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HANA ‘The Why’ Henry Cook, SAP HANA Global Centre of Excellence January 2016 https://www.youtube.com/watch?v=VCEr9Y8ZrVQ&feature=youtu.be
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Why SAP HANA?

Apr 21, 2017

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Page 1: Why SAP HANA?

HANA ‘The Why’Henry Cook, SAP HANA Global Centre of Excellence

January 2016 https://www.youtube.com/watch?v=VCEr9Y8ZrVQ&feature=youtu.be

Page 2: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public

Special Note:

This slide deck is provided for those wishing to gain a copy of the slides to the “Why HANA”

presentation published on YouTube and as a Blog.

The best way to consume this presentation is to first watch it being presented, then to use

these slides as reminders, or as supporting material for your own meetings

The video can be reached through the following two links. The first is a blog which provides

context, an introduction, and a link to the video. The second link goes directly to the video.

https://blogs.saphana.com/2016/03/11/hana-the-why/

https://www.youtube.com/watch?v=VCEr9Y8ZrVQ&feature=youtu.be

Once downloaded, the first part of this SlideShare (Slides 1-46) can be viewed or used just as

they appear in the video itself.

The second part of the SlideShare (Slides 48-92) provides speaker notes for all the slides. This

can be used to revise or clarify particular topics within the presentation

We hope that you find this useful in progressing along your own HANA journey!

Page 3: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 3Public

R/2

1979

Mainframe

R/3

1992

Client Server

ERP

2004

Web SOA

2015

IoT API’s Mobile

A logical evolution each being necessary to provide significant new

business capability and escape the constraints of the past

Page 4: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 4Public

Our Vision

help the world run better

and improve people’s

liveslives

Our Passions

teamwork, integrity,

accountability,

professionalism and trust

Accelerating business innovation through radical simplification

SAP 7-8 years ago

Impeded by complexity,

large, complex suite of applications

15 month release cycles,

Surrounded by increasingly nimble competitors,

Dependent upon others for data management,

Incurring large development costs

Key Question: How to get ahead and stay ahead of the market ?

Strategic response: Massive Simplification of what we do

This simplification is what we now know as HANA

Our Mission

help organizations

become best-run

businesses

Page 5: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 5Public

Traditional ERP system architecture

DB DB DB

DB DB

DB DB DB

DB DBDB DB DB

DB DBDB DB DB

DB DBDB DB DB

DB DBDB DB DB

DB DB

DB DB DB

DB DBDB DB DB

DB DBDB DB DB

DB DBDB DB DB

DB DBDB DB DB

DB DB

DB DB DB

DB DBDB DB DB

DB DBDB DB DB

DB DBDB DB DB

DB DBDB DB DB

DB DBDB DB

DB DB DB

DB DB

DB DB DB

DB DB

DB DB DB

DB DB

DBDBDB DB DB DB DB

Page 6: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 6Public

Transformation through Simplification

Effort / Services

/ Admin

Software

Hardware

Cost

Effort / Services / Admin

Software

Hardware

Innovation

Resources

saved and

diverted

New Function,

Revenue and

profitInvestment

Simplification

Page 7: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 7Public

HANA Simplification shows up as:

Productivity

Users

Developers

Agility

Faster response, time to market

Easier change

TCO

Radical simplification of IT landscape

Page 8: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Public

How do traditional systems impede benefits?

Hard to combine multiple techniques

Have to spend time in application integration

Hard to combine data sources: Time &

cost of using data stores

Data

Data

Data

Redundant Pre-aggregated data

60-95% of our data objects, and thus

effort (design, tuning, maintenance), are

due to these supporting data

Qn. Ans.

Mins / Hrs / Days Slow response times: Destroys ‘flow’ and

productivity. Forbids ‘heavy math’

Qn.

SQL Predictive Text Ans

Data

Data Data

Data

Data

Page 9: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 9Public

The Motivating Idea

In-Memory Data Management:

An Inflection Point for Enterprise

Applications.

Hasso Plattner Alexander Zeier

ISBN 978-3-642-19362-0

The In-Memory Revolution: How SAP

HANA Enables Business of the Future

21 Apr 2015

by Hasso Plattner, Bernd Leukert

Page 10: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Public

History 2007 – The Business Goals of HANA

Source: SAP Suite on HANA announcement: January 10, 2013

Qn: 14 years after R/3, what would an ERP (Enterprise) system look like if we start

from scratch? [Hasso Plattner Institute, Potsdam]

All Active Data In-Memory Leverage Massively Parallel Computers

(Scale with Cores vs. CPU Speed)

Use Design Thinking

Methodology

Radically Simplified Data Model OLTP and OLAP Back TogetherInstant BI

(on Transactional Data)

No More Batch Programs Live Conversation

(Instead of “Briefing Books”)

Response < 1 Sec

(For all activities, Even

complex Algorithms)

Virtual DW for Multiple Data

Sources and Types

No Aggregates or

Materialized Cubes

(Dynamic Views)

Views on Views

(Up to 16 Levels)

Mobile, Wherever AppropriateAggressive Use of Math

Page 11: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 11Public

HANA Techniques: How to Build a New Kind of Enterprise System

MAP REDUCE

ACTIVE AND PASSIVE

DATA STORE

ANALYTICS

ON HISTORICAL DATA

SINGLE AND MULTI-

TENANCY

REDUCTION IN

LAYERS

3DCALL

+ T +

MULTI-CORE /

PARALLELIZATION

DYNAMIC

MULTI-THREADING

VIRTUAL

AGGREGATES

PARTITIONING

MINIMAL

PROJECTIONS

NO DISK

OPERATION INSERT ONLY

REAL-TIME

REPLICATION

ANY ATTRIBUTE AS

AN INDEX

TEXT

ANALYTICS

OBJECT TO RELATIONAL

MAPPINGGROUP KEYS

LIGHTWEIGHT

COMPRESSION

ON THE FLY

EXTENSIBILITY

SPATIALTRANSACTIONAL

COLUMN STORE

SQL INTERFACE ON

COLUMNS AND ROWSLIBRARIES FOR

STATS & BIZBEYOND SQL

Global development, 2007: Seoul, Shanghai, Ho Chi Minh, Bangalore, Tel Aviv, Berlin, Walldorf, Paris, Toronto, Vancouver, Dublin CA, Palo Alto

Page 12: Why SAP HANA?

12© 2016 SAP SE or an SAP affiliate company. All rights reserved.

https://www.youtube.com/watch?v=jB8rnZ-0dKw

Page 13: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 13Public

Preconfigured Appliance (or VM or Cloud)

■ In-Memory software + hardware

(HP, IBM, Fujitsu, Cisco, Dell, NEC, Huawei, VCE)

In-Memory Computing Engine Software

■ Data Modeling and Data Management

■ Real-time Data Replication via Sybase Replication Server

■ Data Services for ETL capabilities from SAP Business Suite, SAP BW and 3rd Party

Systems

■ Data Federation: Remote RDBMS, Hadoop …

Components

■ Row Store

■ Column Store

■ Calc Engine

■ Graph Engine

■ Application Server (XS server)

HANA is designed to be more than just a Database

MDX SQL BICSSQL

ModelingStudio

Real–Time Replication, Federation

Data ServicesETL / ELT

SAP HANA

Other Applications SAP BusinessObjects

SAP NetWeaver

BW

SAP Business

Suite3rd Party

In-Memory Computing Engine

Calculation and Planning Engine

Row & Column Storage

■ Predictive Analytics Library

■ ‘R’ Interface

■ SQL Script / Calc Engine Language

■ Text Engine

■ Planning Engine

■ Spatial

■ Business Function Library

■ Persistance (logging, recovery) , ACID

transaction integrity

Page 14: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 14Public

There has been a revolution in hardware

20 Years AgoNow Near Future

Memory

1GB

CPU

4 x 50 Mhz

X 6,000

X 1,800

Memory

6 TB

CPU

120 x 3 GHz

Transistors (CPU)

~ 1 million

Transistors (CPU)

2.6 Billion

Memory

48 TB

Cores

480 (8 x 4 x 15)

Note: Figures are for single servers

Page 15: Why SAP HANA?

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HANA, works in a fundamentally different way to other systems,

this initially looks complex, but is actually easy to understand.

Panic

Server Blade

CPU Chip DRAM

Memory

Server Blade

DRAM Memory

CPU Chip

CoreCore

500+ns

3Gb

ProcessorProcessor

L2 Cache

L1 Cache…

80+ns

12.8Gb

SSD

Mechanical

Disk

CPU Chip …

DRAM Memory

Source: Intel

200,000 ns

0.5 Gb

10,000,000 ns

0.07 Gb

L3 Cache

L2 Cache

L1 Cache

4ns

1.5+ns

15ns

60+ns

Cache

100+ns

Data Access Latency

Bandwidth

50 Gb

Page 16: Why SAP HANA?

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CPU

L1 CACHE,

TABLE (1m)

L2 CACHE

KITCHEN FRIDGE (3m)

MAIN MEMORY (RAM) - LOCAL LONDON SHOP (30m)

L3 CACHE

THE GARAGE (9m)

A Useful Analogy

Page 17: Why SAP HANA?

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CPU

L1 CACHE,

TABLE (1m)

L2 CACHE

KITCHEN FRIDGE (3m)

MAIN MEMORY (RAM) - LOCAL LONDON SHOP (30m)

L3 CACHE

THE GARAGE (9m)

DISK – BREWERY , MILWAUKEE USA (6,000,000 metres)

A Useful Analogy

Page 18: Why SAP HANA?

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When you store tabular data you get to store it in one of two ways

A 10 € B 35 $ C 2 € D 40 € E 12 $

memory address

… or by row

A 10 … many columns €

B 35 $

C 2 €

D 40 €

E 12 $

Table of Information

… … … … …

… by column

A

B

C

D

E

10

35

2

40

12

… €

$

$

… … …

Page 19: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 19Public

For rows, data is moved to the processor in ‘chunks’ but only a tiny

proportion of those ‘chunks’ are useful

A 10 € B 35 $ C 2 € D 40 € E 12 $

By Row

… … … … …

Processor

• Data laid out in sequence

• Summing numbers

• Only a small proportion of data moved

can be used

• Lots of ‘padding’

• Processor ‘spins its wheels’

3 Bn ticks / sec

fetch data

Page 20: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Public

With data stored in columns “Every Byte Counts”

9

101

10

35

2

40

12

53

44

CPU Chip

Processor

L3 Cache

L2 Cache

L1 Cache

3 Bn ticks / sec

• Column is ‘dropped’ into on-chip

cache memory

• Caches kept filled – no ‘padding’

• Processor doesn’t have to wait

• Pick up multiple data items each time

you fetch data

• Hold data compressed

• Compute on compressed data

• Amazingly more efficient

• 100,000x speed improvements

Page 21: Why SAP HANA?

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Columnar data store benefits

Highly dense data structures

Multiple values for computation available at once

Fully exploit modern CPU architectures

Can be joined with row-based data

Traditional Column Store Benefits still apply

Compresses nicely

Easy to add new columns non-disruptively – productivity

Reduces data being processed to just those columns

accessed

Get full benefit by using them for everything

Transaction processing

Text

Spatial

Predictive, etc.

