Enterprise Goes Cloud A Lecture on SAP Business Technology Platform Dr. Michael Perscheid, Dr. Ralf Teusner Enterprise Platform and Integration Concepts Hasso-Plattner-Institut, University of Potsdam Enterprise Goes Cloud A Lecture on SAP Business Technology Platform This MOOC focuses on Enterprise Cloud Platforms and exemplifies how to tackle major challenges, how to build, extend, and integrate applications, and finally master the digital transformation with SAP Business Technology Platform. ■ Learning Goals □ Characteristics and architecture of enterprise applications and systems □ Influence of cloud-native development □ Hands-on exercise with SAP Business Technology Platform □ Integration and composition of cloud applications Slide 3 Trends and Concepts in the Software Industry I Lecture Week 21.-24. September 2020 ■ General information □ Lectures given by EPIC and guests from industry □ Q&A session with Prof. Plattner □ Discussions about open questions in enterprise computing are a vital part of the lecture! □ Hybrid format (Online as well as on-site) ■ Final grade consists of □ □ □ Foun datio Preparation quiz (mandatory) n of t his M Group work, presentation, and participation during OOC the block week (40%) Oral exam on 29th and 30th September (60%) Slide 4 From On-Premise to the Cloud Introduction to as-a-Service On-Premise Infrastructureas-a-Service Platformas-a-Service Softwareas-a-Service Applications Applications Applications Applications Data Data Data Data Runtime Runtime Runtime Runtime Middleware Middleware Middleware Middleware Operating System Operating System Operating System Operating System Virtualization Virtualization Virtualization Virtualization Servers Servers Servers Servers Storage Storage Storage Storage Networking Networking Networking Networking You manage Service provider manages Slide 5 Cloud From On-Premise to the Cloud Introduction to as-a-Service On-Premise Infrastructureas-a-Service Platformas-a-Service Softwareas-a-Service Applications Applications Applications Data Data Data WeekApplications 4: Composing Cloud Applications Runtime Runtime Runtime Runtime Middleware Middleware Operating System Operating System Operating System Operating System Virtualization Week 3: Hands-on SAP MiddlewareTechnologyMiddleware Business Platform Week Virtualization Servers Servers Storage Storage 2: Cloud Virtualization Foundations Week 1: Trends on Networking Networking Enterprise Architecture Data Virtualization Servers Servers Storage Storage Networking Networking You manage Service provider manages Slide 6 Cloud Enterprise Goes Cloud Week 1: Trends on Enterprise Architecture 1 Welcome Michael Perscheid, Ralf Teusner, HPI 2 Technological Milestones of SAP Michael Perscheid, HPI 3 Strategic Design Goals of Enterprise Applications (Example of SAP HANA) Michael Perscheid, HPI 4 From On-Premise to the Cloud Jürgen Müller, SAP Slide 7 SAP Introduction: Systems, Applications, and Products Trends and Concepts in the Software Industry I Dr. Michael Perscheid Enterprise Platform and Integration Concepts Hasso-Plattner-Institut SAP Builds the Intelligent Enterprise Businesses are complex. Running them shouldn’t be. In 1972, a group of colleagues got together with an idea. That idea became the world’s most powerful business software. Best-run Businesses Are Intelligent Enterprises Are Integrated Enterprises © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ INTERNAL 6 The Intelligent Enterprise Sales and Distribution Material Management Finance © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ INTERNAL Human Resources Enterprise Resource Planning 7 Customer Relationship Management The Intelligent Enterprise © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ INTERNAL Enterprise Resource Planning 8 Customer Relationship Management The Intelligent Enterprise Human Resources © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ INTERNAL Enterprise Resource Planning 9 Customer Relationship Management The Intelligent Enterprise Human Resources © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ INTERNAL Enterprise Resource Planning Workforce Management 10 General Procurement Customer Relationship Management The Intelligent Enterprise Human Resources © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ INTERNAL Enterprise Resource Planning Workforce Management 11 General Procurement Customer Relationship Management Travel & Expenses The Intelligent Enterprise Human Resources © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ INTERNAL Enterprise Resource Planning Workforce Management 12 General Procurement Customer Relationship Management Travel & Expenses SAP Ariba SAP C/4HANA (CRM) SAP Concur The Intelligent Enterprise SAP SuccessFactors (SFSF) SAP S/4HANA (ERP) SAP Fieldglass Human Resources Enterprise Resource Planning Workforce Management © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ INTERNAL 13 Aerospace and Defense Automotive Banking Chemicals Consumer Products Defense and Security Engineering, Construction, and Operations Financial Service Providers Healthcare High-tech Higher Education and Research Hospitality Services Industrial Machinery and Components The Intelligent Enterprise Insurance Life Sciences Industry Solutions Logistics Service Providers Media Mill Products Mining Oil and Gas Pharmaceuticals Postal Services Professional Services Public Sector Railway Services Retail Telecommunications Utilities © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ INTERNAL 14 SAP Supports End-to-End Business Processes Primary End-to-End (E2E) Processes in SAP’s Integrated Intelligent Suite Lead to Cash Source to Pay Recruit to Retire Design to Operate Business Applications SAP Ariba SAP C/4HANA (CRM) SAP Concur SAP SuccessFactors (SFSF) SAP S/4HANA (ERP) SAP Fieldglass https://api.sap.com/themes/BusinessProcesses © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC 16 © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC 17 © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC 18 © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC 19 © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC 20 SAP Is the Market Leader in Enterprise Application Software 77% of the world’s transaction revenue touches an SAP system. © 2018 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ INTERNAL 22 SAP customers distribute more than 78% of the world’s food. SAP customers produce more than 82% of the coffee and tea we drink each day. SAP customers represent 92% of Forbes Global 2000 companies. SAP as a Company 437,000+ 100,000+ 18,000+ 25 Customers Employees Partners Industries €24.8B 92% #28 180+ of the Forbes Global 2000 are SAP Customers of Fortune’s 2019 top 100 places to work Countries Revenue in 2018 Head Quarter in Walldorf SAP Labs Berlin – Innovation Center in Potsdam 20 SAP Labs worldwide © 2018 SAP SE or an SAP affiliate com pany. All rights reserved. © 2016 SAP SE or an SAP affiliate company. All rights reserved. Internal 28 SAP Creates Technology Since More Than 45 Years Platforms, Development ABAP Standard software for real-time business applications Switch from Mainframe to Client/ Server Architectures SAP DB TREX, liveCache Process Orchestration SAP ERP 6.0 Business process integration via internet, Enterprise SOA Composite Applications (xApps) 20 19 Fiori SAP Cloud Platform E2E Tracing, Information Lifecycle Management 20 16 S/4HANA MS Office Integration, MS Silverlight Business Warehouse 20 15 20 11 20 12 20 08 20 10 20 07 SAP Business ByDesign SAP Portals, Mobile CRM P*Time Process Integration 20 06 20 05 SAP ERP Central Component (ECC) 5.0 Web Dynpro SAP Composition SAP EnvironNetments Weaver Application Server Concept 20 04 20 01 20 02 20 00 19 95 19 97 19 98 Business Server Pages Dynpro Database Shared Library DB Innovations SAP Business One SAP R/3 SAP GUI SAPscript 19 93 19 79 SAP R/2 19 91 19 73 SAP RF (later R/1) UIs ERP Apps Technological Milestones SAP Sybase SAP IQ (later HANA SAP IQ) SAP Business Objects Lumira SAP Data Warehouse Cloud SAP HANA Cloud Services SAP Analytics Machine Cloud, Learning, Blockchain IoT 30 But What Is an ERP? Enterprise Resource Planning (ERP) is a computer-based system to manage internal and external resources, including tangible assets, financial resources, materials and human resources it‘s purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders enables companies to manage their entire value chain and the most critical business processes … hence, we say our customers run on is our most recent ERP system – available On-Premise and in the Cloud © 2017 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC source: SAP01 – SAP Overview 31 Business Objects Are Manifestations of Processes.. Accounting & Financial Close Journal Entries Production Planning Planed Order Order & Contract Management Sourcing & Contract Management Service Management Inventory & Warehouse Goods Issue Management Operational Procurement Purchase Requisition Service Parts Management Inventory & Warehouse Goods Receipt Management Sales Order Outbound Delivery Financial Planning & Analysis Manufacturing Execution Treasury & Financial Risk Management Inventory & Warehouse Goods Movement Management Order & Contract Management Collaborative Finance Payments Operations Product & Project Management Accounts Receivable Enterprise Risk & Compliance Management Maintenance & Quality Management © 2017 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC Production Order Customer Invoice Accounts Receivables Purchase Order Service Project Management Sales Order Invoice & Payables Incoming Invoice Management Accounts Payable 32 ..Then There Is This Thing Called Master Data.. Accounting & Financial Close Company Code G/L Accounts Production Planning Material Bill of Material Order & Contract Management Sourcing & Contract Supplier Management Service Management Inventory & Warehouse Management Operational Procurement Service Parts Management Service Project Management Customer Financial Planning & Cost Center Analysis Manufacturing Execution Work Center Treasury & Financial Risk Management Inventory & Warehouse Management Order & Contract Management Inventory & Warehouse Management Collaborative Finance Operations Product & Project Management Accounts Receivable Invoice & Payables Management Enterprise Risk & Compliance Management Maintenance & Quality Management master data records are used between multiple areas and processes Profit Center © 2017 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC Resource 33 .. All Ruled by Specific Personas Accountant Controller © 2017 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC Production Planner Worker Sales Responsible Fulfillment Manager Purchaser Warehouse Manager 34 The Fiori Launchpad The Furious Youth use the search to find apps or business objects containing a certain term login users are associated with certain business roles tiles represent applications (and key figures) and are grouped by area click on search results to display factsheet of the business object navigate on to related business object factsheets © 2017 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC 35 The SAP GUI (1/2) The Old Wisdom open applications using transaction codes in the input field at the top or choose them from the SAP menu tree © 2017 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC 36 The SAP GUI (2/2) The Old Wisdom at the selection screen press F8 or use the icon to proceed Nearly everything is forward navigation enabled, use