Open Source @ SAP · Open Source @ SAP Deriving business value from co-innovation Mark Yolton...

transcript

Open Source @ SAPDeriving business value from co-innovation

Mark YoltonSenior Vice PresidentSAP Community Network

29 January 2009

The world is becomingmore customer and

user centric ...

Open Innovation at LEGO

http://factory.lego.com/

Open Innovation at DELL

http://www.ideastorm.com/

Open Innovation at PEUGEOT

http://www.peugeot.com/fr/design/concours-de-design.aspx/

... and SAP teams upwith customers, too ...

Customer-Focused EcosystemAlways connected, always on

Trusted and Relevant PartnerSolutions and Services Communities of Innovation

IndustryValue Networks

Business ProcessExpert Community

Enterprise ServicesCommunity

SAP DeveloperNetwork

ChannelPartners

Software SolutionPartners

TechnologyPartners

ServicePartners

Customers

Communities at SAP

Two typesLarge, open, focused on the individualPrivate, orchestrated, focused on companies

Web 2.0 technologyBlogsWikisForumsRatings

Successful by many measuresMore than 1.5 million members25,000 new members per month>700,000 unique visitors monthly20 million pages consumed per month>6,000 posts per day

The majority of the SAP Business Suiteenterprise services were defined and/or

reviewed by the Enterprise ServicesCommunity, e.g.:

SAP tapping into the „Wisdom of the Crowds“via Innocentive

On the SAP EcoHub customers can search for,comment on and rate SAP solutions

A growing number of SAP-related communityprojects, e.g. ESME

http://blog.esme.us/

SAP Mentors

Role models for the community, providing passion and energy

Mentors take on a leadership role

Create a sense of belonging

Candid feedback and direction to SAP

Trusted semi-privatecommunication channel

Special status to exceptional and high-value members of ourSDN, BPX, and Business Objects communities

Picture: Dennis Howlett

From Co-Innovation toCo-Development ...

Open Source isbecoming increasingly

important ...

October 28, 2008

“Microsoft opens newopen source technologycenter”

http://www.linuxnewstoday.org/linux-news-oct-2008-archives/1108-oct-28-2008-linux-news.shtml

October 29, 2008

“EC to publish opensource procurementguidelines”

http://www.heise-online.co.uk/open/EC-to-publish-open-source-procurement-guidelines--/news/111826

November 3, 2008

“Firefox breaks 20%market share mark inOctober”

http://mozillalinks.org/wp/2008/11/firefox-breaks-20-market-share-mark-in-october/

November 17, 2008

“Gartner: 85 percent ofcompanies using opensource”

http://news.zdnet.com/2424-9595_22-249842.html

So, why is OpenSource successful?

No License CostsVendor Independence

Easy to Evaluate

Developer Productivity

Shared Development Costs

Access to Latest Technologies / Developments

Community Experience

Interoperability

No Hidden Backdoors

Customization Support for Multiple Operating Systems

Has Become A De-facto Standard

Influence on Features

Low TCO

... but the borderbetween open sourceand closed source is

blurring ...

Two completely different worlds in the past

closedsource

December 1, 2008

“The open-source business modelthat relies solely on support andservice revenue streams is failing tomeet the expectations of investors”[Stuart Cohen, CEO of Collaborative Software Initiative,former CEO of the Open Source Development Labs]

http://www.businessweek.com/technology/content/nov2008/tc20081130_276152.htm

November 17, 2008

“The idea of simply sellingsupport fell by the wayside formost companies at least oneyear ago.”[Dave Rosenberg, Co-founder of MuleSource]

http://news.cnet.com/8301-13846_3-10098692-62.html

December 2, 2008

“We're definitely seeing convergence inthe market: proprietary vendors embracingopen-source complements, and open-source vendors embracing proprietarycomplements.”

[Matt Asay, General Manager of the Americas and VicePresident of Business Development at Alfresco]

December 11, 2008

“Duffner said he expects to seemore mixed sourceenvironments.”[Robert Duffner is the Director of Platform Strategy at Microsoft]

http://searchwinit.techtarget.com/news/article/0,289142,sid1_gci1342176,00.html#

October 1, 2007

“So for us, the business goal is tooptimize this hybrid mix of proprietaryand open-source software to give ourcustomers what they need.”[Bob Sutor, Vice President of Standards and Open Source for theIBM Corporation]

http://m.linuxjournal.com/article/9797

August 19, 2008

“Maybe “commercial opensource” isn’t an oxymoronafter all.”

http://www.itbusinessedge.com/blogs/osb/?p=436

October 13, 2008

“The line between proprietarysoftware and open sourcesoftware is becomingincreasingly blurred ...”

http://blogs.the451group.com/opensource/2008/10/13/open-source-is-not-a-business-model/

December 24, 2008

“Typically we now see an "opencore" freely available with"exclusive" or proprietaryfeatures only available when youpay.” [Dave Rosenberg, Co-founder of MuleSource]

The “pure plays” seem to have lost inimportance today

closedsource

SAP has an active rolein Open Source...

10 Year Anniversary

... SAP startedsupporting Linux as

early as 1999?

Did you know …

... most of the key Linux playershave a presence in the SAP

LinuxLab?

Did you know …

... SAP has support forOpenOffice.org and the

OpenDocument Format (ODF)?

Did you know …

... SAP web applications can beaccessed using Mozilla Firefox?

Did you know …

... SAP offers a client that runs onLinux?

