How Microsoft can add value to your SAP investment

Markus Kruse

Regional Business Development Manager

SAP Alliance

Microsoft Corporation

Some of today's challenges of SAP Customers…

• High infrastructure costs while budgets are cut down – little opportunity for innovation

• Limited user acceptance

• Too many SAP systems

• Non-standardized SAP Implementations with massive custom development

• Too many different infrastructure vendors

How Microsoft can improve the value of SAP Software

Reach

Agility / Customization

Increasing Productivity with a

Familiar Environment (Duet, MOSS, OBA)

Optimizing the SAP Infrastructure

(SQL Server, Windows Server)

Leveraging Broad .NET

Ecosystem (ISVs)

Driving Business Performance

(Microsoft Business Intelligence)

Extending SAP Solutions (.NET)

Leveraging Hub&Spoke

Scenarios with Dynamics

How Microsoft can improve the value of SAP Software

Reach

Agility / Customization

Increasing Productivity with a

Familiar Environment (Duet, MOSS, OBA)

Optimizing the SAP Infrastructure

(SQL Server, Windows Server)

Leveraging Broad .NET

Ecosystem (ISVs)

Driving Business Performance

(Microsoft Business Intelligence)

Extending SAP Solutions (.NET)

Leveraging Hub&Spoke

Scenarios with Dynamics

Inquiry to Order Process – Enterprise ViewThe process as modeled by the enterprise application

Start Success1.

Customer Meeting

2.Log

Opportunity

3.Inventory

ATP

4.Pricing

Verification

5.Generate

Quote

6.Generate

Order

7.Confirm Order with

customer

Information Worker: Salesman

Task Worker: Inside Sales

Information Worker:

Customer

Illustrative Process Example

© SAP AG, 2008

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Inquiry to Order – Information Worker ViewProcess support across structured and unstructured domains is required

Start Success1.

Customer Meeting

2.Log

Opportunity

3.Inventory

ATP

4.Pricing

Verification

5.Generate

Quote

6.Generate

Order

7.Confirm Order with

customer

Price confirmation

Customer verification of

quoteConfirm order with

customerCustomer meeting

Email confirmation

Reconfirm ATP, generate order

Search transaction status

WEB

MOBILE

DESKTOP

Device at customer site

Customer price verification via phone

Quote review

Price approval email

Email to production team

Order history report, escalation to sales

manager

Information Worker:

Salesman

Task Worker: Inside Sales

Information Worker:

Customer

Illustrative Process Example

© SAP AG, 2008

Office is the Business Interface

450M Office users worldwide

150M SharePoint seats sold

Office Business Applications: The Power Of Choice

Manage Risk

Shorten time to value

Lower TCO

Control & ownership

Strategic and specific

capabilities

Build Buy

LeaveManagement

Reports andAnalytics

Budget Monitoring

Time Management

OrganizationManagement

Sales Management

Travel Management

DemandPlanning

Purchasing Management

RecruitmentManagement

Workflow Template

Dynamic Links

Leave Management

Office Business Applications: The Power Of Choice

Manage Risk

Shorten time to value

Lower TCO

Control & ownership

Strategic and specific

capabilities

Build Buy

Benefits

• Leveraging existing investment in Microsoft to drive value of SAP

• Intuitive, user-friendly way of working with SAP Business Processes

• Less requirement for extensive trainings

• Time saving through context-oriented work style can lead to significant cost savings

• “Horses for courses” – SAP GUI for process users, DUET/MOSS for Information

Workers. Providing the users with their preferred user interface

MOSS References

Energizer: http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=4000000706

Approva: http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=4000000530

TÜV Nord Group: http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=201165

Linklaters: http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=4000000171

Siemens: http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=49428

DONG Energy: http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=4000002089

Powell Electronics: http://www.microsoft.com/casestudies/casestudy.aspx?casestudyid=4000002049

Fujitsu-Siemens Computers: http://www.avanade.com/customers/detail.aspx?id=264

Daimler Fleet Car Mgmt: http://www.microsoft.com/germany/msdn/launch2008/library.aspx?id=SP_T11_DI_1530

GTE WISAG: http://www.microsoft.com/germany/msdn/launch2008/library.aspx?id=SP_T15_MI_1100

Hannover Medical School: http://www.trinovis.com/fileadmin/pdf/MHH_Referenz08.pdf

DUET: Customer Momentum

• Over 1 million licenses sold

• 100+ customer implementation projects underway

• 400+ enterprise

customers

How Microsoft can improve the value of SAP Software

Reach

Agility / Customization

Increasing Productivity with a

Familiar Environment (Duet, MOSS, OBA)

Optimizing the SAP Infrastructure

(SQL Server, Windows Server)

Leveraging Broad .NET

Ecosystem (ISVs)

Driving Business Performance

(Microsoft Business Intelligence)

Extending SAP Solutions (.NET)

Leveraging Hub&Spoke

Scenarios with Dynamics

SAP on Windows/SQL: Areas of Cost Savings

HardwarePrice per SAPS with Industry Standard x64 hardware is very compelling

Microsoft Software LicensesSQL Server Enterprise Edition already comes with all necessary components for High-Availability and Disaster Recovery

Total Cost of Administration (TCA)SQL Server: Easy to use, easy to administrateSource: WIPRO Study, VMS Study, etc.

