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T he cover image is a European “No Speed Limit” sign. If you’ve ever driven on the Autobahn
in Germany, this sign will immediately bring a smile to your face because you can step on
the accelerator and drive as fast as you want to or as fast as your car can go (which ever
comes first). In terms of SAP HANA, we selected this image because SAP HANA allows your
company to run at top speed with no artificial limit to how fast it can go. If you ever go visit SAP
headquarters in Germany, you’ll see this sign about 2 miles south of the Frankfurt airport on the
A5 — and there’s no speed limit on your way to visit SAP.
Note from the Author
S ince this book is about the shift to “real-time” business, it’s fitting that we’ve been writing this
book in “real-time” and will be delivering it in “real-time”. Basically, that means that we can’t
wait around for everything in the SAP HANA world to settle down and solidify before writing
each chapter and expect everyone to hold their breath until the entire book is finished and ready
to print. And trust me, SAP HANA is moving extremely fast right now and you could be holding
your breath for quite a while waiting for that day.
Just like SAP HANA is disrupting the status quo in the database world and breaking lots of
ossified rules of the game, we’ll be doing much the same with this book. Who says you have to
wait till the whole book is written to release it? Who says you have to charge $$ for an
extremely valuable book? Who says it has to be printed on paper with ink and sold in a
bookstore?
We’ve decided to break all those traditional publishing rules and release chapters as they are
finished and then release the remaining chapters as they are completed later. Since this is a
“digital-only” book, it’s important that readers keep connected to learn about the release of new
chapters and content updates. That’s pretty easy: Follow the book on twitter @EpistemyPress
and @jeff_word, sign up for the email updates from the saphanabook.com website when you
register to download the ebook and keep watching saphana.com.
Table of Contents
A lthough we’re at the beginning of this journey, many people have already been phenomenally
helpful in the scoping, content preparation and reviewing of this book. Their support has
been invaluable and many more people will be involved as the book progresses.
Many thanks to all of you for your support and collaboration.
— Jeff
SAP Colleagues
Margaret Anderson, Puneet Suppal, Uddhav Gupta, Storm Archer, Scott Shepard, Balaji
Krishna, Daniel Rutschman, Ben Gruber, Bhuvan Wadhwa, Lothar Henkes, Adolf Brosig,
Thomas Zureck, Lucas Kiesow, Prasad Ilapani, Wolfram Kleis, Gunther Liebich, Ralf Czekalla,
Michael Erhardt, Roland Kramer, Arne Arnold, Markus Fath, Johannes Beigel, Ron Silberstein,
Kijoon Lee, Oliver Mainka, Si-Mohamed Said, Amit Sinha, Mike Eacrett, Andrea Neff, Jason
Lovinger, Michael Rey, Gigi Read, David Hull, Nadav Helfman, Lori Vanourek, Bill Lawler, Scott
Leatherman, Kathlynn Gallagher, David Jonker, Naren Chawla, David Porter, Steve Thibodeau
SAP Mentors
Thomas Jung (SAP), Harald Reiter (Deloitte), Vitaliy Rudnytskiy (HP), John Appleby (Bluefin),
Tammy Powlas (Fairfax Water), Vijay Vijayasankar (IBM), Craig Cmehil (SAP), Alvaro Tejada
(SAP)
SAP Partners
Lane Goode (HP), Tag Robertson (IBM), Rick Speyer (Cisco), Andrea Voigt (Fujitsu), Nathan
Saunders (Dell), KaiGai Kohei (NEC), Chris March (Hitachi)
Production
Robert Weiss (Development Editor)
Roland Schild, Holger Fischelmanns, Daniela Geyer, Markus May (Libreka/MVB)
Michelle DeFilippo (1106 Design)
How to use this book
“May you live in interesting times”
T his book is designed to provide an introduction to SAP HANA to a wide range of readers,
from C-level executives down to entry-level coders. As such, its content is necessarily broad
and not-too-technical. This book should be the first thing everyone reads about SAP HANA, but
will provide easy links to Level 2 technical content to continue learning about the various sub-
topics in more detail. The content is structured so that everyone can begin with the introduction
chapter and then skip to the subsequent chapters that most interest them. Business people will
likely skip to the applications and business case chapters while techies will jump ahead to the
application development and hardware chapters. In fact, it would probably be odd if anyone
actually read this book from beginning to end (but go ahead if you want to).
Although a great deal of this book focuses on “living in a world without compromises” from a
technology and business perspective, we’ve unfortunately had to make a few compromises in
the scope and depth of the content in order to reach the widest possible audience. If we hadn’t,
this would be a 10,000-page encyclopedia that only a few hundred people would ever read.
We’ve tried to make this book as easy to read as possible to ensure that every reader can
understand the concepts and get comfortable with the big picture of SAP HANA. We’ve also
tried to cover as many of the high-level concepts as possible and provide copious links to
deeper technical resources for easy access. Hopefully, you will enjoy reading the chapters and
find it quite easy to “punch out” to additional technical information as you go regardless of your
level of technical knowledge or business focus.
The knowledge you will find in this book is the first step on the journey to becoming a real-
time enterprise, but in many ways, it is just the “tip of the iceberg”. We’re working on several
Level 2 technical books on SAP HANA and are committed to providing as much technical and
business content as possible through the Experience SAP HANA website and other channels.
Please refer to the last chapter to get a listing of additional free information sources on SAP
HANA.
Given the massive strategic impact of SAP HANA on the medium and long-term IT
architectures of its customers, SAP felt that every customer and ecosystem partner should
have free access to the essential information they will need to understand SAP HANA and
evaluate its impact on their future landscape. SAP sponsored the writing of this book and has
funded its publication as a free ebook to ensure that everyone can easily access this
knowledge.
SAP HANA is a rapidly evolving product and its level of importance to SAP customers will
continue to increase exponentially over the next several years. We will attempt to provide
updated editions of this book on a semi-annual basis to ensure that you can easily access the
most up-to-date knowledge on SAP HANA. Please continue to visit the SAP HANA Essentials
website to download updated and revised editions when they are released (typically in May and
November of each year). You can also follow @EpistemyPress on Twitter for updates.
Foreword
By Vishal Sikka, Ph.D.
Executive Board Member, SAP AG
T ime magazine picked “The Protester” as its person of the year for 2011, recognition of
individuals who spoke up around the world — from the Arab countries to Wall Street, from
India to Greece — individuals whose voices were amplified and aggregated by modern
technology and its unprecedented power to connect and empower us. Twitter and Facebook,
now approaching 800 million users (more than 10% of humanity), are often viewed as the
harbinger of social networking. But social networking is not new. A recent issue of the
Economist described Martin Luther’s use of social networking, especially the Gutenberg press,
to start the Protestant Reformation. During the American Revolution, Thomas Paine published
his Common Sense manifesto on a derivation of the Gutenberg press. Within a single year, it
reached almost a million of the 1.5 million residents of the 13 American colonies — about two-
thirds of the populace, and helped seed democracy and America’s birth.
I believe that information technologies, especially well-designed, purposeful ones, empower
and renew us and serve to amplify our reach and our abilities. The ensuing connectedness
dissolves away intermediary layers of inefficiency and indirection. Some of the most visible
recent examples of this dissolving of layers are the transformations we have seen in music,
movies and books. Physical books and the bookstores they inhabited have been rapidly
disappearing, as have physical compact discs, phonograph records, videotapes and the stores
that housed them. Yet there is more music than ever before, more books and more movies.
Their content got separated from their containers and got housed in more convenient, more
modular vessels, which better tie into our lives, in more consumable ways. In the process,
layers of inefficiency got dissolved. By putting 3000 songs in our pockets, the iPod liberated our
music from the housings that confined it. The iPhone has a high-definition camera within it, along
with a bunch of services for sharing, distributing and publishing pictures, even editing them —
services that used to be inside darkrooms and studios. 3D printing is an even more dramatic
example of this transformation. The capabilities and services provided by workshops and
factories are now embodied within a printer that can print things like tools and accessories,
food and musical instruments. A remarkable musical flute was printed recently at MIT, its sound
indistinguishable from that produced by factory-built flutes of yesterday.
I see layers of inefficiency dissolving all around us. An empowered populace gets more
connected, and uses this connectivity to bypass the intermediaries and get straight at the things
it seeks, connecting and acting in real-time — whether it is to stage uprisings or rent
apartments, plan travel or author books, edit pictures or consume apps by the millions.
And yet enterprises have been far too slow to benefit from such renewal and simplification
that is pervading other parts of our lives. The IT industry has focused on too much repackaging
and reassembly of existing layers into new bundles, ostensibly to lower the costs of integrated
systems. In reality, this re-bundling increases the clutter that already exists in enterprise
landscapes. It is time for a rethink.
At SAP, we have been engaged in such rethinking, or intellectual renewal, as our chairman
and co-founder Hasso Plattner challenged me, for the last several years, and our customers
are starting to see its results. This renewal of SAP’s architecture, and consequently that of our
customers, is driven by an in-memory product called SAP HANA which, together with mobility,
cloud computing, and our principle of delivering innovation without disruption, is helping to
radically simplify enterprise computing and dramatically improve the performance of businesses
without disruption.
SAP HANA achieves this simplification by taking advantage of tremendous advances in
hardware over the last two decades. Today’s machines can bring large amounts of main-
memory, and lots of multi-core CPUs to bear on massively parallel processing of information
very inexpensively. SAP HANA was designed from the ground-up to leverage this, and the
business consequences are radical. At Yodobashi, a large Japanese retailer, the calculation of
incentives for loyalty customers used to take 3 days of data processing, once a month. With
SAP HANA, this happens now in 2 seconds — a performance improvement of over 100,000
times. But even more important is the opportunity to rethink business processes. The incentive
for a customer can be calculated on the fly, while the customer is in a store, based on the
purchases she is about to make. The empowered store-manager can determine these at the
point of sale, as the transaction unfolds. With SAP HANA, batch processing is converting to real
time, and business processes are being rethought. Customers like Colgate-Palmolive, the
Essar Group, Provimi, Charmer Sunbelt, Nongfu Spring, our own SAP IT and many others,
have seen performance improvements of thousands to tens of thousands times. SAP HANA
brings these benefits non-disruptively, without forcing a modification of existing systems. And in
Fall 2011, we delivered SAP Business Warehouse on SAP HANA, a complete removal of the
traditional database underneath, delivering fundamental improvements in performance and
simplification, without disruption.
SAP HANA provides a single in-memory database foundation for managing transactional as
well as analytical data processing. Thus a complex question can be posed to real-time
operational data, instead of asking pre-fabricated questions on pre-aggregated or summarized
data. SAP HANA also integrates text processing with managing structured data, in a single
system. And it scales simply with addition of more processors or more blades. Thus various
types of applications, across a company’s lines of businesses, and across application types,
can all be run off a single, elastically-scalable hardware infrastructure: a grand dissolving of the
layers of complexity in enterprise landscapes. SAP HANA hardware is built by various leading
hardware vendors from industry standard commodity components, and can be delivered as
appliances, private or public clouds. While this architecture is vastly disruptive to a traditional
relational database architecture, to our customers it brings fundamental innovation without
disruption.
