Customer Perspectives on Moving SAP Systems to the Cloud
Good. Morning, good afternoon or, good evening depending upon, where you are in the world and welcome, to today's webinar part. Three of the SI p on Azure, webinar. Series running. Si P in the public cloud driving. Business and IT transformation. With Microsoft, Azure today's. Event is entitled s AP customers, perspectives. On moving. Sa P systems, to the cloud, hosted. By sa P insider and presented, by Microsoft, my, name is Steve Paul I'm your moderator today we have just a few announcements before, we begin this. Webinar is designed to be interactive between, you and our presenters, and later in the program we'll ask for your feedback this. Webinar also contains audience, polling so please complete the polls when they appear and thanks. For your participation, you. Can participate in our Q&A session by, asking questions about the information presented in this webinar. Directly. Below. On the left and then click the submit button we'll. Answer as many questions as, time permits after our presentation, slides. Will advance automatically. Throughout the event and you can download a PDF copy of the presentation by. Clicking in the resource box on the bottom left of our console, and at, this time we recommend you disable, your popup blockers, if you're. Experiencing, any technical problems. Please visit our webinar, help guide by, clicking on the help question, mark icon on the bottom right of our console, and if, slides are not advancing, please press the f5 key on your keyboard to, refresh your browser now. On. To our presentation, s AP customers, perspectives, on moving. S AP systems, to the cloud. Speaking. Today we'll be mark skug worldwide. Director, of sa P with Microsoft and we also have Mike Taylor GM, and reprise application. Services, with Microsoft, first, we'll hear from mark. Thank. You Steve hello, everyone. Thank, you for attending today this, is the third in a three-part webinar webinar. Series, on running, FAPE, in the public cloud today's. Webinar focuses, on s AP customer, perspectives, on living, s ap systems, to the cloud st. Mentioned, my name is Mark Scott and. I'm the worldwide director, of f8 my core saw joining. Me today is Mike Taylor Mike, is the general manager of enterprise application.
Services. For Microsoft. Our. Agenda today includes. Mike's, starting off by giving us an in-depth story on how Microsoft migrates, it's AIT's ap landscapes. To Azure and the, lessons learned along the way, I will, then talk through a couple other customer, case studies and, highlight, the key learnings sure, there'll be a lot of questions for us today and we'll be happy to take them at the end of the webinar today. I'm. Going to start off with a poll slide Steve, can you walk us through that process, sure, very. Well thank you Mark, we have a couple poll questions our first one here, I just want to know or what is, your organization planning. A migration, to the cloud, are, you planning that in less than 12 months more. Than 12 months maybe, you have no plans to move to, s4. Hana or you, don't know and so. Please provide, your responses, here we're going to share the results in a few moments and then, we'll go on with our presentation. And just a reminder again we. Are going to take questions at, the conclusion of, the webinar so, get them in early and often and we'll take them at the conclusion. Okay. All. Right looks like we're getting a very good, response here. Mark. Would you like to see the results. Yes. Dee that would be great okay, excellent, all right again. Thanks for your participation. Our. Audience happens, to say that well about, a little over a third don't know but. A quarter, do, and a. Quarter, say less than twelve months and a quarter, say more than twelve months any thoughts. Yeah. So this is pretty common to what we see from, customers, however zero, we see an increase in the amount of movement that's happening even. At Microsoft, if you think about our journey we started Waverley Mike's going to talk about it but. You know the, evolution is, accelerating. Like it is with most customers, so for, me if I queried everyone about two years ago you probably would have seen much. Smaller numbers for the less than 12 months and even on the more, than 12 months you probably would have seen more customers, in the unsure.
Category. On that and, so in this case again I seeing, not just an acceleration, of the hyper scale cloud, Azure in this case but you're also seeing an evolution where. People are are moving, for s4 and. Part of the reason behind that obviously is sa p7, setting and support for, the netweaver environments, of traditional, any db2, buying environments, by 2025. So. I expect, if I was asking this question next year the, numbers would be closer to 50% based, on growth of, less than 12 months movement, to the cloud so, we're going to see again how that goes after, some time here I'm. Going to go ahead and turn. It over to Mike. To go through a couple of questions about our, Microsoft. Experience. And, so. I think the move to the cloud for a sure was really important, to us and Mike. I, get this question a lot do we really run sa, P at Microsoft. Yes. Absolutely we do and so I'm. Happy to be here and happy to talk to everyone about that journey, that. Is definitely the number one question we get as well and we are a hundred percent. 100%. Of our sa P landscape, is on the cloud let. Me just step back and kind, of educate, everyone on kind of my role within the company so you can understand, kind of what I'm responsible for and then then, I'll walk the folks through that journey and so I. Actually, am in core services, engineering, an Operations, Group that reports up to Kurt Dale viennese is our executive vice president and. We. Really rebranded. Kind, of IT as, we know it, Kurt's group or C SEO is, actually, in charge of moving. Microsoft. Internally. Through the digital transformation as, we know it and really kind of trying, to migrate all of our internal processes, and procedures through, this digital transformation, and so um, you. Know this group really is made up of IT operations, and. Our, strategy. Office for the corporation, and so really we come together and look, at all of our processes and procedures. And. Think about how we really need to kind of transition, it and move into the digital age and so s, AP, and and my, accountability, here at Microsoft is to manage our s AP environmental, and so that is you. Know one of the main focus, areas and so one of the first objectives, was looking, at RS ap landscape, and saying you, know we really should be looking at, moving this to the cloud and, leveraging. Some of those strong benefits. Around. Cost, savings agility, and reliability, and