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How to Compete with SAP HANA (Internal)
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Microsoft: How to Compete With SAP HANA

Dec 16, 2015

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Microsoft: How to Compete With SAP HANA
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How to Compete with SAP HANA Confidential

How to Compete withSAP HANA(Internal)

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/20141

Table of ContentsSAP OverviewSAP Background and Sales ApproachCompeting Against SAPSWOT AnalysisDe-Positioning SAPCompetitive Approach and StrategiesTechnology PositioningEPG SAP Compete ScenariosEnterprise Data WarehouseBig DataBusiness IntelligenceOLTPResourcesMicrosoft Confidential2Key Reference SlidesSAP Sales StrategySAP Sales ApproachCompetitive StrategiesDe-positioning SAPIn-Memory Objection HandlingSWOT AnalysisSelling Against SAP based on TechnologyEPG Sales Scenarios for Data Platform

AppendixSAP Database ProductsWhat is SybaseSAP HANA ApplianceHANA in the CloudSAP HANA Deployment OptionsHANA vs. SQL Server In-Memory OLTP

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/20142

Microsoft Confidential4SAP DNASAP Business StrategyNow that SAPs core application business is mature, they need new technology to drive growth. HANA represents this new technology, and SAP leverages its reputation as a trusted enterprise provider and existing customer base to migrate customers to HANA. SAP focuses on selling business solutions to customers. Their sales team will work customers to identify their most critical business issues and position HANA as the solution. SAP is attempting to extend its reach beyond business applications and into adjacent markets in Mobile, Cloud, and Data Platform.SAP has stated that its goal is to be the #2 database vendor by 2015 (InformationWeek). SAP has invested over $1B (as of October 2013) in HANA to drive adoption. Company OverviewSAPs flagship ERP product enjoys a reputation for reliability and stability, and is the most widely-used enterprise ERP software in the world. SAP has been, and continues to be, a Microsoft partner; being SQL Servers largest ISV as well as a lighthouse application and Tier-1 proof point. HANA was introduced in 2010 as a real-time analytics solutions that has become synonymous with in-memory technology and the broader SAP brand. HANA now represents the highest sales priority for SAP, and every SAP-Microsoft account is potentially at risk.

Company OverviewSAP has traditionally been a business applications company. Its flagship ERP product enjoys a reputation for reliability and stability, and is the most widely-used enterprise ERP software in the world.

SAP has been, and continues to be, a Microsoft partner; being SQL Servers largest ISV as well as a lighthouse application and Tier-1 proof point. HANA is marking a change in the market from SAP, and every SAP-Microsoft account is potentially at risk.After a rocky period for SAP, where sales werent growing and they experienced some leadership challenges (Bloomberg), the company decided to expand its market by extending its reach beyond business applications and into adjacent markets in Mobile, Cloud, and Data Platform. Lines of business include: Asset Management, Finance, HR, IT, Manufacturing, Marketing, Procurement, R&D, Engineering, Sales, Services, Supply Chain, and Sustainability.

GTM StrategyIn order to be able to reach its goal of doubling its addressable market, and becoming the Business Platform company, SAP has identified its 5 key areas for expansion: Cloud, Applications, Analytics, Mobile, and Database. All of these are powered by the HANA platform, and cut across 11 Lines of Business in 24 Industries.

SAPs success in the Data Platform market will be core to its success in achieving its growth ambitions in these 5 areas. Thus, SAP has stated that its goal is to be the #2 database vendor by 2015 (InformationWeek).

To achieve this goal, SAP has focused on HANA, which plays a critical role in its business platform narrative. SAP has invested over $500m (as of April 2012) in HANA to drive adoption.

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/20144

Microsoft Confidential5SAP Strategy Driven by HANASAP is taking a Powered by HANA approach, positioning HANA as the core engine driving their solutions.Data ExplorationPlanning ApplicationSAP Predictive Analysis

SAP Business Objects Explorer

SAP Sales and Operations Planning

SAP NetWeaver BW

SAP MOHANA

SAP Lumira

SAP HANA One: infrastructure + license

SAP Business Suite

ERPAnalyticsData WarehouseBI AppsConsumption in the CloudMobile Solutions

SAP Priorities:SAP Business SuiteBI AppsData WarehouseConsumption in the Cloud

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/20145HANA

What is SAP HANA?Remember SAP will discount other software to subsidize the initial cost of HANA. However, costs dont scale well with data growth because all data must be in-memory. So as data volumes grow, software and hardware become prohibitively expensive.Microsoft Confidential6HANA is a brand that represents SAPs solution to any business problem. Deployment options include on-premises as a database appliance, or in the cloud through SAP or AWS.At the core of this real-time data platform is the SAP HANA database.HANA is a Database HANA is sold as an Appliance HANA is a platform for cloudIn-memory database softwareColumn and Row based stores for both analytical and transactional workloadsDatabase engine supports SQL (JDBC/ODBC) and MDX (ODBO)Calculation Engine, Aggregation Engine, MDX Engine, Planning Engine and SQL Processor on persistency layer: Page management and loggingPersistent Storage: Log entrySUSE Linux Enterprise is the recommended and supported OS of choiceCloud platform with HANA as the underlying technologyHANA running on AWS (primarily test/dev, limited production scenarios)SAP and AWS relationship is tenuous HANA Cloud Platform (SAP cloud service)HANA on VMWare for test/devDatabase plus pre-configured hardwareOptimized appliance delivered by HW partners (HP, Dell, Cisco, IBM, etc.) All-in-one platform to power all SAP solutionsRuns on Linux (SUSE)Pricing:HANA Enterprise Cloud BYOLPublic Cloud (AWS) $1/hr. + computePricing:Cost of HANA database by unitsAdditional cost of memory intensive hardwarePricing:$104k (estimated) + support for 1-10 unitsTiered pricing for additional units (1 unit = 64 GB)

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/20146

Get SupportMicrosoft Confidential38ContentTech Ready SAP Compete SessionS4 SAP Compete SessionData Insights ConversationMigrationsDatacenter Modernizationhttp://migration Escalationshttp://CompHotEngage regional SAP SSPsCompete BOMhttp://SAPHANA Compete HandbookEPG Solution Catalog