Looking ahead, I expect that we will see lots of amazing improvements similar to
Yodobashi’s. Even more exciting, are the unprecedented applications that are now within our
reach. By my estimate, a cloud of approximately 1000 servers of 80-cores and 2 terabytes of
memory each, can enable more than 1 billion people on the planet to interactively explore their
energy consumption based on real-time information from their energy meters and appliances,
and take control of their energy management. The management and optimization of their
finances, healthcare, insurance, communications, entertainment and other activities, can
similarly be made truly dynamic. Banks can manage risks in real-time, oil companies can better
explore energy sources, mining vast amounts of data as needed. Airlines and heavy machinery
makers can do predictive maintenance on their machines, and healthcare companies can
analyze vast amounts of genome data in real time. One of our customers in Japan is working
on using SAP HANA to analyze genome data for hundreds of patients each day, something that
was impossible before SAP HANA. Another customer is using SAP HANA to determine optimal
routes for taxicabs. The possibilities are endless.
Just as the iPod put our entire music libraries in our pockets, SAP HANA, combined with
mobility and cloud-based delivery, enables us to take our entire business with us in our pocket.
Empowering us to take actions in real time, based on our instincts as well as our analysis. To
re-think our solutions to solving existing problems — and to help businesses imagine and deliver
solutions for previously unsolved problems. And it is this empowerment and renewal, driven by
purposeful technologies, that continually brings us all forward.
Dr. Vishal Sikka is a member of the Executive Board of SAP AG and heads the technology
and innovation areas.
Chapter 1
SAP HANA Overview
“Significant shifts in market share and fortunes occur not because companies try to
play the game better than the competition but because they change the rules of the
game”
— Constantinos Markides 1
E very industry has a certain set of “rules” that govern the way the companies in that industry
operate. The rules might be adjusted from time to time as the industry matures, but the
general rules stay basically the same — unless some massive disruption occurs that changes
the rules or even the entire game. SAP HANA is one of those massively disruptive innovations
for the enterprise IT industry.
To understand this point, consider that you’re probably reading this book on an e-reader,
which is a massively disruptive innovation for the positively ancient publishing industry. The book
industry has operated under the same basic rules since Gutenberg mechanized the production
of books in 1440. There were a few subsequent innovations within the industry, primarily in the
distribution chain, but the basic processes of writing a book, printing it, and reading it remained
largely unchanged for several hundred years. That is — until Amazon and Apple came along
and digitized the production, distribution, and consumption of books. These companies are also
starting to revolutionize the writing of books by providing new authoring tools that make the
entire process digital and paper-free. This technology represents an overwhelming assault of
disruptive innovation on a 500+ year-old industry in less than 5 years.
Today, SAP HANA is disrupting the technology industry in much the same way that Amazon
and Apple have disrupted the publishing industry. Before we discuss how this happens, we
need to consider a few fundamental rules of that industry.
Once a large number of people began to carry a computer around in their pocket, it only
made sense that developers would build new applications to exploit the capabilities of the new
platform. Although Apple couldn’t have predicted the success of games like “Angry Birds,” they
realized that innovation couldn’t be unleashed on their new platform until they removed the
single biggest piece of the architecture that was imposing all the constraints. Ironically, it was
the same piece of technology that made the original iPod so successful. Think about that for a
second: Apple had to eliminate the key technology in the iPod that had made them so
successful in order to move to the next level of success with the iPod Touch and the iPhone.
Although this might seem like an obvious choice in retrospect, at the time it required a huge
leap of faith to take.
In essence, getting rid of the hard drive in the iPods was the most critical technology decision
Apple made to deliver the iPod Touch, iPhone, and, eventually, the iPad. Most of the other
pieces of technology in the architecture improved as expected over the years. But the real
game changer was the switch from disk to memory. That single decision freed Apple to
innovate without constraints and allowed them to change the rules of the game again, back to
the memory-as-storage paradigm that the portable music player market had started with.
SAP is convinced that SAP HANA represents a similar architectural shift for its application
platform. Eliminating the disk-based database will provide future customers with a faster,
better, and cheaper architecture. SAP also believes that this new architecture, like the solid-
state memory in the iPod, will encourage the development of a new breed of business
applications that are built natively to exploit this new platform.
Note: as of early 2012, Apple still makes and sells the “classic” iPod (160gb/$249), but it is a tiny fraction of their overall iPod
sales. So, somebody must be buying the “old” iPods and Apple must be making some money off of them, but do you know
anyone who’s bought a hard-drive based iPod in the last five years? You’d have to really need all that storage to give up all the
features of the iPod touch.
SAP thinks that there will also be a small category of its customers who will continue to want the “old” architecture — so they’ll
continue to support that option, but they’re predicting a similar adoption trend once the SAP Business Suite is supported on SAP
HANA. At that point, you’ll need an overwhelmingly compelling business reason to forego all the goodness of the new architecture
and renovated SAP apps on top of SAP HANA.
In-Memory Basics
Thus far, we’ve focused on the transition to in-memory computing and its implications for IT.
With this information as background, we next “dive into the deep end” of SAP HANA. Before we
do so, however, here are a few basic concepts about in-memory computing that you’ll need to
understand. Some of these concepts might be similar to what you already know about
databases and server technology. There are also some cutting-edge concepts, however, that
merit discussion.
Storing data in memory isn’t a new concept. What is new is that now you can store your
whole operational or analytic database entirely in RAM as the primary persistence layer5.
Historically database systems were designed to perform well on computer systems with limited
RAM. As we have seen, in these systems slow disk I/O was the main bottleneck in data
throughput. Today, multi-core CPUs — multiple CPUs located on one chip or in one package —
are standard, with fast communication between processor cores enabling parallel processing.
Currently server processors have up to 64 cores, and 128 cores will soon be available. With
the increasing number of cores, CPUs are able to process increased data volumes in parallel.
Main memory is no longer a limited resource. In fact, modern servers can have 2TB of system
memory, which allows them to hold complete databases in RAM. Significantly, this arrangement
shifts the performance bottleneck from disk I/O to the data transfer between CPU cache and
main memory (which is already blazing fast and getting faster).
In a disk-based database architecture, there are several levels of caching and temporary
storage to keep data closer to the application and avoid excessive numbers of round-trips to
the database (which slows things down). The key difference with SAP HANA is that all of those
caches and layers are eliminated because the entire physical database is literally sitting on the
motherboard and is therefore in memory all the time. This arrangement dramatically simplifies
the architecture.
It is important to note that there are quite a few technical differences between a database
that was designed to be stored on a disk versus one that was built to be entirely resident in
memory. There’s a techie book6 on all those conceptual differences if you really want to get
down into the details. What follows here is a brief summary of some of the key advantages of
SAP HANA over its aging disk-based cousins.
Parallel Processing
Multiple CPUs can now process parallel requests in order to fully utilize the available computing
resources. So, not only is there a bigger “pipe” between the processor and database, but this
pipe can send a flood of data to hundreds of processors at the same time so that they can
crunch more data without waiting for anything.
Compression
Because of the innovations in hybrid row/column storage in SAP HANA, companies can typically
achieve between 5x and 10x compression ratios on the raw data. This means that 5TB of raw
data can optimally fit onto an SAP HANA server that has 1TB of RAM. SAP typically
recommends that companies double the estimated compressed table data to determine the
amount of RAM needed in order to account for real-time calculations, swap space, OS and
other associated programs beyond just the raw table data.
Persistence Layer
The SAP HANA database persistence layer stores data in persistent disk volumes (either hard
disk or solid-state drives). The persistence layer ensures that changes are durable and that the
database can be restored to the most recent committed state after a restart. SAP HANA uses
an advanced delta-insert approach for rapid backup and logging. If power is lost, the data in
RAM is lost. However, because the persistence layer manages restore points and backup at
such high speeds (from RAM to SSD) and recovery from disk to RAM is so much faster than
from regular disk, you actually “lose” less data and recover much faster than in a traditional
disk-based architecture.
MDX Interface
The SAP HANA database also supports MDX (MultiDimensional eXpressions), the de facto
standard for multidimensional queries. MDX can be used to connect a variety of analytics
applications like SAP Business Objects products and clients such as Microsoft Excel.
Engines
The core of the SAP HANA database contains several engines that are used for specific tasks.
The two primary engines are the planning engine and the calculation engine.
Planning Engine
The SAP HANA database contains a component called the planning engine that allows financial
planning applications to execute basic planning operations in the database layer.
Calculation Engine
What truly makes SAP HANA unique is that, in addition to its being a standard SQL database, it
also natively supports data calculation inside the database itself. By incorporating procedural
language support — C++, Python, and ABAP — directly into the database kernel through a
dedicated calculation engine, it can achieve exceptional performance because the data do not
need to be moved out of the database, processed, and then written back in.
Libraries
The technical details of communicating with the SAP HANA database are contained in a set of
included client libraries for standard platforms and clients. The following client libraries are
provided for accessing the SAP HANA database via SQL or MDX:
1. Attribute views are built on dimensions or subject areas used for business analysis.
2. Analytical views are multidimensional views or OLAP cubes, which enable users to
analyze values from single-fact tables related to the dimensions in the attribute views.
3. Calculation views are used to create custom data sets to address complex business
requirement using database tables, attribute views, and analytical views in on-the-fly
calculations.
In the event of disaster scenarios such as fires, power outages, earthquakes or hardware
failures, SAP HANA supports Hot Standby using synchronous mirroring with the redundant data
center concept — including a redundant SAP HANA system — in addition to Cold Standby using
a standby system within one SAP HANA landscape, where the failover is triggered
automatically.
User Provisioning
SAP HANA supports user provisioning with authentication, role-based security and analysis
authorization using analytic privileges. Analytical privileges provide security to the analytical
objects based on a set of attribute values. These values can be applied to a set of users by
assigning them to user/role.
SAP provides a special licensing bundle to build an agile data mart use case with SAP HANA
that includes the extractors and connectors needed to obtain data from source systems and the
front-end tools needed to build analytical applications on top of the data.
SAP ERP rapid-deployment solution for operational reporting with SAP HANA Quickly and
affordably generate insightful reports from sales to shipping — in real time — using our
operational reporting solution with SAP HANA. Rely on in-memory technology to process
high volumes of data quickly, and get ready to transform decision-making business-wide.
SAP ERP rapid-deployment solution for profitability analysis with SAP HANA Analyze
massive amounts of profitability data in enterprise resource planning (ERP) (CO-PA) faster
than ever before. Our ERP profitability analysis solution with SAP HANA can help you
perform real-time reporting and conduct instant, on-the-fly analysis — for more profitable
decision making across your enterprise.
SAP rapid-deployment solution for customer segmentation with SAP HANA SAP HANA
combined with SAP Customer Relationship Management (CRM) can help you analyze and
segment massive amounts of customer data in real time. You can target the precise
audience with the right offers across customer segments, tactics, and channels.
SAP rapid-deployment solution for sales pipeline analysis with SAP HANA Gain instant
insight into massive volumes of sales pipeline data while performing on-the-fly calculations
and in-depth analysis on any business dimension.
You can also try out a few of the current accelerated applications running LIVE:
http://hanauseast.testdrivesap.com/copa. We’ll go into much more detail on the applications
and RDS packages in the Accelerated SAP Business Suite chapter.
SAP offers a specific licensing bundle to utilize SAP HANA for this use case that includes
additional replication tools needed for the connections to the SAP source system.
SAP offers a specific “run-time only” license option to utilize SAP HANA as the primary
persistence layer for SAP BW. If you are already an SAP BW customer, the company offers
several options for license credits based on previous SAP BW and BWA licensing. Consult your
SAP account executive for the details. SAP has also set up a special migration fund to provide
professional services credits to migrate to SAP BW on SAP HANA.
SAP brands applications that leverage SAP HANA as a database as “Powered by SAP
HANA.” Partners whose applications have been certified by SAP can also add the “Powered by
SAP HANA” brand to their solution name.
