ITCandor 2014

Martin Hingley, CEO, ITCandor

ITCandor 2014

Agenda

• SAP’s historical attributes– European– Corporate workloads for large companies– Traditional industry sectors

• The new stuff– Converged Infrastructure and Integrated

Systems– In-memory– Cloud

• Why it’s important

ITCandor 2014

$0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Americas

Asia Pacific

EMEA

SAP Revenues ($US b) by Quarter and Region

46% of revenues from EMEA in 2013

ITCandor 2014

Other87.3%

Mic

roso

ft 4

.9%

Ora

cle 3

.1%

IBM

2.8

%

SAP0.7%

Symantec 0.7%

Activision 0.5%

Software Market Share 2013 – Total: $914 Billion

A large Enterprise player – like Oracle and IBM – in a massive market

ITCandor 2014

• Customer Relationship Management (CRM)• Enterprise Resource Planning (ERP)• Product Lifecycle Management (PLM)• Supply Chain Management (SCM)• Supplier Relationship Management (SRM)

SAP provides Corporate Applications to Big Companies

But it needs to expand to new apps, customers and delivery techniques

ITCandor 2014

$1

$2

$3

$4

$5

$6

$7

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Business Objects

Sybase

SuccessFactors

Ariba

HANA One

BusinessSuite

SAP Revenues ($US b) by Quarter with Major Acquisitions and Products

A strong acquisition, SaaS and in-memory product strategy

ITCandor 2014

SAP 2013 Revenues by Industry Sector – Total: $22.4 Billion

FinancialServices

9.7%PublicServices10.1%

Services15.8%

DiscreteManufacturing

17.8%

Consumer22.5%

Energy & NaturalResources

24.2%

The ERP Business makes Manufacturing, Retail/Wholesale strong

ITCandor 2014

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

2011 2012 2013

HANA

Cloud subscriptions

SAP 2013 HANA and Cloud Revenues ($US m) by Quarter

Combined these were (just) 11% of SAP revenues in 2013

ITCandor 2014

Degree of integration

Wor

kloa

d sp

ecifi

city

Server, Storage Array, Networking

1. Converged Infrastructure

2. Managed Platform

3. IntegratedSystem

4. Workload-Optimised

System

5. S

oftw

are

Appl

ianc

e

IBM PureSystemsOracle Exa…

VCE vBlock

SAP HANA

NetApp FlexPod

Cisco UCSHitachi UCP

Fujitsu DI BlocksHuawei FusionCube

Dell Active System

HP CI

TeradataSASPivotalNutanix VCP

SimpliVity Omnicube

Converged Infrastructure and Integrated Systems – The 5 layer model

SAP intends HANA to become an application development and data platform

ITCandor 2014

Multiple dimensional database choice

SAP stole a march, but IBM, Oracle, Microsoft have strong in-memory resources and strategies

ITCandor 2014

Network

Storage

Server

Hypervisor

InfrastructureSoftware

Database

Application

Orchestration

BYO IaaS PaaS SaaS

Enterprises need to mix component sources in adopting Cloud Services

Integrating on and off premise infrastructure, applications and data Is key to SAP’s success

ITCandor 2014

$0

$10

$20

$30

$40

$50

$60

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

SaaS

IaaSPaaS

Cloud Service Forecast by Type ($US billion) – 2003-2018

Lot’s of opportunity for SAP, partners and Customers here

ITCandor 2014

Some Conclusions

• SAP is building beyond its traditional strengths to address the modern market

• Has an idiosyncratic way to the new stuff:– Is turning HANA into an application

development and data platform– Is balancing Cloud subscriptions with a hybrid

services business model• Its new ambitions stretch its IHV relationships• A ‘let’s do it’ customer-focused approach