so I'm, happy to kind of walk the folks through through, this journey that we've been on um. Moving. RS ap instance to the club so. It, just against context, because whenever I speak to customers, and and, you, know other peers. Of mine throughout the industry everyone. Always wants to kind of understand, the sa, P landscape, here at Microsoft and kind of the size and scope, that we're talking about um so. This gives this is more of a kind of a business view, we do have a you, know a very you. Know. Application. View of this um across. The board but this kind of lays out all the businesses. We support, anywhere. From HR finance to. Our supply chain business Commerce, is kind, of our licensing, business either with consumption, based licensing, or enterprise, agreements, or OEM. And. Then we also actually are moving our professional, services enterprise services, on to sa P um, and. Then to support that obviously, we kind of have the sa P platform, activities, that support all of those all of those landscapes and so this, is kind of our overall landscape we, also have four s AP saff solutions, that we interact with as well on success. Factors Arriba, IBP, and concur, and. So that kind of gives you just the generic landscape, um the. Other most, interesting. Slide for customers is to kind, of understand the size and scope is this. Is kind of our landscape by numbers. And. So if you think of how big, and how large our instance is we actually have a single si, P instance here at Microsoft that runs our business it's all on sequel server. And. It's about 50 terabytes uncompressed. Highly. Compressed for about 16 terabytes, and. So relatively. In, a large landscape. And. All of that mark, to your question definitely all of that is now 100% in the cloud in Azure. And. So we just finished that migration. I, would, say in. February, this, last year and kind, of moved the final final, piece of it into, the cloud. So. If. We you know if we kind of step back and say well why did we move and why was this important, for us um. One. Of the things that we kind of looked at were you know three key components, number, one cost um. You. Know we actually we, actually benefit. If we save, you know money on on. Hardware, sizing, right, and so in a physical, world we. Would size to the life of the hardware and so um you. Know if we have three years out of depreciation, we would size to three years out and we, would never leverage, all of that hardware we would always under utilize it you know and so it.
Was A cultural, shift it was a kind. Of a mentality of let's you know ask, for the largest set, of servers, um and. So moving. To Azure. Was. Gave. Us a great opportunity to really save, money and right-size the environments, um instead. Of you know planning for six months or six you know five six years out or three years out we could you know kind of ratchet that into six, months and then, actually save money through, this whole process, um. The. Other piece that was very very interesting, to us was kind, of the agility and. You. Know as we think of speeding, up new businesses, testing. Out new upgrades. Testing, out new support, packs we, could easily spin, up different. Instances, of our environment, to, test things out on the side which, was always very very challenging, in our existing, landscape. And. Then reliability. We. Actually saw much higher reliability numbers. Um as. We, move to a sure and through this whole journey um so. There was just a lot of benefits, that we saw arm. In. Moving, you, know in moving this landscape, -, Azurill. So. If we kind of delve. Down deeper, into um. Into. Kind of how we went about doing, this um. You. Know the the very first thing we did was kind of assess kind, of the the candidates, and and the, size, of systems, that we would need, and. So the basis team kind of went through a whole bunch of, analysis. And, evaluation. And. Working, with kind of the azure product, team to understand, what skills we would need in that environment um, we. Also obviously. Looked, at you know kind of our landscape of. Sandbox. And unit. Test systems and Dev systems, just, to kind of get an assessment, of what things could go and when we should go when, we should move to edger and. Then obviously we, were working with product teams kind. Of towards. The long you. Know the longer path. Getting, the much larger m-series, skews given the size of our landscape, and the need to be on a much, larger set of skews eventually. As we migrate to Azure. Why. Can you give us a little more detail on on how that migration looked. Yeah. Yeah, absolutely so. Maybe. This is a better picture kind of to show our landscape, and set of servers um you, know across the board so. You, know as we look at, our landscape. You kind of see the set of systems, across the top right anywhere from ERP which is our main ECC, and since the GTS, which is your trade instance and so folks, will see, this and look at this and you know kind of under standard set of servers and then. On the left-hand side we have production, all the way down to our sandbox systems. And. So what the team did was, they you, know after we kind of test it out as you're just with a few, small systems, just, to understand, how that would look how, that would work um then. We kind of took a horizontal. And a vertical strategy. And, so. Um you. Know what we did was we said okay we're going to take all of sandbox. And we're. Going to migrate all of the sandbox systems, to, Azure so that's kind of a horizontal strategy. It's easier, it's low-risk, we can move a bunch of servers we can understand, how it's going to work we can start working out automation, scripts and things like that on. And then what we did is we also took a vertical, slice of our. System, so you. Know for this example we actually put, took one of our OEM that. Handles, returns, for our supply chain business and and. We took our duet system as. Well and you. Know during low periods, of business time and we moved those. Systems, from production, all the way down to sandboxed, Azure as well so. Not only do we kind of learn, from the horizontal of under, you know moving all of our landscapes, all of our sandbox, lens, systems. To Azure but, then from production, all the way down to sandbox. We. Could learn on you know we could learn different, aspects of how things going to run in production how are things going to run in UAT how, am I going to move code between the environments. And. So it kind of gave us that you know a. Complete. Stack, view, for, these low you, know impactful. Systems, from, production all the way down to sandbox, and so that. Horizontal, strategy. And vertical. Strategy, really. Helped us get. A much better sense of what. We were getting into um it.
