Consumer Goods Ingredients Regulation Automation with SAP HANA, SAP Cloud Platform Blockchain Services and Camelot Trusted Computing Appliances

DELL EMC CASE STUDY

DELL EMC WHITE PAPER

TABLE OF CONTENTS

EXECUTIVE SUMMARY 1

ABOUT 1

CHALLENGES AND OBJECTIVES 3

THE METHOD 5

THE SYSTEM LANDSCAPE 5

THE ROLES 7

THE COMPONENTS 8

THE SEQUENCE 8

RESULTS 10

KEY TAKEAWAYS 13

TO LEARN MORE 13

ABOUT THE AUTHORS 14

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Published in the USA 04/19.

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EXECUTIVE SUMMARYAll companies producing consumer goods must adhere to existing regulatory compliance requirements. This is true for companies producing human food, animal food, cosmetics and certain other types of consumer goods. The labeling of the finished product provides particular administrative and communication challenges, as the printed information about regulated substances originates in many cases from the producer’s suppliers and from the suppliers of their suppliers. This situation gets even more complicated because of the fact that the information about these substances is located deeply inside the intellectual property of the suppliers, namely in their secret product recipes.

In addition, in cases of regulatory changes (e.g., when new substances are becoming regulated), a financial risk arises for the producers of final products. As it can take up to two months to manually iterate through their complete supply chain to get the needed information, their production could stand still, and already-produced goods could expire or not be sold any longer.

This case study shows how to drastically speed up the information flow of regulated substances in a production supply chain while still fully protecting the intellectual properties of all involved parties. This is accomplished with the combination of SAP HANA® software, SAP Cloud Platform Blockchain Services and Camelot Trusted Computing Appliances running on Dell EMC™ PowerEdge™ servers.

ABOUTWith the rise of blockchains and their usage in business scenarios, many use cases have been depicted that involve sensitive and private data. But these cases could not be realized with the needed degree of trustworthiness, as the private data and, more importantly, its processing had to be kept outside of the secure boundaries of the blockchain. In blockchain concepts, data can be processed only within these boundaries by so called smart contracts with the desired level of trust, mandatory for all involved parties in a business use case.

In our white paper “Blockchains for Off-Chain Smart Contracts in an SAP Environment,” we explained how trusted computing capabilities based on Intel® Software Guard Extensions (Intel® SGX) in conjunction with a blockchain network can be used to reach the needed level of trust and security when processing completely private and sensitive data.

In this case study, we put the technology mentioned beforehand in the context of a real-life use case concerning consumer goods and their production networks. The same technology is used as mentioned in the white paper, just with a slightly modified Trustlet program and with a more complex data model as a foundation for the overall application.

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THE USE CASEThe process of producing consumer goods has become massively complex, while time to market has become very short. In this new environment, manufacturing companies require a large ecosystem of suppliers and instant collaboration across this ecosystem.

Specifically, with regards to regulated compounds in consumer goods, collaboration capabilities are key to eliminating still-existing risks for financial losses due to changes in regulations.

When taking a closer look at the manufacturing of consumer goods that incorporate regulated compounds, we identify several partially competing parties that need to collaborate. These include:

• Producers of consumer goods

• Suppliers of raw and pre-manufactured materials

• Regulatory control agencies, such as the U.S. Food and Drug Administration (FDA), the European Medicines Agency (EMA) and the European Regulation on Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH)

In this production network the producers of the final goods have a strong dependency on supplied raw and pre-manufactured materials. They especially rely on provided information about regulated compounds contained in sourced raw and pre-manufactured materials to put this information on the packages of the consumer goods. The information about regulated compounds in suppliers’ goods is part of their intellectual property. No supplier would publish the complete recipes of its sold products due to the danger of being counterfeited. Suppliers selectively release those parts of the recipes they must, according to the rules of the regulatory control instances.

Consequently, current supplier networks lack the transparency necessary to meet regulatory audit criteria regarding compound reporting, because that transparency conflicts with the interests to protect valuable intellectual properties. In addition, the huge size of supplier networks complicates the gathering of needed data and the assurance of the most recent information. When regulations change, the business problem is magnified.

