The New Economics of
SAP Business Suite
powered by SAP HANA
© 2013 SAP AG. All rights reserved.
2
COMMON MYTH
Running SAP Business Suite on SAP HANA is more expensive
than on a classical database
© 2014
2013 SAP AG. All rights reserved.
3
The TCO equation is elusive
Database hardware is just a small fraction of overall costs
SAP HANA H/W
costs impact a small
fraction of the TCO
equation
Hardware
Software
Significant
reductions in all
other TCO drivers
far outweigh H/W
costs
Continuous Improvement
Operation
Data Footprint
Replication & ETL
Search & Accelerators
© 2014
2013 SAP AG. All rights reserved.
4
SAP Business Suite powered by SAP HANA
Reducing Total Cost of Ownership
Data Footprint
Setup
Testing
1010
01
10
Reducing Cost
TCO
Increasing Efficiency
Landscape
Simplification
© 2014
2013 SAP AG. All rights reserved.
Data Center
Integration
Asset
Utilization
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Combining transactions and analytics
on a single in-memory platform
Landscape
Simplification
Transactions
Transactions
Analytics
10101001010
10010010100
11010110110
11101001000
10011011001
Analytics
10101001010
10010010100
11010110110
11101001000
10011011001
 Eliminates Operational
Reporting costs
ETL
OLTP
OLAP
Replication
Replication
SAP HANA
simplifies
SAP HANA
platform
OLAP + OLTP
 Eliminates ETL Costs
 Eliminates Data
Services Costs
One data copy
© 2014
2013 SAP AG. All rights reserved.
6
Landscape
Simplification
Projected operational reporting savings with SAP HANA
SAP Business Suite on Any Database
4 Year NPV = $1,740,000
SAP Business Suite
on
HANA
No Additional H/W
No Additional S/W
No Additional Staff
No Additional
Maintenance
Initial Investment
Ongoing Costs
Reporting
Server
ETL
License
Maintenance
Costs
Staffing
Costs
4 CPUs (32 Cores)
10 TB Storage
$10K
per Core
20%
Acquisition Cost
1x FT Administrator
1x FT Developer
$180,000
$320,000
$100,000
$300,000
* Cost Assumptions: $25K per CPU. $8K per TB, 8% Cost of Capital, 4 year linear depreciation for initial investment
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2013 SAP AG. All rights reserved.
7
Data Center
Integration
SAP Tailored data centre integration
A new flexible approach to integrate SAP HANA into datacenters
Tailored Datacenter Approach
Integrated Appliance Approach
Application
Virtualization
Database
OS
Operating
System
Server
Virtualization
Shared Network
Server
Network
Enterprise Storage
Storage




Vendor chooses appliance components
Mandatory Memory/Core Ratio
Prepackaged SW , HW, and Service
Higher Cost
© 2014
2013 SAP AG. All rights reserved.




Re-use existing H/WOnly Buy What You Need
Buy compute and storage separately
Lower Cost
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A leading CPG company achieves 60% savings with
tailored data center vs. appliance delivery
Original
System
HANA
Appliance
Cost






Certification
Pre-configuration
Propriety File- System
OS-maintenance
Persistent Storage
Network Adaptors
Data Center
Integration
Customer pays for H/W, S/W,
Certification, Packaging, and Services
 CPU
 Memory
60%
UNIX OS
Any Database
Savings
HANA
Tailored Data
 CPU
Centre Cost
 Memory
© 2014
2013 SAP AG. All rights reserved.
Customer pays for CPU & Memory only

Customer manages own configuration

Uses FreeSame
standardcost
file system
(NFS)
as original

system
Re-uses existing
OS support contract
but real-time
performance

Reuses existing storage

Reuses existing networking components
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Customers saving with SAP HANA
tailored data centre integration
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
© 2014
2013 SAP AG. All rights reserved.
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
Data Center
Integration
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
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Now supporting virtualization in production environments
for SAP Business Suite powered by SAP HANA
Asset
Utilization
Lower TCO
Any DB
ERP
SAP HANA
CRM
ERP
CRM
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
DB 1
DB 2
Hardware 1
Hardware 2
DB 1
DB 2
Virtualized HANA Hardware
Improve Service Levels
Migrate SAP HANA across hosts in
minutes with no downtime or data loss
“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
© 2014
2013 SAP AG. All rights reserved.
13
Less storage and database administration costs
with a single copy of the data
Data
Footprint
SAP Business Suite
on Any DB
Up to 3x data footprint reduction
by eliminating aggregates, indices and abolishing
data duplication for operational reporting (row /
column store)
DBA DBA DBA DBA
Indices
Aggregates
Data Cubes
70 to
90%
Additional 4x data footprint reduction
Data Footprint
Reduction
through advanced in-memory columnar
compression
SAP Business Suite
on HANA
Reduction in Database Administration
efforts required for tuning, backup and recovery
DBA
Row Store
© 2014
2013 SAP AG. All rights reserved.
15
Data
Footprint
Customers savings with smaller data footprints
72%
70%
70%
83%
reduction in DB size
350GB to 98GB
reduction in DB size
750GB to 22GB
reduction in DB size
6.2TB to 1.8TB
reduction in DB size
after moving to HANA
70%
3 million
5,000
86%
Performance
improvement
of long processes
Skills and qualification
managed by SAP HANA
Unused custom
code retired
Faster Backups
5 hours to 40 minutes
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2013 SAP AG. All rights reserved.
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Wide range of deployment options to
reduce TCO and speed time to value
Private Cloud
Setup
Costs
Hybrid Model
 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
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2013 SAP AG. All rights reserved.
17
Customers saving with lower
setup costs and faster time to value
70%
Setup
Costs
4 Weeks
2 Months
2 Months
less TCO with SAP
HANA Enterprise
Cloud vs. on-premise
to go live with SAP
HANA Enterprise
Cloud
to go live with
on-premise
to go live with
on-premise
5 year projected
savings
to invoice first
production
“By unifying our
software landscape on
SAP HANA, we not only
achieved a lower TCO
but have also paved
the way for future
innovation”
Real-time insight into
operations supporting
management of drill
ships, reduction of
time to value for
analytics, and
simplification of the IT
landscape
$3 million
1 Week
4 months
Complete
to rollout in Brazil
ERP manufacturing sol.
© 2014
2013 SAP AG. All rights reserved.
18
Reduced certification requirements for
non-production SAP HANA systems
Testing
Costs
Standard non-certified
H/W for testing
 Storage: any local or shared storage on standard disk
 Network: standard networking components
Behind every production
system, there are an average of
 Memory: starting at 128GB only
 OS: SUSE Linux 11.x or Red Hat >6.5,7.0
5 non-production
© 2014
2013 SAP AG. All rights reserved.
19
SAP Business Suite on HANA TCO evolution
Benchmark
Appliance
Delivery
High End
(Mainframe)
SAP HANA TCO
Tailored
Data Centre
Delivery
Mid End
(Propriety Unix)
Virtualization
Standard
HW for testing
Multiple DBs
Simplification
2013
© 2014
2013 SAP AG. All rights reserved.
2014
Low End
(X86/Linux)
Planned
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FACT
TCO of running SAP Business Suite powered by SAP HANA
is lower than classical databases
© 2014
2013 SAP AG. All rights reserved.
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THANK YOU
© 2013 SAP AG. All rights reserved.
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