Also Helped, us with really, building out a lot of automation. So. That we could do this you know push, of a button versus. A lot of manual. Work it. Really helped us you. Know get a better sense of, what. This will take as we migrate the larger set, of systems over. Ok. And. Then. Um. I'll. Make one other oh it's. Coming up in a few slides I'm so whole wait for one second um, the. Other thing is too is we, needed to also make sure that we had high availability um, in. The systems and so you know the team also looked through that you, know whole landscape, making sure you, know we had we, have all, the best practices that we've always been using in our disaster. Recovery landscape. And. So this is something that was always part of our focus to this, you, know I talked. About this horizontal/vertical, strategy. This. Helped, out with the horizontal horizontal. Vertical strategy, if you just move horizontal. If I just move my sandbox environments, then, I'm also not learning how I'm going to kind of set up the disaster, recovery instance. For. Our production so, it really, was helpful to do that horizontal and vertical strategy, so that we could make sure we're building out you. Know and keeping, our high availability in disaster. Recovery system. Before I get to kind of the major. ECC. Systems, that we had. So. Mark, you you talked about this a bit about kind of the the migration, we've had and we've been doing this for a little bit um. You. Know when you look at this slide when I show people to slide at first I was kind of shudder and worried because I think oh my gosh it looks like it took us from 2013. Until 2018, to move to a sure when. It went in truth you. Know for the first first. Year, we, were really just partnering. With the product team to see what works what doesn't work. Giving. Feedback and, testing. Things out tons, of different tests to make sure that I. Was. Ready for primetime and, and you, know we had the the support and the the. Pieces. Needed, to kind of migrate um you. Know in the. 2014. To. 2016. Timeframe. We, really started to kind of invoke the let's move the sandbox systems, let's start moving the verticals, you know the kind of that horizontal, and vertical, strategy, so. That we could learn and kind of you know kind of make this migration, um I. Get. Asked this all the time well when when you really started. You. Know how, long did this take you and and what do you see other customers, going through this whole process well. When. We finally got started, it took us about a year and, you can kind of see that final year really, a big, sharp spike, up we. Actually had. Planned a little. Over a year we actually had originally, planned if you kind of look at the the slides a little bit we, actually plan to go live in the August timeframe. Originally. Of 28, and so they give us a little more time but through. The automations testing, you automation. Scripts and all of the testing we, actually kind of moved it in and so really. That final, year from about February 2017, to February 18 we, kind of made that decision of we're going to fully move to Azure, measures. Ready for primetime this. Will allow us to reduce cost you know improve reliability and, help, us with this agility. Especially. Given the fact that we have so much business moving, to 2 RS ap instance, you. Know we have s4, on the horizon, we, really needed the ability to kind of build real time and so um you. Know that automation, helped, us um and, and. You. Know it, really gave, us the confidence to move quickly to azure once, we we felt committed I. Think. That's great Mike that really, has helped a lot of the other customers, from. Our perspective, of you know us migrating, first and looking at the automation and, the things that can be done and also the size of the system is growing you, know what that's a P now and is your what's next from a technology standpoint. I, mean what, tools can be utilized. Yeah. And so it's, a it's a super super exciting time kind.
Of With the tools and why we see all the sathyas announcements, this week even arm. One. Of the very first things that we're doing now that we're in Azure is is aggressively. Right, sizing, the systems now, I mentioned. We did this to begin with but even, more so now now that we're fully measure you. Know right sizing, the systems in building, to what you need is is. Almost. Even less of a technology. Hurdle, as a cultural, hurdle. Our. Desire is to kind of grab everything, that we need and just prepare for the future on, you, know now that we've gone through this journey culturally. The team is recognizing. The fact we can build up quickly we. Can you, know we can grow we can scale out so. Let's, really right size and let's news, let's, you, know sleep, the systems that that. Aren't needed over the weekend or or, in lows, to. Really start saving, money and how do we do that in an automated way how do we do that quickly and easily and so we're, starting to work with the product team on how, do we kind of build out that snooze capability. Even more so than it is today so that, we can start really optimizing, our costs, the. Other the, other amazing, thing that we have in, front of us is just the tools that azure offers, us now um, number. One you know leveraging, the azure data Lake and you know, putting stuff into one place and having, people do, compute, their instead of copying at six different places to do do processing, we're. Working with each of the businesses, to kind of dump out data as. Needed, so that we can actually leverage that in power bi to actually, run, at Linux off of the data that we have the. Other thing that we're starting to really invest and partner with the finance, product team as well as just even our own support. Organization, is AI, and, how do we love our ji against, some of this data you. Know even as simple as how we think about. Categorizing. Logs, and where we see you. Know issues. From a support perspective in the future to. You, know financial, reconciliation. Across. Different aspects there's, a bunch of stuff around machine, learning AI bots, that we, want to start leveraging. Again. You, know I mentioned at the very beginning this you know our new organization C, SEO, part. Of our effort and part of our Charter is transforming. You know moving. Microsoft, to the digital transformation look, at inner processes. You know automating. How. We do things and so now. That we're in this environment the world opens, up to all this different all these different possibilities and, so this.