Figure 1

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A STEP-BY-STEP EXPLANATIONLet’s consider an example. A cosmetics producer is famous for its hand cream. The demand is high, and the production is running at its maximum capabilities. Everything adheres to the applicable regulatory requirements. Regulated compounds known from the supply chain are clearly quoted on the packages of the final product. Then things change.

The regulatory body decides to regulate cyclomethicone, a substance formerly not regulated for this condition of use. Due to the high production output, the information about the regulation reaches the producer only after it has produced several tons of the product. The producer cannot sell all that before it has clarified whether cyclomethicone is in the product or not. If so, even a re-labeling of the product must be done. In very bad cases selling the product may be impossible if certain thresholds of regulated substances are exceeded.

To get the needed information from the supply chain, a very manual, error-prone and slow process is triggered. The producer calls his suppliers and asks whether the substance is included in the supplied materials. The suppliers, in turn, may have to call down their own supply chains to get the requested information. In large supply chains, this process might take up to two months until the information reaches the producer. This delay creates huge financial risks for the producer.

The case study explored in this paper shows how the described process can be heavily automated while securely protecting the intellectual properties of the suppliers. A process duration of two months could be shortened to a few hours by applying the proposed architectures.

CHALLENGES AND OBJECTIVESPROCESS INTEGRITY“Integrity is doing the right thing even when no one is watching.” — C. S. Lewis

This C. S. Lewis quote exactly covers the challenge of integrity in this use case. We want the supplier to run an algorithm on his data that tells us whether there is something regulated in a product, and if so, exactly what. This algorithm will be a simple list intersection logic that matches the entries of a private and a public list, returning the intersecting entries.

Nobody will be able to monitor whether the proper algorithm is executed, due to the private nature of the data it is applied on. It is already obvious: We want to move a process to the data, not the data to the process. So, a “never trust the client” challenge must be overcome.

AUTHENTICITY AND STATE OF DATA The data of the secret formulations shall never be shared with anyone. Still the data owner must apply measures to convince the rest of the network of the authenticity of the data he feeds into the algorithm. Also, he should share information about the state of the data, to give proof that the data has not been changed at any time.

Though the data of the secret formulations will never be shared with anyone, the data owner must actively work to make others trust in the authenticity and the formal correctness of the data he owns and contributes to the distributed business process. The secret data must be registered by generating its one-way hash and storing it on the blockchain. By doing so, the state of the data is clearly documented to everybody. When changing the data later, the hash on the blockchain will no longer match with the local data — a state change can be tracked subsequently.

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FORMAL CORRECTNESS OF DATAEven if the network believes in the authenticity of an owner’s data, it is still unclear if the data makes sense and is not just some sort of dummy data that is used to fool the network participants. Therefore, the algorithm shall also check the processed data for its formal correctness.

CHANGING OF DATAIf a data owner changes his secret data, that action needs to be communicated automatically to the network participants and a re-validation of the containing substances needs to be triggered. This side scenario is not in the scope of this case study.

AVOIDING SYSTEM ABUSEA voting engine or a similar measure will be needed to avoid the abuse of the network by a regulatory body. This side scenario is also not in the scope of this case study.

BLOCKCHAINS AND PRIVATE DATAThe depicted use case is a prime example of how a distributed application can trustworthily process completely private data. Realizing this with a just a blockchain and smart contracts faces two major conceptual drawbacks:

• Data is visible by all network participants. All data put on a blockchain is distributed to all nodes of the network, thus visible to all parties. This is not desired at all for valuable sensitive data like intellectual property.

• Simple encryption does not help. A solution can be to encrypt data before storing it on the blockchain. But by doing so, the option to trustworthily process the data with a smart contract is eliminated. To process the data, the smart contract would need to know the decryption key. Handing that key to the smart contract would be again visible for all parties of the network.

CAMELOT ITLAB GMBH

Camelot Innovative Technologies Lab (Camelot ITLab) is the leading SAP consultancy for digital value chain management, with more than 20 years of experience Camelot guides clients in their digital transformations from strategy to the implementation of innovative solutions The company’s blockchain journey started in 2015, and today Camelot offers a comprehensive portfolio of blockchain products and services leveraging Camelot Hypertrust Platform and SAP Leonardo

DELL EMC

Dell EMC, a part of Dell Technologies, services its customers — including 98 percent of the Fortune 500 — with a broad, innovative infrastructure portfolio from edge to core to cloud A strategic SAP technology and software partner for more than 20 years, Dell EMC is a leader in server and storage performance benchmarks for SAP HANA and SAP applications

Use casesIndustry-specific process knowledge

of digital transformation

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THE METHODCross reference: This case study is based on content in the white paper “Blockchain for Off-Chain Smart Contracts in an SAP Environment.”

