SAP in the Cloud: Navigating Your Options

2. WEBINARSAP In The Cloud: Navigating Your Options Paul D. Hamerman, Vice President, Principal Analyst Liz Herbert, Vice President, Principal Analyst Bill Martorelli, Principal Analyst John R. Rymer, Vice President, Principal Analyst May 3, 2017. Call in at 12:55 p.m. Eastern time

4. Agenda • Introductions — Liz Herbert • Overview, SaaS, and cloud apps — Paul Hamerman • Cloud platforms — John Rymer • Cloud infrastructure and services partners — Bill Martorelli • Recommendations • Q&A

5. Agenda • Introductions — Liz Herbert • Overview, SaaS, and cloud apps — Paul Hamerman • Cloud platforms — John Rymer • Cloud infrastructure and services partners — Bill Martorelli • Recommendations • Q&A

6. Agenda • Introductions — Liz Herbert • Overview, SaaS, and cloud apps — Paul Hamerman • Cloud platforms — John Rymer • Cloud infrastructure and services partners — Bill Martorelli • Recommendations • Q&A

7. Key cloud options SaaS SAP cloud platform HEC Traditional license on non-SAP cloud

8. Key cloud options SaaS SAP cloud platform HEC Traditional license on non-SAP cloud Major SaaS apps include:

9. SaaS subscription revenue is SAP’s growth engine € 23.7 € 22.1 € 20.8 € 17.6 € 16.8 Source: SAP financial earnings releases *Forrester forecast

10. About 80% of SAP’s subscription revenues come from Ariba, Concur, SuccessFactors, and Fieldglass € 3,934 € 2,949 € 2,267 Source: SAP financial earnings releases *Forrester forecast

11. Key SAP SaaS products • SAP SuccessFactors — HR and talent management solution • 6,200 customers and 47 million users • Concur — leader in travel and expense solutions • 47 million users and 36,000 customers • SAP Ariba — eProcurement, sourcing, and spend management • 10 million users, 30 million purchase orders annually, and 5,400 eProcurement clients* • SAP Fieldglass — services procurement and flexible workforce management platform • 500-plus customers and more than $25 billion managed services spend Source: Vendor Landscapes: eProcurement, eSourcing, eInvoicing, And Spend Analysis, 2016 To 2017 Forrester report *Forrester estimate

12. SaaS adoption varies by application category 1 SAP Hybris C4C SAP Ariba, Fieldglass SAP Hybris Commerce SAP SuccessFactors Concur Source: The Global Tech Market Outlook For 2017 To 2018 Forrester report

13. SAP S/4HANA cloud offerings: a work in progress S/4HANA Professional Services Cloud S/4HANA Finance Cloud S/4HANA Enterprise Management Cloud S/4HANA Manufacturing Cloud Source: SAP

14. SAP has SaaS and hybrid ERP options Source: Vendor Landscape: SaaS ERP Applications, 2017 Forrester report

15. Agenda • Introductions — Liz Herbert • Overview, SaaS, and cloud apps — Paul Hamerman • Cloud platforms — John Rymer • Cloud infrastructure and services partners — Bill Martorelli • Recommendations • Q&A

16. Key cloud options SaaS SAP cloud platform HEC Traditional license on non-SAP cloud • SAP’s “platform-as-a-service” • Used to extend and integrate S/4HANA and other solutions • Available for custom application delivery • Boasts about 1,000 apps and tools from partners

17. SAP cloud platform Application services Java, runtimes User experience Mobile Collaboration IoT Dev tools Integration Data mgmt. Analytics Platform services Cloud Foundry Security Administration and mgmt. Cloud infrastructure services

18. SAP is a development platform provider AWS Microsoft Google IBM Oracle Salesforce SAP Source: Vendor Landscape: Public Cloud Platforms Consolidate, But New Disruptions On The Way Forrester report

19. Key cloud options SaaS SAP cloud platform HEC Traditional license on non-SAP cloud • S/4HANA Cloud

20. Agenda • Introductions — Liz Herbert • Overview, SaaS, and cloud apps — Paul Hamerman • Cloud platforms — John Rymer • Cloud infrastructure and services partners — Bill Martorelli • Recommendations • Q&A

21. Key cloud options SaaS SAP cloud platform HEC Traditional license on non-SAP cloud • Cloud platforms such as AWS and Virtustream • Solutions from services partners such as DXC, IBM, and Fujitsu • Managed HANA cloud — IBM, T-Systems, NTT, and DXC

22. Key categories of cloud partners

23. Agenda • Introductions — Liz Herbert • Overview, SaaS, and cloud apps — Paul Hamerman • Cloud platforms — John Rymer • Cloud infrastructure and services partners — Bill Martorelli • Recommendations • Q&A

24. Key questions to guide your decision

25. Three typical patterns of today’s cloud adoption • Complementary, cloud-based point solutions surround a core SAP footprint. • Testing, development, and training are enabled as elements of the SAP cycle view. • Smaller customers or divisions embrace core SAP capabilities in the cloud.

26. Key paths to the cloud • The hybrid approach — move divisions or modules to get immediate benefit with minimal risk. • Lift-and-shift — best for cost savings at the infrastructure layer, but will not have major impact on business • S/4 — best for long-term business transformation, but will require patience • Wait-and-see — a great approach for those aspiring to go out of business while riding legacy technology

27. Agenda • Introductions — Liz Herbert • Overview, SaaS, and cloud apps — Paul Hamerman • Cloud platforms — John Rymer • Cloud infrastructure and services partners — Bill Martorelli • Recommendations • Q&A

28. Forrester Insights for iPhone and iPad KEY RESEARCH AND DATA POINTS WHEN AND WHERE YOU NEED THEM • Access playbooks, reports, key takeaways, and data points to accelerate your projects and support your decision making. • Save reports and graphics to read online or offline on the device of your choice. • Receive notifications to stay abreast of the latest trends and insights relevant to your initiatives. forrester.com/app

29. Liz Herbert eherbert@forrester.com Bill Martorelli wmartorelli@forrester.com Paul D. Hamerman phamerman@forrester.com John R. Rymer jrymer@forrester.com