Columnar data stores offer huge benefits, if you can use them in a

general purpose way

Table - by column

A

B

C

D

E

10

35

2

40

12

… €

$

$

… … …

Page 22: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Public

All those extra transistors can be used in a number of ways to

speed up computation and throughput – by 100,000x or more

CPU

DRAM

Logs

Persistence

L3 Cache

CPU Chip3.4 GHz

• More processor

cores per chip

• Fast memory to

keep cores fed

L2 Cache

L1 Cache

Register

Core

• Give each Core its

own fast cache

• Computations in

registers seldom wait

• Thus make full use of

fast registers

nnnn

Register(s)

• Used to be1 = 1 data value

processed

• Make registers bigger, e.g.

256 bits instead of 32

• Add circuitry to let them

process multiple values at

a time – “vector

instructions”

• Add more registers!

Page 23: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Public

HANA Memory Data Flow

L3 Cache

L2 Cache

L1 Cache

Register

nnnn

CPU

CoreCPU Chip3.4 GHz

DRAM

Logs

Persistence

• Parallelism - Multi server / CPU / Core

• Vector / SIMD – multiple values / intr

• Scanning

5 Bn/core/s

• Aggregation

12m / core / s

• 600 Bn scans / single server / sec

• ALL Operations

• RDBMS

• Transaction

Update

• Text

• Predictive

• Spatial

• …

• Enables:

• Simplicity

• Productivity

Register(s)

Page 24: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Public

What SAP means by “in-memory” can be very

different to what others may mean

L3 Cache

L2 Cache

L1 Cache

Register

nnnn

CPU

CoreCPU Chip3.4 GHz

DRAM

Logs /Persistence

• HANA uses these memories here to feed vector

instructions, 100,000x performance advantage.

• HANA does this for ALL its processing.

• These memories, and the way they are used are

completely different things to DRAM

• To do this you need to start from scratch.

• Algorithms use these new parts of processors

• Others systems simply use RAM

memory to reduce disk I/O

• Traditional use

• Doesn’t get you to 100,000x

• Other uses limited (e.g. no OLTP)

Register(s)

Page 25: Why SAP HANA?

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Traditional table design in disc-based RDBMS – many tables

Complex assemblies of tables complicate BI development and change

….

Application-built secondary Index tables

Application-built aggregate tables

DBA-built aggregate tables

ABAP

VDM / SQL

DBA-built secondary Index tables

Main Master Record

Audit / Subset Records

Page 26: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 26Public

S/4HANA design concept makes use of the much simpler and

elegant columnar data method

….

Validity Vector

Individual attributes each held in

their own separate column store

No indexes, each column is its own

index

A new value is inserted, the old one is not overwritten but

kept, marking it with a timestamp / validity marker.

One byte is written, one marked as ‘no longer current’

No Aggregates.

We have the ability to dynamically

produce aggregations ‘on the fly’

No complex audit tables. Audits

can be reconstructed as and when

needed from previous values

Page 27: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 27Public

S/4HANA Example of dramatic simplification:

Logistics - Materials Management

MSTQH MSTEH

MSTBH MSSQH MSSAH

MSPRHMSLBH MSKUH

MSKAH

MKOLH

MCHBH MARDH

MARCHMSTQ MSTE

MSTB MSSQ MSSA

MSPR MSLB

MSKU MSKA

MKOLMCHBMKPF

MSEG

MARD

MARC

SAP Logistics table assembly and auxiliary aggregates and indices

28 tables not counting change log tables

MSEGNew

SAP sLog 1 table

MSEG

New

BEFORE HANA

AFTER Conversion to HANA

Page 28: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 28Public

Example of massive simplification:

SAP Accounting powered by SAP HANA

Logistics

Document

CO

Document

FI

Document

Totals & Indices

Financial Accounting

Totals & Indices

Management Account.

From …Stability

Processing

Analytics

CO Document

FI Document

Flexibility

Aggregation on the fly

via HANA views

Pre-Defined Aggregates

Flexibility

Stability

Processing

AnalyticsLogical document

Logistics

Document

… To

Customer Benefits

• Harmonized internal

and external

reporting

• Significantly reduced

reconciliation effort

• Significantly reduced

memory

consumption

• Higher flexibility in

reporting and

analysis

• Central journal for

heterogeneous

system landscapes

Page 29: Why SAP HANA?

29© 2016 SAP SE or an SAP affiliate company. All rights reserved.1 block = 10 data objects

Page 30: Why SAP HANA?

30© 2016 SAP SE or an SAP affiliate company. All rights reserved.1 block = 10 data objects

Page 31: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 31Public

Page 32: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 32Public

SAP HANA, the great simplifier of enterprise software

SAP HANA

SAP Business

Warehouse

powered

by SAP HANA

SAP Business

Suite powered

by SAP HANA

SAP Simple

Finance

powered

by SAP HANA

Real-time analysis

Real-time reporting

Real-time business

OLAP and OLTP together

SAP HANA Enterprise

Cloud for SAP Business

Suite on SAP HANA

In-memory platform Instant financial insight

No aggregates

Single source of truth Simplified data model

New user experience

Advanced processing

Choice of deployment

2010/11 20132012 2014 2015

Page 33: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 33Public

Some facts about SAP S/4HANA

10xsmaller data footprint

4xless process steps

1800x faster analytics & reporting

7xhigher throughput

1. Built on SAP HANA

2. ERP, CRM, SRM,SCM, PLM in one system

3. No locking, parallelism

4. Actual data (25%) and historical (75%)

5. Unlimited workload capacity

6. Predict, recommend, simulate

7. SAP HANA Cloud Platform extensions

8. SAP HANA multi-tenancy

9. All data: social, text, geo, graph processing

10. New SAP Fiori UX for any device (mobile, desktop, tablet)

Three deployment options: on-premise, public cloud, managed cloud

Page 34: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 34Public

Revising our Assumptions about System Design

Things that are now much easier with HANA

• Simultaneous Real time update (Xm tx/s) and complex analysis on single copy of the data

• Doing BI directly on an operational system data in real time

• Developing using a much simpler data model – the logical data model

• Using sophisticated math for forecasting, predicting and simulation, with fast response

• Being able to make changes ‘on the fly’ rather than ‘N week mini-projects’

• Faster changes to simpler data models, metadata rather than physical data changes

• Interactive examination of data, even in production volumes

• Fast prototyping using production scale volumes

• What were batch processes become interactive …

Page 35: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 35Public

Speed allows elimination of aggregates, indexes

this alone can result in a 90%+ reduction in complexity

Operational Data Store

Data Warehouse

Indexes

Aggregates

Copy

ETL

Operational Data Store

Data

Calculation Engine

Query Results

Query

SAP HANA

Query Results

Query

Copy

Data

Optional

Page 36: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 36Public

On The Fly Transformation provides greatly increased flexibility for

sharing data

Source: In-Memory Data Management, Hasso Plattner/Alexander Zeier

Persistence

Layer

(Main

Memory)

View Layer

Presentation

Layer

Spread

Sheet

Business

TransactionAny Software

Analytical

Application

View View

View

View

Log

View Layer Concept

View View View

Page 37: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 37Public

Project Efficiency ~60% reduction, tasks shrink or are eliminated

Mth 2 Mth 3 Mth 4 Mth 5 Mth 6 Mth 7Mth 1

~7 month project

6 Weeks

Define

4 weeks

Develop

2 days data

3 weeks

Test

3-4 weeks

Rework

2 weeks

Tune

2 weeks

Backload

4 weeks

Volume Test

2-3 weeks

Report

2 weeks

Implement

Future Mode of

Operation (FMO)SAP HANA

(column-store in-memory

DB)

4 weeks

Define

4 weeks

Develop/Test/Rework

unlimited data! 1 day Tune!2 weeks

Report D’ment & Volume Test

1-2 weeks

Implement

1-3 days

Backload

• Replicate rather than ETL

• Avoid physical model (4-6 layers/ & transformations)

• Single Modelling Tool (Power Designer)

• Less Development

Activate replication rather than ETL

No physical layers

• Less Testing

Replication easier to test

Fewer transformations

• Faster, Iterative test/fix/test

• Model-driven development

• No index (re)-build

• No need to change physical data model (e.g. aggregations)

• No embedded calculation

• Only need to set parameters

• Higher self-service/analysis means less reports to build No need to renew sematic layer

• Virtual Model

Easily transported

Faster reload (no intermediate physical layers, in-memory)

~3 months project

• Virtual Model

• Replication or ETL can go 50X faster (e.g. BW PoC)

Example:

“We took an

analytic that took

us 6 months to

develop and we

redeployed it on

HANA in two

weeks. Results

come back so

quickly now, we

don’t have time to

get coffee”

Justin Replogle,

Director – IT,

Honeywell

Jul Aug SepJun

Current Mode of

Operation (CMO)Traditional RDBMS

Page 38: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 38Public

Simplified Stack, fewer parts, easier development

1. Fewer servers and storage

2. Less layers of software

3. Simpler Administration

4. Lower BI run cost

5. Faster time to deliver BI projects

6. Productivity - Tools ‘at your

fingertips’

7. Reduced ‘Shadow IT’ costs

The HANA architecture lends itself well to an initial TCO

impact analysis. Based on preliminary analysis with

customers, we established that the overall TCO impact of the

roadmap will be beneficial to operating costs. (i.e. excluding

the substantial business benefits from in-memory technology).

Page 39: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 39Public

The SAP HANA PlatformA complete platform. Development, Administration, All styles of processing and data

Page 40: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 40Public

S/4HANA the primary reason for HANA and the culmination of a five

year release process

SAP HANA

SAP Business

Warehouse

powered

by SAP HANA

SAP Business

Suite powered

by SAP HANA

SAP Simple

Finance

powered

by SAP HANA

Real-time analysis

Real-time reporting

Real-time business

OLAP and OLTP together

SAP HANA Enterprise

Cloud for SAP Business

Suite on SAP HANA

In-memory platform Instant financial insight

No aggregates

Single source of truth Simplified data model

New user experience

Advanced processing

Choice of deployment

2011 20132012 2014 2015

Page 41: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 41Public

Click on picture in screen show mode to view video

https://www.youtube.com/watch?v=q7gAGBfaybQ

Page 42: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 42Publichttps://www.youtube.com/watch?v=q7gAGBfaybQ

Page 43: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 43Publichttps://www.youtube.com/watch?v=q7gAGBfaybQ

Page 44: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 44Publichttps://www.youtube.com/watch?v=q7gAGBfaybQ

Page 45: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 45Public

How might HANA simplification solve pressing problems?

Productivity

Users

Developers

Agility

Faster response, time to

market

Easier change

TCO

Radical simplification of

IT landscape

NEXT STEPS

Review requirements, look at them with

fresh eyes

Revisit ‘keeps me awake at night’ issues

Determine how many could be solved, or

assisted by the new capabilities of HANA

Identify those that are now possible and

were not before

Identify those that are hard / costly to meet

now but could be solved easier / quicker /

at less cost, reconsider how to deliver

them

Page 46: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved.

