Value of Amazon Web Services

The Business Value of Implementing SAP Solutions on

the Amazon Web Services Cloud Webcast

February 11th, 2014

© 2014 SAP AG or an SAP affiliate company. All rights reserved. 2 Public

Agenda

Introductions

• Saul Cunningham – ANZ Centre of Excellence, Database and Technology

AWS / SAP Overview

Business Case and Benefits

• Brent Paterson, Global ISV Manager, APAC, Amazon Web Services

GPT – Why and How they moved to AWS

Chris Burling, IT Enterprise Architect, The GPT Group

SAP on AWS User Cases

Brent Paterson, Global ISV Manager, APAC, Amazon Web Services

SAP Solutions and Best Practices on AWS

Nam Je Cho, SAP Solutions Architect, APAC, Amazon Web Services

Application Management Services from SAP

Phil Watts, SAP Managed Services, APJ

Cloud Application Library and Questions

Saul Cunningham

Amazon Web Services and

SAP


Agenda – Amazon Web Services

Who is Amazon Web Services?

Why do Customers use Amazon Web Services?

SAP on AWS Customer Examples

SAP on AWS Best Practice

The GPT Group – SAP Deployment Experience

SAP on AWS Summary


Who is Amazon Web Services (AWS)?


Who is Amazon Web Services?

E-commerce

Tens of millions of active

customer accounts

Eight countries:

US, UK, Germany, Japan,

France, Canada, China,

Italy

Sell on Amazon

Fulfillment Services

Amazon Webstore

Payment Solutions

Advertise on Amazon

Cloud computing

infrastructure for hosting

web-scale and

enterprise applications

Started in 2006

Hundreds of thousands

of customers in over 190

countries


What is Amazon Web Services?

Amazon Web Services is a complete set of infrastructure and application services that enable customers to run virtually any application in the cloud: from enterprise applications and big data projects to social games and mobile apps Hundreds of thousands of businesses in 190 countries around the world and across all industries are taking advantage of the many benefits provided by Amazon Web Services

AWS Global Infrastructure

Compute Storage Database

Network

Application Services

Deployment & Administration

8 © 2014 SAP AG or an SAP affiliate company. All rights reserved.

AWS Platform

Customer Applications

AWS Marketplace

Identity & Access AWS IAM

Administration

Interface Management Console

Monitoring Amazon CloudWatch

Deployment &

Automation AWS Elastic Beanstalk

AWS CloudFormation

Search Amazon CloudSerach

Content Delivery Amazon CloudFront

Parallel Processing Elastic MapReduce

Workflow Amazon SWF

Queuing Amazon SQS

Notifications Amazon SNS

Email Amazon SES

Libraries & SDKs Java, PHP, Python,

Ruby, .NET

Compute Amazon EC2

Auto Scaling

Amazon EMR

Elastic Load Balancing

Storage Amazon S3

Amazon Glacier

Amazon EBS

AWS Storage Gateway

AWS Import/Export

Database Amazon RDS

Amazon DynamoDB

Amazon Elasticache

Amazon Redshift

Networking Amazon VPC

Elastic Load Balancing

Amazon Route 53

AWS Direct Connect


Deployment &

Management

Application

Services

Foundation

Services

Why do Customers use

Amazon Web Services?


1. Pay For Infrastructure as you Need it, Not Up Front

On-Premises

$0 to get started

Pay as you go

OPEX not CAPEX

Resource in Minutes

Start using AWS with no up-front cost or

commitment and only pay for what you use


2. Lower Total Cost of IT

Scale allows us to constantly

reduce our costs

We are comfortable running a high

volume, low margin business

We pass the savings along to

our customers in the form of

low prices

Benefit from AWS’s economies of scale

and efficiencies. Only pay for what you

use.