Instantly aggregate time of use blocks and total consumption profiles to analyze their
customers’ energy usage by what neighborhood they are in, the size of their homes or
businesses, building type, and by any other dimension and at any level of granularity
Segment customers with precision based on energy consumption patterns that are
automatically generated by identifying customers that have similar energy usage
behavior
Provide energy efficiency benchmarking based on statistical analysis so that utility
companies can help their customers understand where they stand compared to their
peers and how they can improve their energy efficiency
Empower customers with direct access to energy usage insights via web portals and
mobile devices connected to SAP Smart Meter Analytics via web services
These capabilities delivered by SAP Smart Meter Analytics enable utility companies to
increase adoption of service options such as demand response programs, launch targeted
energy efficiency programs, improve fraud detection capabilities, and develop new tariffs
and more accurate load forecasts.
SAP Sales & Operations Planning
SAP Sales & Operations Planning is a next generation planning application that is powered
by SAP HANA and delivered in the cloud. The solution enables:
Planning and real-time analysis with a unified model of demand, supply chain, and
financial data at any level of granularity and dimension
Rapid, interactive simulation and scenario analysis, using the full S&OP data model to
support demand-supply balancing decisions
Embedded, context-aware social collaboration enables rapid planning and decision-
making across the organization
These capabilities enable companies to align demand and supply profitably, reduce
supply chain costs, and drive revenue growth.
SAP Supplier InfoNet
SAP Supplier InfoNet is a cloud-based solution, powered by SAP HANA, that enables
companies to:
Recalls Plus
Recalls Plus is SAP’s first consumer mobile app that enables parents to proactively monitor
recalls of their kids’ strollers, cribs, toys, and other items for greater safety and peace of
mind. Features of the app include:
Search recall history by brand or category
Create a personal watch list of items like car seats, cribs, strollers and so on
Track allergen related recalls
Share relevant recalls with others
Read and monitor recalls from all relevant US government agencies: CPSC, NHTSA,
FDA and USDA
Recalls Plus is available for free and can be accessed via an iPhone app or a Facebook
app:
In the long run, once the entire SAP portfolio has been “HANA-fied,”8 SAP will be able to
deliver a vastly simplified landscape for its customers. By merging OLAP and OLTP into a
single SAP HANA instance, SAP can provide a massive reduction in layers and TCO in the
landscape while at the same time providing much more flexibility and business value through
real-time access to all of the relevant data. It will take SAP several years to engineer and
deliver this vision to its customers. If the past five years of in-memory (r)evolution at SAP are
an indication, however, the next five years of this journey will be extraordinarily fast and
exciting.
1 Markides, C. (2002). Strategic Innovation. In: E. B. Roberts (Ed.). Innovation. Driving Product, Process, and Market Change.
San Francisco: Jossey-Bass.
2 Woods, D. and Word, J. (2004), SAP NetWeaver for Dummies, Wiley Publishing Inc., Indianapolis, IA.
3 With the SAP HANA RDS migration package customers can migrate in ~7 weeks, if they are already on BW 7.3 SP7, with
Unicode, and 7.x data flows and authorizations.
4 Magal, S. and Word, J. (2011), Integrated Business Processes with ERP Systems, John Wiley & Sons. Hoboken, NJ
5 People always ask “if all the data is in volatile storage like RAM, what happens if the power goes out?” We’ll talk about that in
more detail later, but basically, SAP HANA has some very sophisticated backup tools to prevent data loss from disasters.
6 Plattner, H & Zeier, A. (2011). In-memory data management: an inflection point for enterprise applications. Springer.
7 The SAP HANA RDS for database migration takes ~7 weeks for most customers who are already running SAP BW 7.3.
8 Meaning “Powered by SAP HANA” and renovated to natively take advantage of SAP HANA.
Chapter 2
SAP HANA Architecture
A well-developed business case is not just a collection of data. Rather, it is also a collection
of opinions and views from relevant stakeholders — both supporters and detractors — as well
as representation from both the business and IT departments.
If the primary goal of a business case project is to calculate total cost of ownership (TCO)
and/or return on investment (ROI) of an investment in new software, then that case will likely
provide an incomplete and potentially unreliable forecast of the quality of that investment. An
effective business case must quantify not only the tangible value proposition of the project but
also the intangible value, because both metrics are components of overall business value.
A strong business case for SAP HANA typically includes multiple use cases or projects —
concrete examples of how the organization will utilize the product in the course of business. The
key here is to “Think big, start small.” The big picture helps shape the long-term value from the
investment, but starting small enables you to build in quick wins that establish success early and
then continue to build business momentum with later projects.
Going further, some uses cases should reflect “stretch” goals — ambitious projects that may
span several years. At the same time, they should include projects that not only can be
implemented quickly, but also demonstrate measurable business value. The final collection of
use cases can then be used to build a roadmap for current and future deployments of SAP
HANA. The roadmap will balance each project›s business value against the corresponding
difficulty of implementation and/or risk involved. This approach will enable your organization to
prioritize its various projects in a thoughtful and comprehensive manner, thus maximizing the
likelihood that the entire initiative will be approved.
Methodology
For each business case you build, we recommend the following multistep approach:
The first step, creating the storyline, is fundamental to any SAP HANA business case. The
storyline is what makes the business case unique to your organization. The use cases in the
storyline should map to goals and processes that distinguish your organization from the
competition.
After you have created a viable storyline, the next step is to add the financial dimension. No
matter how impressive the story, by itself it isn’t sufficient to obtain funding for the project.
Adding the financial dimension extends the storyline to the expected business value and
provides some quantitative measures that can be used in the evaluation process.
After these two steps have been completed, the final step is to package up the business
case in a format that is appropriate for the individuals who will evaluate the project.
We will discuss each of these steps in greater detail throughout this chapter. Before we
proceed, however, we need to consider the fundamental concept of business value.
Levels of Value
We’ve mentioned business value a couple of times already in this chapter. Exactly what do we
mean by this term?
“Business value” actually covers a relatively wide range of benefits, both quantitative and
qualitative. Moreover, there are different levels, or degrees, of business value. The chart below
illustrates a useful model for categorizing these levels. This model identifies three levels:
Efficiency, Effectiveness, and Transformation. Let’s take a closer look at each one.
1. Efficiency
The first level of business value, Efficiency, is the result of doing things the “right way.” Typically
this means doing things faster, better, or cheaper or otherwise improving the way you do things
(but not what you do). Of all the levels of business value, the gains from efficiency are the
easiest to quantify. There are two basic subcategories of Efficiency: IT Efficiency and Business
Efficiency.
IT Efficiency
Organizations are likely to focus heavily on IT Efficiency when (1) the software investment
under consideration is part of a broader effort such as creating an analytics center of
excellence or shared analytical services and (2) the main rationale for doing so is to reduce IT
costs. At this level of business value, IT is viewed as a cost center within the organization — an
expense or overhead item that needs to be managed and contained. The following list identifies
some common examples of IT Efficiency.
Business Efficiency
The Business Efficiency level extends beyond issues that are purely related to the IT
department. However, business efficiency/productivity is only an intermediate step in assessing
the overall value of a project.
2. Effectiveness
The second level of value — Effectiveness — redirects the focus from “doing things the right
way” to “doing the right things at the right time.” To properly assess this level, we need to
discard many of the prevailing assumptions that underlie current business processes.
Although efficiency can deliver a fair amount of business value, effectiveness offers the
promise of much more. In fact, SAP HANA provides organizations with the opportunity to
fundamentally rethink their basic business processes (i. e., what they do and when and how
they do it).
For example, organizations rarely, if ever, depend exclusively upon a total cost of ownership
(TCO) analysis (i.e., Efficiency) to justify a business analytics initiative. Although cost is a
concern, the top-performing companies in each industry incorporate analytics into their
infrastructure in order to create and maintain competitive advantage.
At the Efficiency level of business value, business performance is improved first through
visibility and then through insight. Visibility provides the ability to access relevant information
quickly and in context. Then, insight provides a deeper understanding of the underlying causes
of a situation or the likely outcome of a course of action under consideration.
Recall from previous chapters that SAP HANA a disruptive technology. Consequently, the
business benefits it delivers extend far beyond improvements in IT operations. The examination
of effectiveness gains makes the assumption that IT is a strategic enabler and value creator,
and not just an organizational cost center.
Although effectiveness gains are usually more difficult to quantify than efficiency gains, their
monetary value is frequently greater. Instead of precise estimates, effectiveness gains can be
expressed as ranges of financial value, as illustrated by the following list.
3. Transformation
Business Transformation is the highest level of business value, but also the most difficult to
achieve. Transformation goes well beyond Effectiveness by enabling new business models and
processes. Sometimes called “innovation” or “The Art of the Possible,” business transformation
can generate extraordinary financial gains. However, the potential monetary value from this
level of business value is the most difficult to quantify. By definition, Transformation involves
things that have never been done before. Consequently, there are no baseline data to use for
comparison.
At the Transformation level, the focus is on use cases that involve the invention of new
business models and processes by leveraging innovative solutions and technologies, such as
SAP HANA.
Examples:
Identifying and serving new market segments before your peers can
Providing personalized customer pricing and services
Enabling new products or pricing models
Creating new business models
Improving time to market
Reducing inventory
Increasing market share
Improving P/E ratio
Hopefully you now have a more nuanced understanding of business value. Having covered
this topic, we return to our discussion of the three-step process for building effective business
use cases. We begin with the first step — creating the storyline.
A. Categorization/Business Attributes
Sometimes it’s easier to create use cases when you can place each one into a convenient
category, or container. Below we list samples of potentially useful categories. Note that these
categories may not be mutually exclusive. Some of your use cases can cross boundaries,
especially in the case of innovations. Please refer to the SAP HANA Use Case Repository for
the most current list of use cases.
Industry-specific
Consumer Products: (Supplier Risk Mgt., Track and Trace, Product Recall, Product
Lifecycle and Cost Mgt., EPA Standards Compliance, Real-Time Warranty and Defect
Analysis )
Financial: (Fraud Detection, Risk Analysis, Credit Scoring, Program Trading, Customer
Profitability)
Manufacturing: (Supply Chain Optimization, Production Planning, Operational
Performance Mgt., Real-Time Asset Utilization)
Retail: (POS/Fraud Detection, Business Planning, Price and Merchandising Optimization)
Telecom: (Investment Planning, Network Equipment Planning & Optimization)
Utilities: (Smart Metering, Demand Side Management, Balance and Demand
Forecasting, Churn Management, Outage Management, Investment Planning, Grid
Management)
Cross-Industry
B. Self-Discovery
After reading about the methodology and techniques discussed in this chapter, some customers
may feel comfortable building business cases on their own. The SAP HANA Use Case
Repository and SAP HANA Value Calculator (described below) can provide invaluable
assistance with this task.
C. Assisted Discovery
Many other customers, however, will prefer to leverage the expertise of SAP’s Value
Engineering (VE) group in constructing a convincing business case for SAP HANA. One of the
ways in which the VE organization can help you construct an SAP HANA business case is
through a Value Discovery Workshop. Over the course of this workshop, you will have the
opportunity to identify, validate, and prioritize a number of SAP HANA use cases. These use
cases can describe your organization’s internal usage, and perhaps also how your organization
interacts with its external customers.
The workshop is intended to address business outcomes as well as technical feasibility.
