defined support time period § Customers can extend this period by paying an uplift of 2%, 4% or 6% for „extended maintenance“ § After the „extended maintenance“ period, SAP support can be extended with „customer specific maintenance“ – at increased cost

70 SAP Maintenance Strategy for Main Applications

71 SAP Solution Manager

Mandatory tool to administrate, to monitor and to maintain SAP landscapes Provides the technical link to SAP Active Global Support

72 Time for questions …

Mail contact: [email protected]

73 Special Notices Information in this document concerning non-IBM products was obtained from the suppliers of these products or other public sources. Questions on the capabilities of non- IBM products should be addressed to the suppliers of those products.

IBM may have patents or pending patent applications covering subject matter in this document. The furnishing of this document does not give you any license to these patents. Send license inquires, in writing, to IBM Director of Licensing, IBM Corporation, New Castle Drive, Armonk, NY 10504-1785 USA.

All statements regarding IBM future direction and intent are subject to change or withdrawal without notice, and represent goals and objectives only. The information contained in this document has not been submitted to any formal IBM test and is provided "AS IS" with no warranties or guarantees either expressed or implied.

All examples cited or described in this document are presented as illustrations of the manner in which some IBM products can be used and the results that may be achieved. Actual environmental costs and performance characteristics will vary depending on individual client configurations and conditions.

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Revised January 19, 2006

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75 Place photo here

APPENDIX SAP addressable market and mid term strategy ~ $220 B In-Memory IN-MEMORY Computing HANA, Business Analytics Solutions

SAP’S ADDRESSABLE Mobility MOBILITY MARKET DOUBLED Sybase Acquisition, Mobile Apps Factory

OnDemand ON-DEMAND BYD, Carbon Impact.

~ $110 B BI / BI / Analytics Analytics By 2015 Middleware Middleware 20 Billion Euro 35% Margin 1 Billion people Core Core ERP + Suite ERP + Suite

Source: SAP 2011 2010 2015

77 SAP Ecosystem: Essential for growth Partner Type Description SAP Channel Channel partners sell, build, and deliver SAP applications and solutions to meet the needs of small businesses and midsize companies. SAP Content Content partners offer syndicated content or content services that complement SAP solutions.

SAP Education Education partners deliver professional training for SAP solutions and technology. SAP Hosting Hosting partners provide hosting services for SAP applications and the SAP NetWeaver technology platform.

SAP Services Services partners design, implement, and integrate SAP solutions; optimize business processes; and provide strategic business consultation. SAP Software Software solution partners develop applications that extend and add value to SAP solutions, including both Solution value-added and complementary software solutions based on SAP technologies. SAP Support Support partners deliver the service and support required to implement, use, and support SAP solutions.

SAP Technology Technology partners provide products that support SAP solutions, including hardware, operating systems, networks, databases, storage technology, and mobile devices.

SAP Mobile App Mobile app partners include any company that provides standard mobile apps for business which are packaged and sold as-is to customers on SAP Store and other channels, where applicable, for a fee or subscription.

78 SAP Ecosystem: IBM is an SAP Global Partner Partner Type Description SAP Channel Channel partners sell, build, and deliver SAP applications and solutions to meet the needs of small businesses and midsize companies. SAP Content Content partners offer syndicated content or content services that complement SAP solutions.

SAP Technology Technology partners provide products that support SAP solutions, including hardware, operating systems, networks, databases, storage technology, and mobile devices.

79 Price example for Duet solution (running on user desktop)

Each user is charged for the Duet application on his/her individual desktop

In addition, each user has to be a “named user”

Ltd Prof Emp ESS Remarks Prices per Prof Platform User that does not include the in Euro 2000 1000 250 100 license for 3rd party or other SAP products

SAP Main Products and Solutions 80 80 SAP Business ByDesign is part of SAP overall Cloud Strategy and is offered only as SaaS

§ Increased customer interest to run entire business on-demand (cloud) § A ‘Software-as-a-service’ offer: Saas § Target customer § Full-suite for the midmarket § Hybrid approach for large companies running SAP Business Suite and ByDesign for subsidaries

81 SAP Packages for Analytics

Products Target Remarks market SAP BI Large to • enrichment by in-memory database (Business Information) medium (HANA) customers • Mobile BI: link to Mobile devices SAP EPM Large • Disclosure Management (Enterprise Performance customers • Notes Management Management ) • Risk Adjusted Planning SAP GRC Large • Risk intelligent management of (Governance, Risk and customers enterprise performance Compliance) • Protection against fraud, waste, misuse and errors