Stronger Together Running SAP on Azure

1. Stronger TogetherRunning SAP on Azure Your name here Corporate Platform Engineering

2. Agenda SAP at Microsoft Why Azure? Azure Migration Strategies Lessons Learned Resources

3. SAP At Microsoft Concur SuccessFactors IBP SuccessFactors Integrated Business Planning ERP ECC 6.0 EhP6 GTS 10.1 BI/BPC 8.1 Ariba Network OER NW 7.0 EhP2 BPC E-REC ECC 6.0 EhP4 OERDSC NW 7.4 9.2 ECC 6.0 EhP7 Ariba Business Network Business Planning & Consolidation, BI Finance/Corporate Services: Finance, Controlling, Accounting, Enterprise Controlling, Treasury, Project Systems, Financial Services, Real Estate, Corporate Finance Management, InHouse Cash Center, Rev Acc& Report Global Trade Services: Compliance Management, Customs Management E-Recruiting: Applicant Tracking, Requisition Management Object Event Repository: Secure Track and Trace Scenario Object Event Repository: Secure Track and Trace Scenario BI EC TR FI CO AC CON CUS AT RM STT STT Ariba Sourcing CC 4.0 BL CFM IHC PS FIN RE TREX: for Sanction Party List Screening Conv. Charging: Direct Billing, Rating Ariba Direct Sourcing TREX: for Candidate Resumes Add-On: Auto-Infrastructure ID Add-On: Auto-Infrastructure ID RT TREX TREX AIN AIN RAR Human Capital Management: Personnel Administration,Benefits, Organizational Management, Talent Management,Personnel Time Management, Payroll MDG ECC 6.0 EhP7 SCM 7.0 EhP2 HYBRIS CI/RMCA SMG 7.2 TM PT PA BN OM Supply Chain Management: Demand Planning, Event Management, Supply Network Planning, Global ATP Check Master Data Gov:Business Partners Solution Manager: Custom Development Management Cockpit, Maintenance Optimizer, SAP Support Services BP PY Supply Chain Management: Sales and Distribution,Materials Management, Logistics, Logistics Execution Convergent Invoicing: Receivables Mgmt, Contract Accounting LE SD MM LO RM CA DP EM CDM MAI Add-On: Core Country Version for Central and Eastern Europe IS: Telecommunications SNP gATP CEE SER IS-T GRC 10.1 Others BOBJ Data Services 4.2 PI/XI NW 7.3 Process Integration DUET Enterprise 2.0 Tidal Enterprise Scheduler BSI Tax Factory Vertex Sales Tax Esker Faxing RealTech Others Governance, Risk & Compliance GRC

4. SAP Applications At Microsoft – Business View HR Shared SAP System ECC Personnel Admin, Benefits, Org Mgt, Talent Mgt, Time Mgt, Payroll, Recruiting Accounting, Controlling, Treasury, Project Systems, Financial Svcs, Real Estate, Corp Finance, In-House Cash, Rev Rec, Trade, Customs Sales and Distribution, Materials Mgt, Logistics, Logistics Execution, Demand Planning, Event Mgt, Supply Network Planning Volume Licensing Bedrock, Next Gen VL, OEM, Universal Store, Convergent Charging & Invoicing, Contract Accounting, Rating Sales and Distribution, Finances Learning & Succession Success Factors Electronic Recruiting EREC Finance Shared SAP System RMCA Hybris High Volume Invoices & Receivables Governance, Risk and Control GRC Global Trade Screening GTS Business Planning & Consolidation BPC Revenue Recognition RAR Master Data Governance MDG Duet for CIM DUET Customer Finance Mgmt CFM SCM Supply Chain Mgmt SCM SCM Care OER Integrated Business Planning IBP Sourcing & Dir. Network Ariba OEM Services OER Commerce Services Billing CC Enterprise Services Customer Project Mgmt CPM Expense Mgmt Concur Adobe Document Services ADS XI/PI SAP Platform Solution Manager SOLMAN Business Objects BOBJ/DS Azure SAP SaaS

5. Why Migrate To Azure? Cost Right-sizing lowers up-front system cost Tight-sizing for close correlation of system sizes with service demands Ability to “snooze” systems during periods of non-use Agility Enables quick creation of sand boxes & proof of concept systems Allows on-demand infrastructure Reliability Azure has better availability and reliability over on-premise Showcase Azure as the default SAP platform