3. You Don’t Need to Guess Capacity

Self

Hosting Waste

Customer

Dissatisfaction

Actual demand

Predicted Demand

Rigid Elastic

Actual demand

AWS

Scale resources automatically up or down

as needed. Both vertical and horizontal

scaling


4. Increase Innovation: Low Cost means Low Risk

On-Premises

Experiment Infrequently

Failure is Expensive

Less Innovation

Cost of Failure Tends Toward $0

Experiment Often

Increased Innovation

$ Millions Nearly $0

Provision new infrastructure and SAP

systems in minutes vs. days, weeks or

months


5. Get Rid of Undifferentiated Heavy Lifting

Data Centers

Power

Cooling

Cabling

Networking

Racks

Servers

Storage

Labor

Buy and install new hardware

Setup and configure new software

build or upgrade data centers

We take care of it… So you don’t have to …

Free internal resources from the

undifferentiating tasks of managing

infrastructure

Stop having to plan and manage hardware

refreshes every 3-5 years


7. Go Global in Minutes


10 Regions

Northern VA

Northern CA

Oregon

GovCloud US

Ireland

Singapore

Tokyo

Sydney

Sao Palo

Beijing* http://aws.amazon.com/about-aws/globalinfrastructure


25 Availability Zones

51 Edge Locations

http://aws.amazon.com/about-aws/globalinfrastructure




AWS Security and Certifications

Physical Security

Amazon has many years of experience in

designing, constructing, and operating large-

scale data centers. The AWS data centers are

secured with a variety of physical controls to

prevent unauthorized access.

Secure Services

Each of the services within the AWS cloud is

architected to be secure and contains a number

of capabilities that restrict unauthorized access

or usage without sacrificing the flexibility that

customers demand.

Data Privacy

AWS enables customers to encrypt their data

within the AWS cloud and publishes backup

and redundancy procedures for services so that

customers can gain greater understanding of

how their data flows throughout AWS.

Certifications

AWS Security Center http://aws.amazon.com/security

http://aws.amazon.com/security

http://aws.amazon.com/security


• $5.2B retail business

• 7,800 employees

• A whole lot of servers

AWS adds enough server

capacity to power that whole

$5B enterprise…

Every Day…


“Amazon Web Services has put so much distance between itself and its

cloud service provider competition that Gartner had to redraw the

dimensions of its Magic Quadrant. Skepticism persists, of course, but the

reality is that enterprises dismissing AWS increasingly do so at their own

peril”

CIO Article

Bernard Golden, Senior Director of Cloud Computing, Dell

Magic Quadrant for Cloud IaaS 2011-2013

http://www.cio.com/article/739072/Amazon_Web_Services_Competitors_Get_Bad_News_From_Gartner_


Trusted by Enterprises Around the World


Used by Government Agencies & Educational

Institutions Worldwide


Australia & New Zealand Customer Examples… … Over 14,000 Customers

GPT – Why and How they

moved to AWS

GPT AWS - SAP Case Study

Chris Burling, Enterprise Architect

2013


20% 2012 IT Opex Budget

vs.

2013 IT Opex Budget

Data Centre Contract

Expiration Sept ‘13

Project Context


Benefits – Cost Savings

0% 20% 40% 60% 80% 100% 120%

On-premise

AWS

Comparison of Cost Categories

Servers Storage&Backup Data Centre Data Centre Interconnect Support


Rapid Infrastructure Proof of Concepts

Ability to continually optimise costs

"Show-back” visibility of costs

The ability to offload commodity work and focus on “value-add”

Leverage more AWS capabilities and new services as they are

released.

Benefits - Capability


Lesson Learned - Reliability

Server Reliability Good

Maintaining System Architectures Possible

Storage Performance Good but Watch out,

Measure & Test

Storage Volume Preparation Watch out!

Network performance Good

Application Reliability Needs Tuning

Underlying issues masked by higher

performing infrastructure

Watch out!

Summary: AWS has always performed to the stated

specifications. Applications often require tuning.

SAP on AWS Customer

Examples


SAP Hybrid Deployment on AWS

Background

Lionsgate manages one of the most prestigious and prolific libraries in the entertainment industry with nearly 13,000 titles, a diverse portfolio of businesses, and an exciting, commercially potent feature film slate of approximately 12 to 15 releases per year.

Challenges:

Expanding infrastructure and costs

Increased enterprise application workloads

Lack of data center space

Needed ability to rapidly provision servers

Desire for cost efficient disaster recovery & high availability solutions

The solution:

Performed an initial POC to evaluate the viability of the AWS cloud for hosting their SAP systems

Successfully migrated their DEV and QAS landscapes to AWS US-West region

Currently planning the migration of their PRD landscape to AWS

Saved an estimated $1M+ over

three years since starting with

AWS in 2010.

Successful creation / integration

of SAP Landscape in the Cloud

Successful Integration of SAP

Instances with Local

Applications


SAP Business Suite

Background

Hoya specializes in advanced optical technology and their finance department was serving about 100 subsidiaries WW. Hoya began looking for a cost effective, elastic and high performance environment to support their business and their current “private” cloud environment could not deliver this.