To help organizations to automate the reporting of regulated substances in consumer goods supply chains, Camelot Innovative Technologies Lab (Camelot ITLab), Dell EMC and SAP are collaborating on a solution that enables organizations to capitalize on the unique capabilities of blockchains and smart contracts while at the same time fully protecting the privacy of sensitive data.

This solution, based on Camelot Trusted Computing Appliances powered by a Dell EMC infrastructure foundation and interconnected through SAP Cloud Platform Blockchain Services, can reliably process private data.

The integrity of the processing algorithm, which acts completely off-chain, is accomplished by using the unique capabilities of Intel SGX technology. Intel SGX enclaves, in this instance, are securely connected to a Hyperledger Fabric blockchain network, forming a so-called “Trustlet.” Intel SGX is a set of instructions that increases the security of application code and data, giving them more protection from disclosure or modification. Developers can partition sensitive information into enclaves, which are areas of execution in memory with more security protection.

This approach keeps private data completely off-chain. It lets the suppliers store their private data in their local environments/networks only. Nonetheless, it registers the private data on-chain by storing it cryptographically signed and with a hash of it for later verification of its authenticity and state.

During the data registration process, also implemented in an Intel SGX-based Trustlet, formal correctness is validated, to avoid the registration of dummy or senseless data. A structural schema validation can be utilized, for instance.

A SIDE NOTEIn a production environment, the data should be extracted from a traditionally trustworthy system, like an SAP ERP or SAP S/4HANA system, to aggravate manipulations even outside the boundaries of the blockchain network. For the purposes of this case study, the private data is stored on an SAP HANA database, acting as the off-chain storage of Camelot Hypertrust Platform.

THE SYSTEM LANDSCAPEIn this case study, we set up the following scenario to demonstrate the solution to automate the reporting of regulated substances in consumer-goods supply chains.

The solution includes the use of:

• Three Camelot Trusted Computing Appliances on three Dell EMC™ PowerEdge™ R340 servers (Intel SGX ready)

• SAP Cloud Platform Blockchain services (Hyperledger Fabric on SAP Cloud Platform)

• SAP HANA database as persistency of the private data on Dell EMC Ready Solutions for SAP

®

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CAMELOT TRUSTED COMPUTING APPLIANCES Camelot Trusted Computing Appliances are based on the Camelot Hypertrust Platform. They involve an SAPUI5 frontend, Node.js middleware, and interfaces to different blockchain backend technologies and trusted computing enclaves, the so called Trustlets. The middleware also connects to local storage. These components are provided by an appliance based on a Dell EMC PowerEdge R340 server using Intel SGX and accessing SAP Cloud Platform Blockchain services (Hyperledger Fabric on SAP Cloud Platform) via HTTPS.

SAP Cloud Platform Blockchain services (using the Hyperledger Fabric framework in this specific case) enable the creation of nodes, networks and channels on an intuitive cloud-based user interface. Here you can make use of service and network dashboards to deploy and analyze chaincode, grant network and channel permissions, and connect externally hosted Hyperledger Fabric networks to the platform.

SAP Cloud Platform Blockchain Services (Hyperledger Fabric) lets you provision a Hyperledger Fabric node and join it to a network of nodes. Hyperledger Fabric supports enterprise-ready blockchain with smart contracts.

SAP HANA is the local persistency of choice for this solution. Upon the creation of relevant records in SAP HANA, a hash is created on the blockchain to uniquely identify these records and to guarantee their integrity later on. Those records registered via hash on the blockchain can be processed later using Camelot Trusted Computing Appliances. SAP HANA is accessed through the middleware and the available SAP HANA database client node. The SAP HANA database is operated on a Dell EMC Ready Solution for SAP HANA.