Therefore, the project sponsor, business unit representatives, domain experts, and IT staff
should all participate. The workshop will provide you with detailed information on data,
processes, roles, modeling, consumption, clients, and security requirements for your
applications. In addition, it will help you identify the “degree of match,” potential value-add, and
customer interest for each use case.
The figure below reproduces a sample “value map” created during the first portion of a
workshop for a customer in the chemical industry.
The next illustration is an example of one of the process analysis outputs created at a later
stage in another workshop.
Finally, after you have completed the workshop, VE resources may be available to assist you
in building a formal business case. Please check with your SAP Account Executive for further
information on this service.
In February 2011 Aberdeen completed a real-time business study that found that
organizations wanted more accurate operational information. A case study concluded that
manufacturing organizations yielded a 2% increase in production efficiencies, returning tens of
millions of dollars in savings. The independant study demonstrates that quantitative benefits are
being realized with real-time information. Production yield is an excellent example of benefits
quantification. Increased yield reduces the cost of operations. This section will help you identify
these business areas and quantify the benefits.
SAP has come to realize that organizations can struggle with analytics benefits quantification.
Organizations utilize various approaches to business case benefit development; however, they
may not have the experience to transfer that approach to business analytics and SAP HANA
business cases. To address this problem, SAP’s Value Engineering organization has taken the
methodology that has been used for the past eight years and applied it applied it to SAP HANA
benefits quantification. We discuss the value engineering and the value management approach
later in the chapter.
B. Types of Quantification
SAP Value Management has created a framework for analyzing benefits that also applies to
SAP HANA. This framework, which is illustrated below, places benefits in one of four
categories:
Strategy Enablement
Measurable Benefits
Risk and Compliance
Innovation
Financial measurement, known as “hard” benefits, typically falls within the measurable benefit
category. However, risk mitigation and compliance can deliver millions of dollars in savings.
Strategy enablement and innovation are usually treated as “soft” benefits.
It is important to understand that an SAP HANA business case, like an analytics business
case, impacts numerous process areas within an organization. SAP realized that the underlying
transactional systems by themselves release only a percentage of the overall benefits.
Unlocking the remaining benefits requires information insight.
For example, Procuremnt leaders rely on information to understand how an organization
spends money in various categories such as materials, services and IT equipment. The
procurement process controls the flow of money going out of the company for materials and
services. This critical function ensures that an organization manages its spending strategically.
The primary metrics that measure success in this area are overall spending managed centrally
and year-over-year annual savings achieved by the procurement team. Spend that is not
managed centrally does not leverage contracts negotiated with preferred vendors that include
already secured discount levels. Without real-time business insight on spend, organizations are
not fully optimizing savings with consolidated spend. The following SAP HANA case study
illustrates a procurement business case involving a retail grocer.
National Grocery Retailer — SAP HANA Business Case:
The retailer had already invested in an ERP system that drove the procurement process with suppliers; however, it
was implemented in a regional format. Thus, the overall spend managed by the organization was not visible at a
national level. Supplier relationships at a regional level ran the risk of not capturing increased discounts and
creating redundancies in process.
Objective:
Challenge:
Significant data volumes residing with four regional data warehouses. Data created from regional
procurement systems
Four regional warehouses housing ERP structured system data
No infrastructure in place to automate the data consolidation for a national view of supplier spend levels
Approach:
Evaluate the SAP HANA solution as the database and analytics technology to enable a single view of
consolidated supplier data
Develop a benefits case based on the regional grocer spend performance
The four major regions each had consolidated supplier spend
The regional procurement spend performance was compared, and the grocer found that certain regions
were outperforming others in year-over-year savings and negotiated discounts
The grocer utilized SAP’s global benchmarking data to compare year-over-year savings and spend
managed strategically with retail peers
The grocer determined that additional savings would be possible if the organization better understood the
underlying procurement data
XXX calculated a conservative benefits estimate of $50 million in savings over a multiyear period
Begin realizing $50 million in savings on supplier spend with one national view of vendor spend
Remove supplier negotiation and contract administration redundancies with one process, managed by a
national supplier
Significant supplier data compression with transfer of spend and supplier data from four regional systems
to one single instance of SAP HANA
Real-time and automated data transfer that was previously not possible with four different regional systems
Granular reporting analysis resulting in visibility on optimal supplier discounts and redundant buying
Elimination of vendor spend with contracts that do not offer maximum discount levels.
Renegotiation of national vendor contracts demonstrating higher discount levels on aggregated spend
Demand Generation
Marketing
Benefit: Optimized marketing spend through improved campaign effectiveness
Metrics:
Outcome:
Sales Execution
Benefit: Increased sales conversion rate, thereby increasing annual revenue
Metrics:
Outcome:
Demand Fulfillment
Procurement
Benefit: Reduced annual spend with increased visibility on supplier metrics
Metrics:
Outcome:
Metrics:
Outcome:
Metrics:
Outcome:
Metrics:
Workforce Management
Benefit: Improved worker utilization levels and reduce level of overtime
Metrics:
Outcome:
Fraud Management
Benefit: Improved fraud detection, thus reducing the costs associated with additional
insurance claims
Metrics:
Current combined ratio (claims and expense measured against premiums collected)
Measured fraud investigations
Outcome:
The metrics and outcomes listed in the table span many major business process areas.
However, they all have a common theme; namely, to manage information from diverse data
sources and to deliver real-time insights for decision making. In each case the results are
measured in revenue, expense, and cash flow impacts.
2. Strategic (“Soft”) Benefits
Strategic or “soft” benefits are commonly linked to the tangible benefits measured above. The
strategic benefits impact the organization’s overall strategies and can support the tangible
benefits.
In some cases, productivity or efficiency metrics do not directly result in reduced costs. An
example is a scenario in which labor costs are not reduced, but the organization utilizes
appropriate metrics to deliver greater throughput with the same staff. The labour budget is not
reduced, but the workforce is able to manage increasing workload. Often, improved employee
engagement and work-life balance is another soft benefit outcome. Similarly, improved
decision-making can generate indirect impacts on the organization, such as better execution of
the corporate values for accountability. Many organizations find it difficult to drive accountability
with poor information. Department leads can’t drive improvements if there is no trust in the data
comprising the actual results.. In creating and evaluating a business case, you need carefully
consider both tangible and strategic benefits.
3. New KPIs and Breakthrough Innovations
SAP HANA is an innovative technology that offers a fresh approach to information management.
The ability to deliver innovations by managing complex analysis in real time reduces time to
market and generates new revenue streams. These innovations are the most difficult to quantify
because no baseline data exist. However, “first mover” advantage may result in the largest
payoffs for a project.
SAP is constantly capturing new innovations delivered with SAP HANA to share the impact.
We have multiple forums to share the benefits of SAP HANA; the external website mentioned
earlier in the chapter capturing use cases and the business transformation studies captured by
Value Engineering. A business transformation study is a brief document published jointly with
our customers to capture benefits realized along with the story of why the investment was
made. It is critical to continually measure the post-implementation impact of SAP HANA to
capture benefits. The best recommendation is to simultaneously explore innovative SAP HANA
scenarios while developing existing process-improvement scenarios. A simple business case
can be developed based on existing processes and then leveraged to fund breakthrough
innovations.
SAP recommends multiple scenarios by which SAP HANA delivers maximum value to the
organization. These scenarios can be incorporated into an analytics roadmap that prioritizes
value and time to value. This strategy will enable IT to jointly manage the implementation with
the relevant business functions.
As stated above, an organization needs to establish baseline metrics before it can calculate
the value of a benefit. However, baseline metrics in isolation do not allow the owner of the
business case to comfortably develop a target improvement range. These metrics are simply
utilized as a measuring stick of success. The baseline metric allows organizations to know how
much they have improved after the technology has been implemented. In order to truly define a
benefit beyond the current state baseline, SAP Value Engineering performs this function by
providing a triangulated approach to benefits quantification. Specifically, VE provides SAP
Benchmarking data that indicate average and best-in-class performance, past examples of
measured success by other organizations, and the ability to collect current state processes to
best calculate the benefit range. (We discuss the SAP Benchmarking database in greater detail
in Section E.)
After the analysis has been completed, the next step is to identify the associated value driver
outcome(s). The benefit as described in the process areas is typically related to its impact on
revenue and expenses. We strongly recommend that when you calculate a benefit you apply a
benefit range with a conservative and likely metric based on the SAP Value Engineering
approach described above.
One final point: It is commonplace to link benefits to an overall initiative involving process
improvements through technology enablement. Benefits are more widely accepted when linked
to key business initiatives such as improving spend management or improving pricing within a
certain product category. As part of the initial business case development, discussions with the
business unit sponsors ensure linkage to strategy and acceptance of the SAP HANA
investment.
Customer Focus
Procure to Pay
Plan to Produce
Record to Report
Quote to Cash
The benefits calculator enables you to customize the revenue include the number of
employees, and key baseline information for your particular organization. The benefit ranges
are based on the SAP Value Engineering triangulated methodology we just described. A
summary report aggregates all the benefits to determine the overall financial impact.
SAP designed this tool to be a great launching point for calculating benefits. It generates
ideas on how SAP HANA can impact your business, and it demonstrates how you can calculate
these benefits. Your organization can then continue to develop benefits either in partnership
with SAP VE or on your own.
E. SAP Benchmarking
One of the most valuable resources available to you when building an SAP HANA business
case is the SAP Benchmarking database. SAP Benchmarking is a global program launched in
2004 to deliver empirical metrics, best practices, and high-impact strategies to organizations
that choose to leverage the program.
SAP Benchmarking is managed through a customer portal, SAP Value Management Center
(https://valuemanagement.sap.com). The link takes you right to the portal to sign in and utlize
the surveys to capture baseline information and determine how you are performing against best
in clauss organizations. This is a significant investment by SAP to allow organizations to
measure performance and build benefit cases.
This portal offers direct access to complete surveys and analysis of results. The data in the
benchmarking resources are collected anonymously from SAP customers who have
participated in the program. These data are incredibly deep and rich, and they enable you to
benchmark your company’s current state and potential value against real-world experiences
from other companies in your industry.
For SAP HANA, SAP offers the Business Intelligence and Enterprise Information
Management data sets and surveys. In addition, SAP launched a High Performance Analytics
survey to track the importance of complexity and speed in the data management environment.
As discussed previously, SAP HANA can impact many business process areas spanning the
entire organization. The SAP Benchmarking program allows you to help choose a few key
process areas to determine where SAP HANA best fits as a starting point. The program
provides the flexibility to create a customized survey to capture the key metrics and best
practices identified through the SAP HANA business scenario development. This process will
provide the critical peer comparison that establishes the appropriate range of improvement. An
organization can build a realistic benefit range improvement by leveraging peer benchmarking
data.
A. Internal Deliverables
As mentioned throughout this chapter, SAP HANA is a disruptive technology. Accordingly,
previous “rules” about internal business cases may not apply to SAP HANA cases. Fortunately,
SAP Value Engineering has significant experience creating successful business cases for SAP
HANA, and it can assist with your final presentation.
Although there is no set format for final deliverables, successful presentations generally
contain certain critical components, which we list below.
V. Recommendations
The purpose of this chapter is to explain why it is critical to build business use cases and to
provide some guidelines to assist you with this process. However, we did not intend this
chapter to be used as a “cookbook” for building business cases for SAP HANA. Different
organizations may follow widely varying approaches when building their internal justifications for
SAP HANA.
Whatever your situation, however, we strongly recommend that you keep the following points
in mind during your journey:
1) When identifying use cases, try to go beyond ideas about what you could be doing better.