Additional Criteria:

Security, SLA’s clearly defined, external audits in place, global footprint , highly reliable infrastructure

The Implementation:

Cloud provider Selection: 0.5 months

DR environment set-up, test and run : 1 month

Migration of production system: 48 hours

Customer Stated Benefits:

Speed and agility: rapid response to business requirements including M&A

Cost: 50-60% cost reduction, but when Hoya considered TCO they estimate about a 80-90% cost saving versus “private” cloud

Saved 50-60% on a cost basis

Estimated to save 80-90% on a

TCO basis

Migrated production systems in

48 hours

Entire process from going to

market for a cloud provider to

full production about less than

two months including testing

and migration


AWS Partner Network

SAP Implementation AWS Onboarding SAP OS/DB Migrations

SAP POCs SAP Sizing Architecture Planning

SAP Evaluations Performance Tuning SAP High Availability

SAP Hosting Backup & Recovery Account Management

Disaster Recovery DB Administration SAP BASIS

24/7 Help Desk OS Admin & Patching SAP Upgrades

APN partners provide a variety of services on top of the AWS

platform

Consulting Services

Managed Services


AWS and Managed Services Options

“Infrastructure

Hosting” “Fully Managed

Hosting”

“Customer

Managed”

Infrastructure

• Facility

• Servers

• Storage

• Network

Infrastructure

Services

OS Admin / OS

Patching / Network

Admin / Security /

Backup & Recovery

SAP Deploy &

Operations

SAP Installation /

Patching / Upgrades /

Monitoring / HA

= Customer = Service Provider = AWS

Infrastructure

• Facility

• Servers

• Storage

• Network

Infrastructure

Services

OS Admin / OS

Patching / Network

Admin / Security /

Backup & Recovery

SAP Deploy &

Operations

SAP Installation /


Monitoring / HA

Infrastructure

• Facility

• Servers

• Storage

• Network

Infrastructure

Services

OS Admin / OS

Patching / Network

Admin / Security /

Backup & Recovery

SAP Deploy &

Operations

SAP Installation /


Monitoring / HA

= Solution Integrator


Actual ASEAN Example – Media Company

-10%

price drop

in S3

-20%

RI purchase

-22%

DB Migration

-18%

Price drop in

S3 of 25%

Margin

Growth

54%

reduction in

unit costs

SAP Solutions and Best

Practices on AWS


AWS & SAP Partnership

AWS is an SAP Global Technology Partner & a certified Global

Cloud Services Partner

As of today, AWS is the only public IaaS provider that is certified

to run SAP production - SAP Note 1380654


How Are SAP Customers Using AWS Today

Extend Existing IT Infrastructure to the AWS Cloud

Host Complete SAP Environments on the AWS Cloud

Run SAP Test, Training, Demo, POC and Sandbox systems on AWS

Migrate SAP DEV and QAS landscapes to AWS

SAP Document and Data Archiving to AWS Cloud Storage

Temporary infrastructure for SAP upgrades and OS/DB migrations

DR site for on-premises SAP production environments

Migrate SAP DEV, QAS & Production landscapes to AWS

Greenfield implementations from project initiation to go-live


SAP Products Certified on AWS

SAP Business Suite (ERP, CRM, SCM, PLM & SRM)

SAP NetWeaver (BW, PI, Portal, PO, BPC & CE)

SAP Business All-in-One (A1)

SAP Business One (B1)

SAP Business Objects BI Solutions

SAP HANA One (Developer & Pay-per-Use Licenses)

SAP HANA Platform (Up to 1.2TB Memory on Bring Your Own License)

SAP Sybase Afaria

SAP LVM 2.0 to support automated system copy to AWS

SAP Solutions

Operating Systems

SUSE Linux Enterprise Server (SLES) 11 SP1

or higher

Red Hat Enterprise Linux (RHEL) 5.5 and 6 or

higher

Microsoft Windows Server 2008 R2 or higher

Databases

IBM DB2 Version 9.7 or higher

SAP MaxDB Version 7.x or higher

Microsoft SQL Server 2008 R2 or

higher

Sybase ASE 15.7.0.013 or higher

*Note – Oracle DB can be used for non-production systems (Test/Demo/POC/Training.)

SAP deployments use a “Bring Your Own License” (BYOL) licensing model


SAP HANA on AWS

HANA Offering Description

HANA One

Developer Edition

• 16 to 64GB memory

• Free SAP HANA license, restricted to demo/training

• Deploy via SAP Community Network

HANA One

Business Edition

• 64GB memory

• Pay per use SAP license, restricted to standalone scenarios

• Deploy via AWS Marketplace

HANA Platform

Bring Your Own

License

• 256GB to 1.2TB memory

• Bring your own license

• Supports all scenarios including Business Suite & BW

• Deploy via SAP HANA Marketplace

• Currently available in US, Europe & Japan Regions.