double click © 2017 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC transaction code can be displayed at all times here 37 BAPI BOPF CDS RFC (Web)Dynpro The System at a Glance Business Application Programming Interface Business Object Processing Framework Core Data Services Remote Function Call Dynamic Program (for Web) Frontend SAP GUI for HTML SAP GUI Fiori User ABAP Server WebDynpro … oData SAP Gateway write read ABAP-managed CDS Views BAPIs S/4 CORE Functionality BOPF/Draft APIs/BAPIs ABAP Transparent Tables HANA DB RFC SAP Cloud Platform Other Systems SQL Views DB Tables © 2017 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC 38 Core Data Services (CDS) Views A layer of abstraction CDS View Entity Virtual Data Model (VDM) on top of DB tables using ABAP-managed CDS Views added business semantics composition of related DB tables included technical names converted into readable names Main DB Table à Facilitates access and comprehension with minor to zero knowledge required © 2017 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC 39 …and dig deeper Prominent Database Tables Sales and Distribution VBAK Sales Docum ent Header VBRK Billing Docum ent Header VBFA Sales Docum ent Flow VBAP Sales Docum ent Item VBRP Billing Docum ent Item Purchasing EKKO Purchasing Docum ent Header RBKP Invoice Docum ent Header EKBE History per Purchasing Docum ent Master Data Inventory Mgmt (Quantities) Material Ledger M BEW (H) EKPO Purchasing Docum ent Item M ARC Plant for M aterial M ATDOC M ARD Storage Location for M aterial M SPR RSEG Invoice Docum ent Item Project Stock M SLB Special Stocks with Supplier M SKA Sales Order Stock M aterial Valuation (History) M aterial Docum ents QBEW (H) Project Stock Valuation (History) OBEW (H) Valuated Stock with Subcontractor (History) EBEW (H) Sales Order Stock Valuation (History) M KOL Special Stocks from Supplier M CHB Batch Stocks BKPF Accounting Docum ent Header ACDOCA BSEG Universal Journal Accounting Docum ent Segm ent Line Item s BSET CKM LPP M SKU Special Stocks with Custom er Finance (multi GAAP, multi currency) Period Totals Records Quantity CKM LCR Tax Data Docum ent Segm ent Period Totals Records Values Logistics Execution LIPS LIKP Delivery Docum ent Delivery Docum ent Item Header © 2017 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC 40 Evolution of Enterprise Resource Planning Data Processing Globalization Internet Digital SAP R/1: Enabled customers to get a complete view of their business with real-time processing of data across integrated modules for materials, procurement, and accounting. SAP R/2: Helped customers successfully manage large global enterprises on a mainframe architecture, while retaining the integration and real-time processing capabilities of SAP R/1. SAP R/3 and SAP ECC: Enabled customers to take advantage of clientserver and Internet technologies. Created a unified graphical user interface and new functional components such as supplier relationship management and supply chain management. SAP S/4HANA: Helps customers get ahead of the next inflection point – the Digital Economy. We are now focused on eradicating complexity with SAP S/4HANA. 1973 © 2017 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ PUBLIC 1979 1991 2015 41 SAP Acquires Other Companies General Procurement 12 20 d ir e u q Ariba SAP Ac Customer Relationship e Management inc s d ire 13 SAP C/4HANA u q 20 Ac (CRM) Travel & 4 1 Expenses 20 ed r i quConcur SAP c A The Intelligent Enterprise SAP acquired more than 70 companies SAP SuccessFactors 11 0 (SFSF) 2 ed r i u qHuman c A Resources © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ INTERNAL SAP S/4HANA (ERP) Enterprise Resource Planning SAP Fieldglass 14 0 2 ed r i quManagement Workforce c A 43 With a company having bought dozens of other companies over time, how to cope with the resulting technical diversity? How does multitenancy look like? How to build, extend, and integrate cloud applications? What are implications of cloud native vs. on-premise? How does the existing technical architecture change? Best-run Businesses Are Intelligent Enterprises Are Integrated Enterprises How to share data and manage enterprise data landscapes? How to organize and federate cloud data from different applications, customers, and regions? Why do we need a unified domain model and how does it differ from existing data schemas? © 2020 SAP SE or an SAP affiliate com pany. All rights reserved. ǀ INTERNAL How does an in-memory database cloud architecture look like? How to reuse similar business services? 44 SAP Introduction: Systems, Applications, and Products Trends and Concepts in the Software Industry I Dr. Michael Perscheid Enterprise Platform and Integration Concepts Hasso-Plattner-Institut The Foundation of In-Memory Data Management Dr. Michael Perscheid Chair Representative of Prof. Hasso Plattner Enterprise Platform and Integration Concepts, HPI, University of Potsdam Before SAP HANA OLTP and OLAP as separated systems ANALYSIS OPERATIONS Redundancy Data Warehouse Database Metadata Repository Transactional Services OLTP OnLine Transaction Processing Operative Datasets Extract Transform Load Data Warehouse System Decision Support OLAP OnLine Analytical Processing • High Query selectivity • Low query selectivity • Small result sets • Large (intermediate) result sets • Read and write access • Aggregation • Expensive updates • Mostly read access Wolfgang Lehner, Datenbanktechnologie für Data-Warehouse-Systeme. Konzepte und Methoden, dpunkt.verlag, 2002 2 Rethink to Innovate Hardware Trends 2006 HPI Whiteboard Cash Forecast Prototype 2008 2009 SAP HANA Launch 2011 SIGMOD Database Conference 2015 SAP S/4HANA Launch 3 Strategic Design Goals for Enterprise Applications Performance