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HIGH-END IN-MEMORYDATA PLATFORM SOLUTIONSUNDERSTANDING THE NEEDS OF GLOBAL ENTERPRISESAn IDC Infobrief, sponsored by HP

2HIGH-END IN-MEMORY DATA PLATFORM SOLUTIONSUNDERSTANDING THE NEEDS OF GLOBAL ENTERPRISES

In this studyThis IDC study, sponsored by HP, was

designed to understand how and why

organizations purchase and use high-end

in-memory data platform solutions like

SAP HANA®. Because of this, the target list

of organizations was not designed to be

exhaustive of all the universe, but significant

to help us understand the trends in

purchasing behavior, deployment models

and specific requirements.

90 CXOs of organizations larger

than 1,000 employees surveyed

Who?

Where?

When?

How?

Asia/Pacific including Japan (APJ), Europe, the Middle East and Africa (EMEA) and

the Americas

Surveys conducted in October 2013

Surveys via telephone


Executive summary

Improving processes and agility and reducing time to outcomes is thekey business requirement.

Faster access to information is the key IT requirement.

Reducing ongoing IT and upfront costs is an important driver for using SAP HANA in hosted private cloud.

inTENSIXORGANIZATIONS SURVEYED SAY:

1

2

3

Real-Time Insights for Better Business Outcomes. In today’s fast-moving

business environment, simply relying on monthly or quarterly reporting to

gauge business success and develop plans is no longer enough.

Organizations are demanding faster access to information, coupled with the

ability to analyze and act upon it – all in real time – to become more agile and

reduce time to outcomes.

Improving Decision Making with In-Memory Technology. In-memory

technology systems like SAP HANA can be applied to large volumes of data

for any decision type, in any line of business, and in any industry. The use of

in-memory technology can lead to measurable returns, as well as more

accurate and faster analysis of business data.

Considering “As a Service” Deployment Models. The complexity of

deploying new and disruptive technologies on-premises can lead to delayed

business value. The shortage of skill sets, combined with the demand for

increased agility and lower or non-capital upfront costs, is driving more

organizations to consider “as a service” deployment models – something that

can help them achieve faster results by unlocking real-time insights, without

significant upfront capital investments. Cloud can also enable organizations

to transform their IT infrastructures, while allowing them to increase their

focus on their business instead of IT.


Organizations seek to improve decision making for better business outcomes

The Top Drivers Are…

Immediate Access to InformationToday’s decision making processes are complex, delaying business outcomes.

Quick ROISolutions need to help deliver cost savings.

New Business OpportunitiesMore accurate analysis of larger volumes is required.

IT DriversFaster access to information(faster query response times)60%Reducing total cost of ownership

Analyzing data more accurately

46%43%

BusinessDrivers

Improving processes and agility and reducing time to outcomes

59%Cost savings53%Finding new patterns and discovering new opportunities42%

1

2

3


But they face challenges when procuring and implementing solutions to support decision making

Top 3 Barriers Delaying Implementation Top 3 Internal Challenges

Software does not provide

real-time access to

relevant data

44%

Software does not provide

enough flexibility in accessing/ analyzing/

manipulating data

51%

Not all relevant information is aggregated in the required

manner

56%

Lack of business funding

53%

Lack of business case

54%

Lack of sufficient IT

staff

74%

Flexibility and Real TimeExisting software is rigid and data is not updated in real time

No Business Case Means No FundingLack of business case impedes organizations’ ability to get sponsorship and fundingData

AggregationData residing in multiple silos makes aggregation complex

Shortage of SkillsLack of IT and business skilled staff is the top challenge


Organizations expect SAP HANA to help them achieve the highest improvements in finance and operations

SAPHANA

SPEED

SCALEFLEXIBLE

What is SAP HANA?• An in-memory platform designed to support both online analytical processing (OLAP) and online transaction processing

(OLTP) in the same data store.

• Enables instant analysis of large amounts of multi-structured data with in-built advanced analytic capabilities such as predictive, geospatial and text analytics.

• It runs on standard x86 Intel Westmere or Intel Ivy Bridge v2 processors from a variety of server manufacturers.

Processes that organizations feel can be improved using SAP HANA

Over 70% of respondents agree that their reporting and planning processes can improve the most by

having improved access to information – as opposed

to using traditional OLAP-based reporting

and planning.

78%Reporting

76%Planning70%

Forecasting

Business areas that organizations feel can be improved using SAP HANA

74%Finance

73%Business

operations

64%Customer

service


Organizations’ choices for adoption of high-end in-memory technology have increased with time

Deployment models organizations would consider for sourcing SAP HANA

say they would consider 3rd party SI/vendor for implementation and managed services

1in2

say they would consider sourcing solution directly from SaaS providers, or under on-premises 3rd party-managed private cloud

2in5December 2010 August 2013

March 2013

SAP HANA – Traditional Deployment Models SAP HANA was initially launched as a multibrand appliance; however, today there are more alternatives for its consumption through private, hybrid and public cloud, as well as managed services.