Consider:
2) Think big, but start small with a quick win to build momentum in business.
Strategic enabler
Value creator
4) Track both hard and soft benefits during the financial analysis of use cases.
S AP HANA is the first SAP solution that has been built to be specifically run as an appliance
and optimized for a very specific combination of processor, memory, and operating system.
This approach represents a departure from SAP’s long history of broad platform support. SAP
implemented this new policy to still provide customers with multiple choices in hardware
platforms while avoiding the TCO implications of multiple OS and processor support
combinations. In order to understand why, we need to look back historically at some of the
hardware platform changes that led SAP to adopt this policy this strategy and explore why this
path offers SAP customers the best balance of broad hardware partner options and focused
innovation around a stable set of key components.
When SAP shifted from mainframe to client-server architecture with SAP R/3, two of the
critical benefits were the lower costs and the more standardized options associated with the
UNIX-based servers that had just become available. When the mass-adoption of SAP R/3 took
off, customers began asking SAP to certify more and more new combinations of operating
system and database on various hardware platforms. This made sense because many
companies were employing existing landscapes from a preferred hardware vendor and had
developed expertise in certain versions of operating system and database that they wanted to
leverage for their SAP environment.
SAP happily obliged, building out a robust certification laboratory in its headquarters to
constantly test and validate new hardware and software combinations that were being released
by its partners for customer use. At the time, SAP believed that providing customers with such
a broad choice would help them achieve lower TCO of their SAP solutions by reusing
technology and resources that were already in place. SAP also felt that being hardware and
OS/DB “agnostic” would be the best strategy to set itself apart from the other enterprise app
vendors. This “technology-neutral” strategy worked very well for SAP for more than 30 years.
At a certain point in the mid-2000s, however, the small number of combinations that SAP began
with had exploded into a truly dizzying collection. Customers no longer benefited significantly
from such a broad list of hardware and technology choices, and the costs for SAP and its
customers of this broad coverage were becoming unsustainable.
After SAP R/3 was released, the UNIX platform began to splinter into multiple dialects, with
each hardware vendor putting its efforts behind its preferred variant (HPUX, AIX, Solaris, etc).
In addition, x86 platforms from Intel and AMD began to displace the RISC-based platforms of
the early UNIX hardware vendors due to their lower costs and their support for industry
standards. Later, Linux began to displace the original UNIX operating systems due to its lower
costs and the advantages of open-source code. Soon, the Product Availability Matrix (PAM) for
SAP ERP exceeded 200 combinations of OS and database, with a vast number of hardware
platforms for those combinations. At a certain point, choice became a liability for SAP and its
customers rather than the benefit that it was originally intended to be.
So, when SAP began development on the precursors of SAP HANA, the company made a
strategic decision to avoid all of the costs and complexity of supporting so many variations of
hardware and technology platforms. SAP was primarily concerned with the three pieces of
technology that had the greatest impact on performance and would be the largest drivers of
TCO reduction: operating system (OS), RAM, and processors. SAP decided to bet on open-
source and industry standards as the core platform for SAP HANA. By supporting only ONE
combination of OS and processors, SAP could invest all its development and testing resources
into a single platform while still allowing customers to choose which hardware vendor would
deliver and support the appliance.
SAP had been working with Novell/SUSE for many years to support Novell SLES Linux as a
certified operating system for SAP applications. Because Linux is so technically similar to UNIX,
almost any UNIX engineer could transition his or her skills easily. Moreover, because Linux was
open-source and easily supported by third parties, it was clearly the lowest TCO option for
running an SAP system.
In addition to selecting a single OS, SAP had to settle on a single processor family for the
new solution. Although there were many chips on the market that could handle SAP’s traditional
application-processing requirements, there weren’t any processors that had been designed to
handle in-memory processing tasks (because enterprise-scale in-memory computing didn’t exist
yet). The initial SAP HANA conversations that SAP’s executives held with anyone outside the
company were with Intel because SAP realized that shifting to in-memory computing would
require a new breed of processors that were optimized for the new architecture, and Intel has
a long history of innovating for the future needs of the enterprise.
SAP laid out its strategy for the shift to in-memory computing to Intel’s executives, and the
two parties discussed the level of co-innovation that would be needed to jointly engineer both
an in-memory database and optimized processors that could handle the unique needs of this
new architecture. The top executives from each company agreed that the they would have to
establish a new level of co-innovation partnership and starting in 2005, Intel sent a team of their
best software and chip engineers to SAP HQ to begin the work of jointly optimizing each
successive version of the industry-standard Intel Xeon chips for the needs of SAP’s evolving in-
memory database. Since that time, SAP has benefitted from early access to each new
generation of Xeon processor from Intel, and Intel has incorporated SAP’s unique in-memory
processing requirements into its chip capabilities.
Intel and SAP: A History of Co-Innovation
For more than 10 years, Intel and SAP have worked together to deliver industry-leading performance of SAP
solutions on Intel® architecture, and a large proportion of new SAP implementations are now deployed on Intel ®
platforms. The latest success from that tradition of co-innovation is available to customers of all sizes in SAP
HANA, which is delivered on the Intel® Xeon® processor.
The relationship between Intel and SAP has become even stronger over the years, growing to include a broad set
of collaborations and initiatives. Some of the most visible:
Joint roadmap enablement. Early in the design process, Intel and SAP decision makers identify
complementary features and capabilities in their upcoming products, and those insights help to direct the
development cycle for maximum value.
Collaborative product optimization. Intel engineers located on-site at SAP work with their SAP counterparts
to provide tuning expertise that enables SAP HANA and other software solutions to take advantage of the
latest hardware features.
Combined research efforts. Together, researchers from Intel and SAP continually explore and drive the
future of business computing
As a result of these efforts, customer solutions achieve performance, scalability, reliability, and energy efficiency
that translate into favorable ROI and TCO, for increased business value.
Having created an optimized “core” (operating system, RAM, and processors) for SAP
HANA, SAP needed to reach out to the server manufacturers to package the software and
hardware into industry-standard appliances in a way that would remove as much configuration
and integration work from the customers as possible (again, lowering TCO). SAP realized that
even though the core components of the SAP HANA servers would be nearly identical (OS,
RAM, and processors), the hardware vendors provide a great deal of additional value in the
implementation, management and operations of the hardware. Plus, customers typically have a
preferred hardware vendor for their enterprise landscapes. This is really where SAP felt that
customer choice would have the most value. So, they engaged seven of their primary hardware
vendors (see the next paragraph) to build certified SAP HANA appliances and create packaged
services to implement SAP HANA quickly and easily at customer sites.
In early 2011, Cisco, Dell, Fujitsu, IBM, and HP all jumped on the SAP HANA bandwagon and
had their flagship Intel-based servers certified and in production. Hitachi joined the list later that
year, and NEC was certified in early 2012. This broad support from industry-leading hardware
vendors provides customers with a choice of seven hardware partners to deploy their SAP
HANA solution, each with unique service and support offerings to fit their customers’ needs.
SAP’s strategy of “solid core,” multivendor hardware support for SAP HANA has been received
extremely well by customers because it eliminates the confusing number of hardware
combinations and focuses on the value-added solutions that each vendor can offer on top of the
“solid core.”
General SAP HANA Hardware Specifications
SAP HANA is sold as a pre-configured, pre-installed appliance that is delivered directly from the
hardware partner. SUSE Linux SLES 11 is the only supported operating system, and Intel E7
processors are the only supported chips. Samsung RAM is currently the primary memory used
by all of the hardware partners.
Most partner systems use on-board 15k RPM hard disks (4x ratio for main memory) for
data-volume backup and Fusion I/O SSD cards (1:1 ratio for main memory) for log-volume
backup.
SAP ensures the quality, availability, and performance of the certified systems through a
rigorous process of end-to-end quality testing, performance testing, and continuous early
access to next-generation technologies from all of its partners.
No database tuning, indexing or caching were needed to achieve these results. To put that in
context, the closest competitive database is roughly 1000x slower in the same benchmark and
several times more expensive.
High Availability
SAP HANA supports cold standby hosts, meaning a standby host is kept ready in the event that
a failover situation occurs during production operation. In a distributed system, some of the
servers are designated as worker hosts, and others as standby hosts. Significantly, you can
assign multiple standby hosts to each group. Alternatively, you can group together multiple
servers to create a dedicated standby host for each group.
A standby host is not used for database processing. All of the database processes run on the
standby host, but they are idle and do not enable SQL connections.
Disaster Recovery
The SAP HANA database holds the bulk of its data in memory to ensure optimal performance,
but it still uses persistent storage to provide a fallback in case of failure.
During normal database operations, data are automatically saved from memory to disk at
regular save-points. Additionally, all data changes are recorded in the log. The log is saved
from memory to SSD after each committed database transaction. After a power failure, the
database can be restarted in the same way as a disk-based database, and it returns to its last
consistent state by replaying the log since the last save-point.
Although save-points and log writing protect your data against power failures, they do not
help if the persistent storage itself is damaged. Protecting against data loss due to disk failures
requires backups. Backups save the contents of the data and log areas to different locations.
These backups are performed while the database is running, so users can continue to work
normally. The impact of the backups on system performance is negligible.
If the SAP HANA system detects a failover situation, the work of the services on the failed
server is reassigned to the services running on the standby host. The failed volume and all the
included tables are reassigned and loaded into memory in accordance with the failover strategy
defined for the system. This reassignment can be performed without moving any data, because
all the persistency of the servers is stored on a shared disk. Data and logs are stored on
shared storage, where every server has access to the same disks.
Before a failover is performed, the system waits for a few seconds to determine whether the
service can be restarted. During this time, the status is displayed as ”Waiting.” This procedure
can take up to a minute. The entire process of failover detection and loading may take several
minutes to complete.
Links:
Intel
Cisco
Dell
Fujitsu
Hitachi
HP
IBM
NEC
Intel & SAP: Co-innovation for Real-Time Computing
For more than 10 years, Intel and SAP have worked together to deliver industry-leading
performance of SAP solutions on Intel architecture, and a large proportion of new SAP
implementations are now deployed on Intel platforms. The latest success from that tradition of
co-innovation is available to customers of all sizes in the SAP HANA, which is fully supported
only on the Intel Xeon® processor E7 family.
The relationship between Intel and SAP has become even stronger over the years, growing
to include a broad set of collaborations and initiatives. Some of the most visible include the
following:
Joint roadmap enablement. Early in the design process, Intel and SAP decision-
makers identify complementary features and capabilities in their upcoming products, and
those insights help to direct the development cycle for maximum value.
Collaborative product optimization. Intel engineers located on-site at SAP work with
their SAP counterparts to provide tuning expertise that enables SAP HANA and other
software solutions to take advantage of the latest hardware features.
Combined research efforts. Together, researchers from Intel and SAP continually
explore and drive the future of business computing. As a result of these efforts, customer
solutions achieve performance, scalability, reliability, and energy efficiency that translate
into favorable ROI and TCO, for increased business value.
Additional software
The operating system, Cisco UCS drivers, and Cisco UCS management software are all part of
the appliance; therefore no additional software is necessary to manage the entire system.