Thank You

Q&AHenry CookSAP Database & Technology,

HANA Global Centre of Excellence

SAP (UK) Limited,

Clockhouse Place,

Bedfont Rd. ,Feltham,, Middlesex,

TW14 8HD

United Kingdom

[email protected] +44 750 009 7478

https://blogs.saphana.com/2016/03/11/hana-the-why/

https://www.youtube.com/watch?v=VCEr9Y8ZrVQ&feature=youtu.be

HANA The Why Video Jan 2016.pptx

Mark MitchellSAP Database & Technology,

HANA Global Centre of Excellence

SAP (UK) Limited,

Clockhouse Place,

Bedfont Rd. ,Feltham,, Middlesex,

TW14 8HD

United Kingdom

[email protected]

T +44 208 917-6862

www.saphana.com

www.sap.com/hana

www.youtube.com/user/saphanaacademy

Page 47: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 47Public

Speaker Notes Follow

• In order to make this presentation self contained the speaker notes for the slides are

included

• These can be printed or opened in a separate window to accompany the presentation

• They are also useful if you want to refresh your memory regarding a particular topic

Page 48: Why SAP HANA?

© 2016 SAP SE or an SAP affiliate company. All rights reserved. 48Public

HANA ‘The Why’

The purpose of this session is to remind ourselves of the reasons why HANA was invented, and

why it is unique. HANA represents a fundamentally new approach to large enterprise systems,

one that provides significant simplification. Because it is a new approach it overturns many of

the old assumptions we have about enterprise systems and causes changes in technology,

applications, systems design etc. Because of this it can be sometimes difficult to “see the forest

for the trees”.

It is a disruptive technology that is having a major effect on the marketplace. Witness the

number of competitors now scrambling to introduce HANA-like features.

It should be viewed in the same light as the introduction of the mainframe, the introduction of

client/server, the PC and the Internet, and will spark a whole generation of in-memory systems.

We’ll hear as we go through why HANA is special and differentiated and why we expect to

maintain a leadership position for the foreseeable future.

The scene shown is in Hawaii (you can almost feel the warm breeze come through the screen)

Hasso Plattner the inventor of HANA and our CTO at the time, Vishal Sikka have both visited

Hawaii (Hasso is a keen sailor), and in Hawaii there is a place called HANA Bay.

In fact when people talk about ‘the road to HANA’ you can see it here – the road just up from the

shoreline is the road to HANA Bay in Hawaii and if you do the trek to the other end of it you get

an award for doing so.

There are several stories about how HANA got names – one is that it was named after HANA

Bay, another that it informally stood for “Hasso’s Amazing New Architecture”.

Each year we have been taking HANA customers who are in the 100,000 Club to HANA Bay.

These are customers who have taken a piece of production work and used HANA to speed it up

by 100,000x or more. So, ‘your mileage may vary’ and we’d not guarantee these kinds of results

but speedups of 10x, 100x, 1,000x and more are very typical.

https://www.youtube.com/watch?v=VCEr9Y8ZrVQ&feature=youtu.be

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A logical evolution each being necessary to provide significant new

business capability and escape the constraints of the past

Before we go back to the beginning lets just take stock of where we are with HANA.

As you’ll be aware SAP applications have gone through a series of generations, the original system called R/1

Was mainframe based as was R/2.

Twenty three years ago the applications in the Business Suite were being constrained, even when we used the

largest mainframes available.

Note that the ‘R’ always stood for ‘Real Time’ the idea that we could do business immediately with no

unnecessary waits. Remember that before this it was usual for applications to be purely batch, using decks of

cardboard punched cards or magnetic tape. The early mainframe versions used the newly available online

terminals allowing work to be done in real time with online transactions.

As larger organisations adopted SAP, and those organisations grew they outgrew the capacity of even the

largest mainframes.

So, in 1992 SAP made a bold move, and became one of the first large software vendors to move to a completely new and innovative architecture, the “Client /

Server” architecture. This allowed large applications to be broken into pieces and those pieces to be spread over different servers. Moreover these servers

could be less costly UNIX servers, rather than expensive mainframes. Where we wanted to deploy different modules, or different applications, Enterprise

Resource Planning, Customer Relationship Management and Supplier Relationship Management etc this could then be done by placing them on different

servers and networking them together. This allowed us to sidestep the constraints of a single mainframe server. There were other benefits too, the Clients in

the Client Server relationship no longer needed to be “dumb terminals” they could be powerful and flexible Personal Computers with attractive and easy to

use graphical user interfaces – we forget now just what a revolution this was .

As we said, for the past twenty three years this worked well, and represents the state of the art of the technology that has previously been available.

However, in our view current technology has limitations, particularly in the area of complexity, performance and flexibility. So, we set out to discover if there

was a fundamentally simpler way of implementing large systems. It turns out that there is, and this radical simplification is what we now know as HANA.

So, for a second time we are bringing in a revolutionary way of doing things, the move to in memory computing. Whilst we’ll continue to enhance and

maintain our existing Business Suite, we now have S4HANA the Business Suite which is able to fundamentally simplify how it works and how it can be used,

a revolutionary platform which brings significant new functionality, function that cannot be provided without using the unique capabilities of HANA.

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Accelerating business innovation through radical simplification

We’ve seen how HANA is now well established, we have introduced

it in a cautious and well planned manner, and it is realizing its

original vision. Now lets go back and explore why we set off down

this path.

At SAP, our job is to bring the best combination of break-through

technology innovations together to help you accelerate your

business agenda

With our history and focus on software innovation, SAP is uniquely

positioned to help you simplify your IT stack and accelerate

innovation

However, 7-8 years ago SAP found itself in a bit of a bind.

The ERP applications were large and complex with 15 month

release cycles.

We were surrounded by competition, many of them increasingly

more nimble than us.

We were dependent on others for data management, some of them

major competitors, and all of this complexity incurred great cost.

The only way we could see out of this would be if we could

radically simplify what we did, and this was the objective of the

research project that eventually produced HANA. This entailed

hundreds of developers working around the clock for 6-7 years – to

get to where we are now.

However having done this we are now poised to pull ahead, and

stay ahead of the market because we have a fundamentally simpler

and more effective base from which to build.

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Traditional ERP system architecture

Let’s just recap the history of ERP. Originally we ran on the mainframe and ran a

single application. Access was via online terminals (a major innovation at that time)

and everything was done in real-time. At the time we were serving mid-sized German

companies.

But then we sold to bigger companies, and those companies grew, as we did so we

needed to deal with “the multi’s”; multi-company, multi-language, multi-currency,

multi-application (remember with the mainframe terminals were tied to applications,

multiple apps meant multiple terminals)

This exceeded the capacity of the mainframe, so we made a big leap, with SAP R/3,

to a three tier Client Server architecture, splitting the Client Interface, the application

logic and the database access across different servers, thus spreading the load.

At the same time we now allowed the newly available PC front ends to access multiple

back end applications, instead of having to have one mainframe terminal for each

application we needed.

In the third step we see how this expanded as new applications were added, some of

which we wanted to be able to sell on their own without necessarily having the ERP

core, and at the same time we could mix and match servers to tune for performance

and also to make operations easier. At the top of the diagram we see the appearance of

separate management information systems, data marts and ‘spreadmarts’ the proliferation of spreadsheets that are actually being used as operational data

marts in the organisation. These were used by organisations to make SAP data available for querying and reporting.

Note that where these different applications were sold with ERP – as was usually the case – a subset of the ERP data was replicated within the applications

and there would be feedback processes that fed back to ERP too.

In the 4th step we see the addition of a dedicated server for the Business Warehouse, to make management information available from SAP applications, but

often this didn’t kill off the separate management information systems, in fact many organisation used BW as a mechanism to populate separate management

information systems. There might also be a separate generic Data Warehouse added, to combine SAP data to non-SAP data at the time it was easier to do this

by extracting the SAP data and taking it elsewhere rather than bringing the non-SAP data in (we’ll see that this has changed). More servers are added, more

data marts and more redundant copies of data – however remember that by going this route we were able to scale the systems and to optimise for individual

applications, and, at the time there was no alternative given the technology that was available.

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Transformation through Simplification

Returning for a moment to our strategic reasons for producing HANA this

diagram shows how a strategy of simplification is allow us, and can allow us

to innovate, to renew itself, without having to incur large amounts of

additional cost or divert resources from essential development of support.

By removing complexity, which saves effort (Services, admin), reduces the

amount of hardware required, through landscape simplification and can also

reduce the overall amount of software needed we can make room in the

budgets to do the new innovative things needed to take advantage of

opportunities and to stay relevant.

This is precisely the strategy that SAP has been following to escape form the

complexity and cost that was weighing us down and which is now allowing

us to pull ahead and stay ahead of our competition.

If you think about it this is the only way to be able to escape this complexity

and cost trap without adding massive extra cost.

One of my colleagues coined the term ‘transformation through

simplification’, if you simplify then you transform almost by default, in fact it

is hard not to, because you begin to find you are using less effort and have

less cost and these can be put to work doing the new things you need to do

to be able to compete.

Our colleague Norman Black termed this ‘transformation through

simplification’, and if you think about it if you simplify things you naturally

transform things – you can help but do that because you naturally start to do

things in the new, simpler, way.

Many organizations are in the situation that we were in 7-8 years ago, and

likewise many can now take advantage of what we have done with HANA,

Cloud, Mobile etc. to move to a simpler, more productive, more agile and less

costly way of working.

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HANA Simplification shows up as:

We’ll see that HANA brings a much simpler and more elegant approach to

large information systems. As we’ll see, we should not be surprised at this

as it was the prime objective in its development.

As we go through looking at the different aspects keep in mind that we are

expecting HANA to provide benefits in terms of productivity (for users and

developers), in agility and in reduction in costs. So, it is useful, every now

and again as we go through the various topics, to ask ourselves “why does

this improve productivity?”, “why would I be able to do things in a more

agile way?” and “how does this reduce costs?”. In most cases there are

obvious reasons why this would be so.

The key to understanding HANA is that it is fundamentally about

simplification and this expresses itself in several ways.

It can make end users and developers more productive, giving them results

quicker (orders of magnitude quicker), being able to develop new useful

business benefit bearing function faster and enabling them to do much

more work in a given period of time. For developers this is because the

system and data structures they are dealing with are fundamentally less complex. For end users they are able to use techniques not previously possible

and to get their answers interactively instead of having to wait minutes or

hours, thus they work more ‘in the flow’.

It makes people more agile by being able to respond faster, whether that is with instant results to and ad hoc query or being able to put together a new

requirement much faster than with existing technology, e.g. one customer quoted “we reproduced in two weeks with HANA an application it had taken six

months to build on the current systems – and HANA was a better system with much better performance.

Developers can bring new applications to production much faster, because the design process is much simpler, developers get instant feedback, and there

is less to design and develop.

Likewise, where HANA can be used to collapse multiple MIS systems into one, and combine one or more OLTP and OLAP systems together this can bring

about a massive simplification and cost saving in our IT landscape.

The aims of HANA are to simplify ,and in the process build a better and more profitable business.

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How do traditional systems impede benefits?

Before we go on its worth reflecting for a moment on what kinds of problems we

encounter in existing systems.

One of the things that Hasso and his team spotted early on was that a large proportion

of the data structures in an application have nothing to do with the business purpose of

that application. Rather they are the ‘supporting data structures’ that have to be added

to make the system perform, these are the familiar data pre-aggregates, indexes, cubes , materialised views,

pre-joins etc.