6. Azure Migration Strategy Assess Candidates Evaluate by CPU, Memory and IOPS requirements Consider regulatory requirements Consider workload patterns (Dynamic scale up/down & out/in to meet demand) Understand partner system latency & location requirements/impacts Cost favors Azure and Virtualization Typical Candidates For Azure: - Up to large production systems - Development systems - Sandbox systems - Unit test systems For Azure M-Series: - Very large Production systems - Very large Pre-production/DR systems

7. Azure Migration Strategy Horizontal Strategy Migrate by system type (sandbox, development, test, DR, production) Start with low risk sandbox and development systems Establish processes and adjust as needed as migration covers test, DR and finally production systems Drives: faster migration of a larger number of systems and servers Vertical Strategy Migrate by SAP application / business functionality Cherry-pick lower risk SAP application (low business impact in case of issues) Move to higher-value SAP apps with bigger business impact Drives: faster migration of production systems, thus faster learnings

8. Physical In Progress Microsoft SAP Landscape – March 2018 Virtualized Azure VM BOBJ DS MDG CI/RMCA CFM ADS OEROEM OER1DSC DUET SOL GTS BI ERP SCM E-REC GRC XI/PI CC Prod. ZzZ ZzZ ZzZ ZzZ UAT/DR Quarterly Release Systems ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ SIT ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ DEV Prod. Support, OOC, & Monthly ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ QA DEV ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ Sandbox ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ ZzZ = Snoozed

9. Things To Watch Out For Individual SAP Systems need to move as one (DB, App Servers, Central Instance all at the same time). Be mindful of real time latency-critical traffic between SAP Systems – they may have to move as one. Be mindful of real time latency-critical traffic between SAP Systems and up/down-stream applications & services – they may have to move as one. Determine Azure region strategy before moving. Ensure SAP bolt-on systems (tax calculation engines etc.) are Azure certified or risks are mitigated through extensive testing Archive and compress databases.

10. SAP Cloud Migration Roadmap - Percentages Accelerated time line Original time line

11. CSE SAP Azure Migration Time Line Late 2014First CSE SAP on Azure Trials 11/23/2017Test bolt-ons, web servers etc. 12/5/2017ERP, GTS, SCMtest/DR systems H1 2016Small dev, sbx H2 2016Implementation of Vertical and Horizontal Strategy Q2 2017“Project 240” Mass-Migration of dev and test systems Azure ‘Classic’ to ARM 2/10/2018Production bolt-ons, web servers etc. 2/16/2018ERP, GTS, SCMproduction systems Ongoing optimization 2015Migration of small sandbox and dev systems Q1 2017Migration of most sbx systems August 2017Medium prod systemsand ERP dev and sbx September 2017Large dev and test

12. CSE SAP Azure Optimization Time Line • 2/10/2018Production bolt-on & web servers migration • January SprintNon-critical and technical sandbox weekend snoozing $133K/y July SprintHypercareQ4 assessment March SprintDev/SIT weekend snoozing for all non-ERP systems and PaaS clean-up $109K/y HypercareQ3 readiness May SprintResizing of UAT systems $TBD DR database size assessment $TBD Hypercare Aug SprintDUET and E-Rec retirement $TBD Sep SprintSAP App Server layout changes $TBD 2/16 – 2/17/2018ERP, GTS, SCMproduction systems Azure migration April SprintResizing of UAT systems $TBD HypercareQ3 assessment June SprintHypercareQ4 readiness

13. SAP Azure Cost Optimization Pre Deployment: Aggressive right-sizing – you can always adjust up later System rationalization – now is the time to retire systems Database compression and archiving – saves money and shortens deployment time Post Deployment: Tight-sizing – adjusting # of application servers based on demand Aggressive snoozing – especially for sandboxes, dev and test systems Monitor costs and usage levels Get creative!

14. Why Azure Over Other Clouds? Strongest diverse portfolio of services: SaaS, PaaS, IaaS Market leading support for SAP workloads: SAP HANA OLAP up to 60TBs, OLTP up to 20 TBs, supports a variety of databases, Windows and Linux On-premise to cloud: seamless integration, migration, support for hybrid strategies World-wide region coverage, including Europe, China etc. Dogfooding: Microsoft is the only cloud vendor that runs their core business on SAP on their own cloud What is SAP IT doing?

