Commerzbank Sector Conference Week
Oliver Bussmann, EVP & CIO SAP AG Frankfurt am Main, August 31, 2011
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Agenda
- y SAP at a Glance
- y Driving Innovation at SAP
Agenda
- y SAP at a Glance
- y Driving Innovation at SAP
SAP is the World's Leading Business Software Company
SAP is…
- y #1 in enterprise applications
- y #1 in SME applications
- y #1 in business analytics
- y #1 in enterprise mobility
SAP is a truly global company…
- y €12.5bn total revenue
- y 172,000 customers
- y 120 countries
- y 34 global technology partners
- y 2,900+ certified partners
Our Purpose
VISION MAKE THE WORLD RUN BETTER
MISSION
MAKE EVERY CUSTOMER A BEST-RUN BUSINESS
By Mid of the Decade
€20bn 35% MARGIN 1 BILLION PEOPLE
Top-Line Growth in First Half 2011 Combined with Operational Excellence Results in Strong Profitability
* at constant currencies
Strong Financial Results: Six Quarters of Double-Digit Growth
Q2 / 2011
- Continued double-digit revenue growth
- 88% of order entry from existing customers
- ~1/3 order entry from SME
- Diversified revenue stream by region and industry
- Record operating cash flow: €2.3 billion
- Continued margin progression year-over-year operating margin +100 bps
Software revenue numbers based on non-IFRS
Increasing Recurring Revenue Streams – Basis for Sustainable and Stable Cash Flows
- Share of recurring revenues increased by 14pp between 2007 and 2010 (from 39% to 52%)
- Recurring revenues had a CAGR of 15%+ between 2007 and 2010 and also between 1999 and 2010
- Stability through steadily growing share of recurring revenues
Diversification of Revenue Streams across Geographies and Industries in 2010
Total Revenue by Industry
- All regions grew double-digit yoy in 2010 with APJ leading the way at 26%
- In Q2 2011 software revenue grew in all regions by approx. 35% yoy at cc
- Leading vertical strategy with more than 24 industry-specific solutions
- We achieved double-digit growth in all six industry sectors in 2010
- In Q2 2011 financial services and discrete industries showed significant growth
Agenda
- y SAP at a Glance
- y Driving Innovation at SAP
Transforming SAP Through Innovation and Customer Focus
- y Expand the addressable market
- y Customer driven innovation (relevant, essential)
- y Delivering innovation without disruption and bringing it faster to the market
- y Leveraging ecosystem as a force multiplier
- y SAP runs SAP focus
- y 3 new technology opportunities:
- In-Memory
- Mobility
- Cloud
Overall IT Trends / Convergence
New Business Models
- y "Real"- real time business
- y Extending the enterprise
- y Mobile scenarios
1- IDC 2- SAP HANA customer benchmark
© 2011 SAP AG. All rights reserved. 13
Mobility Leadership for SAP
Inside to outside experience
- Building-up a device agnostic mobility strategy is critical
- Security is key topic in mobility strategy
- Integrate "bring-yourown" in mobility strategy
- SAP + Sybase No 1 in Enterprise mobility
- Mobile BI is quick win
SAP Offering
- Mobile Device Management & Security
- Application Provisioning and Middleware
- Integration to Backend- and Core-Systems
- Covering the mobile device and mobile application lifecycle
On-Device Innovation and Mobile Platform at SAP managed by Sybase Afaria
Business Benefit:
- Fulfills IT consumer demand for mobile device choice
- Provides a mobile showcase platform for the field
- Proactive mobile strategies allow for quick innovation
Big Data / In-Memory Technology
Hours /
Minutes
Before SAP HANA
- •SAP HANA is new paradigm in data storage and access
- •Real-time analytics based on large volume of data
- •Planning, forecasting, operational performance, simulations perform better
- •Data source agnostic appliance
- •5 leading hardware partners: Cisco, IBM, HP, Fujitsu, Dell (covering 80% of HW market)
Key take away
- Direct access to operational data w/o affecting performance of ERP
- Leverage investment in existing BI solutions
- High SAP internal adoption rate
- Strong pipeline for SAP HANA
- Core, mobility, and in-memory are a powerful combination
Sub-seconds with HANA 100x-1.000x faster than traditional data processing
© 2011 SAP AG. All rights reserved. 16
In-Memory Computing – The Time is NOW
Implementing HANA: High Adoption Rate at SAP
Side-by-Side
- Sales Pipeline
- Profitability Analysis Reporting
- Rapid Deployment Solutions
- Business Process Management
- Customer Product Usage
Real-time Data Store
• BW on HANA
New Applications
- Cash Flow & Liquidity Management
- Strategic Workforce Planning
Cloud and On-Demand Computing
SAP Offering
- On-Demand Suite for mid market customers and subsidiaries: SAP Business ByDesign
- Line-of-Business solutions (e.g. Sales on Demand) – extend on premise core with on demand
- Î Seamless integration on-premise & ondemand
- For SAP Business Suite customers:
- Î SAP Virtualization and Cloud Mgmt product to come Nov 2011
Business Value
- Significant TCO-reduction through virtualized backend computing
- Partnering with IaaS vendors to enable customers to take full advantage
- SAP helps customers to run their landscapes in the cloud
SAP On-Demand – A Comprehensive Solution Portfolio
On-Demand Examples: SAP Carbon Impact and SAP Streamwork
On-Demand Collaboration Tool SAP Streamwork
- 130.000 registered users globally
- Ease of use, easy access
On-Demand Sustainability Data with SAP Carbon Impact
- SAP saved €185m through sustainability activities (2008 to HY1 /2011)
- Reduced carbon footprint in 2010 by 25% (from peak level in 2007)
Multi-Channel Go-To-Market and Open Ecosystem – Value to Customers of All Sizes
Service and BPO Partners 21 Global SIs,1700+ SIs, BPO partners
Resell Partners 2,900+ VARs Volume Resellers Distributors
y 40% of sales through Channels by 2015
- y Incremental and complementary to SAP's direct sales force
- y Co-innovation with partners
- y Optimized coverage & customer touch points
Software and Tech. Partners
34 Sol. Part., 800 OEM 34 Global Tech.
SAP's Strategy for Continued Profitable Growth
- y Drive double digit organic growth with a strong pipeline of new products
- y Continuous margin expansion
- y SAP strives to significantly expand its addressable market by the middle of decade and achieve
- at least €20bn in total revenue; and
- an operating margin of 35%.
- y SAP expects the key drivers of growth will be innovation:
- Core business
- In-Memory technology
- On-device solutions
- On-demand solutions
Invitation to a Dialog
Contact Information:
Oliver T. Bussmann EVP & Chief Information Officer SAP AG
[email protected] www.sap.com/CIO twitter.com/SAPCIO
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