These can account anywhere from 60% to 95% of the data objects in the application.

That is, if you looked at the data model for the application (that is the

physical data model that is used to define all the data items) you’d find that on

ly a small percentage was basic business data, the data on Customers,

Transactions, Products etc. The remaining majority of the data items are there to help

ensure performance, for example we might have several layers of pre-aggregation of

sales data, daily, weekly, monthly quarterly and yearly. Likewise we probably have

pre-aggregation of the different intersections of data dimensions – product by

geography, with again multiple levels – product at individual item, product group,

product super-group, product class, these can be combined with geographic measures at the location, district, region and country level – all the permutations

and combinations. Somebody has to design, develop, test, maintain all of these !

This is a colossal overhead. But is one which we don’t notice because we’ve always had to do it and everyone has had the same problem so we assume that

this is ‘just the way it is’ it’s the standard way that we build systems.

Similarly, if we want to use multiple processing techniques say database, predictive and text, in current systems these are typically separate systems with

separate hardware and software ‘stacks’ to use them together you don’t simply invoke them you have to do an ‘application integration’ job to use them

together.

Another problem is simply response time. Wouldn't it be great if all operations came back in a second or two ? But they don’t, we are used to delays of

minutes hours or days. This destroys the ‘flow’ of management discussions and problems solving. It also makes it difficult to use sophisticated maths to solve

problems. – because it takes too long, again we regard this as normal.

It’s also hard to combine data from different sources. Even if we can reach out and read data from existing systems this typically doesn’t perform very well,

thus we find it hard to re-use data form existing systems and protect the investment in them – and it takes a long time to meet requirements.

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The Motivating Idea

We’ll continue this section with a picture from Hasso Plattner’s book on in-

memory computing that encapsulates the original aim in its invention. This

picture shows “The board meeting of the future”.

All the CXO’s are gathered around and they have all their information at their

fingertips. By the way, the same applies to all the staff beneath them, too, the

staff in branches, on the road, middle management, supervisors, field staff

and call centre operators, everybody has direct and immediate information.

Operational data is completely up to date, to the second, there is no need to

wait for complex month end runs we can keep pace with what customers are

doing and what is happening in the supply chain second by second.

Not only that but if an analysis is required it can be performed then and

there, within seconds, no need to gather data and meet again next month,

analysis no matter how complex can be performed sufficiently quickly to

provide input into the conversation as it happens, and that analysis is done

on complete information that is known to be up to date. There is no

disagreement between the operational and analytical systems, because they

are one and the same system.

Clearly it will take some time to get there, for customers to implement the

complete vision, but I think that you will soon see that this is where we will

get to, and why HANA and in-memory systems are uniquely able to get us

there. In fact, if you look at what we are doing with HANA Live and Simple

Finance you will see that we are a substantial way along the road. SAP HANA

provides a fundamentally new capability. A company that can operate in this

mode, with the agility, control and cost effectiveness that it implies will have

a significant advantage over a competitor company that does not.

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History 2007 – The Business Goals of HANA

What we see here is a slide that was used by Hasso Plattner, Chairman and

one of the original founders of SAP, at the launch of Business Suite on

HANA in 2013, and which outlines the original design objectives for HANA.

Hasso had founded his own university, the Hasso Plattner Institute in

collaboration with the University of Potsdam and was lecturing on enterprise

systems.

As part of this he discussed with his PhD students the design of enterprise

systems, and his students being bored with learning about old fashioned

ERP systems wanted something more modern to study and discuss. Hasso

set them the task of working out what a truly modern enterprise system

should look like if we could start with a clean sheet of paper and

incorporating all that we now know about systems design.

The title here talks about ERP, as this was the Business Suite on HANA

launch, but the actual objective was really to figure out what any modern

enterprise system should look like.

It is noticeable that the objectives are mostly business objectives. A good

way of thinking of this is that the objective was to remove “all the things that

have bugged us about big system for the last 20-30 years”.

For example we split OLTP and analytics apart over 30 years ago, because it

was not physically possible to combine them on the system, this was done

two generations ago and we’ve forgotten why we did it, it has just become

common practice. Likewise we’d like to get rid of batch, do BI on demand

against the transactional system, not need aggregates, be able to use heavy

duty maths etc. etc. We’d also like a sub-second response time, because that

is the way that human beings are wired, they are maximally productive when

they don’t have to put up with wait times and delays.

Of course, on the way through we’d expect to make use of techniques such

as parallel processing and holding all our data in memory.

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HANA Techniques: How to Build a New Kind of Enterprise System

This is a representation of many, but not all, of the main techniques pioneered by SAP

HANA. Some are adaptations of previously know techniques such as Massively Parallel

Processing and Column Stores, some, like the updatable column store were totally new

innovations. However, where existing techniques were used typically HANA would take

them a step further and, equally important, these techniques were combined in a

particularly innovative manner. This took over six years of focussed R&D.

The development method itself was innovative, it was a distributed development project

using top talent from around the world. When the developers in Europe went to sleep,

those in Asia would wake up and continue, and when they reached the end of their day

they’d hand over to developers in the USA and Canada. This went on for several years

with hundreds of developers keeping development going literally around the clock. Other

vendors typically took 10 elapsed years to do what we did, we did it in 3 by having a

24/7 continuous ‘shift system’

HANA is known as an ‘in memory database’ but it is worth noting that of all the

techniques only one of them mentions being in-memory – the “no disk” technique.

This is a necessary part of the system but as you can see is by no means the full story.

Also the way in which we use the techniques can be different. Column Store databases

had appeared before and shown their benefit and high efficiency by only transferring data in the subset of columns needed for a query and by allowing very

efficient compression. However, HANA takes this further, it uses column stores not just for these traditional reasons but to ensure that by filling the column

stores with binary encoded data (on the slide as “lightweight compression”) it can keep the Level 1,2 and 3 on chip caches filled and thus make full use of the

SIMD and vector instructions available in modern CPU’s. This is how we get 3.2Bn scans / core / second and that in turn means we can dispense with

aggregates and indexes.

HANA is a general purpose database, so another unique innovation is the ability to do transactional updates against the column store. As we mentioned, and

as you can see here ,there is a lot more to HANA than simply putting our data in memory.

Modern workloads consist of more than just database work, there is also text processing, spatial, planning, OLAP, etc. etc. Therefore we have specialist

engines for each of these that can collaborate within the in memory system, and we have an innovative language that allows us to process in all these different

languages whilst keeping the procedures together, being processed in memory, in parallel.

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https://www.youtube.com/watch?v=jB8rnZ-0dKw

Pepsi Ad

If we think about our slide “HANA Techniques: How to Build a New

Kind of Enterprise System” which shows all the techniques that are

used by HANA, both those that are adopted, and those that we

invented.

There is an analogy with an award winning series of adverts that Pepsi

had in the 1970’s, which summarised all the things you associate with

Pepsi in one high energy snappy sentence.

The theme of the ads, and the strapline that went with it was “Lip

smackin, Thirst Quenching, Ace Tasting, Motivating, Good Buzzing,

Cool Talking, High Walkin, Fast living, Ever Giving, Cool Fizzin Pepsi!”

Pepsi, fizzes, but they didn’t just call it “Fizzing Pepsi” - that would be

selling it short.

Glancing back at the previous slide we see that we have a “Massively

Parallel, Hyperthreaded, Column Based, Dictionary Compressed, CPU

Cache Aware, Vector Processing, General Purpose Processing, ACID

compliant, Persistent, Data Temperature Sensitive, transactional,

analytic, Relational, Predictive, Spatial, Graph, Planning, Text

Processing, In Memory Database HANA!”

Every one of those things contributes to the unique thing we’ve done.

We’ve shortened that for convenience to “The In Memory Database

HANA”, but we should never forget that there is a whole lot more to it

than just “In Memory”.

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HANA is designed to be more than just a Database

First lets do a quick recap on what HANA is – what would turn up on your floor or

in your cloud if you ordered one? Don’t worry about the detail for now, this is just

a quick note to fix in our minds what HANA aphysically is and isn’t, we can come

back to the detail later on.

HANA is an appliance a combination of software and hardware, the hardware being

available from multiple suppliers, though it can also be supplied now using cloud,

virtual machines or a ‘tailored data center configuration that can make use of

existing disk. It adheres to the appliance philosophy of being pre-designed,

pre-built, pre-tested and can be delivered ready to plug in and go. Where we differ

from other vendors is we believe it is no longer necessary to prescribe a single

type of expensive premium priced hardware. It has standard interfaces to the

outside world that make it easy to integrate with your IT estate.

HANA is not just a database. It has a very modern style of architecture in that it

contains a number of collaborating ‘engines’ each aimed at a particular style of

processing.

The goal is to enable all the different types of processing that applications might

need to do and to do them within the database, close to the data, and feeding the local caches within the modern CPUs so as to fully realize their enormous

processing potential.

This includes development life cycle tools.

Also, Text processing, the ability to do sophisticated text search and sentiment analysis.

There is support for multiple programming languages, including sophisticated SQL scripting languages and support for analytics, including business

function libraries and the open source ‘R’ statistical suite.

There is a planning engine for specialist planning functions, in particular aggregation and dis-aggregation.

This allows pretty much any type of application logic to be sunk down into the database – and thus fully benefit from the 100,000x processing gains.

We also support federation capability to seamlessly pull in data from remote databases and other systems such as Hadoop. This is natural, and just an

extension of our multi-engine design, our query planner and optimiser simply makes use of other ‘engines’ that are outside of the in-memory core.

So, what we’ll expect to see is certain applications benefit straight away, and others benefit more as they start to exploit this way of working.

OK so now we have a clear idea of what HANA is lets go back to why it was invented.

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There has been a revolution in hardware

Computer processor technology has changed out of all recognition over the

past few years. Twenty years ago we might have a system that had four

processors, each of which ‘ticked’ away at 50 million ticks per second

(50MegaHertz). We’d most likely have one Gigabyte of memory, the

processors would be built using one million transistors. This would be a

processor or approximately the Intel 486 class. Also these four processors

would actually be four separate chips.

These days the numbers are very different. The individual processors would

‘Tick’ at a rate of 3 billion ticks per second (3 GigaHertz), each chip would

have 2.6 billion transistors, each with multiple processing cores. To put this

in perspective, if transistors were people the old CPU’s with a million

transistors would be equivalent to a city such as Birmingham UK, or

Brussels Belgium. As single modern microchip would represent one third

the population of the planet. A single server might be 8 CPUs of 15

processing cores each, totalling 120 processing cores, and this would access

6 Terabytes of data, that is 6,000 Gigabytes.

So whereas 20 years ago a typical business system might have four separate

processors, each ticking away at 50 million ticks a second, pretty soon we

can see we’ll have a simple sever that will have 480 processing cores, each ticking away at 3.4 billion ticks per second.

So we have over a hundred times the processing elements and those processing elements tick away over seventy times faster ! Plus, as we’ll see there is

another wrinkle too which we’ll discuss in a minute – these new processors can process many data items at a time with each instruction, the old ones could

handle just one at a time. This means we have over 100,000 times more compute power available on a single simple server! And, of course, this is very cost

effective as it’s all commodity (Intel) microprocessors., cost performance diminished by something like five orders of magnitude.