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201438

Microsoft Confidential7SAP Sales StrategyTacticsHardware PartnersRecommends certified hardware partners Benefit from high price configurationFull price hardware benefits to OEM partnersConsulting PartnersVarious SAP Global Services PartnersLots of SI BIF availableAll major partners are invested in SAP businessInvestment Budget($405 Million)Incentives to seed ISV and developer ecosystemInvestment in startupsAdditional incentives to migrate to SAP HANAQuick WinsBW AcceleratorReal-time analytics LOB solutionsAccelerate ECC transactionsRapid deployment solutionsHANA based applicationsSAP-controlled deploymentQuick evaluation of HANASales StrategyLeverage Existing MarketTrusted advisor to enterprises globallyHigh degree of customer contactC-level relationshipsFuturistic Strategic DirectionSAP is the real-time enterprise solutions providerHANA brand is extended to cloud and entire SAP platformAll applications powered by HANABusiness solutions running on HANASpecialized RDP solutions like COPA, FICO, RSA, BPCConsumer grade applications like Lumira and FioriTo further drive HANA sales (at full price), SAP will offer deep discounts on other software licensesand consulting fees if the customer includes HANA in their SAP agreement

SAP sellers are convincing customers that if they want to remain a top tier, strategic customer of SAP then they need to have a minimum level of $ spend with them annually and this needs to include HANA. Therefore their largest customers are simply buying HANA without a clear plan on how to use it. SAP Sellers are also providing significant discounts on an customers overall $ spend with SAP only if HANA is included as part of that spend.

Quick WinsBW AcceleratorOperational Reporting and AnalysisAccelerate ECC transactionsRapid deployment solutionsHANA based Apps

Schedule a HANA value workshopValue / Feasibility curveShows ROI with cumulative benefit over time as classic Hockey Stick contrasted to straight line cumulative costs

Sales StrategyHardware PartnersSAP recommends certified hardware partners including IBM, HP, Fujitsu, Cisco, Dell, NEC and HitachiThey sell it and benefit from high price configurationOEM partners benefit from full price hardwareConsulting PartnersSAP Global Services Partners: Accenture, Capgemini, CSC, Deloitte, Fujitsu, Hitachi, HP, IBM Global Business Services, Infosys, PwC, Tata, Wipro and othersLots of SI BIF available$500 Million Promotion Budget Incentives to migrate to SAP HANA & away from Oracle, SQL, etc.Developer incentives to seed ecosystemSAP consultants are highly available for HANA projects for monthsMarket LeverageTrusted advisor to enterprises globally and leverages this position to sell HANA storyHigh degree of customer contactC-level relationshipsFuturistic Strategic DirectionSAP provide some hint that future, they would have different version of SAP software in the future, one for HANA optimized, and one for the rest. So its predict that SAP will leverage their strategic position more aggressively in the future.

Sales TacticsQuick WinsBW AcceleratorOperational Reporting and AnalysisAccelerate ECC transactionsRapid deployment solutionsHANA based Applications

Schedule a HANA value workshopValue / Feasibility curveROI with cumulative benefit

Evaluate BW powered by HANA!Migration offers and programsHANA as a standard database MPP resources in the SAP HANA System

SAP's HARD Sell - SAP prioritizes its Road Map for SAP HANA buyers: "Customers who don't buy HANA now will be left behind.SAP's DISRUPTIVE ROADMAP - SAP telling ambitious roadmap about HANA as OLTP/OLAP DBMS which causes disruption for SAP centric sales field of traditional DBMS partners 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/20147Microsoft Confidential8SAP Sales ApproachToday: SAPs most targeted scenario (hero scenario) is Data Warehouse for SAP installationsOver time, the goal is to position HANA as a General Purpose/OLTP engineWhere it stands today:Most deployed scenario: HANA+SAP Business Suite but limited to small BW implementationsSAP Business Suite CRM supported for HANA in SPS5Certain use cases deployed, mostly POCAvailable today only for small OLTP implementationsSAPs GoalTo become the analytics engine for SAP appsWhy it falls shortDifficulty handling large-scale enterprise SAP BW deployments Inconsistent results in customer testing when clustered nodes go downDW/OLAPOLTPSAPs GoalTo displace competitors as the underlying transaction engine for SAP appsWhy it falls shortProhibitively expensive for large data volumes Difficult to integrate multi-source data in HANASAPs GoalTo expand to non-SAP implementationWhy it falls shortExtreme licensing and services feesLittle ISV ecosystem on HANASAPs GoalTo extend HANA as the In-Memory engine for all applicationsWhy it falls shortHANA is not yet capable of running traditional high volume applicationsLack of developer support1234General PurposeSAP Business Suite

Regarding our assessment.Inconsistent results when clustered nodes go down this claim comes from customer testing. Talk to your SAP compete team for details.Difficult to integrate multi-source data inside the HANA this is based on customers who dont use the SAP Sybase replication features. In addition, you need BO Data Services 4.1 to load data which adds complexity. Without these tools, you essentially need to upload flat files and run a CRON job to import the data and clean up.HANA is not yet capable of running traditional high volume applications. OLTP work loads with CRUD operations typically need to use ROW tables. All rows in ROW tables must be loaded in to memory if not the server fails to boot. In addition, CRUD operations must write redo log entries to disk when slows performance. IBM Red Book on HANA doesnt recommend HANA for OLTP as of Nov 2012.

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/20148

Microsoft Confidential12Microsofts Vision for the Data Platform*Source: BI and Analytics Market Trends - 2020 Vision, Gartner Group, Dec 2012Business AppsBusiness AppsBusiness AppsAnalyticsAnalyticalCapabilitiesAnalyticalCapabilitiesAnalyticalCapabilitiesBusiness AppsSAP HANA StrengthsFixed Processes & TemplatesBackend systemsHomogeneousData SourceStructured Data in-memoryHigh VolumeMicrosoft StrengthsAgile and changing processesPeople and productivityHeterogeneous Data SourcesAll kinds of dataHigh velocity, high varietyIT 2012 |People-centric vs. ERP-centricIT 2012* |Agility & Analytics vs. Rigidity & BI

Gartner has recently published their view on the evolution of applications until 2020, which you can see in the middle of the slide. They anticipate a shift from yesterdays monoliths, including SAP, to a more agile world of apps around the organizational operational data and tribal knowledge. As a major supplier of the old world, SAP offers HANA as life support for old processes and systems. Most of SAP use cases are around speeding up homogeneous data and reports.In this new world, cloud-based and mobile applications tap into the pool of information to make people more productive. This matches Microsofts strategy around apps and the cloud as the central design point. Ultimately, Microsoft offers a people-centric vision, while SAP offers an ERP-centric vision of the future.