However Cisco Intelligent Automation for SAP HANA is highly recommended. The Cisco
Intelligent Automation software solution supports the daily operation of a SAP HANA appliance
by:
Monitoring the CPU and memory workload, and the average index read time at blade
level
Automating quarterly maintenance, including firmware updates and file system validation
Ensuring configuration management assurance for all appliance components
Monitoring data services availability
Proactively monitoring SAP HANA subsystem components status
Monitoring query execution response times using the SAP HANA index for the query
execution SAP HANA Query Response Time
Executing sample queries and recording total execution time and query component
performance breakdown
Proactively monitoring the SAP TREX services statistics based on thresholds
Alerting CPU, memory, or throughput thresholds for SAP TREX services
Automating Cisco UCS blade and rack server provisioning for use in the appliance in
minutes, instead of days
The combination of Dell’s PowerEdge R910 platform and SAP HANA software enables users
to conduct analytics, performance management, and operations in a single system. Together,
these solutions enable a business to respond more rapidly to events that are impacting their
operations.
By implementing Dell’s SAP HANA solution, an organization can position itself to identify and
analyze trends and patterns in order to improve planning, forecasting, and price optimization.
Enterprise customers taking advantage of Dell’s SAP HANA platform get a cost-effective,
optimized in-memory computing solution that can increase availability and reduce risk.
The SAP HANA appliance from Dell is fully contained in the PowerEdge R910 server, making
use of fast internal disks for storage and solid state cards. Solid state technology from Dell
offers high IOPs and low latency performance for the in-memory SAP HANA database. While
solid state drives are used to maintain the system’s logs, a RAID group made up of internally
held 15K RPM disks is used to maintain a copy of the data image.
T-Shirt sizes offered
Dell offers several different sizes of HANA appliances to meet your needs, all of which are
based on the Dell PowerEdge R910 server platform.
High Availability
The Dell™ PowerEdge™ R910 is a high-performance 4-socket 4U rack server designed for
reliability and scalability for mission-critical applications. Its high-availability features include:
Built-in reliability features at the CPU, memory, hardware, and hypervisor levels
Intel advanced reliability, availability, and serviceability (RAS) capabilities
Redundant power supplies
Remote iDRAC6 connectivity
Integrated systems management, Lifecycle Controller, and embedded diagnostics to
help maximize uptime
Internal Dual SD Module providing hypervisor redundancy
Dell’s focus on reliability starts with product design and ends only when it has delivered a
solution that meets strict testing and quality control standards.
Support infrastructure
Dell’s SAP HANA appliance is designed to be an all-inclusive solution that comes as a pre-
integrated unit with all of the necessary hardware, storage, and networking capabilities.
Support Services
Dell is an expert in SAP HANA system support. Dell has a strong systems management and
support practice as well as an in-depth understanding of SAP hardware and software solutions.
Dell’s SAP HANA appliance comes with 3 years of Dell’s award-winning ProSupport Mission
Critical services and a 3-year extended hardware warranty. Customers receive 24x7x365
phone support, escalation management, and collaborative support leveraging Dell’s global
ProSupport infrastructure of more than 30,000 technicians supporting more than 100 countries
in 55 languages.
Dell’s ProSupport Mission Critical services are designed to accelerate rapid resolution of your
technical problems by ensuring that parts and/or technicians will arrive promptly and by
providing access to Dell’s Critical Situation Process.
SAP HANA Executive Workshop — This workshop helps you develop the Use Case
and Business justification for a SAP HANA solution. In addition, it assists organizations in
determining whether SAP HANA is a fit for their situation.
SAP HANA Proof of Concept — Using the Dell DIMCAM methodology and IMPROVE
jump start process, customers can quickly appreciate the value that SAP HANA can
bring to the decision-making process.
SAP Modernization Services — Dell has developed a portfolio of Modernization
Services for SAP applications that features cloud computing, real-time analytics, and
mobile applications.
Implementation — SAP HANA Implementation workshops facilitate the planning and
creation of the Business Justification for the rest of the deployment.
Analytics Factory — Dell offers global business intelligence consulting and support.
“I don’t imagine there were many people who knew more about SAP HANA than the Dell
consultant we worked with.”
— Michael Mertens, Head of the Atos SAP Competence Center
Gesellschaft für Information und Bildung (G.I.B), based in Siegen, Germany, is an expert
in SAP software. The company builds add-ons for SAP environments, and is experiencing
growing success with its G.I.B Dispo-Cockpit solution, which improves supply chain
management. G.I.B customers want faster access to supply chain data to help them increase
efficiency and make better decisions. To achieve these objectives, G.I.B welcomed the
development of SAP® HANA™, which enables businesses to analyze SAP data faster and in
real time.
The company was looking for a partner with significant SAP expertise, data center credibility,
robust support and consulting services, and an accredited SAP HANA appliance. So, it turned
to its long-standing IT partner: Dell. They specifically needed to meet a very tight deadline to
develop a SAP HANA platform for their new Dispo-Cockpit application for an upcoming
customer demonstration event. Together with Dell, G.I.B installed an SAP HANA appliance
based on Dell™ PowerEdge™ servers, and they collaborated with Dell ProSupport™ to help
the project stay on schedule.
G.I.B clients can now analyze critical data in seconds, and not minutes, as was
previously the case
Business ensures SAP HANA demonstration is ready for key event
Flexible support helps G.I.B meet its business needs
G.I.B drives SAP HANA success globally with customer support
Dell’s technical expertise ensures that work stays on schedule
As a result of its collaboration with Dell, G.I.B successfully completed its demonstration
environment to show customers how much faster its Dispo-Cockpit software operates with SAN
HANA.
“Our Dispo-Cockpit solution running on a Dell SAP HANA appliance offers customers
even more value. The response of customers has been positive and we are looking for
pilot customers to jointly install the solution. Dell supported us well, highlighting the close
relationship we have with our technology partners.”
— Nikolaj Schmitz, IT Manager, G.I.B
Quick return on investment supported by jump-start services for fast implementation and
an option for rapid deployment of SAP HANA with pre-defined use cases
Reduced downtime via professional solution maintenance
Low operation efforts thanks to an easy administration concept for upgrade and
maintenance
The single node configurations are ideal for proof of concept/proof of value projects,
development, tests, quality assurance, training and initial SAP HANA implementations with a
defined scope. However, these systems can also be included as building blocks in a multi-node
environment.
Scale-out offering
The Fujitsu multi-node offering for SAP HANA is based on industry-standard PRIMERGY
building blocks combined with a shared NetApp storage system and high performance Brocade
Ethernet Fabric switches as the standard option. Customers can start small and easily add and
integrate PRIMERGY servers and storage capacity as requirements grow. Today the solution
is certified for massive scalability of up to 16 nodes and 8 TB of main memory, however the
concept is already disposed to further growth.
High Availability
Special attention was paid to high availability as a major component for mission-critical
readiness of the overall SAP HANA solution. Thus high availability is already an integral part of
the building block concept. One server can be assigned as a fail-over server and quickly take
over in case a productive server breaks down.
The second pillar of the high availability concept is the utilization of NFS (Network File
System) and the shared NetApp FAS 3240 series. The pivotal idea of in-memory computing is
to store data in the main memory of a computer to allow fast access. The risk of this concept is
that data stored in the main memory is volatile. Once the computer is down, data kept in the
main memory is irretrievably lost. The usage of NFS ensures that all data is constantly mirrored
on the NetApp FAS system. In case of a data loss in main memory, data can be copied back
from the storage system. Besides, the inclusion of an external FAS storage system provides
the classical back-up and restore functionalities.
Highest demand concerning system availability can be met by expanding the infrastructure to
a two-site concept, which means that all infrastructure components and data are reflected in a
second data center. This guarantees disaster resilience with continuous operation even in case
of a total data center breakdown.
Support infrastructure
As an additional, certified component the Fujitsu SAP HANA infrastructure solution always
includes a PRIMERGY RX 100 Infrastructure Management Server (IMS). This mono socket
rack server is used for:
System administrators especially benefit from the IMS component when software updates
are required in multi-node environments, as the update only needs to be started once from the
IMS and is then automatically distributed within the entire server environment.
Support Services
The Fujitsu end-to-end offering comprises a complete set of services for non-disruptive
implementation, integration and operation of the SAP HANA solution.
Services for HANA Implementation and Integration
Fujitsu SAP HANA SolutionContract (Services for SAP HANA Operation)
SolutionContract is the maintenance and support service for defined Fujitsu solutions. It
represents a mix of proactive and reactive services, which ensure that malfunctions are
detected and corrected before they can have any impact on operations. The concept takes into
account that Fujitsu solutions consist of hardware, software and network products from
different vendors. Fujitsu is the single point of contact for all infrastructure components of a
Fujitsu solution as well as their interoperability. SolutionContract offers several service-level
options depending on individual requirements. Note: SAP Software support is not part of this
solution contract!
Mitsui
“To promote the growth of Mitsui’s businesses, it is essential to have an IT platform that flexibly
adapts to change and supports rapid decision making. The objectives of SAP HANA align with
these needs. We greatly value Fujitsu’s early leadership in support of SAP HANA, as well
as Fujitsu’s capabilities in providing global support for our IT platforms, and we intend to
continue to work with Fujitsu in this area in the future. With the global cooperation from the
team at Fujitsu, we have already begun implementing this technology, and look forward to
continuing to work with Fujitsu to achieve our mutual objectives”.
— Mr. Toru Nakajima
Associate Officer and General Manager of Information Technology Promotion Division
Mitsui & Co., Ltd.
As additional applications and business units use SAP HANA or the organization’s data
volumes increase, all three Hitachi SAP HANA appliances sizes — ‘Small’, ‘Medium’, and ‘Large’
—enable users to easily scale system processing capability without “forklift upgrades” or
complete system overhauls. Customers may elect to start with a ‘Small’ configuration and easily
scale to ‘Medium’ or ‘Large’ by inserting additional blades into the server chassis. There is no
need to change server models because scaling requires a ‘Medium’ or ‘Large’ appliance size.
Hitachi SAP HANA Appliances Sizes
Each Hitachi Data Systems Converged Platform for SAP HANA – ‘Small’, ‘Medium’, and
‘Large’– is delivered as a single unit that is ready to plug into the customer network. In addition,
each platform offers a scalable patch to easily increase the system’s processing capability.
Hitachi Unified Compute Platform Select for SAP HANA includes:
SAP HANA:
Hitachi Unified Compute Platform Select for SAP HANA — Small, Medium, Large — meets
varying performance requirements. All three options come with Hitachi Unified Storage 130
storage subsystems and with SAP HANA pre-loaded.
Hitachi supports SAP HANA from the smallest configuration with a single Compute Blade and
256 GB of RAM to the largest configuration of 4 Compute Blade 2000s and 1.0 terabytes of
RAM.
Operating System: SUSE Linux Enterprise Server 11 for SAP
Storage: Hitachi HUS 130, which is designed for high availability, down to the dual
battery backup that protects the cache during power outage. It contains symmetric
active-active controllers that self-balance workloads.
Network: Fibre Channel host bus adaptors
Compute: Hitachi Compute Blade 2000 offers the large I/O capacity and onboard
memory required for effective implementation of SAP HANA
Hitachi-SAP Alliance
Since 1994, Hitachi, Ltd., and its subsidiaries, including Hitachi Data Systems, have had a
strategic relationship with SAP that includes the sale, integration, and implementation of SAP
solutions. During this time, Hitachi has won numerous SAP awards for exceptional customer
satisfaction.
In 2011, Hitachi became an SAP Global Technology Partner, the highest level of partnership
SAP offers. Many large global enterprises run their business on SAP and Hitachi.
Hitachi also ensures the necessary storage performance and high throughput to meet the
stringent demands of in-memory computing. By dramatically reducing the traditional delay
between operations and analytics, this platform helps business leaders gain near real-time
insights and information to make smarter business decisions, faster.
