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I admit it might be a quite harsh title for my first post on the SCN Blog but yet I am convinced that there must be more people out there who have the same type of questions that I have regarding the Pressconference SAP held on the 10th of January 2013.

First of all it is fantastic news to see that the SAP Development team was able to make this dream come true. The power of in-memory is probably clear now to everybody.I am very much looking forward to see the first customer on boarding this new solution which will be very disruptive to the industry. I have posted on my private blog some thoughts on where it will be disruptive especially for the SAP Ecosystem.

My questions are:

License Model:

  • Discounts: SAP has been very strickt regarding discounts on SAP HANA in the Geo that I am covering (Spain, Portugal, Greece & Israel) with 0% discount. That in comparison to for example Oracle with 2 digit discounts on the Exadata Software (not the HW!!!) stack, to add to this the first digit was higher than 8!
  • Different Licenses depending on use case: There was a license for HANA Enterprise, for Accelerators like CO-PA, for BW etc. all with a different price tag and what makes it for customers even more challenging, they could not all run on the same appliance at the same time. What are the plans in order to make the HANA landscape easier ?
  • If the pricing is going to be inline with the pricing of any other database vendor how is this going to look like ?

Migrations:

  • What will Business Suite on HANA mean for those early adoption customer who have already migrated, or are in the process of migrating, their BW to HANA?

Enterprise Readiness:

  • HANA requieres specific Infrastructure on which currently, to my knowledge, only two vendors are certified for Desaster Recovery (IBM & HP). However this is a must for a Business Suite on HANA especially on those customers SAP is targeting currently. DR is as well only available for Synchronous Replication which means Metro Distance.

I am very much looking forward to the answers since they are all part of making the great SAP HANA story more successful and to achieve the goal John Appleby has posted in his blog to reach mass-market adoption.

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10 Comments

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  1. Gregory Misiorek

    Carsten,

    good questions and also in my mind they loom large: pricing and hardware. i think most of negotiations will be around those topics. i would also add SI’s as they were critical in SAP R/3’s adoption originally here in the US and they have preexisting access to the C suite.

    good luck with your geo’s.

    gm

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  2. Uwe Grigoleit

    Hi Carsten

    Thanks for the good comments. As you can imagine it is always difficult to answer all these elements on a global launch event.

    Licensing HANA for the Suite will be calculated as %value of the maintenance base (so mainly the net software value). This addresses as well your first point on discounts: HANA license for the suite is calculated based on a net amount!

    This new and simple model will be used for all other applications on HANA as well. So, in future we will have

    A.  GB oriented HANA licenses for all standalone scenarios and for BW on HANA,

    B.  Application/ Accelerators including Suite on HANA being priced at a % of net software value.

    Regarding your BW on HANA question:

    Those customer have taken the right decision to move BW onto the best and most performant platform we offer for it. Even with suite running on HANA and the possibility to do operational reporting directly on the suite data in HANA, this does not change the need for a BW to do de-normalization and consolidation of data from multiple SAP and non-SAP systems. And with suite and BW running on HANA we will even streamline the way how to do integrated reporting on these datasets in a federated way.

    You will see further comments on the Enterprise readiness. Your comments here reflect the current situation properly. But, we are strongly working with the hardware partners to make more choices available, based on the requirements and requests we now receive from our first customers implementing suite on HANA.

    Hope this answers your question.

    Best Regards

    Uwe

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    1. Carsten Nitschke Post author

      Hi Uwe,

      first of all many thanks for your prompt reply. I will be really curious to see how this new pricing will work out. If I do not recall wrongly there is a significant difference in the pricing of DB2 vs Oracle if licensed through SAP. It would be fun to see that SAP get’s also aggressive on the pricing side.

      Thanks again!

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  3. John Appleby

    Carsten Nitschke – thanks for the link. I also think SAP could have been a bit more specific, but it’s possible that legal don’t let them be. However your questions do have simple answers at least.

    First, Suite on HANA is licensed by Application Software Value (ASV). So, if you pay $1m in licenses (including discounts), you will pay $220k a year in Enterprise Support (22%) and a further annual % for your database license. Oracle and HANA are around the same, and they are more than IBM DB2 and MSSQL.

    Licensing

    1) The discount model remains the same as before, though because it is based on ASV, you will pay a % of the discounted ASV.

    2) The multiple licenses for Runtime, Database, Platform and Enterprise editions remains a challenge, as does the ability to run multiple HANA DBs on a single production appliance (virtualization is possible now for non-productive DBs). Expect this to change in HANA SP06 in the middle of 2013.

    3) Described above – just like any other DB vendor. Do note – and this is cool – that if you buy HANA Runtime then you will be able to run ASE in your landscape if you so wish. This is useful for non-critical systems like Solution Manager.


    Migrations

    1) Nothing – BW on HANA pricing remains the same, and the decision to move to BW on HANA is just the same as it was.

    Enterprise Readiness

    1) You’re out of date here: HANA now permits asynchronous DR on any appliance as of SP05, as well as virtualization to reduce non-productive TCO. I’ve banged on about Enterprise Readiness for mission-critical systems and I’m sure SAP will have a bunch of great new features in SP06 – especially workload management, which is the biggest missing feature.

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    1. Carsten Nitschke Post author

      John,

      first of all thanks a lot for your comments and input. I agree that the pricing does seem to be very good and very much inline. The SP06 will be a huge game changer and deliver a lot of functionality which is imho quite necessary.

      Regarding Enterprise Readiness I have only seen the announcement (not seen it yet available) of Synchronous Replication. If you have something to share would be really great.

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    2. Rama Shankar

      John, great inputs as usual – thanks.

      I  personally think – when SAP Business  Suite on HANA stabilizes in the next few years and is widely accepted Worldwide –  I predict that HANA modelling will be the primary modelling ground for real-time analytics and BW / BW on HANA will eventually become an archiving system for legacy Suite (aka ECC) data more than 3 years or 5 years depending on individual corporations.

      Thanks,

      Rama

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      1. John Appleby

        Hi Rama,

        I’m not sure that’s quite right. My suspicion is we will three trends:

        1) The move to hot/cold storage for active/archive. Active will be in-memory (HANA) and archive will be on-disk (ASE).

        2) Suite on HANA for Operational Reports (which are often real-time in their nature).

        3) BW on HANA / HANA Enterprise for Enterprise Data Warehousing.

        Suite on HANA isn’t a data warehouse – business transformations, normalization and consumption from disparate sources are all required for a real EDW.

        John

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  4. Marilyn Pratt

    Enjoyed reading this and your provocative title is not offensive, Carsten, it is simply an effective and honest conversation starter.  I also jumped over to your personal blog.  Sorry to have missed the opportunity to engage with you in Madrid as I assume you were active in SAP TechEd there and I was in the Community Clubhouse speaking with SCN folks.

    I’m also very pleased to see The specified item was not found. and Uwe Grigoleit jumping to respond to you from both an SAP mentor perspective (non-employee) and internal SAP employee perspective.

    I see your question about Synchronous Replication wasn’t yet been answered.  I’ll give a shout to Matthias Wissing or Lori Vanourek to see if they can find the answers to that. Please keep such good content and conversation going.  You write well and represent ideas we would love to feature.

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    1. Carsten Nitschke Post author

      Marylin,

      much appreciated your kind words. Thanks a lot as well for including

      Matthias WissingLori Vanourek on the matter of the Synchronous Replication. I have been trying to find more information especially with regards to the requirements of Latency and Bandwidth needed as well as any possible limitations.

      Looking forward to become an active contributor!

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