Extensibility Simplicity Scalability Flexibility 4 How to Get from Hours to Seconds? Event Latency Scaled 1 CPU Cycle 0.3 ns 1s Level 1 cache access 0.9 ns 3s Level 2 cache access 2.8 ns 9s Level 3 cache access 12.9 ns 43 s Main memory access (DRAM, from CPU) 120 ns 6 min 50-150 µs 2-6 days 1-10 ms 1-12 months Solid-state disk I/O (flash memory) Rotational disk I/O … … Brendan Gregg, Systems Performance – Enterprise and the Cloud, Prentice Hall, 2013 5 An In-Memory Columnar Storage Customer Table ID FIRSTNAME NAME MAIL TELEPHONE LOCATION Direct Access Tuple Scan Filter • To receive one tuple, access columns one by one • A bit slower than with row stores • Access fields directly to save time • • Most operations are not direct access Scan one column as fast as possible to filter requested data Once identified, access data directly • Full Scan with up to 8 MB / ms / core • Run through all columns sequentially and aggregate line items • Leverage pre-fetching to get next data in line • Aggregate values on the fly 6 Parallelization on All Query Plan Levels ry 1 e u Q Data Chunks n Sca A 1000 900 600 Pa rt A n o it i nA m lu Co Query n Sca n Queries Inter-Query Parallelism Co l um nB Operations Intra-Query Parallelism 1 Partitions Intra-Operator Parallelism 500 600 600 Data Chunks Intra-Operator Parallelism 800 500 600 CPU Hardware Multi-threading at processor level 600 1100 800 Multicore- CPU 1 Multicore- CPU 2 Multicore- CPU 3 7 Proof Point of the In-Memory Revolution Electronic Health Record Data Set (241 GB, 8.9 Million Patients and 2.4 Billion Total Records) Relational Database Count medical facts data4life.care 43 min Fetch "back pain cohort" 3 h 1s Fetch "ICD codes distribution" 4 h 39 min Fetch "continuity of care" of records 3 h 12 min Fetch "back pain comorbidities" Still running In close collaboration with: SAP HANA Count medical facts 0,1 s Fetch "back pain cohort" 1,5 s Fetch "ICD codes distribution" 23,9 s Fetch "continuity of care" of records 10,1 s Fetch "back pain comorbidities" More than 1,000 times faster 4,1 s Disclaimer: Measurements based on different hardware, Relational DB: 16 vCores, 80GB RAM, SAP HANA: 64 vCores, 425GB RAM • Mount Sinai Data Warehouse at the Scientific Computing Department at Icahn School of Medicine at Mount Sinai • EU Horizon 2020 project #826117 ‘Smart4Health: Citizen-centred EU-EHR Exchange for Personalized Health’ • Hasso Plattner Institute for Digital Health at Mount Sinai • Fiber Project, HPI Digital Health – Personalized Medicine Chair (Prof. Erwin Böttinger) 8 Strategic Design Goals for Enterprise Applications Performance Scalability Simplicity Extensibility Flexibility 9 Highest Flexibility by Finest Granularity Removing Static and Pre-Computed Materialized Aggregates Flexible Aggregation on Demand Static Pre-Defined Aggregates Static pre-defined aggregates cannot handle structural changes within the organization. Dynamic on-the-fly reporting enables analysis & simulation of organizational changes. Impact analysis is immediately available. Requires Anticipation FI Postings Customers Products Suppliers Does NOT require Anticipation Profit Centers FI Postings Customers Products Suppliers Profit Centers 10 SAP Financials – Invoice Posting Insert Duration with and w/o Transaction-Maintained Aggregates BKPF BSEG FAGFLEXA (per Ledger) BSIS BSIS BSIK BSET LFC1 GLTO COBK COEP COSP … 13+ Inserts 5+ Updates Classic SAP Financials with transaction-maintained aggregates Database Footprint Reduction BKPF BSEG Simplified SAP Financials ACDOCA (per Ledger) 7 Inserts 0 Updates Without aggregates, unnecessary indices, and redundancies, an in-memory, columnar store can compress current ERP data up to 1/35 compared to any DB 11 Strategic Design Goals for Enterprise Applications Performance Simplicity Extensibility Scalability Flexibility 12 Data Pyramid Query Data Beyond the Scale of SAP HANA with Low Costs Volume Frequent changes Working memory SAP HANA In-Memory < 100 TB µs baseline > 100 TB ms ~ 5x cheaper PB sec ~ 25x cheaper EB min ~ 50x cheaper ead Loo k Ah SAP HANA Native Storage Extension Relational Data Lake Hadoop / HDFS Table Price Table Rare changes Persistent memory No changes Persistent storage Performance Raw Storage: Swift / S3 13 Scaling SAP HANA Multi-Level Partitioning Partitioning Scale-Out Scale-Up e.g., HPE Superdome Flex with up to 48TB Memory and 32 CPUs x 28 cores SAP HANA In-Memory Increase Memory, CPUs, and Disk Storage SAP HANA Node SAP HANA Native Storage Extension Relational Data Lake SAP HANA Node SAP HANA Node Hadoop / HDFS Raw storage: Swift / S3 Tables can be partitioned horizontally and vertically Partitions can be stored on different data layers Scaling across different nodes increases performance and resilience 15 200x Taking the Speed Challenge more users 200 billion data entries Average runtime in seconds 200 million 8 summarized line item records per day 7 6,8 6 5 4 3 2,6 2 1 0 2,7 1,3 Small Queries single month Medium Queries single quarter Large Queries multiple quarters Very Large Queries several years 16 Strategic Design Goals for Enterprise Applications Performance Simplicity Extensibility Scalability Flexibility 17 Build-In Analytic Capabilities Example: Data Anonymization Generalized Data for Analytics Individual Data is Secured Name Age Zip Salary Name Age Zip Salary Anna Smith 25 43029 43,000 * 20 < 30 4* 43,000 John Taylor 29 43928 45,000 * 20 < 30 4* 45,000 Roger Hanson 21 44982 29,000 * 20 < 30 4* 29,000 Anonymizing sensitive data without data duplication, respecting privacy, and supporting compliance with regulations such as GDPR. Example: k-Anonymity Hiding individuals in a crowd allowing analytics but not distinction. 