Microsoft Services2/27/2014 2011 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.12

Microsoft Confidential13Microsoft Cloud OS Versus HANADeposition SAP HANALead conversation with MicrosoftMicrosoft has complete, proven in-memory technologies that can easily work with existing applications on commodity hardware and analyse data of all types as fast as competing in-memory offeringsEase of adoptionRequires re-architecting apps, limited ecosystem outside SAPVendor and architecture lock-in High cost of re-architecture, as well as memory and licenseBuilt-in to SQL ServerConnecting to third-party software and previous versionsMigrating and upgrading to SQL Server 2012Using existing hardwareProven data platformUnproven in the DB spaceVery limited capabilities (i.e. scale, data load, DR)OLTP implementation is still in flux Separate engines for column and row result in poor query performance between the two enginesComplete and pervasive data platformFamiliar environment to take advantage of existing ecosystem Easy to scale from desktop to data centersOptimized in-memory solution for all workloadsAccelerate your information lifecycleOnly accelerates queriesMonths needed to configure schema and BOBJ tools Expensive replication tools needed to move data into HANANo hybrid IT story to process data on-premises or off-premisesFastest time to valueClient tools can interact directly with raw dataProcessing of data where it is born to eliminate migration across systemsStore the right data in the right place at low costExisting developers can build the next generation solutions

Customers are looking for faster performance of their transactional applications to improve business efficiency and to do real time analysis in order to make smart and timely decisions. Yet todays decision support systems are too complex and inflexible to cope with an evolving data landscape and customer needs. To truly transform their businesses customers must accelerate the information lifecycle from raw data to insights, and facilitate the flow of insights back into their day to day operations.

Microsofts approach for in-memory computing is very unique in three strategic ways: First we deliver an award winning and complete portfolio of in-memory technologies for all workloads including BI, data warehousing, OLTP, streaming and distributed data grids.

Second, our in-memory technologies are built-in and just work with your existing applications on industry standard hardware. So you dont have to buy new products, or exotic hardware to benefit from in-memory computing.

Finally, unlike competitors that deliver narrow solutions for query processing, we enable business acceleration with a new paradigm that dramatically accelerates the time from raw data to insights with familiar client tools like Excel, and intelligent offerings like PolyBase that analyzes all data types wherever they are born. 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201413

Microsoft Confidential14De-positioning SAPInfant product with V1 RiskUnclear messaging and strategy What is the future of Sybase ASE and HANA?Limited high availability with manual disaster recoveryTremendous product churn with biannual SPS releases. The latest SPS7 release is primarily minor improvement to the developer experience with no major technological advancementsNo compelling reasons to use HANA for OLTPSAP only applicationsMigrating to HANA requires significant changes in application coding cause additional riskLack of focus in development due to new database release, object oriented cache replacement, full text search product, etc.Limited Partner Eco-systemRigid and closed schema for migration from BW to HANABig box onlyExtreme licensing and services fees associated with HANA Time to Value: Lot of time and efforts spend in architecting and developing the enterprise solutionNo high availability support for HANA on AWSJust a hot data store with no support for the latest Big Data technologyUnproven in the DB spaceLimited ecosystem outside SAPOnly accelerates queries

Blog post by Juergen Schmerder SAP HANA Development Center - http://scn.sap.com/community/developer-center/hana/blog/2012/12/03/when-will-hana-sps5-be-available-for-developersBlog post by Henrique Pinto SAP HANA and In-Memory Business Data Management blog - http://scn.sap.com/community/hana-in-memory/blog/2012/12/04/checking-out-foreign-keys-in-hana-sps5SPS5 deprecates log-based replication via Sybase and kills of the enterprise extended edition in SPS5 - http://help.sap.com/hana/hana_sps5_whatsnew_en.pdf 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201414

Microsoft Confidential15In-Memory Objection Handling2Microsoft BI solution based on in-memory technology is for developers and not for business usersWith SQL Server Analysis Services Tabular model and PowerPivot for Excel , business users can easily and directly interact with data and build in-memory based BI solutions and analytical models1Microsoft In-memory solution doesnt support real-time replication of ERP dataMicrosoft provides both in-memory and disc-based solutions that allow systems to store and process data more cost effectively, and supports real-time data from both SAP and non-SAP applications4Microsoft does not provide end-to-end BI and cloud offeringsMicrosofts self-service BI solution features dynamic visualizations that are easy to use, works with familiar tools like Microsoft Excel and SharePoint, powered by SQL Server, and fully integrates with the Microsoft cloud3Microsoft doesn't have enterprise class in-memory technologies Microsoft deliver a set of end-to-end in-memory capabilities optimized for analytics, streaming, caching and transactional scenarios. Our in-memory capabilities also uniquely scale from the desktop to data centers and the cloud providing in-memory speed for all workloadsObjectionResponses

Here is the list of few objections from the customers along with the response to handle those objections.

Objection 4 : For detail on response on Have you evaluated HANA current pricing structure according to your data growth. What about future upgrade costs for support of large volumes of dataResponse: Hana pricing model seems to be more costly as your data grows. You also plan to integrate data from outside SAP and outside your organization in to future solutions you build out. What will this do to your Hana TCO model. MS Strategy is to drive down the cost per TB (between PDW V1 and PDW V2 we will do this by 2.5x)). We also include innovation/performance enhancements in the core proc licenses. SAP may license future performance or capability innovations as expensive add ons to whatever you buy today. In Microsoft we have support for future upgrade and support larger volumes in PDW/SQL Fast Track

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201415

SAPStrengthsEnterprise install base and credibilityCustomer interest of in-memory and real-time analyticsEnd-to-end platform stack, including ERP, database, data integration, and BI and analytics Adept at C-level solution selling and expertise in vertical industriesConsistent releases: SAP releases a new SPS every 6 months like clockworkHANA focus: declared HANA their strategy for the future, telling customers that they are committed to HANAs successMicrosoftThreatsLarge install base of SAP ERP to sell HANASAP offers deep discounts to annual license fees if the customer includes SAP HANA at full priceSAP is singularly focused on HANA and is pushing it strongly into accounts and with all other productsSAP is pushing more logic from business applications to HANASAP is actively improving Sybase functionality and integration with HANA and ramping up the Sybase ASE install base as upgrade path to HANA