Is Something that you know excites us and, you. Know, opens. The door to a lot of different options as we move forward I. Think. That's great and it's a similar that the concept, that we're hearing from a lot of customers you. Know I play, as a customer, I don't, know if I want to go and talk to Microsoft. About, the move because, you you were running so well for, so many years on. Sa P that you know the bar was really high to start with you, know what did you when when. You went live and the post-cold why'd the benefits that were there and and one, of the best practices really around what happened. Yeah. It's a you know and I should, have mentioned before and thanks for mentioning a to mark you know we've been running s ap for 25 years on on, Microsoft. Technologies, and. And. There's. Been a tight tight partnership, between not, only our product teams but but sa P and so, our. Customers, are demanding and, and expectations. Are high and. Outages. Aren't acceptable and and so there is that kind of all is that strong, demand to make sure that things are solid and. You. Know so I think I you, know here, are some best practices, we went through to make sure that we did not disrupt, the environment, and we kind of learn from it um, you. Know number one and. This is probably an obvious one for most of the folks on the phone you, know you move. Sa, P systems completely together right database. App servers um you, know all together, you. Know when we talk would be looking at a specific system, and so you know that one's a kind of I think a pretty obvious one but definitely an important one um, the. Other thing that you, know the other piece that we learned as we went through this um was. Really, looking at the latency, between the systems and making sure we understand, what. Systems, need to work together I'll give you an example when, we create an order you. Know we make a call to our. Global, trade system to, screen against, table of denied party and make sure we can sell that to that customer. Then, we actually check our SCM system, to make sure that we actually have inventory to fulfill that order so. There's two or three systems, from SCM, to GTS to ECC, that, have, a lot of calls, back and forth as we're processing so. Through, the analysis, we set up those three systems are part of a single move group we can't move one without the other because we wanted to be careful about latency, so, we actually when you saw that kind of that that, massive. Kind of box chart. That. I showed earlier we. Actually move groups within that box chart so that we would you, know move group a and move groupie and move group see. To make sure that we were mindful, of, latency. The. Other thing is. Understand. Systems. Outside of SA P and. How. They interact, with sa P and so that, would that ended up being a coordination, effort across our enterprise to, make. Sure everyone, understood, sa, P's plan, to, move to the cloud and make. Sure that upstream, and downstream systems. Coordinated. With sa P in. That space. Determining. Our region's, strategy, was essential, to especially, as we talk about the different you know upstream, and downstream systems. So. We're in u.s. os/2, and u.s. East to. For. Cover production. And disaster, recovery making. Sure everyone is fully aware of that kind of vet plan. You. Know another item was, making. Sure that, bolt. On systems, R as you're certified. And, if it's a smaller bolt on system, on that, we needed to kind of deal with then make sure that we tested, thoroughly and, it wasn't certified it wasn't planning to be certified at the time make, sure we test it thoroughly through. That whole process and. Then finally continue, to archive and compress the databases, to reduce the size and scope. I'll. Mention one other thing that got us at the very very end our. Final move group that occurred in February which, was our final large set of systems, we. Had that we had to move to more of a dedicated Express, route. So. To kind, of deal with our network, traffic. As. We were monitoring. That and so I think really, evaluating, your network traffic and working with your network engineers, to understand. Not. Only what you see today but what you expect, as you move to the cloud is important. And. That's something we kind of had to change midstream that, we hadn't planned on because. We kind of were leveraging a shared instance of Express route before.
So. Into. Mike obviously there's a lot of variables there but what a lot of this is more like a traditional system, as far as planning, things like networking and, and you. Know just performance, on system even with the automation helping, you, can't just forget about some of the basics, I guess. Yes exactly and it's it's a um. There's. Just a lot of coordination, that you have to do and make sure you bring in the right people and, the knowledgeable, people it's it's uh I want, to say the art. Our success, more. Than yeah. The automation the technology. And the the. Tools. That we leveraged it was about the coordination, across the multiple groups and making sure we understood everything from. You. Know other systems. That that, we Danone to systems, that were bolt on that that we needed to work with si P to our, network, and making. Sure we understood how that interacted. With s AP and and, how that profile will change as in the process, of moving Dasher and then once we fully get to Azure and. So just it you know just required, like, any I think large scale. Enterprise. Type project, you. Know a broad set of people to be part of that core team to, make sure that we were, not. Forgetting, anything. In. The, mix I. Know. You certainly didn't get any barriers, removed from a security and compliance e and you made that work there. Was a question that, that I had after looking at that poll and I think you probably know what the question I'm going to ask is, you. Know we went made a decision on us for Hana and I'm, sure most the people on the phone want to know what the decision process were, was for Microsoft going what that's for on it. Again. So a great. Question, and, I probably, get this second most after, are we fully on Azure. So. You, know we've us, for Hana as an, opportunity. And a kind of a lightning rod to really, my, great us towards the digital transformation as, a corporation, um you. Know I think I think as for Hana provides, two. Key, components, for us. That. We understand, today and we're in the process of. Working. With the business to uncover, more benefits. Number. One um. Remember. We have a 25 year old si P system from which decisions. We made years, and years and years ago were based on a business, that has. Transformed, into a brand new business today, we. Didn't even have the, septic consumption, to cash. You know we sold. Box product, and mice, and and it. Was a completely, different business and so the. Migration, to s4 allows, us to. Go, back and adjust, and. Make, decisions, that fit our business more effectively today, and so, you. Know one of the focus areas for us even though we're in a single instance we are moving to central finance focusing. On kind of our code block and making. Sure we start, from the you know from the end and work our way backwards of how do we want to manage our financials, as a corporation, in this new business, that we're in today and so it's. Really an, opportunity, for. Us to not only correct. Kind. Of decisions, made in the past but also look, at how, we do business and how we want to transform, that business digitally, so that we can be more effective as a corporation so we see that as as one, of the key elements the. Second key element is. You. Know the ability to. You. Know leverage, Hana and leverage. You. Know the application.