Thus, computers now are completely different animals to what they were 20 years ago. In fact it is misleading to use the same words “CPU”, “Processor” etc

to describe these wildly different things. One of these modern servers is the equivalent of several data centres from 20 years ago.

The question is, how can you tap into this amazing computing power? As we’ll see you can do this but you have to do it in a completely different manner to

how traditional systems have worked . Remember, this trend has only really taken off in the past 5-8 years so any software written before then will typically not

be using the techniques needed to fully exploit this opportunity.

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HANA, works in a fundamentally different way to other systems,

this initially looks complex, but is actually easy to understand. Firstly, don’t’ panic!. This may look very technical but it is actually very easy

to understand so please just go with the flow and stick with this! You will

understand it, and thus understand why we are so different, and so are able

to deliver major new business capabilities – plus you’ll be able to impress

people at dinner parties with your knowledge of modern microelectronics!

This diagram, using information from Intel, shows the relative access time and

data speeds for different parts of a typical computer system. It’s a little bit

out of date, but the principle idea remains the same.

OK so what did we do with all these transistors ? The diagram shows three

Intel ‘Xeon’ chips, these are the blue boxes. In the middle chip we are

looking inside the chip to see two things, multiple processing cores and the

special memory caches (Level 1, Level 2, Level 3) contained in the chip.

CPUs used these extra transistors to have more cores, more processing

elements on each chip, starting with two, then four then six, we’re now up to eighteen cores per chip and we expect this to increase further. So each chip now

contains many processing elements.

A modern system is made up of different parts that are interconnected,

typically CPU, memory and disks. In addition different processors can also

talk to each other. There is the CPU, the memory embedded in the CPU, the

separate RAM memory, other processors and disks – both hard disks and

solid state disks. The red labels shows the length of time it takes to get to the data and the green shows the speed in Gigabytes per second to transfer data. A

nanosecond is one thousand millionth of a second, or one billionth of second. Mechanical or external devices can’t keep up with speed of modern silicon.

To get data from the fast memory caches (levels 1,2, and 3) on the chip takes just 1.5 or 4 or 15 nanoseconds – very, very fast. But to get data from a hard drive

takes an enormous time - ten million nanoseconds. Even Solid State Disks,external devices, take 200,000 nano-seconds.

So to keep all those many processing cores fed with data and thus use their full amazing processing potential, then we need to use the on board cache

memories, and to keep these cache memories full. In order to do this the software running on the chip has to be aware that these cache’s are available and to

be written in a way that can fully exploit them, this is what we mean by ‘cache aware’. Software that was written before these memories appeared don’t know

they are there and can’t exploit them, you need change the way the software is written to make full use of them, its hard to ‘retro fit’ this way of working onto a

traditional system. Plus we can do this very cost effectively using commodity CPU and memory chips.

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A Useful Analogy

We are not good at thinking in terms of billionths of a second, since that

is so far away from our day to day experience. So here is a good analogy

thought up by one of my German colleagues. Imagine we are sitting in a

house in London, enjoying a drink. In this analogy we substitute beer for

data.

The Beer you are consuming is the data in the CPU, it is immediately

available and being processed.

The beer in Level 1 cache is the beer on the table, within easy reach, 1

metre away.

If we need more then we can go to the kitchen refrigerator, 4 metres away,

this is like level 2 cache

Then there’s the refrigerator in our garage not more than 15 metres away

- level 3 cache.

Up to this point we are still just using beer in our house (that is data from

memory on the CPU chip) we have not even yet gone to DRAM, that is left

our premises.

If we need more than this then we can go down the street not more than

40 metres away, fortunately we are next door to a liquor store – that’s our

RAM memory.

But what happens if we run out of beer (data) and have to go further to

the bulk store –to the brewery warehouse? – the equivalent of the hard

drive.

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A Useful Analogy

What happens if we run out of beer (data) and have to go further to the

bulk store –to the brewery warehouse– the equivalent of the hard drive. In

that case we have to go to Milwaukee, USA – 6 million metres, or 6,000 Km

away !!!

(Of course if we wanted to save some time we could use SSD, and just go

to the south coast of the UK! , that would reduce the distance to just 120

kilometres to get our next beer.

What this shows is the huge difference in the ability of silicon to process

data and the ability of mechanical devices to feed them – all of which has

happened in the last 7-8 years. Software written before then cannot exploit

these features because they don’t know they’re there. Where these

techniques are starting to be used by others they are typically ‘bolt-ons’ to

existing complex systems and have various restrictions imposed on them.

Rough approximations – but they give a good sense for the relative

distance. (Check for current numbers, they are improving all the time)

ns m km

CPU 0 0.00 0.00

L1 1.5 1.00 0.00

L2 4 2.67 0.00

L3 15 10.00 0.01

RAM 60 40.00 0.04

SSD 200,000 133,333.33 133.33

HDD 10,000,000 6,666,666.67 6,666.67

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When you store tabular data you get to store it in one of two ways

We’ve now established that to get access to the amazing speed of modern

processors we have to use all those multiple cores, and feed them via the

cache memories held within the chips.

Column Based data stores are one key technique that helps us do our

work in-memory, they have become both proven and popular in recent

years.

We tend to hold our data in tabular format, consisting of rows and

columns, this is the format used by all relational databases, and this is the

way HANA represents data too, in this very familiar and standard format.

When you store any data in memory, or on disk, you need to do this in

some kind of linear sequence where data bytes are strung out one after

another.

You can either store the data row by row (most databases do this).

Or you can store the data column by column. We see this illustrated

above, we’ll now explore the implications for each, and most importantly

how this affects our ability to exploit these modern advances in computer

chips. This may not be immediately obvious, but it soon will be.

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For rows, data is moved to the processor in ‘chunks’ but only a tiny

proportion of those ‘chunks’ are useful

Here we see the data laid out and physically stored in rows, in the more

traditional manner we’ve used for decades.

Using this row based format we have to skip over the intervening fields to

get the values we want. E.g. if we want to sum the number fields highlighted

with red boxes above, first we read the first one, then have to skip over

some fields to find the second one, then skip over some more to find the

third and so on. These rows can be hundreds of attributes long, each row

may be hundreds or thousands of bytes, 1,000 bytes would not be unusual.

Processors typically fetch data in chunks, and bring them to the processor

to have computations done on them.

In this diagram the alternating blue and green lines show the successive

‘memory fetches’ which are retrieving data ready for computation to take

place.

A processor typically fetches data from cache memory 64 bytes at a time.

But a row may be 200, 300, 500 or more bytes long. Therefore it is going to

take many fetches to get to the next useful value to be added, so most of

the time we’re skipping over ‘padding’ between the useful values. All the

while this is going on the processor is ‘spinning its wheels’, ticking away

waiting for the next chunk of data that has a useful value contained within it

to operate on.

So, to run at full speed and get the maximum out of these fast chips its not

enough to have many fast processors, we also need to make sure that the

next data that the fast processor wants to process is sitting waiting for it in

the cache memory and will be retrieved as soon as the processor is ready to

process it.

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With data stored in columns “Every Byte Counts”

Now consider the column based format. Here the number fields are held

together one after another, in one big column, as are the other column values.

This leads to a very ‘dense’ data format that is easy to compress and where

‘every byte of data counts’.

We can see how it is easy to take a whole column (which may be millions or

billions of items) and simply feed it into the on-chip memories in a

continuous flow. In this way the on chip memories are continually kept full.

A processor is never kept waiting, each time it is ready to process more data

there is a cache full of data close by, thus we make full use of our fast modern

CPU processor.

Thus Column based storage is not just a way of efficiently organizing data –

but it is key to being able to feed modern CPU’s with sufficient data to keep

them busy, every byte in a column store counts so if we can fill our local

caches with it we can process them very fast – on top of the benefits we

might get from compression.

The CPU cores are ‘ticking away’ at 3-3.4 billion ticks per second, and we are

making full use of that incredible speed. Not only that but processors now

have special instructions that can processes many data items at a time, say

10 or 20. We can do this because all the values are sitting tightly packed

together, so we can grab them several at a time.

With this design each time the processor is ready for another 10 tightly packed data items they are already sitting waiting in the cache memory on the CPU, our

very fast CPU cores, which can process multiple values at a time never have to wait for data, and thus we get the full use of them. This is where we get the

100,000x performance increase that is the key to everything else we do. With this 100,000x performance increase we can do away with the need for aggregates

and indexes and thus massively simplify how we can build our applications.

(Note that simply being a column store does not mean another database can do what we can. Column stores were already used before, but simply because

they reduce the need for disk IO when the columns are on disk. If we query a table of 100 columns but only need to process say two columns then we only

need to retrieve 2% of the data in the table, this speeds things up by 50x (100% / 2%) but does not get anywhere near the performance we see by using our

techniques). This is the key reason we use column based data – because of the fit with modern microchip architectures.

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Columnar data stores offer huge benefits, if you can use them in a

general purpose wayOf course using column store data also provides us with the benefits of

easier compression (because all the data in a column is of the same type)

and the ability to add new columns non disruptively that is without

affecting those already there.

Column stores had already come into use for analytic applications

they were so efficient for this kind of working, the data compressed well,

the data was tightly packed together and you’d only retrieve from disk

those columns mentioned by a query. So if our query only looks at three

columns in a hundred column data we only have to scan three percent of

the columns. This saves a huge amount of disk IO and data movement,

hence the query speed up. But it doesn’t get us anywhere near the

100,000x speedup we see through the CPU cache working.

But it is the ability to use the local cache memory for our main

computation, and thus make full use of the potential of modern

microchips, that is the important concept here.

In order to be able to fully take advantage of modern CPU’s in this way we

need to be able to use this technique across a full range of workloads.

OLTP, OLAP, Text, Predictive, and it turns out that this technique is suited to all of these too, of course you need to design your system from the

ground up to do this.

In the past column based storage has performed poorly at updating, therefore SAP invented a way of doing high speed updates against a column store – this

is a unique capability, and it is this which makes the use of column stores general purpose, and we can also use them for text processing, spatial, graph,

predictive etc. etc – and any mix of them.

This means that whatever components of a modern workload we have we can get the full benefit of the modern CPUs across the full range of workload we

might wish to do. All data is held this way, and all processing makes use of it.

Other systems are starting to use these techniques but often they are ‘bolted on’ to the existing database, so all their traditional cost and complexity are still

there. You have to nominate which data to hold in memory, usually its used only for read only queries, you have to do your updating somewhere else and other

styles of processing like text, spatial, predictive can’t use these techniques. So you don’t get the simplicity of design and development or the runtime speed

advantages.

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All those extra transistors can be used in a number of ways to

speed up computation and throughput – by 100,000x or more

So, to summarise, and see the whole flow within the system, we’ve seen that

whilst we cannot speed processors up any further we can put more and

more transistors on them, lets consider how we might increase processing

power by using those extra transistors.

Firstly we can put more than one processing core on a single CPU chip. This

is now well established, we started with dual core chips, then went to four,

six, ten and now we have fifteen. More processors mean more computation

done – provided our software can exploit them .