Estimated to be available in Sydney & Singapore Regions

in Q1 2014


Customer

Data Centers

VPN or

Direct Connect

Secure connectivity

between datacentre &

AWS

Virtual Private Cloud

Hybrid SAP IT Deployment – Customer Data Centre & AWS

DEV QAS

ECC

BW

SRM

ECC

BW

SRM

BW

ECC

SRM

PRD

SAP Production landscape runs in

customer’s own datacentre

SAP Development & Quality

Assurance landscape runs on AWS

Backup

S3

Bucket

Either on premise OR cloud is a false dichotomy


Virtual Private Cloud

Full SAP Deployment on AWS

DEV QAS

ECC

BW

SRM

ECC

BW

SRM

Customer runs DEV, QAS & PRD on AWS

PRD

ECC

BW

SRM

VPN or

Direct Connect

Secure connectivity

between LAN & AWS

network

Customer

LAN

S3

Bucket

Backup


Amazon Virtual Private Cloud – Secure Connectivity

VPN Connection

AWS Direct Connect

Amazon Virtual Private Cloud (VPC) lets you provision a logically isolated section of the AWS

Cloud where you can launch AWS resources in a virtual network that you define.

Secure connection from customer’s own network to Amazon VPC can be achieved using

VPN or Direct Connect.

VPN (via IPsec) Direct Connect

Hardware VPN connection between your

network and VPC

Can create multiple VPN connections to

one VPC

Fast and simple to setup

Private, dedicated network connection

between your network and AWS / VPC

Can reduce your network costs, increase

bandwidth throughput, and provide a

more consistent network experience

than a Internet VPN

Upto 10 Gbps ports

http://aws.amazon.com/vpc/




Industry research finds that running SAP applications on AWS provides

infrastructure cost savings of up to 71% compared to the same system

running on-premises.

AWS TCO Studies - http://aws.amazon.com/economics/

AWS Enables Lower TCO for SAP Environments

Savings (5 Years) vs. large ERP

(on-

premises)

vs. small ERP

(on-premises) vs. small ERP

(outsourcing)

vs. SAP All-in-

One

(on-premises)

% Savings in overall

TCO 16% 18% 15% 22%

% Savings on items that

AWS has an impact on 62% 63% 59% 71%

http://aws.amazon.com/economics/

http://aws.amazon.com/economics/


SAP on AWS Pricing Example

Component AWS Resource Quantity Unit Cost Monthly

Cost

Virtual Machine Suse Enterprise Linux 240 hours $0.80 p/hour $192

Primary Storage EBS volume & IO 200 GB $0.25 p/GB p/month $50

Backup Storage S3 storage 200 GB $0.10 p/GB p/month $20

Network & IO Data Transfer $18

SAP ECC Development System

1x AWS EC2 Instance: 4 cores & 15 GB memory

Online M-F 8AM-8PM: 240 hours p/month

Storage: 200 GB

Backup: 200 GB

$US280* Total Monthly Cost:

* Pricing based on Sydney region as of 26/07/2013

SAP on AWS Best Practices


SAP Deployment Options

Some SAP solutions are available as pre-

built system images on Amazon EC2. A

pre-built SAP system image contains a

pre-installed and pre-configured SAP

solution that enables you to provision a

new SAP system by simply launching an

Amazon EC2 instance from the

system image.

Pre-built SAP system images are

available from the following sources:

• AWS Marketplace

• SAP Trial Systems

• SAP Developer Images

• SAP Cloud Appliance Library

Primary option for deploying SAP applications on

Amazon EC2 is the standard SAP installation

procedure for the particular SAP solution.

The process to install an SAP solution on an

Amazon EC2 instance is very similar to the

process for any other physical or virtual server.

Standard SAP Installation Pre-Built SAP Image


SAP Sizing on AWS

Sizing of SAP systems on AWS uses the standard SAP sizing procedure.

Information about SAP sizing can be found at http://service.sap.com/sizing

First step of any SAP sizing is to use the Use the SAP Quicksizer to determine

the SAPS needed to support your business requirements.

Once the required SAPS are determines you can then use the SAPS ratings of

the SAP-certified Amazon EC2 instance types listed in SAP note # 1656099 to

architect you SAP environment on AWS.

http://service.sap.com/sizing

http://service.sap.com/sizing


SAP System Network Performance

Each Amazon EC2 instance type (virtual server) provides a certain level of I/O

performance. The type of SAP system and its I/O performance requirements will

determine which EC2 instance type should be used.

Like standard instances Cluster

Compute instances us a shared

interface for network and I/O

throughput. Cluster Compute

instances have very high I/O

performance using 10 Gigabit

Ethernet.