Microsoft OpportunitiesComplete, proven, and widely used data platform in SQL Server Cost-effective: Choice of what data is in-memory and what is not and flexibility to use existing or commodity hardwareOptimized and built-in in-memory technologies across all workloads Existing ecosystem and availability of developers, partners and applicationsLeverage most widely used BI tools with Microsoft Excel Best solution for SAP: easier to move SAP data into Microsoft than moving non-SAP data into HANASAPWeaknessesSAP HANA is unproven in the database spaceHuge price tag for HANA appliance on a rigid architectureDR and HA story for HANA without hardware vendor specific solutions are still improvingSAP HANA Big Data story is heavily marketed but products are still unable to handle extremely large volumes of dataSAP HANA requires expensive add-ons for moving data to HANASAP HANA implementations are costly, lengthy and require re-architectureMicrosoft Confidential16SWOT Analysis for Microsoft in Comparison to SAP

SWOT analysis for Microsofts in-memory technology.Source: Battle card and SAP HANA Overview Slides.pptx,April 2012

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201416

Microsoft Confidential17Selling Against SAP based on TechnologySAP generally leads with the business story delivered to executive business decision makers, then uses technology to supportHowever, many of these technology claims can be easily challenged Guidance:Determine whether the account is a business or technology saleIf SAP is selling HANA as the DB beneath SAP apps or as a standalone platform to build future apps, sell our superior platform technologyIf SAP has started a business conversation, then we should push the conversation deeper to make the technology sale and challenge their claims (push for POC if needed)PromisedBenefitsPerformance acceleratorsSingle, real-time data platform for mixed workloads (OLTP and Analytics)Big Data engine for data intensive apps such as predictive analyticsSingle version of truth eliminate silosSimplify landscape with fewer databaseReplace data marts and remove BI vendors to reduce the TCOHighlightedFeatures100% in-memory databaseHolds 100s of terabytes in memorySimple, all-in-one platformChoice of hardware providersUnified application and database serverSpeed up the queries and reports with SAP BW acceleratorRealityCheckSAP system is built on a completely different, rigid, dated architectureSAP HANA is unproven in the OLTP spaceBig Data story is still developing, does not address data explosionVery few customers are in production SAP and Sybase have been slow to articulate to customers, and SAP is still clarifying where/how HANA and Sybase ASE/IQ coexist in the IT environment

Todays Message to Market:- WSJ, Oct. 4, 2012, Comparative Sales Points from full page SAP ad vs. Exadata

This excerpt is from one of two full page advertisements which SAP ran in the Wall Street Journal during the week of Oracle OpenWorld in response to Oracles attempt to set the record straight with comparison to SAP HANA.

TALKING POINT: The choice of hardware providers is not a positive differentiator for SAP. There are 5 certified HW vendors, each selling hardware at a significant premium to comparable hardware that is not certified. IN FACT, the Microsoft alternative allows the customer to choose its preferred Hardware vendor, and purchase standard configurations without certification premiums.

Key Takeaway: Fixing SAP performance issues is the most commonly cited driver. However, C-level decision makers may latch on to a strategic driver, such as need for Single Version of Truth.

PerformanceECC transaction acceleratorCO-PA Accelerator for Profitability AnalysisReplaces third party database (e.g., Oracle & SQL Server) for BW Claims BW on HANA runs 10x to 100x times faster than BW on other databaseClaims 5x to 10x faster delta loads

Real-Time Operational Reports SAP BOBJ on HANA, fed with real-time replicated data

Big Data Positioned as the solution for big data Platform for data intensive apps, such as Predictive Analytics

Single Version of Truth Achieved by eliminating silos, and keeping all data in integrated SAP suite

Simplify Landscape Run BW on HANA - Claims to reduce cost and effort of BW landscape Claims modeling flexible and agileRoad Map - SAP HANA gets rid of all intermediate layers (ODS, Data Warehouse, etc.) 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201417

HANASybaseMaxDBOverviewSAP HANA is an in-memory data processing engineSybase is the Relational Database Management System for SAP platformSAP MaxDB is SAP's own database technologyClaimsOver 1,500 customers, however a small percentage are in productionAmazing in-memory performance at scale for businessesSybase IQ: #1 column database 10x-100x faster than OLTPSybase ASE: Handle the largest of OLTP workloads1000s of SAP customer installations run on SAP MaxDB Creditable performance benchmark results on SAP SDPositioning StatementsSAP HANA is fresh new in-memory computing platform for all database workloadsEntering into Application Platform space with SPS05 end of Nov 12Think of HANA as Sybase ASE+IQ in memory with a different code baseSupporting developers with free HANA platform on Amazon Web ServicesSybase is acquired by SAP in May 2010Sybase ASE and SAP Business Suite have integrated development, testing and support teamsSAP Sybase SQL Anywhere, On-Demand Edition is a multi-tenant, cloud-enabled databaseSybase IQ is a column-based RDBMS used for BI, data warehousing, and data martsIt is legacy database system of SAPVery easy to install and operateSAP MaxDB software comprises the database kernel, tools, and interfacesSAP MaxDB can be used as the OLTP engine for SAP business solutionsSAP Database ProductsMicrosoft Confidential41

MaxDBSAP MaxDB is SAP's own database technology. SAP has no public statement regarding the roadmap for MaxDB. For example, SAP tells Sybase customers that if you develop using Sybase IQ or ASE, that you can consider your applications HANA ready once they have the migration toolkits in place. SAP makes no such claims for MaxDB.

It is a legacy relational database management system (RDBMS) from SAP AG, Special version/derivate of MaxDB used as Live Cache for SAP HANA productHANA is built on a superset of technologies with a long history at SAP, including the MaxDB database and TREX in-memory engine

SybaseSybase base three main database technologies: ASE for relational database and DW workloads; IQ for data warehouse and multi-dimensional OLAP workloads; SQL Anywhere as a data store for mobile devices. Not shown, Sybase also has a mature complex event processing (CEP) stream processing engine.