We want to keep those cores busy, so we can use other sets of those

transistors to implement very fast memory very close to the cores, actually

on the CPU chip itself, this means cores seldom have to wait for their next

batch of data provided the software knows how to do this.

Likewise if we look at each individual core we can see that we could add

some local cache to each core, in fact we can implement two levels of cache,

one feeding the next, that means that within each core, when we are moving

data into the processing registers the data is highly likely to be right there,

so the computer instructions never have to wait for data, its been

pre-positioned into those very fast memory caches right next to the

registers. If we go down the next level we can see opportunities to turn

extra transistors into processing power there too. Traditionally a processing element, using its register would process one value at a time. An individual

computer instruction would load a single value, do something with it, like add another single value or compare it to another single value, then take the single

value result and store it somewhere.

But what if we used our extra transistors to widen the register, say from 32 bits to 256 bits, and what if we implemented special instructions that could load,

add and store multiple values into the register? Then with each instruction we could process many more times data. Of course we’d be loading data values at

a very high rate, processing them ‘N at a time’ – but we can rely on our close memory caches to have the data we need ready so we don’t spin our wheels

waiting for data, again provided the computer software knows about these features and how to use them.

Software created 8 or more years ago will typically not be able to exploit these features, because they did not exist at the time. This would be very difficult ot

retro-fit to an existing row-based and disk based database – you really do have to start with a blank sheet of paper.

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HANA Memory Data Flow

In this view we show the flow of data from the solid state memory (DRAM

storage) into the registers where its processed.

We can see from this how it is essential that we hold our data in columns.

If we do this we can readily see how we can have a stream of compact,

tightly packed data values constantly flowing into the Level 3, level 2 and level 1 cache’s on the CPU chip and within the processing cores, keeping them filled

so that the processors never have to wait for more data.

Modern CPU’s have registers that are wide, 128 or 256 bits and special

instructions that can process many values at once if they are packed into

a register together, so we might be able to process data, with a single

instruction, ten or more at a time!

Whenever the register needs another 10 values, say, then they are ready

waiting. This means that the very fast (3.4Ghz, or 3.4 Billion ‘ticks per

second’) CPU’s we have available can be fully utilised because they always

have data ready to process and thus, unlike other software, we realised

their full power.

To make use of vector processing we have to compute with the data held

in binary format – and we do this by using dictionary compression which both compresses to save space but more importantly provides us with a binary

representation of the data that we can compute with. For example when we execute comparisons where we need the order of values to be preserved.

If the data is not compressed in this way we cannot make use of the vector instructions and we would not be able to keep the level 1,2,3 caches filled with data

ready for the CPU’s (if the data is not in binary format and is therefore larger then it takes longer to transfer the data or put it in the right format, whilst this is

happening the CPU would be idle, twiddling its thumbs - HANA’s dictionary compressed cache aware processing avoids this loss of efficiency.

The dictionary compression also makes the data smaller of course, so we can fit more in the DRAM and also more in the CPU caches – but this is really a

beneficial side effect that makes our in-memory system even more economic by needing less storage. The key reason we use dictionary compressed data is

this it allows us to follow the chain of logic that enables us to use the very fast and efficient vector processing we mentioned at the beginning.

We have customers that report processing speedups of 100,000x or more.

We can ‘spend’ some of this huge speed advantage by trading it off against the need to pre-compute aggregates – if we do away with these then we do away

with 60-95% or more of the complexity of the application it becomes much simpler, smaller and more elegant and the business benefits of productivity, agility

and TCO flow directly – but to do this you have to do all of that which we’ve described.

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What SAP means by “in-memory” can be very

different to what others may mean

So, from the preceding information we can see that when we talk about HANA being an

“in memory” machine we are talking about completely different types of memory being

used in completely different ways to traditional DRAM.

The key point here is that the cache memories in the CPU and the ordinary Dynamic

RAM (“D-RAM”) memories are completely different things. HANA is designed from the

ground up to do its computation in the cache memories and thus gain access to very

high speed computation, and we do this for all our processing. Other systems simply

put data in DRAM to save IO’s or make limited use of the CPU cache’s just for limited

tasks. They are completely different techniques.

In the past database vendors have used larger amounts of DRAM to hold data from

disk to avoid having to incur the overhead and time delay of disks. There is nothing

wrong with this, and it gives you a good speed boost. This is a well understood

technique that has been used for many years. The more data you hold in the memory

buffers in DRAM the fewer times you have to incur the delay waiting for disk and

everything speeds up.

But it does not give you 100,000x speed boost we see with HANA, the speed boost that is needed to considerably simplify our systems.

When we talk about “in-memory” in relation to HANA we are talking about the Level 1, 2 and 3 caches inside the CPU, we mean taking the column store data and

ensuring the caches are constantly kept full, and being able to take our dictionary compressed binary data many values at a time to fully utilise the vector (SIMD)

instructions that can process data many items at a time with each instruction.

This is a fundamentally different way of doing our computing and to do it we needed to design HANA from the ground up.

Another key point is that not only do we fully exploit these new CPU features that have only appeared in the last 7-8 years but we do this for ALL our

processing, that is we have a system that can take advantage of this much more efficient way of doing things for relational database, predictive, planning, text

processing, etc. etc. What is even better we have invented a way of being able to store the data in a way that allows us to do transactional processing on it too –

so we get the speed advantage and can apply it to our whole workload. This means that we don’t have to think about which part of the system to use for what

part of the workload, we can use it for everything we may wish to do - a considerable design simplification and source of productivity and agility.

So simply saying that something works “in-memory” is not sufficient, we then have to ask “Which memory do you mean exactly, how do you use it and what can

you use it for?” The answers you’ll receive will be very different for different products.

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Traditional table design in disc-based RDBMS – many tables

Complex assemblies of tables complicate BI development and changeLets just recap on what is happening under the surface of the traditional way of doing

things, where data is stored as ‘rows’ or records of data, with many attributes held for a

row. Here we see a large master record containing many attributes surrounded by other

tables, lets explore what those tables are. The master table itself will have many attributes,

possibly several hundred, they may represent attributes used in many different industries,

many not relevant to a particular company.

The turquoise block represents a one character indicator that we’ve just chanced, say “1”

to “2”. To do this we have to update the entire record, which may be 2,000 characters long

or more. We also have to write an equivalent sized audit record, or maybe we can get away

with keeping just a subset of the record, as we see at the top.

On the right hand side we see extra tables where we keep pre-aggregated and summed

results, but of course if we update the base record we may have to update these tables too

as various SUM’s and COUNTs may have changed, these are application tables, but in the

background we may also have similar tables helping the database manager produce

results and they have to be updated too. We see our turquoise blobs appear where

updates may be necessary. On the left hand side we see a similar structure but this time

for secondary indexes, that is if we have many invoices mentioning products we may also

wish to quickly find out which products are in which invoices, so we have tables,

maintained by the application, which tell us this, these may also need to be updated.

Also we may have similar indexes maintained by the database rather than the application and these need to be updated too.

To summarise, we need a multi-table assembly to get the required business information, and we need auxiliary data sets supporting disc-based row table update

to achieve acceptable write and read performance, these are complex and time consuming to optimise. We also needed a complex ABAP development and/or

complex data model to be able to maintain these structures and keep them synchronized, and also to navigate them in order to do reporting and querying upon

them.

This is Inherently, complex and require exhausting unit and integration testing efforts across the complex data set and table assembly to check any “small”

enhancement request of the business user community, almost making it impossible for any ad-hoc, on the fly change, and also making it very difficult to provide

timely changes to the system and making very costly the efforts to deploy upgrades and enhancement releases. This way of working maximizes the constraints to

deliver innovations to the business. However, with traditional disk and row based technology there is not choice this is the way it has to be done.

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S/4HANA design concept makes use of the much simpler and

elegant columnar data method

S/4HANA design concept is based on inserts only the single changed value

only into the in-memory columnar store for the field where the change

occurred it works like this.

Each attribute has its own column of data, it no longer physically shares a row

with other attributes (but we know which attributes constitute a row – they are

the N’th value in each column for the N’th row).

When an attribute is modified we don’t overwrite the old value, instead we

insert a new value and mark the old one as changed. We have written one

piece of information and modified another – that’s it, we’ve avoid to write

whole rows.

Because we still have the old value we can reconstruct the old rows for audit

purpose at any time, in fact we can do that for any point in time. Thus we don’t

need all the complex audit data structures of whole extra rows or partial rows.

This is all done live and in memory, of course, we write the change to a

permanent log in case we need to recover but that is fast and simple.

(Note: For the technically minded SAP HANA adds a validity vector to the

tuple, the individual value, to identify the most recent record from a time line

perspective, the validity bit is read during a query execution to speed up the

overall read dramatically.

The bit vector is a technique to speed up the read of the differential buffer where changes are kept for the uncompressed delta changes, so that the combined

read across the differential buffer and the compressed main memory is much faster than the read of a row record on disc or even in memory, as the system can

perform a table scan. For each record, this validity vector stores a single bit that indicates if the record at this position is valid or not. The vector remains

uncompressed to ensure proper read and write speed).

We don’t need indexes as every column effectively works as its own index. If we want to pick out particular values we scan the dictionary for that column, pick

out the bit compressed values we need then do an ultrafast scan of the column, no separate data structures are needed.

Likewise we no longer need to pre-aggregate data, we have sufficient speed to be able to roll up and data we wish on the fly.

This is pretty abstract so lets look at the practical consequences of this by looking at our Logistics application.

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S/4HANA Example of dramatic simplification:

Logistics - Materials Management

Here is the Logistics application before and after

conversion to the simplified version using HANA.

At the top of the slide we see the original data structures

needed. These include all of the kinds of things that we

spoke of earlier, not just the main table (MSEG) but all the

other tables needed to support it, all the layers or

aggregation, secondary indexes, etc

This came to a total of 28 tables to be created, maintained,

tuned, administered and changed over time.

At the bottom we see the new application data structures,

basically a single table. Think of the implications of this in

how easy it is to introduce new innovations and how

simple it is to create new reports that use the data without

having to worry about the impact on the other 27 tables

that are now no longer there. Think about now less error

prone this is, how quickly changes can be made and how

much less testing and administration is needed.

Therefore how much easier it will be for us to introduce

new innovations on top of the ones already enabled by

HANA. This is what allows us to pull ahead of the market

and stay there. We will simply be better able to innovate

than companies reliant upon previous generation

technology, and our customers will benefit by being able

to differentiate themselves in ways that can’t be provided

by other software applications.

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Example of massive simplification:

SAP Accounting powered by SAP HANAThis exploitation of modern microchips and the incredible speed that it makes

possible allows us to do away with pre-aggregated data, indexes and other

‘supporting data structures’.

A good illustration of this is what we have done with our Simple Finance

application. Please note: Whether you are planning to use, or considering our

Finance application is not the point here, here we are using it simply as an

example of how we can simplify a major application.

It was the first of the SAP ERP applications to be re-engineered to use the

unique capabilities of HANA. It is one of our most important innovations, and

was introduced in 2014. It is essentially an entirely new architecture for SAP

ERP Financials.

Its main characteristics are:.

• Convergence of FI and CO. There will be one logical document that is the

common basis for both regulatory and managerial accounting. Thereby, a

much higher degree of consistency between FI and CO has been created

abolishing the need for time consuming and error prone manual

reconciliation. Since they are now the same record they can’t be different.