Only the blockchain network and the Trustlets are trusted areas; all other components of the landscape are alterable and potentially unsafe. To ensure a reliable communication between the secure blockchain and Trustlet components through insecure channels (middleware), asymmetric encryption with digital signatures is used to verify the validity of the communication messages. The immutable nature of the blockchain network makes it impossible to tamper with the data once it has been signed by one of the trusted areas (Trustlet or a smart contract).

Dell EMC PowerEdge 340 serverHardware key information:

Processor Intel® Xeon® E-2174G 3.8 GHz, 8M cache, 4C/8T, turbo (71 W)

Processor Thermal Configuration Heatsink for 80 W or less CPU

Memory Capacity 16-GB 2,666 MT/s DDR4 ECC UDIMM

Hard Drives 800-GB SSD SATA mixed-use 6 Gbps 512n 2.5-in hot-plug drive, 3.5-in HYB CARR, Hawk-M4E, 3 DWPD, 4380 TBW

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THE ROLESIn the depicted solution scenario, we can assign the following roles:

• Regulatory body A regulatory body is a person or an entity that centrally controls which substances (e.g., sugar, colorants or silicone) are regulated for which condition of use (e.g., food, paintings or cosmetics). Substances can, for instance, be regulated in food but not so for cosmetics. A regulation in our demo scenario will result in the obligation to print that substance on the package of the final product.

• Consumer-goods producer A consumer-goods producer is a person or an entity that produces a final product. It oversees the labeling of the final products in accordance with the regulations decided on by the regulator (e.g., printing sugar on the package of a chocolate bar because sugar is regulated for the condition of use “food”). A producer can produce final products and can also be a supplier of compositions (intermediate products) for other producers.

• Supplier A supplier is a person or an entity that solely produces compositions (intermediate products) and supplies them to a producer.

Figure 2

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Figure 2

The roles In the depicted solution scenario, we can assign the following roles:

• Regulatory body A regulatory body is a person or an entity that centrally controls which substances (e.g., sugar, colorants or silicone) are regulated for which condition of use (e.g., food, paintings or cosmetics). Substances can, for instance, be regulated in food but not so for cosmetics. A regulation in our demo scenario will result in the obligation to print that substance on the package of the final product.

• Consumer-goods producer A consumer-goods producer is a person or an entity that produces a final product. It oversees the labelling of the final products in accordance with the regulations decided on by the regulator (e.g., printing sugar on the package of a chocolate bar because sugar is regulated for the condition of use “food”). A producer can produce final products and can also be a supplier of compositions (intermediate products) for other producers.

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THE COMPONENTS• Public regulation register

A publicly readable list of regulations of substances per condition of use. It is solely maintained by the regulatory body and all consumer goods producers must label their final products according to this list. To avoid abuse of the depicted solution by the regulatory body, a voting engine must be utilized whenever the regulatory body updates the public regulation register. The public regulation register is stored on the blockchain and access to the data is realized through smart contracts.

• Local recipe storages Recipes for either final or intermediate products are the intellectual property of their producers or suppliers. Because those parties want to protect this sensitive data imperatively, they store it in local recipe storages within their IT infrastructure only. These storages are realized on SAP HANA databases on-premises.

• Trustworthy validation algorithm To automate the reporting of regulated substances within their private recipes to their customers, suppliers install a validation algorithm in their infrastructure. To reach the needed trust from the customers, this algorithm must run inside an Intel SGX enclave, securely connected to a blockchain network. This is realized through Camelot’s Hypertrust Platform and Trusted Computing Appliances.

• Trustworthy communication channel As the trustworthy glue between all the parties and components, an immutable data channel is needed. Therefore, again, the blockchain network is used.

THE SEQUENCE1. The regulatory body adds a newly regulated compound to the public regulation register

on the blockchain.2. The consumer goods producer listens for changes on the public regulation register on

the blockchain.3. Once the changed regulation is noticed by the consumer goods producer it directly

triggers the validation of his final products. This allows the producer to know as fast as possible whether he has to re-label his goods. a. At first, all the externally sourced compositions are determined from the recipes. b. For the determined externally sourced compositions, the according trustworthy validation algorithms hosted by the suppliers are triggered. i. This loops to 3.a for the called supplier and can be deeply nested for arbitrarily sized supply chains. c. The trustworthy validation algorithms of the suppliers return the list of supplied regulated substances for the given condition of use through the trustworthy communication channel (blockchain). d. The list of regulated substances mixed in by the consumer goods producer himself is determined and added to the lists received from the deeper supply chain and presented to the user of the system, ready to be printed on product labels.