HANASAPs future for all database workloads. In its current version, its primary workload is as a SAP BW accelerator.So far SAP claims to have 600 HANA customers, 300 productive installations and 400 million dollars of revenue from HANA. In addition, about 40 percent of HANA customers so far aren't running core SAP applications 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201441

Microsoft Confidential42What is SybaseIn 2010, Sybase (www.sybase.com) was acquired by SAP. Sybase is being positioned as the gap filler for what HANA cant do (ASE and Replication Server).Development using Sybase will lead to HANA with future migration tools.SAP is pushing strongly for its own data platform and warehousing using the Sybase products as an upgrade path to in-memory database with HANA.SAP Business Suite is preferred for Sybase/HANA platforms. SAP is attempting to make IBM/ORCL/MSFT second-class citizens, without access to major updates/capabilities.ProductSAP PositioningSAP Sybase Adaptive Server EnterpriseExtreme Transaction Processing and Data ManagementSAP Sybase IQBig Data Management & Analytics EngineSAP Sybase SQL AnywhereMobile Data ManagementSAP Sybase Replication ServerData ReplicationSAP Sybase PowerDesignerEnterprise ModelingSAP Sybase Event Stream ProcessorComplex Event Processing (CEP)SAP Sybase RAPData Management for Financial MarketsSAP Sybase Advantage Database ServerEmbedded Database Management

Sybase has three other database products: Sybase IQ, SQL Anywhere, and Advantage. Each is designed for a specific market. Sybase ASE is the large scale enterprise database, and competes directly with Oracle 10g and IBM DB2. It is a row based storage RDBMS and is primarily targeted at mission-critical OLTP applications for medium-to-large enterprises that require high levels of performance and functionality, along with sophisticated configuration, tuning, and administration capabilities.Sybase IQ is an RDBMS which uses a column-based storage system. This means it stores data based the column the data comes from, and not the row the data is associated with.SQL Anywhere is primarily aimed at embedded and mobile computing environments, where runtime resources are at a premium, as well as workgroup server applications where low maintenance and web integration are key factors.

Source:- http://www.gartner.com/technology/reprints.do?id=1-196VVFG&ct=120207&st=sb

For responding to Gartners view

Microsoft spent 2011 revitalizing its vision for the data warehouse market. Microsoft already provided combined structured and unstructured analysis in SQL Server 2008/R2. Microsoft has one of the best value propositions on the market with a low cost and a highly favorable price/performance ratio. With Microsoft, customer dont have any fear regarding vendor lock-in.For connectivity in a multi-vendor environment Microsoft offers a SAP/BW, Teradata and Oracle connector. 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201442

SAP HANA Appliance software editionsPlatform Edition includes:SAP HANA database SAP HANA studioSAP HANA clientSAP HANA Host AgentEnterprise Edition includes Platform Edition components, plus:LT Replication Add-OnLT Replication ServerSAP Business Objects Data ServicesMicrosoft Confidential43SAP HANA ApplianceSAP HANA ApplianceSAP HANA DatabasePersistenceStorageJVMLM StructureSAP HANA ClientSAP Host AgentSoftware Update ManagerSAP HANA ClientSAP HANA StudioPersistenceLayer Session Management Relational EngineRow StoreColumn StorePage ManagementLoggerData VolumesLog VolumesSAP CARRequest Processing / Execution ControlDB ClientsMDX EngineCalculation EnginePlanning EngineStored Procedure ProcessorSQL Processor SQL ScriptsPlanning ModelMDX QueriesAggregation EngineIn-Memory

The SAP HANA appliance software platform edition 1.0 is intended for customers who want to use

the ETL-Based Replication and already have a license for SAP BusinessObjects Data Services. It

comprises the following components:

SAP HANA database 1.00 (formerly known as SAP In-Memory Database - Server)

SAP HANA studio 1.00 (formerly known as SAP In-Memory Database - Studio)

SAP HANA client 1.00 (formerly known as SAP In-Memory Database - Client)

SAP HANA Host Agent 7.20

The SAP HANA appliance software enterprise edition 1.0 is intended for customers who want to

use either Trigger-Based Replication or ETL-Based Replication and do not already have all necessary

licenses for SAP BusinessObjects Data Services. It comprises the following components:

SAP HANA database 1.00 (formerly known as SAP In-Memory Database - Server)

SAP HANA studio 1.00 (formerly known as SAP In-Memory Database - Studio)

SAP HANA client 1.00 (formerly known as SAP In-Memory Database - Client)

SAP HANA Host Agent 7.20

LT Replication AddOn

LT Replication Server

SAP BusinessObjects Data Services 4.0

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201443

HANA in the CloudHANA EnterpriseCloud Cloud-based deployment option for SAP Business Suite powered by SAP HANA, SAP NetWeaver BW powered by SAP HANA, and the SAP HANA platformPrimarily targets small & medium businesses who want to run SAP without having to build out their own infrastructureHANA One Premium An extended offer over AWS HANA One that additionally provides:Enterprise supportConnectivity to other data sourcesLicensed on an annual subscription basisUSD 75,000 per yearAWS SAP HANA OneOffered as a HANA entry point for department scale projects, system integrators, ISVs, and startupsHourly subscription pricing: SAP HANA license + provider infrastructure$1 per hour license fee plus approx. $2.5/hr. for EC2 cc2.8xlarge instanceMicrosoft Confidential44

HANA Enterprise Cloud http://www.sap.com/campaigns/2013_Hana_Enterprise_Cloud/index.epx targets primarily small & medium businesses who want to run SAP without having to build out their own infrastructure. SAP also suggests that this is a way for Enterprise customers to pilot a new SAP HANA deployment with business suite, ideally as a foundation for a hybrid solution.

HANA One Premium - http://www.saphana.com/docs/DOC-3621 is an extended offer over AWS HANA One that provides enterprise support and connectivity to other data sources

Since October 2012, HANA One has been available for a $1 per hour license fee plus the EC2 instance charges for a cc2.8xlarge instance at approximately $2.5 per hour. HANA Studio is free. The new Lumira BI tool formally Visual Intelligence is available through the SAP Online Store for $995. AWS provides EMR and S3 storage for Big Data integration scenarios with Hadoop.