TCO Case study: TÜV NordSAP Landscape TÜV Nord

SAP ERP Rel. 4.7, Basis 6.20 4.200 Users 1.3 terabytes

SAP BW Rel. 3.5, Basis 6.40 530 Users 3.5 terabytes

Database Microsoft SQL Server 2005 Enterprise Edition (64-bit)

Operating system Microsoft Windows Server 2003 Enterprise Edition (64-bit)

- Challenge -Analyze the efficiency of SAP deployment,

using the VMS Benchmark

TÜV Nord Group• Based in Hannover, Germany• Workforce of more than 7.000• Provides expertise in

• technical safety• environmental protection• conformity assessment

• Revenue: $ 718 mio.

Benefits

• 37% lower TCO

• 56% lower databaseadministration costs

• Lower service costs• Reduced cost for an

integrated solution on a homogenous technology platform

TÜV NORD runs its SAP environment at 63 percent of average, for a 37 percent savings.

TÜV NORD enjoys savings across all three service categories.

SAP’s Perspective

Microsoft Market Share of new installations

Leading Operating System for the last 8 yearsOver 50,000 SAP installations on Windows Server (>53% of all SAP installations)65% of new SAP installations on Windows, 41% of all on SQL Server (as of 2005)

Microsoft Windows share of

new SAP installationsSource: SAP AG

TCO Customer References

• Lockheed Martin– Missiles and Fire Control first considered Windows Server–based software for its SAP environment to reduce

costs. Its detailed projections show that the Microsoft and Intel solution will do just that—by 41 percent over the next five years, compared to the cost of continuing on the UNIX and Oracle platform. The savings are all “hard dollar” savings for hardware, software, and maintenance.

• Unilever– Unilever also estimated that a platform based on SQL Server provided the company with a TCO 15 percent

lower than its existing solution. Unilever was also impressed with the ease with which data was migrated from its UNIX-based database to SQL Server 2005

• Danfoss– The result cut TCO by 50%, based on the lower cost of hardware for Windows and the ability to replace

expensive Oracle licenses with the more cost-effective SQL Server. Danfoss can maintain the solution without adding personnel. As a bonus, R/3 on Windows and SQL Server runs 40% faster, with batch processes running up to 67% faster.

References: Some of the largest SAP instances on Microsoft (as of 2008)

# Customer nameSAP ERP (R/3)

DB volume(Single instance)

SAP BI (BW) DB volume

(SingleInstance)

ConcurrentUser #

(at peak time)

DB Server H/W spec(Single instance)

Memo

1Pilgrims Pride

12+ TB 4 TB 1800 32way, 256GB RAM, IA64• R/3 4.6c, SD, FI, CO, PP, PM, MM, Logistics,

IS-Oil, APO 3.0a, BW 3.5, EP, HR

2 FEMSA 10 TB 4 TB 2000 24way, IA64 • SD, MM, PP, FI/CO, IS-Beverage, BW

3 E.Land 8.5 TB 3 TB 2500 32way (64core), IA64 • ERP, BW, CRM 4.0, SEM-BSC

4 Microsoft 6.4 TB 12004 way (16 core), 64 GB RAM,

x64

• R/3 Enterprise deployment to 67 countries (Unicode)

• Disaster recovery in production between Washington and California

• 150,000 SAPS

5Air Products & Chemicals

5.5 TB 2.6 TB 2500 12way (24core), 196GB RAM

• ERP 5.0/ECC 6.0 Unicode, SAP BW3.5; LSO 3.00; xEM 2.0; xMII 11.5.3; Solution Manager 4.0; ITS 6.20

• Platform migration from zOS/DB2 toWindows/SQL

6 Quanta 5.5 TB 800 16way (32core), IA64 • R/3 4.6c

7 Levi Strauss & Co 5 TB IA64• R/3 4.6c with SAP Apparel & Footwear

Solution (AFS)• SharePoint Server integration (planning)

13Japan Tobacco International

2.2 TB 1000 8way, 64GB RAM, IA64• R/3, SAP BW, APO, HR ,

Migration from IBM Mainframe: 30% savings over 4 years

15 Fuji Film 2 TB 650 32way, 128GB RAM, IA64• SAP ERP (FI, CO, SD, MM, PP, HR, QM,

EH&S), BW• 72,000 SAPS

26Mitsubishi Heavy Industries

1.6 TB 4way (8core), 16GB RAM, x64• FI, CO, PS, SD, 2000 user• Platform migration from AIX/DB2 • 29,800 SAPS

Some of today's challenges of SAP Customers……Possible solutions

• High infrastructure costs while budgets are cut down – little opportunity for innovation

Re-Platforming of SAP on Industry Standard x64 Hardware with Windows and SQL Server, Virtualization

with Hyper-V

• Limited user acceptance

Deployment of DUET and Microsoft Office SharePoint Server (MOSS) as additional user interfaces

• Too many SAP systems

System Landscape Harmonization and Server Consolidation

• Non-standardized SAP Implementations with massive custom development

Re-Evaluation of custom development replacement with current SAP Standard Business Processes and

leveraging out-of-the box integration with Microsoft Business Applications (e.g. hub-and-spoke scenarios)

• Too many different infrastructure vendors

Definition of a clear dual-vendor strategy (SAP and Microsoft)

How Microsoft can improve the value of SAP Software

Reach

Agility / Customization

Increasing Productivity with a

Familiar Environment (Duet, MOSS, OBA)

Optimizing the SAP Infrastructure

(SQL Server, Windows Server)

Leveraging Broad .NET

Ecosystem (ISVs)

Driving Business Performance

(Microsoft Business Intelligence)

Extending SAP Solutions (.NET)

Leveraging Hub&Spoke

Scenarios with Dynamics