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It needs to be mentioned that only the Trustworthy Validation Algorithm inside the Camelot Trusted Computing Appliances and the smart contracts inside the SAP Cloud Platform Blockchain Services are trustworthy areas. To overcome the insecure network portions between the trustworthy areas, message signing and signature validation with asymmetric keypairs (two-way) as well as hash creation and validation is in place. The immutability of the blockchain ledger as well as the guaranteed authenticity of all blockchain parties plays an important role in this security concept.

Figure 3

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RegulatoryBody Blockchain

Add newly regulatedcompound

CG Producer

Listen for changes

Invalidate state of registered products

Trigger validation per product

Supplier 1 Supplier X

Trigger trustlet logic

Trustlet logicCheck forincluded external products

Trigger trustlet logic

Trustlet logicCheck forincluded external products

...

...

Write validatedstate to

blockchain

Figure 3

It needs to be mentioned that only the Trustworthy Validation Algorithm inside the Camelot Trusted Computing Appliances and the smart contracts inside the SAP Cloud Platform Blockchain Services are trustworthy areas. To overcome the insecure network portions between the trustworthy areas, message signing and signature validation with asymmetric keypairs (two-way) as well as hash creation and validation is in place. The immutability of the blockchain ledger as well as the guaranteed authenticity of all blockchain parties plays an important role in this security concept.

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RESULTSFor this case study, we set up the following scenario to demonstrate consumer-goods ingredients regulation report automation with SAP HANA, SAP Cloud Platform Blockchain Services and Camelot Trusted Computing Appliances on Dell EMC infrastructure.

• SAP HANA database as persistency of the private data on Dell EMC Ready Solutions for SAP

• SAP Leonardo Blockchain as a Service as the blockchain network

• Camelot Trusted Computing Appliances on Dell Precision 3930 workstations

INFRASTRUCTURE Dell EMC infrastructure components for enterprises include the compute power of Dell EMC PowerEdge servers with the latest Intel® Xeon® processors, in combination with Dell EMC software, storage and networking products. Dell EMC offers a portfolio of infrastructure options that include quick-to-deploy Ready Solutions. To make it easier for technology leaders to decide on a deployment model that is best for them, Dell EMC offers certified SAP HANA Ready Solutions optimized for SAP analytics workloads.

Figure 4 SAP Leonardo – Blockchain and SAP HANA® for Camelot Trusted Computing Appliances

SAP Leonardo – with Camelot Trusted Computing Appliances

SAP Leonardo Blockchain Interface

SAP Leonardo Blockchain

On-premises:

On-premises:Off-premises:

—

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DELL EMC READY SOLUTIONS

• Dell EMC Ready Nodes are built on Dell EMC PowerEdge servers with Intel Xeon processors, available as ready-built appliances and delivered with SAP HANA software pre-loaded or provided as a Tailored Datacenter Integration (TDI) where the HANA database is installed on-premises.

• Dell EMC Ready Systems are ready-built systems with the convenience of an appliance and the flexibility of TDI, including options that incorporate Dell EMC VxBlock, VxRail and VxRack.

DELL EMC CONVERGED AND HYPER-CONVERGED SYSTEMS The Dell EMC converged and hyper-converged portfolio, including VxRail, VxRack and VxBlock, provides the ease of deployment and hybrid cloud deployment power to harness even the largest data analysis challenges. In addition, Dell EMC Isilon scale-out storage solutions provide native HDFS (Hadoop Distributed File System) storage for big data that enables the Hadoop data lake. All of these components of the modern data center are powered by Intel processors and technologies.

HYBRID AND CLOUD OPTIONS Most industries still employ on-premises solutions. However, many software deployments — whether for sandbox, testing, quality assurance (QA) or production environments — are progressively moving to a cloud operating model (including private, public and hybrid clouds). To meet customers’ needs, Dell EMC offers a complete selection of fully managed cloud and hybrid cloud solutions for off-premises SAP HANA environments.

Figure 5. Dell EMC Ready Solutions are SAP Certified and provide choice and flexibility for enterprises.