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201444

SAP HANA Deployment OptionsMicrosoft Confidential45On-PremisesCloudSAP HANAApplianceSAP HANA One: infrastructure + license subscriptionSAP HANA:infrastructure subscriptionSAP HANACloud PlatformSAP HANA Enterprise CloudOverviewSAP HANA deployed as a traditional on-premises applianceFully-featured SAP HANA hosted in the public cloudQuickly deploy and manage your pre-licensed SAP HANA instancesSAP HANA Platform-as-a-Service (PaaS) in a cloud environmentEnterprise-class SAP HANA managed cloud offeringProviderCertified hardware partners (IBM, HP, Dell, Cisco, Hitachi, Fujitsu, Lenovo)Amazon Web Services (AWS)(others coming soon)SAP, Amazon Web Services (AWS)SAPSAPLicensePerpetual LicenseHourlyBring your own licenseMonthlyCustomer-Provided License + Monthly Infrastructure & SupportIdeal ForLarge corporations with IT infrastructure resourcesNew native SAP HANA only apps from Startups, SIs, ISVs and customersCustomers who dont want to wait for hardware and have a HANA licenseOpen platform to build, extend, integrate andrun appsMission-critical applications such as SAP Business Suite, SAP Business WarehouseTechnicalSpecsSingle-node scale upMulti-node scale-outHardware configurationsSAP HANA One is 60 GB,16-virtual processor AWS instance (cc2.8xl)SAP offers 128 GB,256 GB, 512 GB, 1 TBAWS CR1 instance type with 244 GB RAMVariety of packages ranging from 1 GB to 750 GB dataCustomized to customer requirementsLicenseSource: http://www.saphana.com/community/about-hana/deployment-options

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201445

Microsoft Confidential23Microsofts EDW OfferingMicrosoft PositioningSpeed up time to insight with familiarity of Excel in Office and Office 365 and access via mobile devicesScale your BI models and enrich and secure your data with a complete data platform spanning cloud and on-premisesSeamlessly scale out from Terabytes to Petabytes Strong SAP interoperability with SQL Server as the relational engine for SAP ERP and SAP BWPartner ecosystem: Take advantage of partner solutions based on pre-delivered data models (BISM), reports and toolsMake SAP data continuously available in real-time via partner solutions (including Simplement and Theobald) for data sourcing based on Microsoft technologiesScenario1234What this Solution Looks LikeSAPBusiness Suite (ERP, CRM, etc.)Microsoft BI AppsPartner BI AppsDatabaseSQL Server, Oracle, DB2, or SybaseMicrosoft Partner Solution for Data SourcingSQL Server 2012 For BI *architecture illustrations are used for reference only and not meant to be technical guidance

Microsofts alternative with implement solution* is a true end-to-end, integrated solution from SAP data source to front end business content:xVelocity In-Memory Database hardware agnosticReal time data sourcing system*Pre-delivered data models* (BISMs) complete with SAP business logicPre-delivered reports & tools* to match the BISMs: Excel, Power View, SSRSSecurity Projector* to enforce SAP security roles in SharePoint delivery layer

MICROSOFT POSITIONINGSolves performance and operational reporting gaps-various partner solutions on top of operational data sourcesEase of use and familiarity with Microsoft PlatformLower TCO Results in days, and at fraction of cost of HANA & BOBJMore flexible than HANA when the business needs changeLeverages your existing MSFT investments and proven ecosystem 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201423

24EDW Case Study: Media Firm Uncovers the Value of Digital Media with Parallel Data WarehouseBusiness ChallengeNeeded better tools for handling dataRequired improved data management from acquisition through analysisDesired less query response latencyWants less time acquiring data and more time helping customersKey Benefits Ability to work with work larger volumes of complex data Significantly faster query performance More streamlined reporting and faster recommendations for more actionable resultsSQL Server Parallel Data Warehouse gives us massively parallel advantages. Whereas it would take up to four hours to run queries scaling across multiple nodes, now it takes just minutes.Trevor AttridgeChief Information Officer, MECSee complete case study here.Microsoft Confidential

MEC, a leading global media agency, wanted to provide better insight into online behaviour. The company needed better tools for handling data, so it based its new CookieCutter servicea digital attribution platformon the Microsoft SQL Server Parallel Data Warehouse. As a result, MEC is cutting query time from four hours to minutes and gaining better insight into cookie-level data across multiple media channels. As a result, the company is helping marketers unlock the value of digital data. In addition, MEC is empowering users with access to self-service business intelligence (BI) tools and building a platform for more innovative services.

Server & Tools Business 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201424

Microsoft Confidential25Scenario: Big DataGain insights from ALL data any source, any size, and any type, whether unstructured or structured dataMicrosoft Big Data offers easy access to data of any type or size, whether its structured data in relational databases, unstructured data on Hadoop, or streaming data from gigabytes to petabytesScenario1234

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201425

Competitive AnalysisOur AssessmentWith limited memory capacity, HANA can't handle the volume big data workloads requireExtreme licensing and services fees render the solution cost prohibitive and integration with Hadoop is early stagesSAPs Big Data OfferingTheir GoalPosition HANA plus Hadoop as a platform for real-time analytics for any data source, from SAP ERP to social dataBig DataData Sources(SAP and non-SAP)BI Apps

HANAHadoopSAP LumiraBOBJMicrosoft Confidential26Scenario1234*architecture illustrations are used for reference only and not meant to be technical guidance

BW Accelerator:- SAP has introduced SAP NetWeaver Business Warehouse Accelerator (BWA), which is built for speeding up queries and reports in SAP BW by leveraging in-memory technology. Unfortunately, the BWA still wasnt good enough and SAP developed HANA to replace BWA. SAP realizes that HANA isnt affordable to handle a large-scale implementation of an enterprise SAP BW deployment, so they provide two approaches to using HANA for analytics on BW. The diagram on the left represents the side-car approach where only portions of SAP BW are replicated to HANA for analysis. The diagram on the right represents the newer approach as of June 2012 where HANA is used as the native database platform for SAP BW. The idea is to use HANA for smaller BW deployments, providing a faster deployment path than using an existing BW deployment with replication. To make this second scenario work, SAP optimized the BW schema for HANA and updated the replication interface from the Business Suite applications to feed into the new schema. 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201426

Microsofts Big Data OfferingMicrosoft PositioningWell-defined Big Data story with enterprise-ready Hadoop, Microsoft HDInsight in Azure, external Hortonworks and Cloudera distributionSeamless Hadoop Integration: PolyBase in PDW allows developers to leverage existing SQL skills and seamlessly query data in PDW and data in HadoopIn-memory technologies at all stages, based on customers need Desktop, Server or CloudCost-effective in-memory: Microsofts in-memory technologies can run on any commodity hardware and can optimize by running certain data in-memory making the Microsoft solution much more cost-effective

What this Solution Looks LikeAll Data SourcesMicrosoft BI AppsSQL Server Parallel Data warehouse (w Hadoop cluster)All Data SourcesMicrosoft BI AppsSQL ServerHadoop ClusterMicrosoft Confidential27Scenario1234*architecture illustrations are used for reference only and not meant to be technical guidance