To, Actually, see. Insights, um you. Know and and and. You, know really uh, make. Better, faster. Decisions, uh. You. Know one of the keys that, I I think what, we saw within CSC, and I think our, boards. Our or our senior leadership team saw was you, know that put a fast. In-memory, solution, and S force product. Into Azure and then, tie in all, of the AAI capabilities. Machine learning capabilities, there's. A lot of opportunity, to, not. Only get, data quicker but, understand. Nuances. Of that data and, really help us you know transform, the business and so those. Are things we're starting, to try and uncover as we're in the process of starting to build out our s, for landscape, and work. With the business moving. Forward so, it's an exciting time we're at the very early stages, of s4 I will, note our s4, sandbox, systems, we have two of them today that we're working with the business on our in, Azure as well. So our plan is RS, four instances will be completely, in Asia right from the start that is, that, that's a new set of landscapes. For. Us than, the old netweaver stack so, we're building out standards, and automation, and working with product team in that space as well. And. Well, you, know one of the one, of them oh okay. I was just going to say we're. Also we've got a number, of presentations, at sapphire this year not, only talking about our Azure journey, but also our. S4, efforts. That are underway I'm, actually talking. With the CIO of sa P at one of the presentations, and, we're kind of talking about both of our shared instances, of not only moving the azure but. Also moving to s4. Fantastic. You know really. Want to thank you for going through that Mike it was a truly, great experience, for Microsoft, and I know, we learned a lot that we can now share with our customers and they're going to benefit from what we've learned during. The migration and, as you continue to update. That experience, for us you. Know I think you why don't we do another poll question to. Learn some of the key blockers, that you folks may have encountered, or are facing now so. When you move to the clouds lead. Us to the next poll question please, sure very good thanks gentlemen our, second poll question we'd. Like to know what is or was the biggest blocker for your organization. In moving to the cloud was. It that you are still under contract, with our cloud provider, you. Had concern over security, and compliance well, there was concern, over license, portability on, products, already in use so. Please select any, of these three, options and. Will. Provide the responses. In a moment just again want to remind our audience that, we. Do have a number of questions already. In the queue for our Q&A session feel. Free to submit. Them if we don't get to them during the live session, someone, will follow up with you over the next few business days so we will get teary your questions. Okay. Sounds, good thanks so, can we go ahead and see those poll results sure. Let's take a look. A couple. More coming in last, minute, here and so. I know we see it from a lot of customers, Steve. As well oh there you go I'm sorry. Well. We, got about two thirds of saying concern over the security and compliance issue. Okay. I think that's something, that I've heard from a number of customers, and I know we're going to address it when I talk about some of the other customers that. We've gone through and, so. From. That let's, go ahead and move, on then and talk through you, know how other customers, were we're, dealing with the security and compliance, you, know it's less people that I thought that we're actually another. Cloud provider or under contract, I get. On our case obviously we have a lot of migration, to Azure but. Some customers do have I know some existing contracts, with outsourcers, yeah. The license portability doesn't. Shock me we'll talk to out some customers also. Help, deal with that that issue as well and so. I'll, go ahead and go. Ahead and talk about. The. Ability. To go through here for. A few lis customers, on. Under, the cloud I. Want. To talk about a typical journey, that we go through and I'm going to get into some specific.
Customer, Example, and, from. This slide. Here you can we're. Going to go through and talk through the. Scenarios that are here, one. Of the scenarios that we talked about for customers is we know some of the customers aren't necessarily moving test for from, the poll we see but if you are moving it maybe out over 12 months the. Cloud still offers a lot, of great capability. In fact when Mike was talking about Microsoft. IT, you. Absolutely, see on. That journey for Microsoft, I see a lot of our systems where traditional, netweaver system that we moved or some of the new systems, that FA P is rolled out for. Their services, and you know the thought process, around this is we're supporting all of those scenarios so you, know when we talk about the traditional, move there's some great capability, not only the move but then talk about I can try going. To Azure so, you, know the first thing that we talk about here is s AP on any database. In, running that on the azure. Cloud taking. Advantage of the hyper scale cloud, we. Talked about running s AP and doing. A move from any DB to Hana and then. That final evolution, you know really by 2025, getting customers, to that, journey running, full s4 in sa. P Hana and so. You. Know from that journey I think you know those, are the typical processes. That we talk through and typically. What we run to and the customers, are on that journey I, think as we go through this on this. Process. And the journey that we're going through its, led a lot of customers, to talk about how they actually run their migration, and so. I'm going to go ahead and go into the customer stories which is really the heart of what I wanted to share here today you, know the first story I'm going to talk about is the customer I've been working with for some time now around. Really talking, about what, the advantages, are from the move to the cloud and you know I think the transformation, story might talked about is really essential, in, a lot of the customers that are running s ap aren't necessarily greenfield we do have a few of those in fact, I'll talk about one of those customers next and how they're doing a Greenfield deployment but, a lot of these customers, have been running for quite some time and they need to make this transformation for. New agility, of business services. Security, and compliance is what I'm going to talk about here because those. Requirements. Are changing, quite rapidly and.
We're Finding people are actually leveraging, the cloud to actually become more secure, or, compliant, and, really. The the transformation. Around, industry, solutions, leveraging, things like Big Data so, on this consumer goods company, example, when, we really talk about the. Business. Case for moving as the customer, had looked at their environment, one, of the things that they observed is this intelligence accelerator. Was, going past sunset they. Were going to roll, out Hana for 4bw. And they. Were worried about really the stories about you know how fast this rose and if they go on the appliance model, you know how many of them do they have to replace and how fast in really, you know how does that cost model impact them their, costs were already increasing as they're starting to go through these transformations, because. You know for a period of time your side-by-side, but just the growth of on for a lot of customers, is, increasing, that cost, and. Then they had a lot of cost on the non product, systems that they really had, heard stories like, for in this case from Microsoft, around. We were able to snooze the system, that. Were non-production to, really save a lot of the cost around, those systems, you. Know what drove the initial pull. Of this customer, to move was actually, from, the business, talking, about doing things like trade promotion, management improvement, would be a things like SKU cannibalization, you. Know just like at Microsoft, where we have a huge big data store you know most of the reporting, that we get to transform, the business includes. Information, from SAT maybe cost get our supply data and then, merging, that together with big data demographic. Data or. You, know looking at some of the data sources that are available, that. Will have machine. Learning in them to look at things like you know SKU cannibalization, in, the, consumer goods space this would be where your own products, are, designed. From. A planogram. To go into a store but you don't really have the ability to go on to a single SKU to a single store to see the variances, so you might just go down to a city and you. Know by using the power of azure a machine learning this, customer, was able to rapidly show, that. They can actually go down to a specific SKU, to a specific, store and you. Know there's a lot of advantage than just seeing how you optimize that, to make sure you don't get stock, out incidents, in your stocking, product that people are actually going to buy even. Helping increase margin, there in some areas where the higher demographics. Where. People aren't as cost sensitive, and then being very cost sensitive in, the areas where there were lower social, demographics. Or income.