15. Appendix

16. SAP On Azure Links And Information How Microsoft moved its SAP workload to the cloud Strategies for migrating SAP systems to Azure Right-Sizing And Tight-Sizing SAP For Azure Running SAP Workloads On Azure (Incl. HANA) Running SAP Apps On The Microsoft Platform Channel 9 SAP on Azure SAP HANA on Azure Channel 9 SAP HANA on Azure

17. Our Cloud Adoption Approach Roadmap planning • From… • Office servers • Portals and SPS • Any relationship mgmt • Active Source Control & WIT • Data warehouses • Industry standard verticals • From… • Office servers • Portals and SPS • Any relationship mgmt • Active Source Control & WIT • Data warehouses • Industry standard verticals • …To • Office 365 • SharePoint Online • CRM Online • VSO • ADL + PowerBI • Best 3rd-party SaaS • …To • Office 365 • SharePoint Online • CRM Online • VSO • ADL + PowerBI • Best 3rd-party SaaS ~30% Retire it, right-size, eliminate environments ~15% Use or convert to a SaaS (1st or 3rd party) solution Use or convert to a SaaS (1st or 3rd party) solution Expose functionality in existing SaaS/PaaS solution Convert to Azure PaaS solution Optimize for and move to Azure IaaS VM ~35% ~10% ~5% • First to move • Basic web apps • Advanced portals • Any new solutions • Any re-architected solutions • Next to move • High I/O OLTP • Regulatory andhigh business impact • Hard or costly to Move • HVA Systems • PKI Systems • Legacy source control No change, lift ‘n shift to IaaS Remain on-premise <5% Azure IT Roadmap

18. 42 Azure Regions – More Than Any Cloud Provider

19. SAP ERP By The Numbers Enable Modern Experiences Provide Real Time Processes Deliver Reliant & Agile ERP Platform Monitored Batch Jobs/Month 9M Up toDialog Steps/Day 300K Uncompressed size ≈50TB Up to Transaction steps/Month 270M 16TB Highly compressed database SAP Surround Strategy 110K Internal Users (Mostly Indirect Access to SAP) 6K Named User Accounts 96% Non-SAPGUI users Major First & Best Program 0.4 Seconds user response time Raw SQL/Win Uptime 99.998% Business Process Expertise 2x Transaction volume ever 18-24 months ≈600 Servers(98% virtual) 250TB Compression Storage Savings 5-7% yearly Incident Ticket Reduction 2x System growth in past 2 years High Quality Enterprise Service Offerings via SAP

20. Current SAP ERP Production System Full usage of SAP’s redundancy features: scale-out with logon groups, batch server groups, RFC groups, etc. Windows Server Failover Cluster for SAP Central Services Instance High Availability Elimination of single points of failure High degree of redundancy guards against planned and unplanned downtime Dual Databases Allows staggered upgrades Instant release rollback Local “hot” standby Automated failover CI 12 SAP Application Servers Windows Server 2016 VM 32 vCPU’s 352 GB RAM SAP Central Instance Windows Server 2016 VM 8 vCPU’s, 88 GB RAM RFC RFC PRICE WEB WEB PRICE DIA DIA PRICE BTC PRICE BTC XTremeIO XTremeIO Primary & Secondary Database SQL Server 2016 Windows Server 2016 VM 128 vCPU’s 2 TB RAM SQL Server 2016 high availability feature: SQL Server AlwaysOn (synchronous) Spare servers for rolling maintenance and peak load capacity handling VM VM VM VM VM VM VM VM VM VM VM VM VM VM VM VM

21. SAP Disaster Recovery Production Key Targets Corporate guidelines are:RPO = 2 minutes of data loss or lessRTO = 24-72h of recovery time or less Actuals are:RPO ≈ secondsRTO ≈ 4h for DR Exercise Best Practices Low cost by utilizing Test system Annual Disaster Recovery exercise Reusable for data center moves etc. Future Virtualization and Azure Prod Secondary Prod Primary SQL Server 2016 AlwaysOn Test DR Production Prod Primary Prod DR Test Primary Test Secondary