MICROSOFT POSITIONINGProven and strong ecosystem of applications and partnersUnlocks insights from all types of data using familiar Microsoft Office and BI toolsPolybase -Query both structured and unstructured data using T-SQLEnd-to-end in-memory capabilities optimized for analytics, streaming, caching and transactional scenariosMicrosofts in-memory technologies run on commodity hardware instead of specialized servers 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201427

28Big Data Case Study: Entergy Tracks Trillions of SCADA Records with Real-Time Data Storage SolutionBusiness ChallengeNeeded a real-time historical data storage solution to help its analysts gain a better view into large volumes of dataRequire virtually zero maintenance Provide easy, high-speed, programmatic access to the entire data store Ability to process over 2 trillion objectsKey Benefits Near real-time reporting and analyticsMassively scalable functionality, using standard off-the-shelf hardwareAble to scale a 80 terabyte database with over 20 terabytes of new data a monthEase of Database Maintenance See complete case study here.Microsoft Confidential

Our internal customers are amazed by the fact that whether theyre looking at data from today or going back two years, the retrieval time seems immediate.Paul H. CassinghamManager of Application Management, Entergy

Entergy, a Fortune 500 company with 14,300 employees, produces and delivers electric power to 2.7 million customers in Arkansas, Louisiana, Mississippi, and Texas. The company has captured trillions of records from its supervisory control and data acquisition (SCADA) system and its more than 320,000 SCADA objects. To better extract value from SCADA data, the utility deployed a real-time data storage application, called Pegasus RDS, which was created by Microsoft partner Nobadeer Software, Inc. using the Microsoft Application Platform, including Microsoft SQL Server and Microsoft Visual Studio. The solution, which manages trillions of records, will soon be upgraded to SQL Server 2008. Pegasus RDS gives Entergy numerous benefits including a better view into its data which helps the utility to identify potential problems early so it can act proactively to protect its electrical grid. Server & Tools Business 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201428

Microsoft Confidential29Scenario: Business IntelligenceEmpower end users with tools they need for analytics with a centrally managed BI platformBuilt with familiar Microsoft products Excel, SharePoint and SQL Server and powerful end user features Power Pivot and Power View the Microsoft Business Intelligence stack provides breakthrough insights from easy-to-use tools.Scenario1234

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201429SAP Business Suite platform

SAPs BI OfferingSAP Business Suite (ERP, CRM, etc.)HANABI Apps

SAP LumiraBOBJCompetitive AnalysisTheir GoalTo provide an end to end BI solution as a single platform for all data, SAP and (in the future) non-SAPOur AssessmentCurrently unable to provide viable solution for large-scale implementations as all row tables must be loaded into memory, making it prohibitively expensiveDifficult to integrate multi-source data inside HANAMicrosoft Confidential30Scenario1234*architecture illustrations are used for reference only and not meant to be technical guidance

BW Accelerator:- SAP has introduced SAP NetWeaver Business Warehouse Accelerator (BWA), which is built for speeding up queries and reports in SAP BW by leveraging in-memory technology. Unfortunately, the BWA still wasnt good enough and SAP developed HANA to replace BWA. SAP realizes that HANA isnt affordable to handle a large-scale implementation of an enterprise SAP BW deployment, so they provide two approaches to using HANA for analytics on BW. The diagram on the left represents the side-car approach where only portions of SAP BW are replicated to HANA for analysis. The diagram on the right represents the newer approach as of June 2012 where HANA is used as the native database platform for SAP BW. The idea is to use HANA for smaller BW deployments, providing a faster deployment path than using an existing BW deployment with replication. To make this second scenario work, SAP optimized the BW schema for HANA and updated the replication interface from the Business Suite applications to feed into the new schema. 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201430

Microsofts BI OfferingMicrosoft PositioningComplete, fully integrated, scalable solutions that span from managed self-service BI to full-scale corporate BI with SQL Server 2014Strong SAP interoperability: Currently more than 35% of organizations run SAP on SQL ServerAny data: Enable insights from any data, of any size, and from any source, including SAP Strong managed self-service BI using the most widely adopted BI tools: Excel (enhanced with Power Pivot, Power View, Power Query, Power Map), and SharePoint (collaboration)Cost-effective: Higher performance at a fraction of the costWhat this Solution Looks LikeSAPBusiness Suite Microsoft BI Apps (Excel)Other applications(CRM, HR, etc.)SQL Server 2014Microsoft Confidential31Scenario1234*architecture illustrations are used for reference only and not meant to be technical guidance

MICROSOFT POSITIONINGCurrently more than 25% of organizations running SAP on SQL Server (50% on Windows)Proven data and infrastructure platform for SAP applicationsMicrosoft BI platform and SQL Server database technologies can deliver faster time to solution with comparable performance at a fraction of the costMicrosoft offers strong managed self-service BI capabilities, like SSAS, PowerPivot, and Power View. 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201431

32BI Case Study: BI Solution Boosts Operational Efficiency and Reduces Costs at Volvo Car CorporationBusiness ChallengeTrying to consolidate and simplify our BI infrastructureWanted to improve business intelligence capabilities and operational efficiency at best possible TCOKey Benefits Simplifies the IT environment to reduce costs and make the system easier to manageSpeeds data analysis with self-service data manipulationImproves collaboration by consolidating reporting, data, and BI tools in a single online locationIf we present the data in the tools they are knowledgeable about instead of having to use an interface that they dont know it raises their performance a lot.Senior Business AnalystVolvo Car CorporationSee complete case study here.Microsoft Confidential

When Volvo Car Corporation split off from Ford in 2010, it needed to develop its own stand-alone IT environment in some areas. At the same time, the company wanted to improve its business intelligence (BI) capabilities and operational efficiency. So Volvo decided to prototype a Microsoft data management solution that simplifies its IT environment, provides graphical self-service reporting capabilities, and improves collaboration.Server & Tools Business 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201432

Microsoft Confidential33Scenario: Online Transaction ProcessingOffer an proven and optimized OLTP engine integrated into SQL Server and architected to maximize the value of a range of hardware choicesMicrosoft SQL Server 2014 is a high performance for mission-critical database optimized for online transaction processing (OLTP) with key technologies, for security, and high availability like AlwaysOn.Scenario1234