HP As-a-Service Solution for SAP HANA allows organizations to analyze data and unlock real-time insights without the burden of a significant upfront capital investment. The HP As-a-Service Solution for SAP HANA bundles the SAP HANA software license along with hardware and ongoing management into a complete solution provided as a service.

SAP HANA – New Deployment OptionsSAP HANA Enterprise Cloud (Managed Cloud Services): This offering combines cloud infrastructure with managed services. It can allow buyers to run their mission-critical SAP applications, including SAP Business Suite powered by SAP HANA and SAP Business Warehouse powered by SAP HANA in a managed cloud environment (SAP's own datacenters).

More Organizations are Embracing Cloud• IDC forecast that in 2016 a majority

(80%) of Global 2000 businesses will have 30% of their IT capability residing offsite.

• Cloud adoption is growing steadily and spreading from the United States toward Western Europe, Japan and the emerging markets.

• Organizations are looking at cloud to either migrate some existing internal capabilities, or to offer new ones quickly and relatively cheaply.


Considering SAP HANA – cloud deployment modelsWhile traditional IT models prevail (on-premises appliance), there is growing interest in alternative sourcing options like private cloud and managed services. Capital upfront costs reduction and faster provisioning are the top drivers.

Top Drivers for Deployment Models

Top drivers for using SAP HANA

on-premises on a 3rd party-managed private cloud or

standard deployment

Top drivers for using SAP HANA

in a hosted private cloud

Benefits of Using Cloud/As-a-Service Models

FlexibilityCloud deployments

can allow to scale up and down based

on organizations’ needs

Less Internal Skills Required3rd party managed

services help shift resources to other

core areas

Cost ReductionMove from CAPEX to

OPEX allows for deployments with

no/minimal upfront and ongoing costs

Faster Deployment

Quicker provisioning of required

infrastructure

77%

76%

80%Speed of

implementation

Reduced need to develop internal skills

Lower overall cost

74%

71%

84%

Avoid investment in own IT infrastructure

Achieve faster infrastructure deploymentReduce ongoing IT

and upfront costs (improve cash flow)

REGIONAL COMPARISONS



Today’s drivers for improving decision making – a look across the regions• Streamlining core business processes is critical for improved decision making. This is a top requirement for the Americas and EMEA. In APJ, the dominant

business driver is cost savings. Respondents in the Americas and EMEA agreed that this is their 2nd most critical business driver.

• IT respondents in the Americas and EMEA agreed that “faster query responses” are the most critical driver (2nd most important in APJ). Organizations demand agility and require solutions that can deliver accurate analysis with improved performance.

50% 53%

70% 63%

Business Drivers IT DriversThe Americas EMEA APJ The Americas EMEA APJ

Cost savings

57%Cost savings Faster access to information

(i.e., faster query responses)

63% 63% 60%To analyze data

more accurately

47%Improving customer

experience

60%Reduce total cost

of ownership

Improve processes and agility and reduce time to business outcomes

47%Improving customer

experience

43%Greater focus on innovation – new

ways of doing business

50%Finding new patterns and

discovering new opportunities

40%Decrease number of systems required to

answer business questions

43%Analyzing data

more accurately

53%

43%Decrease number of systems required to

answer business questions

Faster access to information (i.e.,

faster query responses)

47%Analyzing data

faster (e.g., evaluating more

scenarios)


Today’s challenges when procuring and implementing solutions to support decision making – a look across the regions• Over 70% of organizations across regions agree that their top challenge is the lack of sufficient IT staff. This is exacerbated for projects where there is

a lack (or shortage) of skill sets, e.g., Big Data and Analytics. This hinders the success of Big Data and Analytics related initiatives.

• Large volumes and complexity of data that resides in multiple organizational silos make data aggregation a critical barrier for many organizations. Respondents in the Americas and APJ claim they need more granular data and analysis of more of the variables in order to improve decision making. In EMEA, respondents claim that the existing solutions do not provide enough flexibility for accessing and analyzing data.

77%77%

Barriers Delaying ImplementationThe Americas EMEA APJ The Americas EMEA APJ

Internal Challenges

70%Lack of sufficient IT staff

60%Lack of funding

57%Lack of business

case

57%Lack of business

case

53%43%The software I use doesn't provide real-time access to relevant data

57%No interest or support from management

53%Lack of skill sets

53%Software does not

provide enough flexibility in

accessing/analyzing/manipulating data







63%Not all relevant information is

aggregated in the required manner





53%The tech systems I use don't have the

capacity to hold all data needed


Considering SAP HANA – what are organizations’ expectations across the regions? • Organizations in the Americas and EMEA expect that SAP HANA will help in improving their business operations, while APJ organizations consider finance as

the top area of improvement.

