SAP* at Intel

Usha Sampath
Co-Director of Enterprise
Application Services, Intel IT

June 25, 2005

Intel, the Intel logo, and Itanium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
Last Updated: 26 May 2005
Key CIO Challenges

1 Re-architecture & Operations Automation

a key theme in IT shops for TCO /Agility breakthrough

2 Security and controls spending growing

by ~15 % YOY in CIO’s budget

3 Data Volume continues to grow 2X every

12-18 months – must harness as a corporate asset

4 Biz Solution Integration must migrate to a

“plug-and-play” based platform

The IT Mandate:
Aggressively move to SOA to address above challenges

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Intel, the Intel logo, and Itanium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
* Other names and brands may be claimed as the property of others. Last Updated: 03 Nov 2004
CRB - Video

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 SAP* Business Landscape at Intel
Demand Plan Source Make Deliver

Order Indirect Warehouse

Management APS Materials Management
APO* MFG
SD/MM EBP, MM MM

ALE, BAPIs,
RFC
ALE*, RFC ALE/CIF ALE, BAPIs*, RFC ALE, RFC

ALE, RFC
Central Reference System – MM/FI/PS/IM/CO

ALE, BAPIs, RFC ALE, RFC

ALE, RFC
Disco GTS*
SD Direct (xAPP*)
Direct
CHM* materials
materials
(CRM*) MM MRP/PP
MM//PP

SAP production instance

Intel®
Intel ®Itanium®-based
Itanium®-basedsystems
systemswill
willenable
enable Itanium® architecture
Phase 1 deployment
server
serverconsolidation
consolidationthrough
throughincreased
increasedmemory
memory Itanium® architecture
allocation
allocationand
andincreased
increasedcomputing
computingpower
power Phase 2 deployment
Interfac

4 e
Intel, the Intel logo, and Itanium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
* Other names and brands may be claimed as the property of others. Last Updated: 03 Nov 2004
 Today’s SAP* Enterprise Environment
● 10,000 active users

● 91 databases

SD MM PP EBP Inv Inv Factory

● 300+ servers SD MM PP
SD MM PP
SD MM PP
● 13 Production ‘Pipes’ FI WM
SD PS
MM PP APO*
FI WM
SD PS
MM PP Web
FI WM PS Dist HR
FI WM PS Order
● Heavily customized HR IM CO
FI WM PS
● 10,000+ objects HR IM
FI CO
WM CO
HR IM CO
Basis
HR IM CO
● Multiple versions Basis
HR IM CO FI FI …..
Basis
HR IM PS
● 3.1I -> 4.7 Basis
Basis
Basis SAP
● Change one, change Legacy Applications
Components
all

Portal Sec. EDW

Portal
Portal
Enterprise Platforms

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Intel, the Intel logo, and Itanium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
* Other names and brands may be claimed as the property of others. Last Updated: 03 Nov 2004
 Order Management (SD) Production
Storage and
Production Production failover
database

UNIX* on Intel® 601 GB

architecture
12-way Redundant clustered
4 GB 601 GB
database servers with
automated failover
601 GB

Gigabit Ethernet Disk mirroring and

Intel® Xeon™ Intel® Xeon™ third mirror backup,
Intel® Xeon™ Intel® Xeon™ scalable to terabytes
Central instance Intel® Xeon™ Intel® Xeon™
with automated 10 - 4 way Intel® Xeon™ with
Intel® Xeon™ Intel® Xeon™
failover 2 GB memory Application
Intel® Xeon™ Intel® Xeon™ Servers
Scale out and scale up
with minimum downtime
LAN/WAN

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Intel, the Intel logo, Xeon and Itanium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
* Other names and brands may be claimed as the property of others. Last Updated: 03 Nov 2004
 Disaster Recovery
Production Production failover Bunker Disaster Recovery
SAN SAN SAN

601 GB
In range
Channel
601 GB Extender

601 GB Extended distance

T3 connection
Synch Write Periodic Write

Gigabit
Intel® Xeon™ Intel® Xeon™
Ethernet With a scale out and scale
Intel® Xeon™ Intel® Xeon™
up approach we will see a
Intel® Xeon™ Intel® Xeon™
5:1 server reduction
Intel® Xeon™ Intel® Xeon™

Intel® Xeon™ Intel® Xeon™

Integrated systems solutions
with Intel® architecture provide
LAN/WAN
zero data loss disaster recovery
capability
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Intel, the Intel logo, Xeon and Itanium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
* Other names and brands may be claimed as the property of others. Last Updated: 03 Nov 2004
 Value of Running SAP* on Intel®
architecture December 2003 External Benchmark
Hardware/Software Costs Per Server
Intel has a more robust $16,000
$14,214
service capability at $14,000
$11,580
$12,000
lower unit costs than
$10,000
peers, on average $8,000
$8,127

$6,000

Total Annual SAP Hardware/Software $4,000

Costs per Instance $2,000

$250,000 $0
Intel Total Peer Average Peer 25th
$200,000

$150,000
Intel architecture
$100,000 enables best-in-
$50,000
class hardware
$0
infrastructure cost
Database Peer Intel