19 Spatial and Graph Combine business data with geographical and streaming data Example: Proof of Concept Tracing impact of outages in electricity network (47 million records) improves from 3.5 hours to 2.5 seconds. 20 Strategic Design Goals for Enterprise Applications Performance Simplicity Extensibility Scalability Flexibility 21 Boardroom Vision 2009 23 Boardroom - Today 24 SAP HANA – The Journey so far 50,000+ SAP HANA customer licenses 200+ Peer-reviewed academic publications by SAP and HPI on in-memory databases for OLTP and OLAP SAP HANA 72 terabytes Largest customer on scale-out 48 terabytes Largest customer on single node Hasso Plattner Institute, 2006 University of Potsdam 100+ million Transactions processed daily for a single customer 7 petabytes of SAP HANA licensed productively 25 SAP HANA Benefits Large amount of main memory On-the-fly extensibility High scan performance Analytical applications on transactional system Massively parallel processing Structured and unstructured data No materialized aggregates Variable time scaling Columnar storage Advanced data protection Persistent memory support Data compression ML and Predictive Analytics Library High availability Disaster recovery Integrated application logic Partitioning and replication Data footprint reduction Aggregate caching High workload capacity Single- and multi-tenancy Complex queries Built-in text, graph and geospatial libraries Time travel Simplified data model 26 From On-Premise to the Cloud Dr. Jürgen Müller Chief Technology Officer (CTO) and member of the Executive Board of SAP SE PUBLIC Agenda 1 2 3 4 5 6 7 The Start: Cloud technology disrupting SAPs core business The Platform: Defining what a business platform is The Overview: Intelligent Enterprise and Business Technology Platform The Motivation: How the Business Technology Platform impacts SAP The Architecture: Deep dive into the Business Technology Platform The User: Using the Business Technology Platform The Recap: Key points to take away © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2 1 The Start: Cloud technology disrupting SAPs core business © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3 The Start The Platform The Overview The M otivation The Architecture The User The Recap Intelligent Enterprise: End-to-End Processes BUSINESS NETWORK BUSINESS PROCESS Manufacturing & Supply Chain Customer Finance & Procurement Human Resources LEAD TO CASH DESIGN TO OPERATE SOURCE TO PAY RECRUIT TO RETIRE AND MULTIPLE SUB PROCESSES EXPERIENCE MANAGEMENT APPLICATIONS INTELLIGENT SUITE INDUSTRY CLOUD SUSTAINABILITY MANAGEMENT TECHNOLOGY © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC BUSINESS TECHNOLOGY PLATFORM 4 The Start The Platform The Overview The M otivation The Architecture The User The Recap SAP’s cloud journey from 2010 to 2019 2010 2019 Putting it into perspective: €10.6bn total revenue €27.4bn total revenue SAP Market Value (2020-09-16) $188 billion (€159bn) €0bn cloud subs rev €7.3bn cloud subs rev Zalando Market Value (2020-09-16) $68 billion (€57bn) ~ 48,500 employees 100,000 employees Snowflake IPO (2020-09-16) $68 billion (€57bn) +95,000 customers 450,000 customers €34bn market cap €142bn market cap1 125.00 100.00 75.00 50.00 © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2010 5 2019 The Start The Platform The Overview The M otivation The Architecture The User The Recap SAP’s Acquisitions up to 2020 37 +3 acquisitions ~ 2010 2010 +2 © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2011 +4 2012 +2 2013 +4 2014 2016 +4 2017 2019 +1 6 2 The Platform: Defining what a business platform is Evolution of The Platform Platform s The Start The Overview The M otivation The Architecture The User The Recap The Evolution of Platforms Product Company Software Company Platform Company „Make one, sell one“ „Make one, sell many“ „Many make, many sell“ 1960s 1980s 1990s Platform Ecosystems „Many make, many sell, many participate, one orchestrates“ 2000s 2010s 2020s “Product Extension” Platforms “Marketplace” Platforms “Developer” Platforms Auction Houses built around the idea to facilitate the interaction of different users Product Platforms in the Automotive Industry © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Microsoft was thinking in platforms around their product Emergence of B2C Online Marketplaces Emergence of Platform Ecosystems (B2B & B2C) 8 The Start The Platform Types of The Overview Platform s The M otivation The Architecture The User The Recap Understanding Platforms: Types of Platforms Technology / “Developer” Platforms Innovation / “Product Extension” Platforms § Provide APIs, tools, servers to developers § Purpose is to make the product better through 3rd party developers § Builder focused § Results in combination of developer tools & marketplace § Typically no relationship with end consumer Platform § Consumer focused § Primary relationship with consumers + = Transactional / “Marketplace” Platforms § Connect producers and consumers App App § Producer and consumer focused § Direct relationship with both producers and consumers © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Platform Platform 3rd party product 9 3 The Overview: Business Technology Platform The Start The Platform The Overview The M otivation The Architecture The User The Recap Key Element: Business Technology Platform BUSINESS NETWORK BUSINESS PROCESS ACROSS ALL FUNCTIONS EXPERIENCE MANAGEMENT APPLICATIONS INTELLIGENT SUITE INDUSTRY CLOUD SUSTAINABILITY MANAGEMENT BUSINESS TECHNOLOGY PLATFORM TECHNOLOGY DATABASE & DATA MANAGEMENT © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC ANALYTICS APPLICATION DEVELOPMENT & INTEGRATION INTELLIGENT TECHNOLOGIES 11 The Start The Platform The Overview The M otivation The Architecture The User The Recap Deep Dive: Business Technology Platform