WEBINAR The Future Of SAP: Outlook For SAP And SAP S/4HANA

2. WEBINARThe Future Of SAP: Outlook For SAP And SAP S/4HANA Andrew Bartels, Vice President, Principal Analyst Paul D. Hamerman, Vice President, Principal Analyst Liz Herbert, Vice President, Principal Analyst George Lawrie, Vice President, Principal Analyst May 1, 2017. Call in at 10:55 a.m. Eastern Time

4. Agenda • Introduction — Liz Herbert • SAP’s financial performance and outlook — Andrew Bartels • SAP’s technology vision and product strategy — Paul Hamerman • S/4HANA progress and other topics — George Lawrie • Discussion and Q&A

5. Agenda • Introduction — Liz Herbert • SAP’s financial performance and outlook — Andrew Bartels • SAP’s technology vision and product strategy — Paul Hamerman • S/4HANA progress and other topics — George Lawrie • Discussion and Q&A

6. SAP has been able to grow license as well as subscription revenues €23.7 €22.1 €20.8 €17.6 €16.8 Source: SAP financial earnings releases *Forrester forecast

7. SAP revenue growth has been strong 30%-plus growth in subscriptions revenues Source: SAP financial earnings releases *Forrester forecast

8. SAP has been able to grow license as well as subscription revenues €23.9 €22.1 €20.8 Source: SAP financial earnings releases *Forrester forecast

9. SAP’s subscription revenues still come mostly from Ariba, Concur, and SuccessFactors €3,934 €2,949 €2,267 Source: SAP financial earnings releases *Forrester forecast

10. Agenda • Introduction — Liz Herbert • SAP’s financial performance and outlook — Andrew Bartels • SAP’s technology vision and product strategy — Paul Hamerman • S/4HANA progress and other topics — George Lawrie • Discussion and Q&A

11. SAP has a broad strategy and evolving portfolio Source: Recalibrate SAP’s Role In Advancing Your BT Strategy Forrester report

12. SAP’s digital business framework vision SAP Cloud Platform (PaaS) Customer experience Workforce engagement SAP “Digital Core” S/4HANA IoT and supply chain Spend management SAP HANA SAP HANA Enterprise Cloud (IaaS) Source: Forrester Research interpretation of SAP strategic direction

13. SAP’s vision leverages several key product offerings • S/4HANA — the “digital core” business suite • SAP Cloud Platform — PaaS • SAP HANA — in-memory database • SAP Cloud applications — Ariba, Concur, Fieldglass, Hybris, SuccessFactors, etc. • SAP Digital Boardroom and BusinessObjects Cloud — analytics • SAP Leonardo — IoT • SAP Clea — machine learning and AI

14. SAP S/4HANA footprint Source: SAP S/4Hana Lifts Off Forrester report; SAP graphic

15. S/4HANA customer traction Source: SAP quarterly earnings reports

16. Agenda • Introduction — Liz Herbert • SAP’s financial performance and outlook — Andrew Bartels • SAP’s technology vision and product strategy — Paul Hamerman • S/4HANA progress and other topics — George Lawrie • Discussion and Q&A

17. Forrester inquiries about SAP and S/4HANA • Early adopters’ comments • Industry-specific functionality and current customization • Opportunities for process redesign • Platform-as-a-service • Very large enterprise databases

18. Early adopters’ comments • Event-driven finance “We found that we could resolve our disputes faster when we tied events to their financial outcomes. With integration to Ariba, we expect to manage our supplier risk more directly and avoid placing purchase orders with suppliers that might jeopardize our business.” (Supply chain manager, European retailer) “The CFO and the treasurer should be excited and on the S/4HANA Finance project. They can help move thinking beyond ‘account’ and ‘center’ to ask and answer more valuable questions about the firm’s trajectory.” (Managing director, North American services firm)

19. IS functionality, customization, and re-engineering • IS functionality in ECC is absorbed in S/4HANA. • Intermediate aggregate tables for existing customization

20. Platform-as-a-service: SAP Cloud Platform • Security and governance • “SAP’s metadata, security, and governance technologies are well integrated.” • Relationship with Cloud Foundry • SAP is a founding Platinum member of the Cloud Foundry Foundation. May 2016, we heard the announcement of a Cloud Foundry Services Beta release on SAP HCP. • Database connectors • “Hana Vora will ultimately extend its platform capabilities further into the big data space through Spark and Hadoop . . . ”* • *Source: The Forrester Wave™: Enterprise Insight Platform Suites, Q4 2016 Forrester report

21. Very large databases: Business Suite on HANA

22. Agenda • Introduction — Liz Herbert • SAP’s financial performance and outlook — Andrew Bartels • SAP’s technology vision and product strategy — Paul Hamerman • S/4HANA progress and other topics — George Lawrie • Discussion and Q&A

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24. Liz Herbert eherbert@forrester.com George Lawrie glawrie@forrester.com Andrew Bartels abartels@forrester.com Paul D. Hamerman phamerman@forrester.com