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201433Competitive AnalysisOur AssessmentSAP HANA is unproven in the transactional database spaceHANA is not yet capable of running traditional high volume applicationsLack of developers with HANA experienceLimited ability of HANA to handle massive, highly available and complex implementations needed to support Business Suite General Purpose OLTP platform

Microsoft Confidential34SAPs OLTP PlatformHANABI Apps

SAP LumiraBOBJSAPBusiness Suite Their GoalDisplace traditional databases by claiming HANA has the best underlying transaction engine for SAP applications Eventually displace all DB technologies for non-SAP apps as wellScenario1234*architecture illustrations are used for reference only and not meant to be technical guidance

BW Accelerator:- SAP has introduced SAP NetWeaver Business Warehouse Accelerator (BWA), which is built for speeding up queries and reports in SAP BW by leveraging in-memory technology. Unfortunately, the BWA still wasnt good enough and SAP developed HANA to replace BWA. SAP realizes that HANA isnt affordable to handle a large-scale implementation of an enterprise SAP BW deployment, so they provide two approaches to using HANA for analytics on BW. The diagram on the left represents the side-car approach where only portions of SAP BW are replicated to HANA for analysis. The diagram on the right represents the newer approach as of June 2012 where HANA is used as the native database platform for SAP BW. The idea is to use HANA for smaller BW deployments, providing a faster deployment path than using an existing BW deployment with replication. To make this second scenario work, SAP optimized the BW schema for HANA and updated the replication interface from the Business Suite applications to feed into the new schema. 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201434What this Solution Looks Like

Microsoft Confidential35OLTP Platform Microsoft SolutionMicrosoft PositioningProven transaction processing: SQL Server 2014 offers Tier-1 OLTP capabilities that thousands of customers rely on today Flexible and cost-effective: Customers have the unique flexibility to choose their hardware and can maximize performance with a built-in enterprise ready engineMultiple data sources: SQL Server delivers high performance for multiple OLTP sources, including SAP as well as a large ecosystem of non-SAP applicationsGreat performance for select workloadsTPC-H: 1 GB of data: HANA scaled 5.7x, SQL Server scaled 7.1xTPC-H: 30 GB of data: SQL Server 3.2x faster with cold start, 2.0x faster with hot dataMicrosoft BI Apps(Excel)OLTP Apps(Non-SAP)SAPBusiness Suite SQL Server 2014 Note: SQL Server In-Memory OLTP is not currently supported by SAP Business SuiteScenario1234*architecture illustrations are used for reference only and not meant to be technical guidance

MICROSOFT POSITIONINGProven data and infrastructure platform for SAP applicationsMicrosoft has widely spread skill set and partner eco system as compared to HANAHigh performance memory-optimized OLTP engine integrated into SQL ServerFull RDBMS with full ACID support and memory optimizes indexes for high performanceImprovement in performance and the opportunity to leverage existing investments in SQL Server

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201435

36OLTP Case Study: Utility Company Increases Query Times by 75 Percent, Can Respond Faster to CustomersBusiness ChallengeHaving the right technology in place to support growth in demand for our servicesHaving performance issues on the entire SAP systemKey Benefits 75% faster BI query response times and faster ERP batch processing Extremely reliable dataRobust solution with the capacity to easily handle fast business growthSee complete case study here.Microsoft Confidential

With SQL Server 2012, one of our business groups has been able to reduce one of its most critical monthly financial closing batch processing job from 8 hours to 20 minutes.Sam BadanNebras Technical Services Manager

Saudi Electricity Company (SEC) provides more than 90 percent of the electricity generation, transmission, and distribution in the Kingdom of Saudi Arabia. Because it needed to increase the performance of its SAP systems and keep up with growth, the company deployed an IT infrastructure based on Microsoft SQL Server 2012 Enterprise software. SEC has increased query response times by 75 percent and has improved customer response times. The solution also increases IT efficiency and can meet the firms growth needs.Server & Tools Business 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201436

Resources

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201437

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201439

Appendix

2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201440

HANA vs. SQL Server In-Memory OLTPFeature ComparisonCost comparison for 4 TB memory & 80 coresFeatureSAP HANAMSFT SQL Server ENT 2014In-Memory technology for all workloads- (with In-Memory OLTP)In-Memory Indexes (with In-Memory OLTP)In-Memory CompressionIn-Memory Unstructured Data High Performance Writes/Updates -In-Memory parallel QueryHA and DR-Support for Cloud-Self Service Tools-Legacy Application SupportNAMulti dimensional OLAP-ItemSAP HANAMSFT SQL Server ENT 2012Database License$5,952,000 USD (64 x 64 GB Units at 93k/unit)$1,077,840 (2 Servers, 80 cores each)Partner Products (Content and Replication Enablement)0$300,000BI Front End Licenses(assume 2000 users)$6,000,000 (BOBJ Ent. 3,000 per user)$752,000(Office Pro $320 per user and SharePoint CALs $56 per user)TOTAL in USD$11,952,000$2,129,840Costs do not reflect application development and deployment costs and time. The time costs of deploying replication to HANA, the BOBJ stack and servers just to get simple operational reports running can take months versus days compared to the Microsoft BI platformMicrosoft Confidential46

SAP HANA is priced using two pricing variables: the volume of data loaded and stored in SAP HANA (Database License) and the number of users who interact with SAP HANA. In addition, SAP HANA is available in different Editions to provide options and choices to customers based on their specific needs and preferences. HANA pricing is inclusive of everything; Partitioning, OLAP, Diagnostics & Tuning Pack, Grid Control, etc..Cost Comparison assuming enterprise customer has Office deployed

2000 Users, FULL BI SolutionCluster / High Availability (Dual Active Servers)4 TB RAM, 80 CORES Per Server

SAP HANA + BOBJhttps://www.gsaadvantage.gov/advantage/s/search.do?db=0&searchType=0&q=0:1SAP+HANA&p=3SAP per GSA schedule for Platform (72k/unit 51-100) + Enterprise (21k/unit 51-100)4TB = 64 units of 64 GB

The minimum purchase amount is currently 64GB, and the smallest appliance is 128GB, which is upgradeable to 256GB. This means if you buy 64GB today, you can easily incrementally expand up to 256GB.As a developer , create your own HANA developer environment on Amazon Web Services (AWS). SAP won't charge you anything for the license, but you will be responsible for operating your own AWS account. 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.2/27/201446