Services
Hitachi Data Systems Global Solution Services (GSS) offers experienced infrastructure
consultants, proven methodologies, and comprehensive services for converged platforms to
help customers further streamline their SAP environments. The HANA Implementation Service
ensures a smooth integration with lower risk and accelerated deployment of the Hitachi Unified
Compute Platform Select for SAP HANA tailored to our customer’s specific needs. Along with
our consulting partners such as Hitachi Consulting, we can integrate and customize the solution
into the customer’s SAP environment.
Support Infrastructure
Hitachi Data Systems Global Services and Hitachi Consulting are equipped to support every
aspect of an SAP HANA solution. In addition, they provide strategy; infrastructure; and HANA
Appliance, Integration, Development, and Support Services for a HANA initiative.
Modern information technologies have blurred the lines between infrastructure, software, and
applications. Given this reality, having one partner who provides a single, fully integrated
solution is a tremendous benefit. Hitachi’s full breadth of capabilities delivers one fully
integrated, highly-optimized environment that ensures the desired results in a lower-cost, lower-
risk, high-business-value HANA initiative.
Contact Hitachi
If you would like to get in touch with the SAP team at Hitachi, please email sap@hds.com. You
can find additional information at www.hds.com/go/sap or Hitachi Consulting:
http://www.hitachiconsulting.com/hana.
HP SAP HANA Solutions
Through a close, collaborative partnership that spans more than 20 years, HP and SAP have
worked together to offer an innovative and comprehensive portfolio of products and services
that help more than 25,000 joint customers around the world of all sizes, in all industries, solve
their business problems. This strategic partnership has ultimately resulted in product offerings
like HP AppSystems for SAP HANA as well as value-added services to implement rapid-
deployment solutions for SAP HANA.
During this partnership, HP received numerous SAP Innovation and Impact awards across all
three geographic regions, with the most recent ones being:
HP AppSystems for SAP HANA are built on an HP converged infrastructure for purpose-built,
integrated solutions that address the growing and complex needs of our customers. This
solution portfolio incorporates hardware, software, and services into predefined configurations
for a powerful and comprehensive set of solutions that are designed to work together. The
portfolio includes:
HP BL680c G7 Server Blades are the blade solution that is ideal for SAP HANA scale-
out implementations for balanced computing to handle the most demanding enterprise
class applications.
The HP X9300 IBRIX Network Storage System is a unique storage platform that offers
unlimited scale-out capability and disaster-tolerant features.
HP P6500 Enterprise Virtual Arrays (EVA) delivers high-throughput, mission-critical,
redundant storage for data and log files, SYS files, config files, traces, and more.
HP networking solutions like HP Virtual Connect for simplifying and virtualizing the
connectivity between the HANA blade nodes, the network, and the shared storage.
HP’s scale-out solution provides high availability through a stand-by blade with automatic
failover, in addition to disaster-tolerant technology. HP offers both synchronous and
asynchronous disaster-tolerance solutions, available either as standard integrated functionality
of the scale-out solution or as an add-on. These solutions are designed to protect your
information systems in the event of a catastrophic event. In doing so they help to mitigate risk,
improve IT availability, and reduce the costs of downtime.
Storage Infrastructure
HP PCIe IO Accelerator for HP ProLiant Servers is a direct-attach, solid-state PCIe card-
based solution for enhancing application performance. Based on Multi-Level Cell (MLC) and
Single-Level Cell (SLC) NAND Flash technology, these devices are ideal for accelerating I/O
performance and maintaining SAP HANA log file data.
For mission-critical deployments and shared-storage infrastructures, the HP X9300 IBRIX
Network Storage System features an NFS cluster file system and support for single-node high
availability. This system is designed for high availability and extreme scalability while delivering
excellent performance and a modular storage infrastructure to accommodate unprecedented
storage growth.
Additional Software
HP ensures global quality standards by preloading and configuring SAP HANA software at the
factory before delivery. No additional software is necessary for the HP AppSystems for SAP
HANA. All solutions are built to your specifications, and they include all required components,
services and support.
HP also provides monitoring and backup software solutions HP to further enhance your
solution. HP AppSystems for SAP HANA can be easily monitored utilizing HP Systems Insight
Manager (SIM), available both with HP ProLiant servers and as a free download from HP. This
powerful yet intuitive solution provides hardware-level management for system administrators to
improve system uptime and health. SIM is also available as a component of the Insight Control
suite of management software, which is available for purchase from HP.
HP Insight Control server management software unleashes the management capabilities built
into every HP ProLiant server. The result is superior management of physical and virtual
servers, from any location. Insight Control integrates specific management functionality into HP
Systems Insight Manager to manage server health, deploy and migrate servers quickly,
optimize power consumption and performance, and control servers from anywhere.
Support Services
HP delivers a comprehensive solution that encompasses hardware, software, and services
from a single resource. HP delivers the full lifecyle of services required to progress from the
assessment and design of an SAP HANA solution to the build, implementation, and support of
the solution.
Implementation
Delivery of the SAP HANA appliance is not the final step. Beyond the design and build of a SAP
HANA solution, integration of the solution into your environment is equally, if not more, critical to
successfully getting SAP HANA up and running. HP understands this, so they include
installation, implementation, and training with every SAP HANA solution we deliver. The basic
foundational service includes the following:
Support
After a successful implementation, HP turns over support of your SAP HANA solution to HP’s
support services team, which delivers HP Proactive Care Service. Proactive Care Service
includes proactive support as well as hardware and software support to provide an additional
level of support for organizations that are managing complex IT environments. Geared for
converged, virtualized, and cloud-based environments, Proactive Care Service features remote
and onsite support, proactive scans and reports, and regular consultations with HP technology
experts. You can purchase an option that includes an assigned local HP specialist who delivers
an “Account Support Plan” customized to fit your needs. Each customized plan includes
delivering updates to your hardware firmware and operating system, regular system health
checks, and setup of remote monitoring. For hardware and software support, HP delivers
enhanced support from trained specialists in its Advanced Solution Center. With a connection to
SAP’s support operation, HP can take the first call on any SAP HANA support issue. Based on
this well-established process, HP is able to deliver industry-leading support and help improve
performance of SAP HANA solutions.
HP Financial Services
HP Financial Services can make your transition to SAP HANA easy and cost effective, and it
can help you get started even sooner. You can expand your organization’s SAP HANA initiatives
by taking advantage of an efficient, effective way to maximum return from IT and BI solutions,
while minimizing risk and aggressively managing costs. HP Financial Services offers new HP
hardware leasing and SAP software license loans plus a complete, global solution that recovers
value from older assets. This solution also helps safeguard privacy, and it complies with
applicable environmental regulations for disposing of SAP infrastructure assets that are
displaced by your new HP AppSystems for SAP HANA. For further information please go to:
www.hp.com/go/asset_recovery.
Migration Assistance
For existing SAP NetWeaver BW and SAP NetWeaver BW Accelerator software customers,
HP and SAP recognize that migrating your environment to SAP HANA will involve extra effort
and incremental costs. To help ease the transition, HP and SAP offer a migration-assistance
package that features a combination of HP financing options and a portfolio of migration
services you can use to clear the path to faster data analysis.
HP Leads the Way with First-ever Benchmark Results for SAP HANA
SAP partnered with HP to co-develop the new SAP standard application benchmark for the
SAP NetWeaver Business Warehouse application, called the enhanced mixed load (EML)
benchmark. SAP standard application benchmarks are designed to represent customer-
relevant scenarios in many different business contexts. This new SAP EML standard application
benchmark simulates the current demands of typical SAP NetWeaver BW customers. These
demands are shaped primarily by three major requirements: near real-time reporting, ad-hoc
reporting capabilities, and reduction of TCO.
The results achieved by HP on the standard performance benchmark demonstrate the ability
of an HP AppSystem for the SAP HANA database to deliver on today’s new customer
requirements. These systems have revolutionized user access to data, and they deliver
outstanding, scalable analytic performance in seconds versus hours on massive,
multidimensional databases.
Posting the FIRST RESULT on the SAP EML standard application benchmark, a single-node,
medium-sized HP AppSystem for SAP HANA configuration achieved an amazing 65,990 ad-hoc
query navigation steps per hour with 1 billion records (certification number 2012023) on the
SAP HANA platform. (These are the results as of May 16, 2012.) Additional details can be
found at http://www.sap.com/benchmark
IBM Intelligent Cluster integrated packaging and assembly can help speed installation and
deployment of multi-node scale-out HA configurations as well as reduce implementation risk if
you require all of your HANA server nodes preassembled and packaged in a rack.
By implementing SAP HANA on eX5 enterprise servers with GPFS, you can realize faster
performance, less complexity and greater efficiency from a powerful and proven converged
infrastructure environment of integrated technologies. These workload-optimized solutions for
SAP HANA can help simplify operations, consolidate resources and dynamically migrate
functionality as business changes, while delivering the ability to quickly change the way users
look at mass amounts of data without compromising data integrity or security.
For more information about the IBM Systems solution for SAP HANA and the IBM System x
Workload Optimized Solutions for SAP HANA, please read the IBM Redpaper: SAP In-Memory
Computing on IBM eX5 Systems
These services have been grouped into four key offerings as shown in the table below:
Combining the strengths of GBS with IBM System x Workload Optimized Solutions for SAP
HANA allows our customers to gain the maximum benefits of their investment in SAP HANA —
and to bring those solutions to life to address immediate information needs and identify the
transformational opportunities that can bring the organization to the highest levels of insight and
action.
IBM can also offer financing options helping clients to acquire IT solutions that are
tailored to their individual goals and budget.
Support Service
For more information, please contact NEC sales representative in your region.
Chapter 11
SAP HANA Projects and Implementation
“He who fails to plan is planning to fail.”
— Winston Churchill
Introduction
So, you’ve decided to move forward with SAP HANA. Great! But how do you get started? SAP
HANA is a new technology, so your organization may lack the in-house expertise to implement it
on their own. Fortunately, whatever your situation, expert project planning, implementation, and
development services are available that can help ensure that you get the maximum business
value from SAP HANA, as quickly as possible.
How can we realize the solution in the shortest time with the least risk?
Does either SAP or its implementation partners offer any predefined services or
application solutions that can help?
What does the high-level project plan look like, and how well does it align with our
business requirements and expectations?
What personnel do we need to ensure successful planning and delivery?
To learn more about ARI’s SAP HANA implementation project, click here: ARI:
http://youtu.be/TE0ZDgckXYQ.
We’ve just discussed the importance of selecting a qualified solution implementation partner.
The next step is to determine how best to use SAP HANA within your current environment to
deliver maximum value in your organization.
Learn how the experts from SAP can assist you with all aspects of your SAP HANA Project with their end-to-end
services. They can help you to:
Link: http://www.sap.com/community/ebook/2012_05_HANA_Services/en/index.html#/page/1
For More information, please visit the SAP HANA Services website:
Financial reporting
Sales reporting
Purchasing reporting
Shipping reporting
Master data reporting
These dashboards and reports leverage existing reporting capabilities from SAP ERP.
However, they offload the physical processing of the reports to a dedicated SAP HANA system
that sits beside the live SAP ERP system. All relevant tables for each dashboard or report are
physically copied from the SAP ERP system onto the SAP HANA system, which is then used to
generate the reports and display them to users in a variety of user interfaces. Let’s review the
key elements of each bundle.