Targeted HANA Workload

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These cloud solutions include converged and hyper-converged platforms that are virtualized with VMware software. Moreover, data protection for business-critical SAP systems is available to address business SLAs. In addition, Dell Technologies offers Virtustream cloud solutions.

CAMELOT TRUSTED COMPUTING APPLIANCES The unique Camelot ITLab solution leverages Intel SGX technology to finally solve the data protection shortcomings in GDPR non-compliant blockchains. By keeping relevant data off-chain and by even moving trustworthy programs, similar to smart contracts, closer to the data, a secure and trustworthy processing of completely private data can be accomplished. Besides the use case mentioned in this case study, Camelot Trusted Computing Appliances can be used for a variety of other applications. These include:

• Inter-blockchain data exchange — Today there is no standardized way to exchange data between two separate blockchains. Camelot Trusted Computing Appliances can be used to realize this by establishing a secure and trustworthy data channel. Even possibly necessary data transformations can be implemented inside the data exchange Trustlet, onboarded on the blockchains on both sides.

• Secure and automated blockchain injection of off-chain data — Smart contracts cannot consume data from outside the blockchain. Data from trustworthy sources (e.g., public websites secured with a trusted SSL certificate) can be pushed into blockchains using the Camelot Trusted Computing Appliances.

Figure 6 The Dell EMC Modern Data Center enables any operating model

Running SAP in the Modern Data Center | Key Considerations

1 Modern Architecture

Consolidate | Simplify ITSAP System Landscapes

Run Mixed WorkloadsOLTP | OLAP | Analytics | Big Data

Business Suite Business Suite

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Converged

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3 Edge-to-Core

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Lifecycle Assurance | Simplified Operations

Applications | Infrastructure Operations Unified

Converged Hyper-Converged

Cloud-enabled InfrastructureLifecycle Assurance | Simplified Operations

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KEY TAKEAWAYSAs we discussed in the beginning of this document, financial risks arise for the producers of a final product in case of regulatory changes (e.g., when new substances are becoming regulated). The main risk driver is the time it takes to manually iterate through a complete supply chain to get the needed information. This process might take up to two months. During this time, production could stand still and already-produced goods could expire or just could not be sold any longer.

By efficiently streamlining and automating the regulated substances reporting throughout the supply chain with the depicted solution, these two months can be reduced to one to 24 hours, depending on the size and complexity of the supply chain at hand.

As this huge process improvement would not even weaken the data and intellectual property protection of the involved parties, this approach is well suited to be deployed in many branches to decrease both the risks and costs of regulation reporting procedures.

LEARN MORE For a closer look at the technologies discussed in this paper, visit any of the following sites.

SAP HANA: sap.com/products/hana.html

SAP Cloud Platform Blockchain: sap.com/products/leonardo/blockchain.html

Camelot Hypertrust Platform: camelot-itlab.com/en/digital-innovation/camelot-hypertrust-network/

Camelot Trusted Computing Appliances: camelot-itlab.com/trusted-computing

Dell EMC Ready Solutions for SAP HANA: DellEMC.com/hana

Dell EMC TechCenter “Ready Solutions for SAP”: Dell EMC TechCenter/ReadySolutions/BusinessApplications

Intel SGX: https://software.intel.com/en-us/sgx

Hyperledger Project: https://www.hyperledger.org/projects/fabric

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To learn more, visit DellEMC.com/sap.

ABOUT THE AUTHORS

Salvatore Placido Bubici is the director of the Global SAP Center of Excellence (GSCoE) at Dell EMC in Walldorf, Germany. He has more than 15 years of experience in the SAP business and is currently leading the GSCoE Team at Walldorf. He is focused on the key areas of enablement and strategy, innovation and incubation, and offering customers and partners the possibility to run and see live Dell Technologies SAP Demos in the Dell EMC GSCoE Lab.

Email: Salvatore_Bubici@dell.com

Andreas Goebel is head of the Blockchain Innovation Center at Camelot ITLab in Mannheim, Germany. After spending more than 15 years in R&D at SAP Walldorf and several years in blockchain technologies and cryptocurrencies, he decided to combine this expertise in his role at Camelot to find real business applications of blockchain technology. Today, he is passionately evangelizing the blockchain topic throughout the SAP ecosystem and among Camelot’s customers.

Email: agob@camelot-itlab.com