BUSINESS TECHNOLOGY PLATFORM Open runtime Open API Open environment Foundational services DATABASE & DATA MANAGEMENT ANALYTICS APPLICATION DEVELOPMENT & INTEGRATION Cloud, on-premise, hybrid, edge INTELLIGENT TECHNOLOGIES Any data store connectivity § Data Storage § Business Intelligence § Integration § Artificial Intelligence § Data Processing § Augmented Analytics § Application Extensions § Machine Learning § Data Integration § Predictive Analytics § User Experience § Data Orchestration § Collaborative Planning § Information Governance § Data Warehousing § Business Process Optimization § Intelligent Robotic Process Automation § Master Data Management Market size: $62bn © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Market size: $19bn § Blockchain § Business Services Market size: $28bn Market size: $7bn 12 4 The Motivation: How the Business Technology Platform impacts SAP The Start The Platform The Overview The M otivation The Architecture The User The Recap SAP’s Acquisitions up to 2020 37 +3 acquisitions ~ 2010 2010 +2 © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2011 +4 2012 +2 2013 +4 2014 2016 +4 2017 2019 +1 14 The Start The Platform The Overview The M otivation The Architecture The User The Recap Out-of-the-Box Integration: Provide common Suite Qualities for all SAP Solutions Design to Operate Lead to Cash Source to Pay Recruit to Retire SAP SOLUTIONS Seamless user experience One workflow inbox End-to-end process blueprints Aligned domain models Consistent security & identity mgmt Coordinated lifecycle mgmt Embedded & crossproduct analytics Harmonized look & feel and navigation patterns Central task management Implementable reference architectures Aligned business objects across applications Central identity provisioning & authentication Harmonized provisioning setup & operations Holistic 360° business and customer view © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 15 The Start The Platform The Overview The M otivation Challenges + The Architecture Opportunities for SAP The User The Recap SAP’s Challenges: Integration, Focus and a World-class Experience The Problem: The Consequences: Integration 25 > Too many technology stacks create complexity and make it hard to create integrated solutions. different technology stacks at SAP Focus Defining a clear strategy and business model with such diverse stacks requires a lot of time. Experience Creating a seamless (developer) experience across the stacks is a challenge. © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 16 The Start The Platform The Overview The M otivation The Architecture The User The Recap SAP’s technology stack before the cloud © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 17 © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 18 The Start The Platform The Overview The M otivation The Architecture The User The Recap Broken Process Chains – Example H2R What is Hire to Retire? All HR processes over the course of an employee’s career: 6. Retire 5. Payroll 4. Redeploy 3. Employee Management 2. Recruiting 1. Human Resource Planning © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 19 The Start The Platform The Overview The M otivation The Architecture The User The Recap Broken Process Chains – Example H2R Problems: Lack of documentation © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Different Product Release Cycles Different Landscapes per product Cross system integration 20 The Start The Platform The Overview The M otivation The Architecture The User The Recap Broken Process Chains – Example H2R Lack of documentation Different Product Release Cycles Different Landscapes per product Cross system integration Technical Guidelines Cloud © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Cloud (e.g. Core Integration and Application Lifecycle Management) 21 The Start The Platform The Overview The M otivation The Architecture The User The Recap Consistent User Experience SAP Ariba SAP Fieldglass Logo replaces Home button SAP S/4HANA Navigation Product specific actions User actions menu Digital Supply Chain & Manufacturing SAP Analytics Cloud SAP Concur SAP SuccessFactors SAP Customer Experience (Sales) SAP Customer Experience (Sales) SAP Customer Experience (Sales) SAP Customer Experience (Sales) This is the current state of planning and may be changed by SAP at any time without notice. © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC SAP Fiori 3 22 The Start Point-to-point Integration N(N-1) 2 The Platform The Overview The M otivation The Architecture The User Platform-driven Integration N The Recap 5 The Architecture: SAP’s Business Technology Platform The Start The Platform The Overview The M otivation The Architecture The User The Recap Past – Products in Disarray Cloud Products § 17 major products with multiple stacks per application. § Different Service Level Agreements, lifecycles and data centers. § Applications built on different platforms, integration issues, data silos, no cross-analytics, various extension mechanisms. On-Premise Procurement (SAP Ariba) Customer Relations (SAP C/4 HANA) Travel and Expenses (SAP Concur) Human Resources (SAP SuccessFactors) Enterprise Resource Planning (SAP S/4HANA Cloud) Workforce Management (SAP Fieldglas) Applications Other Customwritten software 3rd Party Integration Aoftware HANA Cloud Data Foundation SAP Cloud Platform © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Infrastructure Microsoft Azure In-Memory Database (SAP HANA) Hades (Gigya) Azure SQL NetWeaver Enterprise Resource Planning (SAP S/4HANA Cloud) K8S-based Microsoft .NET Java EE Amazon Web Services CP CF CP Neo TIC* GMP* SAP / Customer * SAP-internal names you don’t need to know ;) 25 The Start The Platform The Overview The M