Accelerated Sales & Distribution Reporting
The SAP HANA business content for Sales and Distribution (SD) enables sales managers and
sales representatives to check basic key figures for sales in real time. Whereas sales
managers use sales analytics to access instant overview information regarding the various
performance indicators for their sales teams, the sales representatives focus on detailed
information relating to the results of their sales activities.
Real-time analysis of the subledger for Accounts Payable (FI-AP) and Accounts
Receivable (FI-AR)
Flexible analysis of customer and vendor items based on the single line items from the
back-end ERP system
Calculation and analysis of the days sales outstanding (DSO)
Note that currently only General Ledger Accounting (new) is supported.
Custom Development
Although there are standard best practices that must be considered when developing custom
solutions, there are also many possibilities when it comes to imagining what to build with SAP
HANA.
SAP HANA aligns well with several specific requirements and situations. Are you building an
enterprise-scale application for a business scenario with high data volumes? Do you need
detailed or granular data analysis? Do you have to query large data volumes? Do you require
complex algorithmic or statistical calculations, or suffer from latency between transactional
recording and reporting? If you answered yes to any of these questions, then SAP HANA is a
great choice.
Packaged Solutions
Do you have to address an urgent business need? Do you prefer working with a fixed scope?
SAP Rapid Deployment solutions can help you implement SAP HANA using a package of
preconfigured software, content, and end user enablement plus implementation services.
Clearly priced and scoped implementation services help you speed up time to value and limit
risk. Examples are:
SAP ERP Rapid Deployment solution for accelerated finance and controlling with SAP
HANA
SAP ERP rapid-deployment solution for profitability analysis with SAP HANA
SAP Rapid Deployment solution for customer segmentation with SAP HANA
SAP is continuously adding more Rapid Deployment solutions. To see what’s available today,
visit: www.sap.com/solutions/rds.
Now that we’ve reviewed typical implementation scenarios, let’s review what a successful
implementation requires.
After you’ve outlined a systematic approach to implementation, you need to identify the key
timelines and activities for your SAP HANA implementation.
Current technical landscape. Depending on the current landscape, the customer may
have to consider prerequisites for delivering in-memory solutions. For example, data
quality may need to be addressed, or the organization may first need to upgrade some
applications that work in conjunction with SAP HANA.
In addition to defining an implementation methodology, you’ll need to identify the key skills
required to ensure your implementation of SAP HANA is a success.
Critical SAP HANA Skills Needed for Successful Projects
Because SAP HANA is a new technology the success of any implementation will depend in
large part on your ability to locate experts who can fill any skill gaps on your team. Critical
resources for an SAP HANA project will also vary depending on how you choose to leverage
the SAP HANA in-memory solution, or which use case you select.
The following roles are specific to agile data mart use case implementations:
Solution architect. As the name implies, the solution architect is responsible for solution
design. He or she gathers requirements for the use case(s) and creates the technical
design documentation.
SAP HANA data modeler. The SAP HANA data modeler is responsible primarily for
modeling solution design and development and unit testing of all SAP HANA models. He or
she also performs SAP HANA model lifecycle management, which includes the various
steps contained in the process of moving from development to production.
Data services/SLT developer. The data services developer is responsible primarily for
design and development of jobs to extract, transform, and load data into SAP HANA via
data services or SLT. The developer also performs lifecycle management, which includes
steps contained in moving from development to production.
Two other roles are specific to implementations of SAP BW powered by SAP HANA.
SAP technology consultant. This expert on SAP HANA technology collaborates with the
project manager to plan technical requirements for the project. He or she then implements
these required technical tasks within the system.
Certified OS/DB migration consultant. This individual is responsible for technical planning
and design of the in-memory infrastructure, including database planning, project
organization, design, audit, and project review.
If you perform a custom development, you will need additional development skills:
SAP HANA developer. This expert builds your applications beyond pure data modeling
using the different development capabilities of SAP HANA (SQLScript, Business Function
Library, etc.).
Depending on the specific scope and architecture of your project, you may need development
experts in the specific application domain and advanced technologies, such as predictive
analytics, scripting languages, etc. Implementing SAP HANA is a major step in dramatically
improving your ability to obtain optimal value from your big data. With the right service provider,
use case, implementation methodology, and skilled resources, you’ll be able to enjoy the
power, speed, and performance of SAP HANA. Let’s conclude this discussion by examining
some truly stellar examples of successful SAP HANA implementations.
1. Make certain that business requirements are completely understood and that the use
case complements the technical requirements. Remember, technology intelligence
doesn’t necessarily equal business intelligence!
2. Establish ROI metrics early in the scoping process. Build them into the project/solution to
ensure that success can be properly measured and quantified.
3. Ensure proper collaboration across application delivery teams (EPR, BW, CRM,
reporting, etc.), depending on project requirements.
4. Start with a focused use case to demonstrate business value, and then expand across
other functional areas of the business. Establishing a quick win helps with sponsorship
and funding for additional in-memory projects.
5. Make sure that data quality is considered as part of overall SAP HANA solution planning.
Acquiring data quickly can’t help the business if the data are not accurate.
6. Define (or redefine) specific in-memory terminology with all users to make certain that
each term is understood by — and means the same thing to — IT, developers, business
users, and executive sponsors. Small clarifications on such terms as “real-time” and
“self-serve” can go a long way toward preventing misunderstandings concerning both the
functionality to be delivered and the value it brings.
7. Bonus Advice: Encourage everyone involved with the project (Technical & Business) to
download and read a copy of this book. It really helps get everyone “on the same page”
and ensures you’re all speaking the same language.
For more information about SAP HANA services offerings, subscribe to SAPServices on
Twitter band review the details on the SAP HANA services website.
Top Advice from SAP Mentors for SAP HANA Projects
SAP Mentors are the most influential community participants in the SAP ecosystem. They
comprise a super-smart and engaged global cohort of nearly 110 bloggers, consultants, and
technical wizards nominated by SAP Community Network peers and selected by SAP. All SAP
Mentors are hands-on experts of an SAP product or service, as well as true project champions.
The majority of SAP Mentors work for customers or partners of SAP.
The following three SAP Mentors are experts in SAP HANA implementations. They provide
their best tips and tricks for a successful SAP HANA project. Pay attention, these guys really
know their stuff!
Vijay Vijayasankar
Associate Partner
IBM Global Business Services
Twitter: @vijayasankarv
1. Find the best data modeler you can for your SAP HANA projects. That is the make-or-
break issue for most SAP HANA projects.
2. Do not jump into a POC (Proof-of-Concept) just to prove loading/ reporting works faster
in a data mart. SAP or IBM can easily show you how quickly their systems can report
and load data.
3. Spend a lot of time refining your use case offline before you start the project. An
important part of this step is to accurately define success up front. This helps reduce
wasteful scoping efforts during the project, and it will help the project team focus on
specific targets.
4. Size the hardware correctly. If you do not, then you will not see the expected results.
Even if you want to scale out and buy new boxes, you should be aware that these boxes
are not available off the shelf. Consequently, they will require some lead time to acquire.
5. Each HW vendor has some “secret sauce” on what makes them special for SAP HANA.
Make sure you understand that before investing in HW.
6. Check SAP HANA performance under a variety of situations — reporting performance
while heavy loads happen, while multiple people are working on system, logging on from
different parts of network, etc.
7. Engage closely with your SI (system integrator) and SAP while the project is going on.
SAP HANA is fairly new, and it will probably need a few workarounds. Your SI and SAP
will probably have seen your issues before, and they can advise you and help minimize
time spent “reinventing the wheel.”
8. If you are going to migrate to SAP NetWeaver Business Warehouse on SAP HANA, test
as you go when migrating objects to their in-memory versions so that you can spot
challenges sooner. Definitely consider re-engineering the design of SAP BW to take
advantage of SAP HANA and avoid doing only an en-masse migration and leaving it at
that.
9. SAP HANA security/administration is a specialized skill, and a good design is needed to
make it work for all your use cases consistently. Plan to spend time refining the model.
10. Last but not least — poor data quality is even more damaging when the data come at
you in “lightning speed.” Garbage In/Garbage Out still applies. Profile the data, and fix
them at the source or as close to the source as possible before sending them to SAP
HANA.
Harald Reiter
Senior Manager — SAP
Deloitte Consulting
Twitter: @hreiter
1. Accept nothing less than excellence from your project team and partners
a. Technology makes things faster, better, and cheaper; but technology itself is still just
a tool. Make sure you assemble an excellent team: business, project team, partners,
and SAP support.
2. Understand the technology
a. If you are reading this book, you are already on the right track.
3. Think about details, but always consider them in the context of the big picture
a. “The devil is in the details,” so think them through. At the same time, however, never
lose sight of the complete picture of where all the details fit into.
4. Open your mind to the “New World”
a. Question your old habits; forget about your “15 years of technical/project experience
under the belt.” Old techniques do not necessarily work well or at all with new
paradigms.
5. Don’t build the solutions for “Go Live”
a. Your solution will live a long time after the go-live date and will need to accomodate
new requirements, unexpected cases, and a surrounding environment that is in constant
transition. Build for the long run.
Ranjeet Panicker
Practice Manager
SAP Next Generation Services
HANA/In-Memory Center of Excellence
Cutting-edge Technology
SAP HANA represents a paradigm shift in how we know and use an RDBMS. It is also a new
database technology – one that is evolving as SAP customers find new ways to challenge the
speed and performance of the database. The SAP HANA platform is evolving very quickly, and
SAP continuously adds new and innovative functionality. To enable customers to take
advantage of this new functionality quickly and efficiently, SAP has made the process of
upgrading very simple.
Executive Sponsorship
Buy-in at the highest level brings the authority and credibility that can mean the difference
between success and failure for your SAP HANA project. Executive sponsorship helps drive the
vision for SAP HANA in your organization, and it facilitates the change management that is
required when you adopt a new technology. To secure and maintain this sponsorship, include
the executives in project reviews at regular intervals to keep them up to date on project status.
Also, make certain they are involved in all follow-on endeavors.
9 Gard Little and Elaina Stergiades, IDC, Help Rethinking the Art of the Possible with SAP HANA Services, March 2012.
Chapter 12
SAP HANA Resources
S ince the SAP HANA Essentials book is being written in “real time”, it will be continuously
updated as new chapters are completed and content revisions are added.
Make sure to register for the mailing list on www.saphanabook.com to be informed when
new chapters are available and follow the book on twitter @EpistemyPress and @jeff_word.
Please share the website and voucher code with your colleagues so they can benefit from
the information in this book as well.
About the Author
J effrey is responsible for creating and communicating thought leadership on SAP’s In-Memory
database strategy globally. His next book, Business Process Integration with SAP ERP,
will be released in Fall 2012. He is also the co-author of the bestselling books, Integrated
Business Processes with ERP Systems (2011), Essentials of Business Processes and
Information Systems (2009), Business Network Transformation: Strategies to
Reconfigure Your Business Relationships for Competitive Advantage (2009) and SAP
NetWeaver for Dummies (2004).
Jeffrey has more than 18 years experience in IT strategy and business consulting working
with Fortune 1000 companies. Over the last 13 years at SAP, he has worked on technology
strategy with focus on corporate innovation initiatives and enterprise architecture design. Prior
to joining SAP, he worked in the high tech industry for several hardware and software vendors
throughout the Americas and Europe in a variety of leadership roles.
Dr. Word earned his PhD in Information Systems at Manchester Business School in
England. His research focus was on event-driven business process design and next-generation
enterprise architecture. He also earned an MBA in International Management from the
Thunderbird School of Global Management and a BA in European Studies/Spanish from the
University of Oklahoma.