Demographics, Around that word they knew that was driving behavior and. Obviously, you know just looking at things like you know the temperature. Right as a variance, for logistics, and what products were going just by temperature and so, you. Know that drove this initial migration. When. They actually started doing the move the. Systems were not small so, in this case you know Microsoft has some very large systems, as you know though we're in the earlier process of. Running Hana and so, for this customer, the move of their system, was, over 20 terabytes on, their. Hana BW, system, and that was once it's on Hana so this is an e DW and m BW system that's very large. And. So. As we looked at that their migration, window was quite small and. You know one of the thoughts that we had on that is you know how do you leverage the power of the cloud in, some of the techniques that are in Hana for instance Hana system reprobation, to, maintain a very small, migration. Window you, know with the traditional, migration, you might do something like an import-export, like we did for our ECC, system in Microsoft, and in, this case we're able to leverage, Hana, system reprobation as well we, could do an asynchronous replication, and, then their downtime is really just that final thing and then the validation, but of course everyone runs to make sure things, are secure as, part of this process one thing that was essential, to them was to be able leverage things like single sign-on, like, most customers, that, I talked to the running office 365, and already using, Azure Active Directory they. Wanted to use that as an authentication, mechanism. To, be able to use in, this case sam'l, some, of my customers also use Kerberos, under the covers to, really do the single sign-on, and like, Microsoft, what they're finding is our ability in the cloud to keep up with compliance, and certifications. Really. Helped them use that plus the automation, to, reduce their cost matrix and, going. Ahead and, maintaining, the new compliance teams that were just added to the pile it, isn't like that they got more, resources that, really helped on, this area they had to use their existing resources. And with, gdpr coming, up and other other compliance. Ease that they were worried about we. Really gave them a road map to talk about how, they can leverage just the base infrastructure, that we provide in the, Azure Active Directory to, really secure those systems, if, you get as your trust center you're going to see that the, amount of detail, that we put into thinking through the security, and compliance has been quite extensive, and.
This Has been a key focus for us as you know and as you're over a billion dollar or your investment, around security, and. This. Is something that you know you hear from Satya. And our CEO, consistently. Say that it's a continued, investment, we have around. Making sure that we're going, ahead and, continuing. To. Maintain systems. In a secure fashion with, new threats that are coming out there you, know the other thing that we find in the SSAT world is most, customers, existing systems, they, didn't think about things like you know transparent, data encryption or, encryption, of storage at all times because. Back when you built the data center probably what a priority, so you know going to the cloud gives you the advantage not, just to take advantage of these built-in services, but, really to rethink how you secure, your system you, know can you make sure that you put systems in place where the administrators, even don't have access, by default, you. Know to go ahead and look at data in the systems, and you know are you looking at things that are included in the platform, like just-in-time, access, or just enough access, to, really make sure as the audits get more advanced, for. C for, the compliancy, side that you're going to pass those compliance e's as they move forward because they're not going to stay static again GDP, are probably one of the easiest examples, to look at and. For this consumer, goods customer, very very important. You. Know I think the other thing that shocked the customer, is in the past they talked about a longer migration, cycle, and surely. You saw the Microsoft. IT about a year to scale that up from the system you, know get a very complex architecture. Because, the processes, that we learn from that we've, talked about you know from the envisioning, of this to, the first systems going live, for. The non prod in just weeks in these large-scale, systems, and you. Know the final process, of this we're talking about just months a few, months to go ahead and, and migrate the entire systems, they didn't have dual cost for. A long period, of time made, it very cost effective to migrate, I think, for this particular customer they look at their growth path and one of their concerns is they, know the hardware is changing pretty rapidly and, Han is evolving, pretty rapidly, so you know how do they have the ability to make sure they're sizing, right and can continue that growth path without, having to really rebuy. Entire, solutions, and you know here we talk about our SKU up in the very larger system, on our, virtual machines being able to resize those right and, on the virtual machines I can size up or down on those machines and get myself a lot of flexibility, and agility to. Make sure I provide the right capacity at, the right time for. What's going on and, so again this was a very important, conversation, that. We talked about I think it's also interesting that, you know as they look at the evolution from their traditional netweaver, and moving you, know things like to s4 and simplified finance again the testbed to really save any systems aren't going to run seven by 24. But, in this case they really like the idea that they can bring these systems up let the business test on and then when they weren't using some nines for a few weeks that applied they, could shove those systems down and just pay storage costs which is minimal and then when they add new functionality implemented. Or you know there's a new release they can try as, a movie that's for Hana they can just bring those systems up and they don't have to pay the full cost so, they do the migration, so. That. Was really great in this particular case they were on a private hosting provider and, you. Know I think one of the things that they, thought is they were very cost effective, because they. Had a longer term contract, originally, and in. This case you know they found two things that really happen which are pretty common you, know I'm a netweaver environment. You know the changes didn't happen quite as fast but, on the Hana environment, as the product of all's a lot of people started with things like half terabyte nodes, and you know not only did they see some performance, lag in that but. In this case you know an overall cost, savings, by using the scale of azure you. Know they also love the fact when we were talking to them that.