• Abolishment of pre-defined aggregates. All aggregation and transaction

processing is now performed ‘on the fly’ based on HANA Live views. The

totals and indices in FI and CO are a matter of the past. This fact is a further

move to preserve data consistency throughout the entire technology stack.

As a side effect and due to HANA, memory consumption is drastically

reduced, helping to reduce TCO.

More flexible reporting. As a beneficial side effect, reports can now be configured by the end user in a very flexible way without requiring any assistance from IT.

We can report on any attribute.

Large customers in particular are interested in leveraging Simple Finance on SAP HANA for harmonized real-time internal reporting (the so-called central journal

/ finance approach) – prior to consolidating their full system landscape into a single ERP system.

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Finance System – Before HANA

Here’s a good concrete illustration of what we mean by complexity, and

how we provide radical simplification.

Under the Financial application there are about 23,000 ‘data objects’

these can be tables, aggregates, indexes etc.

Every little blue rectangle on this diagram represents ten objects – so in

fact this diagram is considerably simplified !

Now lets consider a business operation such as a corporate

restructuring, an acquisition, or a demerger. How will that affect the

values that have been pre-calculated and deposited in all these physical

data objects ?

The only way to be sure is for someone to go through them and think

about them, design any changes, develop the change mechanism,

unload and reload and recalculate the data. Clearly a very onerous task

and one that therefore is a significant impediment to making

organisational change.

Remember, when we are evaluating say three scenarios we need to work

out which subset of these physical data objects are needed to represent

those scenarios. We have to replicate these three times and load them

with data structured according to that option. When we’ve done that is

scenario three better than scenario one because it’s better, or does it just

look better because something changed in the data in the five weeks it

took to load everything?

By the way, when we do this we also need to worry about which objects

can co-exist with other objects on our disk storage, which can and

should be separated in order to make loading or querying more efficient.

So what is the implication of the simplification that we have done ?

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Finance System – After HANA

In the simpler Finance application we have removed 95% of all the data

objects !!!

That is we have removed 95% of all the things we have to worry about

and maintain in the application.

The function remains exactly the same. In fact we can now do things we

could not do before because we have been freed from being slowed

down by the complexity.

It is intuitively obvious that the diagram above will be significantly easier

to work with, we will be able to deliver function much faster, at lest cost

and with much greater flexibility.

If we want to change company structures and roll them up another way

then we just go ahead and do it – there is no need to unload and reload

the data.

If we want to represent the company in several different ways we can do

that too because there is no cost in defining the different structures

because we don’t’ have to store the data.

This will help us be able to change our organisations ‘on the fly’ and

move toward continuous intercompany reconciliations, and continuous

close – and many more functions besides.

It is worth flicking back and forth between the last page and this and just

thinking about the implications for development, for system change and

administration.

SAP invented HANA to make it possible for us to introduce new

applications and change our existing ones much faster and more easily

and from the above you can see how we succeeded – and you can do the

same to make your organisation more productive and agile – and to

lower costs.

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SAP HANAMore than just a database – a platform

Of course we need to build these capabilities into a complete working

system, and we have done this with what we call the SAP HANA Platform.

At its core is the in memory computing engine we’ve discussed, but this

is complemented by extending this with large scale disk based column

stores, stream processors, data replication, extract transform and load

capabilities and easy integration with open source systems such as

Hadoop. The modern architecture that contains a number of different

complementary engines. The core engines run in memory to provide the

simplicity and agility that in-memory gives, but it is extended by many

other engines external to the in-memory core, engines for multi-tier

storage, Hadoop as an engine for large volumes of unstructured data,

engines that happen to sit in legacy systems, and specialist engines

such as for streaming or for communications with mobile devices.

This architecture is simple, elegant and modern. It allows for any mix of

processing, provides very cost effective IT and yet gives you the

productivity and agility advantages of in-memory.

These are generic advantages and the can be used for both SAP

applications, non-SAP applications or mixtures of the two.

This allows us to use the platform to address a wide range of information

requirements and match the right kind of tool to the right job. It allows us

to very easily integrate the SAP HANA Platform into existing IT estates,

complementing what is already there, and then meeting requirements in

a simpler and more cost effective manner.

We’ll not dwell on this now, as SAP has many comprehensive

presentations to take you through the SAP HANA Platform, the point here

is that having invented a fundamentally simpler and more effective way

of building enterprise systems we have built this out into a complete

platform.

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SAP HANA, the great simplifier of enterprise software

The vision of SAP HANA has been introduced in cautious well considered steps over a

number of years, introducing new function gradually and fully exercising the core

platform. In 2011 (actually 2010) we released HANA simply as a stand alone analytical

platform.

From 2012 we could drive real-time operational reporting and simplify how they run

their SAP BW. SAP BW powered by SAP HANA has already exceeded +1600 customers

From 2013 our customers could start working as real-time business and simplify how

they run their SAP Business Suite by bringing transactions and analytics together into

a single in-memory platform. SAP Business Suite powered by SAP HANA has exceeded

+1800 customers in only two years (one of the fastest growing product in SAP’s

history)

Business Suite, specifically enabled by HANA provides our customers with significant

benefits through massive simplification, much greater flexibility and much greater

performance – and all at less cost. More than 5800 customers have already adopted the

platform to do just that with our existing applications optimized to run on SAP HANA:

In June 2014 we enabled people to drive real-time insight across finance and simplify how they run their finance system with SAP Simple Finance powered by SAP

HANA, simplifying the application by 95%, removing 22,000 data objects, removing aggregates, data redundancies and replication

With S/4HANA, we are building on the success of the SAP Business Suite powered by SAP HANA with a completely new suite. S4HANA is only built on SAP HANA

because only HANA can deliver the level of simplicity required by customers today:

Now in 2015 S/4HANA is natively built on SAP HANA for massive simplifications (simplified data model: no indices, no aggregates, no redundancies), also using

SAP Fiori offering an integrated user experience with modern usability (these interfaces are role-based, with 3 steps max to get the job done, developed ‘mobile-

first’, and offering a consistent experience across the various Lines of Business.

S/4HANA is natively built for advanced innovations (e.g. new applications predicting, recommending, simulating / processing of text, geo data, graphs, genomes).

Also, S/4HANA is natively engineered for providing choice of deployment (on-premise, cloud, hybrid). In addition S/4HANA fully leverages the new multi-tenancy

functionality enabled by SAP HANA

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Some facts about SAP S/4HANA

Now that we’ve established how we’ve been able to do something very

different, to fundamentally simplify enterprise systems lets look at how this

expresses itself in our new generation of applications, and see how a few

current facts about S/4HANA speak for themselves.

It is clear form these that we have succeeded in the vision that we set out to

realise. S/4HANA is a new code base, and with Fiori a new User Interface (UX),

plus new ‘guided configurations’ that help with adoption.

These simplified applications are seamlessly integrated to offer one solution

for a wide range of business problems. All these application get completely a

modern web-based Fiori User Experience – ready for real cloud consumption

All these capability taken together makes these applications a completely new

product: with new database, data management, technology and front-end.

A major achievement is the ability to reintegrate ERP, CRM, SRM, SCM, PLM in

one system - to save hardware costs, operational costs and time.

This is possible because S/4HANA has a 10x smaller data footprint compared to

a best-in-class business suite on traditional database. But remember now we

implement these on platforms that are large scalable clusters of processors, we

have a unified system but one that is easily and linearly scalable.

Thus we can see that in some ways we have come full circle, back to the

integration of multiple modules and applications on a single platform, but now

considerably simplified and with much greater performance.

Another example is less process steps: Processing receivables app in SAP GUI

vs. FIORI/Simple Finance: Number of screen changes 8 --> 2 (4x)

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Revising our Assumptions about System Design

Things that are now much easier with HANABefore we go on its worth doing a quick checkpoint. We’ve explained how HANA was

specifically designed to solve major problems with existing systems. Some of what we’ve

said about HANA is counter intuitive, because it goes against twenty or more years of

experience with computers. There are certain assumptions we make about systems

design because those assumptions are based on long experience. But here we must not

just learn about HANA but un-learn many of those assumptions because they are no

longer true.If we have a requirement that needs high speed transactional update against

a data store that we want to simultaneously do complex analysis against then we can – in

the past we’d have to separate these two pieces of the requirements into different parts

of the system, and OLTP updating system and a complex query system – and then

implement logic to connect them, keep them in sync etc. That is no longer true, HANA

allows us to combine both on true single copy of the data.

Thus we can do BI queries against the operational data, either a custom application

we’ve written, or an SAP application such as the Business Suite.

We can develop using a simple data model that consists of pretty much the logical

business data model, rather than having to embellish it with lots of added aggregations

and indexes. This makes for much faster development and much easier modification.

We can implement more requirements and keep the system up to date with changed requirements – more requirements met equals more benefit.

Large scale math can be used, often ‘interactively’. Previously we’d shied away from this because response times would be too long. But now we can insert

heavy duty math into what look like interactive OLTP transactions and get superior results from more sophisticated analysis.

Because of the ease of change we can commit to keeping the application up to date more easily, supporting a faster pace of change, for example modifications

to analytic rule-bases or constantly changing reports.

We can check out our data, even at production volumes in seconds. This allows a much faster pace of development, and we often don’t have to have separate

phases of the projects one for functional development on a subset of the data and then others for full volume testing.

Likewise we can most likely do away with most batch processes and instead streamline our processes so that they become interactive, thus enhancing the

productivity and responsiveness of those who work with the system, both developers and users.

So this is just an aide-memoire of things to reconsider, things that used to be complex and scary but which now are relatively straightforward. We’ll explore

some of these in more detail now.

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Speed allows elimination of aggregates, indexes

this alone can result in a 90%+ reduction in complexity

Thus, importantly, one of the ways in which we choose to spend this speed

increase is not in simply making things faster. Rather, we take that speed and

use it eliminate complexity. When we can do our processing so fast you no

longer need indexes and aggregates and all the complexity that comes with

them.

In fact, for most types of processing we can not only eliminate all this extra

complexity and baggage from our systems but still end up with a system that is

much faster than our old ones!

This is the goal of HANA, not simply making things faster, but radically

simplifying everything we do, this represents a fundamentally new way of

doing things, a step change in information systems, just like the mainframe

was, Client / Server, the PC, the Internet.

Remember, what we are aiming to do, is to improve productivity, agility and

radically reduce cost of ownership.

When we look at the above we can see lots of reasons for this. Users get

instant or near instant results, even for complex processing. Developers can

deliver new or changed function to them sooner so they can accrue more

benefits, they can do this since the whole system is much simpler to develop in

– there is less to develop and what is left is simpler to develop with.

If we need to respond to new opportunities and threats we can do much more

simply too, for the same reasons, simpler systems are more agile to work with.

Obviously we have radically simplified the IT landscape so we save costs on

hardware, data centre costs and administration. Aside from being on

commodity Intel systems we’ll expect to need smaller systems and fewer of

them. Note that they are only smaller in number and size, their compute power

may be many times that of the original systems.

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On The Fly Transformation provides greatly increased flexibility for

sharing data

Another thing we can do with HANA is to defer the transformation and

combination of data into new forms until the moment we issue the query.

