new economics of sap business suite powered by sap hana

© 2013 SAP AG. All rights reserved. 2

SAP Business Suite powered by SAP HANA

The New Economics of

© 2013 SAP AG. All rights reserved. 3 © 2014 SAP AG. All rights reserved. 3

COMMON MYTH

Running SAP Business Suite on SAP HANA is more expensive than on a classical database


The TCO equation is elusive Database hardware is just a small fraction of overall costs

Hardware

Continuous Improvement

Data Footprint

Replication & ETL

Operation

Search & Accelerators

Software

Significant reductions in all other TCO drivers far outweigh H/W costs

SAP HANA H/W costs impact a small fraction of the TCO equation


SAP Business Suite powered by SAP HANA Reducing Total Cost of Ownership

Reducing Cost

Increasing Efficiency

Setup Testing Data Footprint

Data Center Integration

Landscape Simplification

Asset Utilization

TCO

1010 01 10


Combining transactions and analytics on a single in-memory platform

Eliminates Operational Reporting costs

Eliminates ETL Costs

Eliminates Data Services Costs

One data copy

SAP HANA platform

OLAP + OLTP

SAP HANA simplifies

1010100101010010010100110101101101110100100010011011001

OLTP

ETL

OLAP

Replication Replication

Transactions Analytics

Transactions Analytics

1010100101010010010100110101101101110100100010011011001



Projected operational reporting savings with SAP HANA

4 CPUs (32 Cores) 10 TB Storage

Reporting Server

$180,000 $320,000

ETL License

$10K per Core

Initial Investment Ongoing Costs

Maintenance Costs

20% Acquisition Cost

$100,000

Staffing Costs

1x FT Administrator 1x FT Developer

$300,000

SAP Business Suite on

HANA

* Cost Assumptions: $25K per CPU. $8K per TB, 8% Cost of Capital, 4 year linear depreciation for initial investment

SAP Business Suite on Any Database

No Additional H/W No Additional S/W No Additional Staff

No Additional Maintenance

4 Year NPV = $1,740,000



SAP Tailored data centre integration A new flexible approach to integrate SAP HANA into datacenters

Vendor chooses appliance components Mandatory Memory/Core Ratio Prepackaged SW , HW, and Service Higher Cost

Virtualization

Network

Database

Operating System

Server

Application

OS

Storage

Re-use existing H/W- Only Buy What You Need Buy compute and storage separately Lower Cost

Integrated Appliance Approach Tailored Datacenter Approach

Server

Enterprise Storage

Shared Network

Virtualization



A leading CPG company achieves 60% savings with tailored data center vs. appliance delivery

Original System

UNIX OS Any Database

HANA Appliance

Cost

Certification

Pre-configuration

Propriety File- System

OS-maintenance

Persistent Storage

Network Adaptors

CPU

Memory

HANA Tailored Data

Centre Cost CPU

Memory

60% Savings

Customer pays for CPU & Memory only

Customer manages own configuration

Uses Free standard file system (NFS)

Re-uses existing OS support contract

Reuses existing storage

Reuses existing networking components

Customer pays for H/W, S/W, Certification, Packaging, and Services

Same cost as original system but real-time performance



SAP HANA tailored data center integration, helped Geberit drastically simplify IT administration, improve user experience, cut costs, and reduce its database size by seventy two percent

SAP HANA Tailored Data Center Integration allowed Mercedes-AMG to run SAP HANA as servers linked to its enterprise storage within their own data center processes

SAP HANA tailored data center integration allowed MR to migrate applications to SAP HANA while greatly simplifying administration and maintenance and lowering costs without additional training

Customers saving with SAP HANA tailored data centre integration



“AMG-Mercedes is now live in production with SAP HANA and VMware vSphere 5.5 with a 1TB memory configuration, accelerating our move to a software-defined data center.”

Reinhard Breyer, CIO, AMG

Now supporting virtualization in production environments for SAP Business Suite powered by SAP HANA

Lower TCO Unify and manage SAP HANA with the rest of your virtualized data center

Reduce Time-to-Value Accelerate and automate provisioning and reduce deployment time

Improve Service Levels Migrate SAP HANA across hosts in minutes with no downtime or data loss

ERP

Hardware 1

CRM

Hardware 2

DB 1 DB 2

Any DB

ERP

CRM

SAP HANA

DB 1 DB 2

Virtualized HANA Hardware

Asset Utilization


Less storage and database administration costs with a single copy of the data

Up to 3x data footprint reduction by eliminating aggregates, indices and abolishing data duplication for operational reporting (row / column store)

Additional 4x data footprint reduction through advanced in-memory columnar compression

Reduction in Database Administration efforts required for tuning, backup and recovery

SAP Business Suite on HANA

SAP Business Suite on Any DB

Indices

Aggregates

Row Store

Data Cubes

70 to 90%

Data Footprint Reduction

DBA DBA DBA DBA

DBA

Data Footprint


Customers savings with smaller data footprints

72% reduction in DB size

350GB to 98GB


750GB to 22GB


6.2TB to 1.8TB


after moving to HANA

70% Performance improvement

of long processes

3 million Skills and qualification

managed by SAP HANA

86% Faster Backups

5 hours to 40 minutes

5,000 Unused custom

code retired

Data Footprint


Wide range of deployment options to reduce TCO and speed time to value

Lower upfront CAPEX costs with subscription pricing for S/W, H/W and Services

Flexibility to chose between cloud, on-premise or hybrid deployment models

Match consumption with need and pay as you go

Start small, then grow cloud deployment as needed

On Premise

Private Cloud Hybrid Model

Setup Costs


70% less TCO with SAP

HANA Enterprise Cloud vs. on-premise

4 Weeks to go live with SAP

HANA Enterprise Cloud

2 Months to go live with

on-premise

2 Months to go live with

on-premise

$3 million 5 year projected

savings

1 Week to invoice first

production

4 months to rollout in Brazil

Complete ERP manufacturing sol.

Real-time insight into operations supporting

management of drill ships, reduction of

time to value for analytics, and

simplification of the IT landscape

“By unifying our software landscape on SAP HANA, we not only achieved a lower TCO but have also paved

the way for future innovation”

Customers saving with lower setup costs and faster time to value

Setup Costs


Reduced certification requirements for non-production SAP HANA systems

Storage: any local or shared storage on standard disk

Network: standard networking components

Memory: starting at 128GB only

OS: SUSE Linux 11.x or Red Hat >6.5,7.0

Standard non-certified H/W for testing

Behind every production system, there are an average of

5 non-production

Testing Costs


SAP Business Suite on HANA TCO evolution

Tailored Data Centre

Delivery

Appliance Delivery

SA

P H

AN

A T

CO

Virtualization Standard

HW for testing Low End (X86/Linux)

Mid End (Propriety Unix)

High End (Mainframe)

Multiple DBs Simplification

Planned

Benchmark

2013 2014


FACT

TCO of running SAP Business Suite powered by SAP HANA is lower than classical databases

new economics of sap business suite powered by sap hana

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