The Size, of the systems went really, large they were a little shocked in fact that, it was larger than the systems they were talking about with the private hosting provider, and, we have customers again running our larger system so you can see on the you know Hana iOS, directory, we have single nodes up to 20 terabytes and, our scale out solutions, now really allowing customers to go to very very large systems. In. This case they wanted to model the know that if they grew to a hundred terabytes they'd, actually be able to support it and they were very comfortable with our roadmap around. How to do that and not need as many systems, and continue to stay cost-effective. The. Other change that with significant, form is just you know the agility you, know how do you go from you know six weeks and making business changes, in you. Know trying capability, or trying an enhancement, pack and. Moving that to just days right, because you do replicas. Of the system much. Easier we. Not only have the ability to support traditional things like snapshotting. Of systems for our large instances, but. Just the ability to spin up a smaller system, for instance to. Do more trial of capability, meant that they could do faster, upgrades, around. Enhancements. That the business thought was critical so, rather than doing ancillary. Solutions, where they were looking at Best of Breed where the costs were getting out of control the, idea here is to save, on the interfaces, that were happening so there's features they already own and paid for when, a new enhancement comes out from F ap again they can move very rapidly so, they're very pleased I think with the ability to, move forward and leverage. That capability that, they have I think. You know on the second area here was really a healthcare company and this is one of my favorite. Examples because when I started having this conversation. One. Of the conversations, that we had was. Really about, the compliance, ease and uniqueness and things like HIPPA and high-tech and how, when we started they didn't think that they would be able to move that to a public cloud and even, for non process, and they were concerned, in, here, again by looking at just the information, there on customers, that have already moved in the healthcare space or. Being able to look at the ability, to, leverage a lot of the content, and services, that we had that, we're complying already they, rapidly, found that it was much easier to use Azure to. Maintain these compliance ease so in this case their, s4, wasn't, a, traditional, implementation. Because they did have information there that fell, into the healthcare rolls around. Making. Sure that that was secure they also had in their case you, know the Big Data requirement. That you know they had to make sure that they could actually remove PII information and, health information, in some, of the machine, learning that they were doing so things like data masking were, really of interest to them and the big data space was really an interesting job, on that that, business growth you, know for their side that gives them the ability to improve their life cycle, as well, as to leverage the data that they're collecting that, they had for a long time that they never monetized, so, a new business case really for them to leverage, that you. Know their complexity, of landscapes, because they had a slower time to evolve in their traditional, environment, really. Problematic, for them and so in this case they actually went, a greenfield implementation. Of s4, and. They had many different systems but they were migrating, from as they grew over time and and had. A bunch of acquisitions. Over time and so, that was great for them as. They went through their compliance. They were able to show they were not. Putting anything at risk in their move to assure. The. Deployment, and testing, was. An area they really loved the automation and the experiences, we were able to show them. And on how they can actually leverage, that effectively, in fact we first started talking to them and they were looking at s4 we. Actually put a system up the same day we talked to them for them to start trying that and so. They thought that was great for a trial like, every customer, they realized they need to make their own modification. For, their own footprint, of a.s.a.p, and so, they were very, happy, to see they could use a lot of the information and automation and things like get up for. Azure so they could actually get a completely customized, version, of the deployment again not customizing, the sa P system but, the deployment, templates and everything else were very.
Central. To kind of how they run their systems, and that's, pretty difficult and all the, cloud providers, talk, about these generics, quick start systems, right but, in the end you usually have some specific things you'll do either for compliancy, or, the images that you're going to use to create these and so you can replicate these, and leverage, the systems you. Know here are the things that we include in the artificial intelligence in the platform, things like security adviser really, critical to them to, show that their systems are going to can maintain the security moving, forward they, didn't want the exposure to see that you know as. They move forward their data was breached and so, they wanted to leverage every edge that we had and you know our cybersecurity team, and investments, we have working. With security Center were really key to them so we went in detail and talking about how, we worried about penetration. Testing, and you know how do we provide protection. At the edge and inside, the systems right secure, at all time encrypted. At all times and transit at rest and you, know by default being able to do that for their systems including Hana really. Really key to them may. Not only went for the SAV Hana route but in this case, leveraging. A lot of the BW, content, that was there especially for consolidation. And. So they were leveraging, again a complete greenfield with the best to breed kind. Of SAT implementation. Leveraging, the different services available, to them you. Know in, this, first implementation, they've already got data in an integrated, in AI and machine learning they. Already had an azure data Lake store and they found it was so easy to integrate that data we. Do support hybrid, environments, for on-premise, but, one of the big advantages they, had when they actually the recipe system and data gravity, that, all the data that they were leveraging, was with an azure and, you, know if you look at the IDC report, talking about the, leveraging, of things, like Azure data Lake store versus, a traditional Hadoop. Cluster, you, know it showed a significant, savings form over two hundred thousand, dollars per terabyte over. Five years and, when you look at their data store growth they're looking at petabytes, of data so. For them you know being able to leverage just the native services and Azure in a secure fashion, was. Really really critical once, again you see also seeing things like phenyl sign-on and using, Azure Active Directory which. Is off-the-shelf, capable. For any of the ASEP function, again, whether that's traditional, netweaver or whether, that that's for you, know or the new cloud, services, like a reba successfactors. Hybrid, right, being able to leverage that single sign-on experience, for.