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Intel, the Intel logo, Itanium, and Xeon are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
* Other names and brands may be claimed as the property of others.
Order Management - Video

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SAP* TCO Breakthrough at Intel
Case Study

1400
Actual
1200
Number of Servers

Projected

1000

800 Cost

600 Intel®
Itanium®2
MP
400 Intel®
EM64T
Dual Core
Multi-threading
200
Multi-Core

0
2000 2001 2002 2003 2004 2005 2006 future

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Intel, the Intel logo, Itanium, and Xeon are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
* Other names and brands may be claimed as the property of others. Last Updated: 03 Nov 2004
TCO/Agility Breakthrough – Evolution
2003 - 2004
Server Consolidation NetWeaver* Shared Landing
Intel® Pentium® processor-based systems
SAP*
SAP* SAP
SAP SAP
SAP SAP
SAP
BW*
BW* XI*
XI* EP*
EP* …
…
Common
Common Application
Application Components
Components
Intel® Itanium®
processor- Operating
Operating System
System
based system
Intel Host Platform

Modularization 2005 - 2007 Virtualization

On-Demand Servers On-Demand Virtual Servers
M E S S C SAP
E X B
D C R C R OS SAP OS
P I W OS SAP OS
M C M M M OS SAP OS
SAP
Bladed Architecture
TCO Breakaway with SAP Adaptive computing, NetWeaver 04
compatibility releases, and Intel Itanium®2
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Intel, the Intel logo, Pentiu, Itanium and Itanium 2 are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other
countries.
* Other names and brands may be claimed as the property of others. Last Updated: 03 Nov 2004
 Why Re-platform?
Improved Development & Mgmt Tools
2

Inv Factory FI
mySAP PLM*11
1

SOA / WS
Distributed
Apps
mySAP Web
mySAP ERP*11 mySAP Dist ….
Order
SRM*11 FI/CO, CRM*11
HR
5
End-to-End
Service Other Enterprise Applications
Predictability mySAP SCM*11

SAP NetWeaver* TCO =

Simplified
4
Integration Enterprise Platform Cost

+
3
Sec. EDW Enterprise Cost of Integrating
Portal
Platforms Apps & Platforms
+

Cost of Applications
2008
1 New SAP capabilities will be delivered in ‘new’ architecture
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Intel, the Intel logo, and Itanium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
* Other names and brands may be claimed as the property of others. Last Updated: 03 Nov 2004
 Steps to Value – Balanced Model
TCO in half, Gartner* Function Point < $60
Current SAP* R/3* platforms Gone, 90/10 vanilla
Capability / Service Predictability

2X Beat Rate PO to SRM*, GL to mySAP*

AP/AR to mySAP*

Architecture Inventory, Supply Chain Plng & Mfg exec

Business Capability to SCM*, AP/AR to mySAP
MDM*, Mobile Infrastructure, SOA
Increased Capability driven by SCP, BOM to mySAP ERP,
OM to CRM*, TLC to GTS*, xApps*
Knowledge Management, Collaboration
Increased Capability driven by SCPs, xApps, Logistics to WM

NetWeaver* Core, BW*, XI*, Portal, Workflow, RFID Explore for Value & Roadmap
Pricing, Channel, Planning, e-Contract, Contingent workforce, Global Trade Services

2005 2006 2007 2008 2009

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Intel, the Intel logo, and Itanium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
* Other names and brands may be claimed as the property of others. Last Updated: 03 Nov 2004
 Projected Benefits of Re-platform
SAP* Re-platform vs. Do Nothing
1000 100

Target
TargetFPFP
800
byby2007
2007 80
2x FP
delivered
FP Delivered

600

TCO $M
60
35% redn in
400 TCO by 2009
Target
TargetTCO
TCO
byby2007
2007 40
200

0 20
2004 2005 2006 2007 2008 2009
FP (Re-platform) FP (Do nothing)
TCO – Re-platform TCO - Do nothing

 Re-platforming will result in 35% TCO reduction by 2009 and 2x increase in FP delivered
– 50% reduction in projected TCO of Do-Nothing scenario
– By 2009 we will see a 50% reduction in support and development costs

Accelerate the re-platform to hit our FP and TCO goals by 2H-2007

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Intel, the Intel logo, and Itanium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
* Other names and brands may be claimed as the property of others. Last Updated: 03 Nov 2004
 Summary
 We have one of the world’s largest SAP* implementations, and it is
based on Intel® architecture

 SAP is a mission-critical business system and the core of our

e-Business foundation
– Proven solid
– Robust, reliable, and dependable

 Our decision to implement a distributed environment has paid off

– Scalable, low cost, and meets our availability and performance needs

 Enterprise Re-platform is a forcing function that will provide the

end-to-end service predictability we are looking for

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Intel, the Intel logo, and Itanium are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries.
* Other names and brands may be claimed as the property of others. Last Updated: 03 Nov 2004