Did you know …

... SAP has been shipping thesource code together with thebusiness applications since

the beginning?

Did you know ...

… SAP has invested inthese open source

companies?

Did you know …

... SAP was a founding member ofthe Eclipse Foundation and has aleading role in a number of Eclipse

projects?

Did you know …

So, why does SAP doOpen Source?

A few specific examples ofhow customers, partners and SAP benefit

CustomersSAP’s Linux support enables customers to run SAP solutions on reliable and cost-effectiveplatform which reduces TCOSAP’s support for Firefox and OpenOffice.org gives customers choice, platform and vendorindependence on the desktop

PartnersPartners can reuse their Eclipse skills when developing with the SAP NetWeaver DeveloperStudio which reduces development costs and simplifies the reallocation of developersSAP’s support for open source opens the SAP ecosystem to partners focusing on opensource (e.g. Novell with respect to Linux)

SAPSAP Hosting like any customer runs SAP software on Linux and commodity hardware in orderto reduce cost of operationSAP’s usage of Eclipse technology leverages a de-facto industry standard while allowing ashared development approach at the same time

Customers want choice and protection ofinvestments

Database

OperatingSystem

Third-PartyApplication

CompositeApplication

Business ProcessPlatform (BPP)

Frontend

Domain

MaxDBDB2

Success Stories available at: www.novell.com/sap

Novell and SAP share satisfied customers

• Novell is at the heart of SAP applications:- 1,000+ joint customers- 5,000+ Installations

• Novell is the only OS providing a fastinstallation wizard for SAP Business All-in-One solution

• Doubled customer base YOY with theSUSE® Linux Enterprise Server PrioritySupport for SAP offering

• SUSE Linux Enterprise is the only OS thatruns SAP BI Accelerator

• SUSE Linux Enterprise is the ReferencePlatform for SAP development

• SAP Hosting service runs on SUSE LinuxEnterprise Server

Novell® and SAP – The Power of Partnership

Eclipse has become a broadly used “standard”for development and management tools

How Siemens benefits from SAP’s Eclipsestrategy

“NetWeaver's support for common standards andOpen Source is very important to Siemens because ithelps to protect investments, reduce costs, andincrease flexibility for both ourselves and ourcustomers. For example, due to SAP's usage oftechnologies like Eclipse as well as SAP’s support forSOA standards, users of the Siemens EnergyManagement Suite can reuse their existing Java EE,SOA and Eclipse skills.”

Jens NeuhausSolution Architect, Siemens AG

More customers can choose SAP and itspartners’ solutions due SAP’s open platform

So, how does SAP doOpen Source?

SAP supporting open source

CriteriaCustomer demandMarket shareLong-term viability of the open source technology / projectAvailability of reliable support (internally or external support partner)Quality of the open source technology

Customer BenefitsChoiceVendor independenceLow TCO

Benefits for SAPLarger addressable marketVendor independenceLow TCO

SAP integrating / embedding / usingopen source

CriteriaProblem fitMarket shareLong-term viability of the open source technology / projectAvailability of reliable support (internally or external support partner)Quality of the open source technologyPermissive licenseQuality of the code (both from a technical and legal point of view)

Customer BenefitsReuse of skills and technologyDeveloper productivityInteroperability

Benefits for SAPStandards support based on open source standards / reference implementations(OEM) vendor independence

SAP contributing to open source

CriteriaOpen source technology used, included and/or supported by SAPPermissive licenseOpen governance / participation modelQuality of the code (both from a technical and legal point of view)

Customer BenefitsComprehensive end-to-end supportLong-term viability of the open sourcetechnologyInvestment protection

Benefits for SAPShared development costsInfluence on feature roadmapInvestment protection

And what does this allmean?

What customers care about

What else matters toorganizations

Problem fit of solutionIntegrated easy-to-use solutionsCompliance, security andreliabilityAvailability of supportand servicesProduct liability & indemnificationLong-term viability of a selectedsolutionPredictable & reliable releasecycle

Why customers wantOpen Source

Influence on product roadmapAbility to customizeAbility to quickly react to changesInteroperability with open andclosed source solutionsReduced vendor dependenceLow TCODeveloper productivity

... and how SAP addresses these needs

Comprehensive portfolio covering allkey business areas

Solutions for small, midsize and largeorganizations

Integrated product stack

Broad and increasing support forstandards and open source

Diligent integration of open sourcetechnologies

Customizability

Large, global community

Co-Innovation and collaboration

Summary

The border between open source and closedsource is blurring

“Open source companies” sell closed source add-oncomponents on top of their free open source technologies“Closed source companies” integrate, support and contribute toopen source technologies

SAP is an active supporter of and contributorto open source

Linux, Eclipse, OpenOffice.org, Firefox, etc.More code contributions planned for the future

SAP addresses customer needs by offeringthe best of both worlds

Customer choice via support for open source and openstandardsCustomer influence via collaboration and co-innovationInvestment protection by using standard technologyIntegrated solutions, security, reliability, long-term viability andglobal end-to-end support

Mark YoltonSenior Vice PresidentSAP Community Network

http://bpx.sap.comhttp://sdn.sap.comhttp://boc.sap.comhttp://sapteched.com

T +1 650-687-4656E mark.yolton@sap.com

Thank You! Danke schön!

https://www.sdn.sap.com/irj/sdn/standards-and-opensource

Open Source @ SAP · Open Source @ SAP Deriving business value from co-innovation Mark Yolton...

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