Them It wasn't just about their, integration, but. Their partners, and their customers, that they actually work with their distributors, being, able to let them use their Active, Directory to, come in and the b2b capabilities. We had there so they are no longer managing, usernames, and passwords for, the external, party this is a feature they couldn't do on-premise but it was really easy to do for. These parties that they were pulling in one, of the things they liked most about this was they were able to leverage, the. Customers, active. Directories, that they had in place and. In. This case all of their initial customers, were already migrated, due, to these leveraging. Things like office 365, so. They didn't have to actually spend a lot of time with customers talking about it they were able just to implement and with. Our huge implementations. That we've done of office 365, you, might find you're in the same situation, where all of your customers are already there to leverage and simply leverage that to getting, not, get yourself more exposure than you need in. The new world you know managing as few years names and passwords, it's. Probably the best policy, and. They also invoked you. Know in this case the multi-factor, authentication. So. Using Authenticator, in. Microsoft's. World. We have the ability to run that on iOS. Or Android, and so, in. This case you know any, other critical transact, always. Requiring that their that third authentication. Mechanism. Beyond just a username and password, again. Really key for them so. That's you know a couple of customers that I wanted to kind, of refresh the stories and kind of what was driving them to Azure again. At sapphire we're going to be talking about a, lot, of customers, and. You'll hear from the customers, themselves at sapphire due, to the timing here we just wanted to go through a few of the stories I. Think the other thing that's important, if you go into the, s AP on Azure on our website. You'll, see a lot of the customer, case studies and, stories from the customers, themselves and, if you look at some of the other webcasts that we've done again this is part three you'll. Hear about those journeys, and. You'll hear about the the ability to go ahead and look at some of the stories that are there that we talked about in the first two parts of this series. So. With that I want to go ahead and turn it over I know we have a. Number. Of questions that might be here I'm going to go ahead and recap why. We believe Microsoft, is the right answer for you I think, you know by default if you think about the data and analytics. You know the default tool for s ap I still, here today and from the third parties you know showing quite a bit of excel adoption. The number two tool we see with our mass, adoption of power bi is really leveraging, power bi and using, that with things like our machine learning and our AI I'm. Just being able to incorrectly, integrate, that and the huge investments, were making did, a great both NetWeaver, BW, n. SAV HANA giving. You better insights is really key when. You think about the single sign-on we're the only vendor off the shelf that, does single sign-on with sa P in a hyper scale cloud using. Our SSO. Active. Directory in this case as a service, as, well as you could use your on-premise, version of that's our job to support the latest security standards, and look, at the compliance e that we improve, and include. And for, the mission critical systems here, if you look at the enforcement.
We Have around how we're protecting, you in Ramah compliancy, it is really unique in talking, about how we take credibility, for our back-end services, and maintaining, that then, you have responsibilities. In that too so I want to be clear that doesn't, mean we're taking on all of the compliancy, right but we're very clear around what pieces unrolls. Responsibilities. We own and you own in that process, if. You think about our DNA as a company, it's all about leveraging, these enterprise systems you know that's really the thing Microsoft, does best in with, our partner ecosystem and. The support echo system permission critical it, is absolutely. Unique for sa P you, know we don't just talk about our data centers having an SLA but we talk about your individual, system you're, running s avianna we have systems that were custom designed to run sa dianna in virtual, machines as well as bare metal and those, systems have a single, system SLA, because, they're not just generic, VMs, or or machines, that we put in place but, they were specifically, designed to run out safety with our tight partnership, that, is absolutely, unique and leads me into that fourth point about where. We're at with our partnership, and really, where we're continuing to do joint engineering and of. Course talked about the high availability and, business continuity again, the only one of its kind in a hyper scale space. Providing. That level of capability. So. With that I'm going to leave this slide up as we go through but what I really wanted to do and the time here is take a few questions that we might have out there so. Now. I got received you have any questions, that we want to take ok. Thanks very much excellent, presentation, we do have a couple of questions before we do I just wanted to remind our audience of a couple things we do have, our. Series, of events, coming up up, that have already happened. So you can watch them on demand, and I'll push out a link to, our audience, so that they can register, and check out the previous events, in our series also, want to push out a link to our feedback survey, for our audience and get some feedback on what they thought of this event and our series as well. Quick. Question here from from, Kevin who. Wanted to know can, you discuss the need for, different license, types for. On-prem versus, cloud installations. So. For, the different license types I think it becomes pretty clear that the. Biggest hurdle people run into is not necessarily, the AP licenses, but, the big hurdle boils, down to generally, the database licenses, and this, is an area where, you. Know like for Microsoft, if you software assurance you. Have license portability with, the database I, think, the challenge, comes in where people had other databases, and in. That case you need to check with your database, vendor, I will tell you we have specific, programs both, with sa P to. Do migrations, in, their case to maxtv or into Sybase very cost-effectively. And, we do this equal in fact we've seen a huge uptick, in our sequel adoption, not, because we're actually marketing. It we know everyone's going to go to Hana but, in the temporary time period if I look at the poll that we have the very first one, about, how fast you're moving Diana you, know for those customers that are ready to go you should use Hana as your database and just do the migration right, that's, a process that we could do either one step or two step depending.
On What your systems look like but pretty straightforward. And. So if you're not ready for Hana on the sequel side I think, what we talked about there is really just being able to leverage that if you don't have license portability and, until. You get to the Hana side we've, done over tens of thousands of migration, in. Our, time of running sa P becomes very effective, but the word you're looking for is license, portability and, that's, the key factor, to determine if, you need to worry about license, types I will, say the newer offerings, coming out are. Almost all, set. To be really provide either subscription-based, licensing. Or. Provide license portability this, is generally the legacy, systems, that you worry about in database, being the number one system, did. Be of concern here. Okay. Thanks very much unfortunately that is all the time we have for this session so, if we didn't get to your question, during our broadcast some, a little follow up with you, in. The next few business days and again we want to remind you about some, some. Information, to follow up information you. Can see that here before you I want, to thank you all for attending today's webinar s, AP customers, perspectives, on moving. Sa P systems, to the cloud hosted. By ASAP insider, and presented, by Microsoft. Shortly, after this live event we're going to send you an email reminder, so you can access this presentation, on demand, and on behalf of our guests, mark scub W. Worldwide. Director, of sa P with Microsoft, and Mike Taylor GM, enterprise, applications. Services, with Microsoft, we want to thank you for your time and have, a great day.