otivation The Architecture The User The Recap Business Technology Platform – Target Picture for Technology@SAP Cloud Products § Re-platform applications over time, to use one unified stack § Re-use services, accessing services through one cockpit § Give applications and partner extensions a “home” § Build Integration, Analytics, AI extensions on one platform Procurement (SAP Ariba) Customer Relations (SAP C/4 HANA) Travel and Expenses (SAP Concur) Human Resources (SAP SuccessFactors) Enterprise Resource Planning (SAP S/4HANA Cloud) Workforce Management (SAP Fieldglas) Apps & Business Services Applications Enterprise Resource Planning (SAP S/4HANA Cloud) … Workflow / Robotic Process Automation SAP Graph ONE Domain Model § Foundation structure of the North Star Architecture § Natural evolution of previous Cloud Platform Strategy On-Premise In-Memory Database (SAP HANA) Analytics and Planning (SAP Analytics Cloud, SAP Data Warehouse Cloud) Data § Allows transition from a legacy application stack Data Management (SAP HANA Cloud) Integration Foundation, Kernel Services, Technical Re-use Services, … Foundation SAP Cloud Platform Runtime Environments Service Foundation Developer Tooling … Multi-Cloud: Kubernetes managed by Gardner Business Technology Platform © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Infrastructure Microsoft Azure Amazon Web Services TIC GMP SAP / Customer 26 The Start The Platform The Overview The M otivation The Architecture The User The Recap North Star Architecture Cloud + On-Premise - SAP’s Business Technology Platform Products Low Code / No Code Extension Suite Development Services … Workflow / Robotic Process Automation SAP Graph ONE Domain Model Analytics and Planning (SAP Analytics Cloud, SAP Data Warehouse Cloud) Data Management (SAP HANA Cloud) Integration Foundation, Kernel Services, Technical Re-use Services, … Foundation SAP Cloud Platform Runtime Environments Service Foundation Developer Tooling … Multi-Cloud: Kubernetes managed by Gardner - Development services - Technology Guidelines and Suite Qualities Workforce Management (SAP Fieldglas) Apps & Business Services Developer Experience & Tools § Consists of: Enterprise Resource Planning (SAP S/4HANA Cloud) Cross Topics Data Human Resources (SAP SuccessFactors) Engineering Principles § It provides architectural rules, guardrails, conventions, and guidance. Travel and Expenses (SAP Concur) Operational Excellence and Lifecycle Mgmt. Applications Customer Relations (SAP C/4 HANA) Security and Identity Management § North Star Architecture covers the intelligent suite as a whole and defines the target state Procurement (SAP Ariba) End-to-End Extensibility § Set of engineering principles and guidance for building modern and integrated cloud enterprise software Infrastructure © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 27 The Start The Platform The Overview The M otivation The Architecture The User The Recap Application Layer of the Business Technology Platform Foundation Developer Experience & Tools Sales Travel Low Code / No Code Data Workforce Management (SAP Fieldglas) Apps & Business Services Extension Suite Customer Development Services Workforce Enterprise Resource Planning (SAP S/4HANA Cloud) … Workflow / Robotic Process Automation SAP Graph Graph SAP ONE Domain Model Analytics and Planning (SAP Analytics Cloud, SAP Data Warehouse Cloud) Data Management (SAP HANA Cloud) Integration Foundation, Kernel Services, Technical Re-use Services, … SAP Cloud Platform Runtime Environments Service Foundation Developer Tooling Cross Topics Product Human Resources (SAP SuccessFactors) Engineering Principles Applications Travel and Expenses (SAP Concur) Operational Excellence and Lifecycle Mgmt. SAP Graph Customer Relations (SAP C/4 HANA) Security and Identity Management client apps Procurement (SAP Ariba) End-to-End Extensibility Products Cloud + On-Premise … Multi-Cloud: Kubernetes managed by Gardner S/4 C/4 SFSF Infrastructure Ariba … SAP Business Software © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 28 The Start The Platform The Overview The M otivation The Architecture The User The Recap Application Layer of the Business Technology Platform Master Data Services Foundation Developer Experience & Tools Integration SAP Concur Low Code / No Code Data Workforce Management (SAP Fieldglas) Apps & Business Services Extension Suite SAP C/4HANA Development Services SAP SuccessFactors Enterprise Resource Planning (SAP S/4HANA Cloud) Workflow / Robotic Process Automation ONE Domain Domain Model Model ONE Domain … SAP Graph Model Analytics and Planning (SAP Analytics Cloud, SAP Data Warehouse Cloud) Data Management (SAP HANA Cloud) ONE Integration Foundation, Kernel Services, Technical Re-use Services, … Domain Runtime Service Foundation Developer Tooling SAP Cloud Platform Environments Model Cross Topics SAP S/4HANA Human Resources (SAP SuccessFactors) Engineering Principles Extension Travel and Expenses (SAP Concur) Operational Excellence and Lifecycle Mgmt. SAP GraphApplications Customer Relations (SAP C/4 HANA) Security and Identity Management Developers Procurement (SAP Ariba) End-to-End Extensibility Products Cloud + On-Premise … Multi-Cloud: Kubernetes managed by Gardner Infrastructure © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 29 The Start The Platform The Overview The M otivation The Architecture The User The Recap Foundation Layer of the Business Technology Platform Experience One Inbox Access tasks from all applications Low Code / No Code Extension Suite Data Development Services Applications Products Human Resources (SAP SuccessFactors) Enterprise Resource Planning (SAP S/4HANA Cloud) Workforce Management (SAP Fieldglas) Apps & Business Services Core Integration