That is, transformations that would normally be done as part of an ETL

run can be done ‘on the fly’.

This can make us incredibly more productive, we can develop new

reports quickly, if we’ve got something wrong there is no physical data to

reload, we don’t have to integrate the data physically before we can

combine it.

Applications can easily share data with each other, they just have to read

it, as if it was part of their own application – think profitability metrics

used by marketing for example.

We already use this technique with our ERP system using a ‘virtual data

model’ called HANA Live to provide easy to use views on to the

operational ERP data.

Each layer of the view simplifies the underlying data structure. One layer

may combine tables, another may substitute user friendly names, another

may calculate measures so that what starts as a complex third normal

form set of thousands of tables is presented as a set of user friendly

cubes or star schemas.

Also consider how easy it is to fix errors, if we have done a transformation incorrectly we just correct it and then recalculate – no need to do lengthy and time

consuming reloading of data structures, this makes us much more agile.

It is also simple to combined data from different systems.

Consider also that using this technique we may have multiple different versions of views in use simultaneously. If we were going through a transition, say a

restructuring, then we might have an ‘as is’ view, and a ‘to be’ view, and maybe several alternatives in force at the same time. After all, they are just definitions,

we haven’t had to prepare and physically load the different versions of the data because we’re generating each of them on the fly, we can have as many as we

care to define.

Think of the freedom that this gives us to flex and make changes to the organisation.

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Project Efficiency ~60% reduction, tasks shrink or are eliminated

This is a diagram showing the effect of simplification on a typical project

plan.

The data was drawn for half a dozen SAP BW projects, but the principle is

the same for any project.

At the top we see the traditional way of doing things, and at the bottom

we see have we do them with HANA.

This is again pretty simple, many of the tasks shrink and many of them

just go away. There are no physical cubes to design, place on disk, and

tune – they don’t exist any more.

When we are checking out the data we can do this with queries that give

us instant results so we can go through many cycles of data checking

very quickly.

We don’t need a separate ‘volume test’ phase. Usually we’d functionally

test on 10% or less of the data, then do a separate phase where we crank

up the volumes, and which point we discover the data errors we’d missed

and scaling problems. With HANA we are more likely to used production

scale volumes from the beginning so we don’t need a separate phase.

As we implement our different queries and as the requirements get

modified we would normally have to design the database, that is define

the physical data structures in a way that that will provide adequate

performance for our many users. With HANA we don’t need to do this as

we don’t need to do this, we can run pretty much on just the logical

model – with no aggregates, cubes and indexes required. It is just

common sense that this takes much less effort.

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Simplified Stack, fewer parts, easier development

HANA also offers the opportunity to reduce the number of different

hardware / software combinations in the IT estate.

Because HANA is a complete platform, containing multiple processing

techniques and tools then quite often we can just invoke the features in

the HANA platform and don’t need separate components – or it may be we

still have some separate components but there are now fewer off them.

We probably have less copies of the data, and a lower latency in getting

results due to moving data between different layers. Moving data between

different platforms or stacks also contributes to lack of agility since we

have to do an application integration job to solve our requirements.

Of course the separate stacks also contribute to complexity and cost, and

can also lead to a lack of transparency and control. Simply put, if there

are a smaller number of components and they are all gathered in one

place we can develop more quickly and at less cost.

Advantages of SAP’s approach are that we have a single platform that can

be used for both transaction processing and reporting. There is a lower

cost to serve since the server is smaller and simpler. When we develop

applications we just invoke the different components as and when we

need them. The overall system is smaller and easier to administer. We can

also grow it incrementally using those features we need as and when we

need them without having to add whole new platforms.

:

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The SAP HANA PlatformA complete platform. Development, Administration, All styles of processing and data

We’ve shown how we can use advanced in memory techniques to

radically change how we do our information processing to radically

simplify our systems and provide superior performance.

What we also needed to do was built a complete general purpose

information processing system around this core, as we need to be able to

cope with a wide range of different workloads.

This is shown in the diagram above. Here we see the various HANA

engines, but we also see the obvious extensions such as data

provisioning tools, access to a high volume warm data store and

integration with

HANA platform being used by both SAP and non-SAP systems. We see

the multiple in-memory engines being extended with things like tiered

storage and federated access to remote systems and Hadoop.

We also see the multiple data input methods allowing for ETL, ELT,

replication and streaming.

With this we can cope with any general purpose workload we might

encounter and we are able to deploy the right kind of component for the

right kind of job.

The modern layered architecture that we follow makes the system easy to

extend as new modes of storage and processing types are invented –

we’ve just demonstrated this with the introduction of a Graph engine for

holding and traversing very large networks of nodes and linkages

between them which enables us to naturally represent network problems

such as the monitoring of a telecommunications network or keeping track

of the relationships between people, places and things.

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S/4HANA the primary reason for HANA and the culmination of a five

year release process

So, we can now see why we developed SAP HANA, and how we are able to

bring about the significant simplification that it offers.

We’ve seen that by fully exploiting modern microchips through innovative

techniques we can fully exploit them to get speed ups of 100,000x or more.

This then allows use to eliminate unnecessary data structures such as pre-

aggregated data, indexes etc, thus significantly simplifying applications,

making them easier to develop, maintain and use – and there is enough speed

increase left over, after making the simplifications, to still have the

applications run hundreds or thousands of times faster, thus adding to our

productivity by eliminating wait times.

We can thus see, in the picture above, that S/4HANA was both the long term

goal in the development of HANA, the next generation of ERP with significant

capabilities that can only be provided using the simplicity and speed of HANA

– capabilities that cannot be provided using previous technology.

We can also see that this is the culmination of a careful and methodical five

year release schedule, first releasing the core technology, then moving on to a

non-mission critical application (BW), then porting the Business Suite to

HANA, then taking the core application (that the others depend on) Finance

and showing how it can be simplified, then releasing then moving on to other

parts of the Suite to do the same thing there.

At different parts of HANA’s history it has been type-cast into a number of different roles, an in-memory query accelerator, a replacement for BW Accelerator, a

turbo charger for the Suite, so its easy to see how the perception of HANA can get ‘stuck’ in any one of these roles. But now, with the successful introduction

of Simple Finance and S/4HANA that its true, general purpose and multi-purpose role becomes clear. It represents a fundamentally better, simpler and more

effective way of using information that can be applied to any information task.

The radical simplifications that HANA brings allows the new generation of ERP S/4HANA to evolve from its predecessors, R/2, R/3 and ERP and be able to

provide significantly different business capabilities, such as fast close, predictive close, creation of real time reports on the fly, easy restructuring, more flexible

reporting on any attribute stored and many more.

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Boardroom of the Future - 1/4

https://www.youtube.com/watch?v=q7gAGBfaybQ

Remember that “Boardroom of the Future” picture that we started with ?

The simple picture of the vision of what we wanted to achieve with

HANA, we’ll, from the third quarter of 2015 SAP started running its board

meetings using our first version of that kind of system.

These are a series of screenshots taken from a short (11 minute) video

that’s available on YouTube which provides an overview of the actual

system.

See: https://www.youtube.com/watch?v=q7gAGBfaybQ

You can just click on the picture to view the video.

This system is currently being offered as a commercial product, so other

companies will be able to gain the same agility advantages too.

In its current version it is run on three very large touchscreens. In this

picture we see the agenda items listed on the screen, and the person

running it will just have to touch an agenda item to display the

information relevant to the discussion in that part of the agenda …

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Boardroom of the Future - 2/4

Here is a typical expansion of one of those agenda items. It is a display

with a whole range of KPI’s graphs and statistics that describe the

situation.

We can touch different parts of the display to drill down to detail, or to

expand the display in different ways. This is highly interactive as even if

we have to process hundreds of millions of rows of detail data, or more,

we get the answers back in seconds, so as not to constrain the

discussion.

Participants can get their answer in ‘human real time’ and deal with a

particular issue to its conclusion without having to defer it to future

meetings or put up with lengthy delays. There is no need for specialist IT

support to redesign parts of the database or build special reports

incurring waits of days or weeks, we can do anything we want when we

want right there in the meeting.

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Boardroom of the Future - 3/4

Here the person at the screen has selected an item that provides

simulations and dragged it with his finger onto the screen. The system

has then provided a forecast simulation for upcoming time periods

based on the history its seen previously.

This can be overlaid with the actuals thus far for the year, and we can

predict, where we think we’ll end up. This means we an see problems

coming when there is plenty of time to deal with them, not having to wait

till quarter end accounts before we realise we’re in trouble.

These can be financial measures, but they could also incorporate real

time feeds direct from our business processes that show where we may

have bottlenecks in the system that are causing problems with the

financial numbers. If we want we could expand it with customer

information or signals from the market that show the trends on demand,

or lack of demand for particular products.

This is completely flexible because we are doing all of the analysis by

rolling up from the item details, so we can do this at will, simply by

saying how we want it rolled up.

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Boardroom of the Future – 4/4

Here we’ve moved on to a discussion of the company sales pipeline. We

see a map of the world coded according to where the revenue is coming

from.

On the right we see a cluster of colour coded blobs, the size and the

colour of the blob tells us about a particular large deal that is part of our

pipeline. We can touch a blob to expand it and drill down into the detail.

We can cross relate an opportunity to the staffing for it, so we can

immediately see if we have sales teams that are overloaded or who need

particular help. This is all transparent and immediately visible on the

meeting.

So, as you can see we are now coming full circle back to the original

vision for HANA, enabling the next generation of flexible ERP, a general

purpose platform that allows us to implement systems with greater

productivity, agility and at lest cost, and making good on the promise of

doing business in real time.

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How might HANA simplification solve pressing problems?

Thank you for your attention. We’ve covered a lot of ground in this

presentation, but we believe that it should now be clear why HANA was

invented, what it is, and what is so special and disruptive about it.

We have seen many examples and illustrations of how it can help a

company very directly gain new business value.

As we note above, we expect the benefits to be the result of a

fundamental simplification in the implementation of new business

requirements. These benefits principally appear in improved productivity

for users and developers, greatly improved agility, and a potentially

radical simplification of the systems landscape, with of course

spectacular improvements in performance too.

But this is not just an interesting academic exercise. Instead it gives us

an opportunity to revisit requirements and look at them with fresh eyes.

These may be problems that we’ve previously not been able to solve, or

it may be that we have problems we have solved, but there is now a

much easier, less costly and faster way to solve these and which provide

additional benefits.

We might do this by homing on particular issues or we might have wider

scope Design Thinking discovery sessions.

We look forward to working with you to find ways that give you new ways

to gain business benefit. Thank you.

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Thank You and links to further information

Thank you slide for audience.

Also a series of links for further information.

These include:

Links to the original blog and video, this Slideshare provides a means for

people to obtain a copy of the slides. As stated earlier the best way to

consume this slide deck is to first watch the original video on YouTube,

then use this deck as a refresher, or to support your own meetings.

There are also contact points within the SAP Global Centre of Excellence

for HANA should you wish to ask questions or discuss this with SAP, or

simply contact your SAP representative

Plus there are the high level online links to SAP HANA sites, in particular

saphana.com and sap.com/hana

A wealth of information about many different topics can also be found

thorough the link to the SAP HANA Academy