• Over 60% of respondents agree that their reporting processes can improve the most by having better access to information – as opposed to using traditional OLAP-based reporting, planning and forecasting.

Business areas that can be improved using

SAP HANA

Processes that can be improved using

SAP HANA

The Americas

77%Customer

service

73%Finance

80%Business

operations

EMEA

77%Business

operations

63%Customer

service

70%Finance

APJ

63%Business

operations

70%Sales80%

Finance

60%Forecasting

70%Forecasting

80%Forecasting

67%Reporting 83%

Reporting83%

Reporting77%Planning

80%Planning

73%Compliance

Expectations of Organizations


What deployment models do organizations across the regions prefer?

Deployment models enterprises would consider for sourcing SAP HANA

The Americas

EMEA

APJ

53% 3rd party SI/vendor for implementation and managed services

37% Source solution directly from SaaS providers

33% Source solution directly from ISV and ask them to support

63% Source solution under on-premises 3rd party-managed private cloud

50% Leverage 3rd party SI/vendor for implementation and managed services

43% Source solution under a hosted private cloud

50% 3rd party SI/vendor for implementation and managed services

50% Source solution directly from ISV and ask them to support

47% Source solution directly from SaaS providers

Traditional IT deployment (on-premises) continues to be the preferred sourcing strategy. However, over 50% of organizations would consider using some form of managed services when sourcing SAP HANA.


Considering SAP HANA – what’s driving the adoption of cloud deployment models across the regions?• Drivers for using 3rd party-managed private cloud are, unsurprisingly, the reduced need to develop internal skills, generally followed by speed of implementation.

• Drivers for using SAP HANA in a hosted private cloud are focused on the reduction of ongoing IT and upfront costs for organizations in APJ and EMEA. For the Americas, achieving faster infrastructure deployment is the top consideration for this deployment option (2nd in EMEA).

Top drivers for using SAP HANA on-premises on a 3rd party-managed private cloud or standard deployment

Top drivers for using SAP HANA in a hosted private cloud

The Americas

Reduced need to develop

internal skills

Speed of implementation

Appliance is optimized for a

particular workload

90%

79%

79%

EMEA


Fewer vendors to deal with

Appliance is optimized for a

particular workload

86%

79%

75%

APJ

Reduced need to develop

internal skills

Lower overall cost


83%

79%

75%

Achieve faster infrastructure

deployment

Reduce ongoing IT and upfront costs

Avoid investment in own IT

infrastructure

78%

67%

56%

Reduce ongoing IT and upfront costs

Achieve faster infrastructure

deployment


infrastructure

92%

77%

69%

Reduce ongoing IT and

upfront costs


infrastructure

Reduce energy consumption

89%

89%

67%


In conclusion• Faster and Better Insights, Faster and More Accurate Decision Making. In-memory technologies like SAP HANA allow for data to be loaded and adjusted

in large volumes, and accessed more quickly than with disk-based technology. This makes it possible to manage more data at a more granular level, resulting in greater precision and the ability to drive focused decisions and business actions quickly.

• Less Complexity, More Benefits. SAP HANA was launched as an appliance, helping customers avoid complexity in the deployment and configuration. However, the shortage of skills, coupled with the need to achieve time to market is driving organizations to look at “as a service” alternatives to decrease the upfront required costs.

• Infrastructure + License Ownership (purchased separately)

• Deployed on-premises

• Reduced complexity in deployment and configuration

• Ownership and full control of dedicated infrastructure

• Choice of configurations

• Organizations with internal IT resources that want to have full in-house control of their infrastructure

Copyright 2014 IDC. Reproduction without written permission is completely forbidden.

This IDC Infobrief was produced by IDC Asia/Pacific Go-to-Market Services. Any IDC information or reference to IDC that is to be used in advertising, press releases, or promotional materials requires prior written approval from IDC. For more information, visit: www.ap.idc.asia or email: [email protected]

Deployment Profile

Benefits

Buyer Profile – Recommended For

• Infrastructure + License + Managed Services provided via subscription (as a service)

• Deployed on the cloud

• Reduced capital upfront costs on infrastructure, license and services (move from CAPEX to OPEX)

• Flexibility to scale up or down (elasticity)

• Faster provisioning and time to market

• Positive impact on resources: 3rd party managed services help shift resources to core areas

• Organizations that need faster provisioning of mission-critical applications, with reduced capital upfront costs

Deployment Profile

Benefits

Buyer Profile – Recommended For

What’s the Best Option for You?

SAP HANA “On-Premises”(sold through SAP

partners including HP)

SAP HANA “As a Service” (provided by HP)

Research Team: Daniel-Zoe Jimenez and Craig Stires

Notes: SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries.

HP, HEWLETT-PACKARD and the HP Logo are registered trademarks that belong to Hewlett-Packard Development Company, L.P.

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