Foundation Business Event Bus Process integration between applications Workflow / Robotic Process Automation … SAP Graph ONE Domain Model Analytics and Planning (SAP Analytics Cloud, SAP Data Warehouse Cloud) Data Management (SAP HANA Cloud) Integration Foundation, Kernel Services, Technical Re-use Services, … Integration Foundation,Kernel Kernel Services, Technical Re-use Services, … Services Runtime Service Foundation Developer Tooling … SAP Cloud Platform Environments Runtime Service Foundation Developer Tooling … SAP Cloud Platform Environments Multi-Cloud: Kubernetes managed by Gardner Multi-Cloud: Kubernetes managed by Gardner Cross Topics Data Privacy Integration GDPR compliant personal data Landscape Information Registry of Service URLs across Products Travel and Expenses (SAP Concur) Engineering Principles Subscription Management Manage customers subscriptions Customer Relations (SAP C/4 HANA) Operational Excellence and Lifecycle Mgmt. Identity Identity, Authentication, and Single Sign-On Procurement (SAP Ariba) Security and Identity Management Service Discovery & Management Access to all available services End-to-End Extensibility Audit Logging Log audit relevant events Central Key Management Lifecycle and secure storage of crypto keys Cloud + On-Premise Application Lifecycle Developer Experience & Tools Security & Identity Master Data Integration Infrastructure Access & manage Master Data © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 30 The Start The Platform The Overview The M otivation The Architecture The User The Recap Foundation Layer of the Business Technology Platform Host Host Host Host Workforce Management (SAP Fieldglas) Developer Experience & Tools Low Code / No Code OrchestrateApps & Business Services Extension Suite Data Development Services CP CP U/ CP mem reso U/ CP mem reso reso GGU/U/ ory mem urces reso PU GCPU/ ory mem urces urces ory G PU resources memory urces PUGPU ory PU Cluster Enterprise Resource Planning (SAP S/4HANA Cloud) Workflow / Robotic Process Automation #Declarative Spec: • Requirements • Container … SAP Graph ONE Domain Model Analytics and Planning (SAP Analytics Cloud, SAP Data Warehouse Cloud) Data Management (SAP HANA Cloud) CP CP U/ CP mem reso Integration Foundation, Kernel Services, Technical Re-use Services, … U/ CP mem reso G U/ Integration Foundation, Kernel Services, Technical Re-use Services, … reso mem urces Runtime G U/ ory reso Service Foundation Developer Tooling … mem urces ory SAP Cloud Platform Environments Foundation PU GCPU/ Runtime urces ory G Service Foundation Developer Tooling PU resources memory SAP Cloud Platform urces PUGPU Environments ory Multi-Cloud: Kubernetes managed by Gardner PU Host Host Host Host Cross Topics #Declarative Spec: • Requirements • Container Scheduler Human Resources (SAP SuccessFactors) Engineering Principles Applications Travel and Expenses (SAP Concur) Operational Excellence and Lifecycle Mgmt. Container Process Process Customer Relations (SAP C/4 HANA) Security and Identity Management Container Orchestration Procurement (SAP Ariba) End-to-End Extensibility Products Cloud + On-Premise … Multi-Cloud: Kubernetes managed by Gardner Containerization & Kubernetes Infrastructure © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 31 The Start The Platform The Overview The M otivation The Architecture The User The Recap Today – Move to the Business Technology Platform Adoption LoB monolithical legacy architectures § 50% progress in Suite Qualities adoption § Data model: >80 objects defined and aligned § UX Fiori compliance for 2 Scenarios § Embedded Analytics Cloud in SFSF & S/4HANA § Master Data Integration available for Cost Today Center and Workforce Person § S/4HANA, SFSF, Ariba run on HANA 2020 © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2021 2022 North Star Architecture (on / with Business Technology Platform) 2023 Time 32 6 The User: Using the Business Technology Platform The Start The Platform The Overview The M otivation The Architecture The User The Recap Different Tools for Different Development Tasks Low/No Code Graphical Tools Work graphically No Code / Low Code Environment with highest convenience level Graphical Workflow, Business Process, UI, Domain Modelling, Configuration, Extensions Business focused Coding Tools Development Libraries, Data Modelling and Development Environments Use Market Leading Tools (e.g. Microsoft Visual Studio Code) where possible and SAP tools where we can add value (CAP, UI5, Fiori Elements, Business Application Studio, ABAP on Kubernetes, RAP). Data Modelling with One Domain Model / CDS. Flexible & Full-Control Development The Cloud-Native Foundation Hybrid Cloud enabled Kubernetes/Serverless Platform incl. Mesh / Security, Eventing, Logging, Identity, Lifecycle Management, allowing scalable, Low TCO Services Embrace also other runtimes ( e.g. Hyperscaler IaaS, Cloud Foundry, Native Functions, .. ) © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 34 7 The Recap: Key points to take away The Start The Platform The Overview The M otivation The Architecture The User The Recap A short story from On-Premise to the Cloud 1 2 © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 3 4 5 36 The Start The Platform The Overview The M otivation The Architecture The User The Recap The key takeaways – Integration, Strategy, Execution What to remember: Acquisition is easy, Integration needs Good architecture starts with integration is hard. good architecture. a solid unified platform. At SAP, the Business Technology Platform. © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 37 We are hiring! Stephan Wilhelm HR Recruitment Consultant stephan.wilhelm01@sap.com © 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 38