Cluster Compute Instances EBS-Optimized Instances

Certain standard instance types are

available as EBS-Optimized

instances. An EBS-Optimized

instance uses an optimized

configuration stack and provides

additional, dedicated capacity for

EBS I/O.

Standard Instances

Standard Amazon EC2 instances

types use a shared interface for

network and I/O throughput.

To ensure optimal I/O performance for SAP production systems, either EBS-Optimized or

Cluster Compute instance types should be used.


Migrating an Existing SAP system to AWS

Standard SAP homogeneous / heterogeneous system copy procedure is the

recommended method to migrate an existing SAP system to AWS.

The high level steps to migrate an SAP system to AWS are:

1. Create export of the source system using Software Provisioning Manager

2. Copy or ship the export / DB backup data to AWS

3. Install new target system on Amazon EC2 using export of the source system

Two options to copy data to AWS:

Network Copy – For systems less than 1 TB. Consider high speed upload software

such as TsunamiUDP & Asperasoft.

AWS Import/Export – For systems greater than 1 TB

http://service.sap.com/sap/support/notes/1680045

http://service.sap.com/sap/support/notes/1680045


Backup & Recovery of SAP Systems on AWS

The SAP on AWS Backup and Recovery Guide provides an overview of how to backup

SAP systems running on AWS. The guide focuses on the essential differences in backing

up SAP systems on AWS as compared to traditional infrastructure.

Backup Options:

Create Image

EBS Snapshots

Backup to EBS

Backup directly to S3

Third party backup software integration, eg Netbackup, CommVault

http://aws.amazon.com/sap

http://aws.amazon.com/sap

SAP on AWS Summary


Consume what you need when you need it

Reduce overall cost

Scale and Flexibility - don’t guess on capacity

Increase Innovation

Focus on the greatest business impact

Business Value Summary

WITH

• Industry leading products and solutions from SAP

• SAP Support and Certification

• All within your existing partner ecosystem (SAP or SI)

Application Management

Services from SAP


SAP Cloud & Managed Services Offerings

Solution Reliability, Scalability and Accountability

Flexible & tailored for your business

Assessment &

Advisory

On Boarding &

Migration

Application Management

& Custom Services

Managed Cloud

Services

Review functional, technical and organizational feasibility

Identify business value from functional and financial perspective

Define target architecture, project plan, scope

Evaluate use cases and business scenarios

Elastic, No lock in, Pay as you go engagements

Water tight Service Level Agreements

Single Source engagements and contracts

Predefined Onboarding service

Predefined Migration Service

Optional services to meet customer specific requirements (eg. minimized downtime requirements)

Platform as a Service

Infrastructure as a Service

World Class Security

Enterprise Grade DCs

Private Cloud management On premise, Cloud & Hybrid

24x7 365 days Reliability

High Availability & DR

Productive & Non-Productive environments

Level 1, 2 & 3 break fix

Transition Management

24x7 365 days Monitor/Admin

Incident Management

Innovation program

Security services

Pre-Assembly service

Post Production Support

Integration Management

One time fixed fee engagements


SAP Managed Services – Get More !

Peace of Mind Support …

SAP Application Support & Administration,

Platform as a Service (Hardware, Operating System, Database),

Security, Reliability and Performance

24x7 SAP help desk & key user support,

SLA based incident & problem management,

Proactive system monitoring & optimization,

Around-the-clock monitoring, maintenance and safeguarding of your solution,

A Platform for Continuous improvement and change management,

Proactive Compliance, and Built in Quality & Risk Management

Design Thinking embedded to enable Innovation

… provided at a fixed monthly rate

with no lock-in and built in flexibility to consume as you require

Reduced Cost of Capital

Single Source, no overhead managing multiple vendors

Pay as you go, with no lock in contracts

Security like Fort Knox ( inside & out )

Flatten & Optimize your Operational expenditures

Contract tight Service Level Agreements

Access to the best, SAP expertise

No need to attract and retain human capital

Design thinking embedded solving today’s & tomorrow's problems

Reliability, Scalability and Strength that only SAP can provide

Flexible & tailored for your business

Top Benefits

Cloud Application Library

and Questions


SAP Store

SAP Cloud Appliance Library

https://store.sap.com/sap/cpa/ui/resources/store/html/StoreFront.html?pcntry=AU&sap-

language=EN&_cp_id=id-1392000470049-0


SAP Cloud Appliance Library

The Process

© 2014 SAP AG or an SAP affiliate company. All rights reserved.

Questions

Contact information:

Saul Cunningham

[email protected]