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SAP S/4HANAFrequently Asked QuestionsMay 2015, v3EXTERNAL

SAP S/4HANA – EXTERNAL FAQThe purpose of this document is to provide an external audience with a selection of frequently askedquestions and answers about SAP S/4HANA, the next-generation business suite from SAP.DISCLAIMER: The contents of this document, and SAP’s strategy and possible future developments,products, and/or platforms directions and functionality are all subject to change and may be changed by SAPat any time for any reason without notice. The information in this document is not a commitment, promise, orlegal obligation to deliver any material, code, or functionality. This document is provided without a warrantyof any kind, either express or implied, including but not limited to, the implied warranties of merchantability,fitness for a particular purpose, or non-infringement. This document is for informational purposes and maynot be incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document,except if such damages were caused by SAP’s intentional or gross negligence. All forward-lookingstatements are subject to various risks and uncertainties that could cause actual results to differ materiallyfrom expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,which speak only as of their dates, and they should not be relied upon in making purchasing decisions.2

SAP S/4HANA – EXTERNAL FAQTABLE OF CONTENTS1. What is SAP S/4HANA? .52. What does the name of SAP S/4HANA stand for? .53. What are the deployment options offered? .54. Is SAP S/4HANA available today? .65. What are the key benefits for a customer to move now to SAP S/4HANA? .66. What is the current business scope of the two editions? .87. Which industry solutions will be available in SAP S/4HANA and by when? .98. What is the product roadmap for SAP S/4HANA? .99. Which SAP S/4HANA edition do you recommend for my enterprise? .910. How can I try SAP S/4HANA? .911. How does SAP S/4HANA relate to SAP Simple Finance powered by SAP HANA? .912. How does SAP S/4HANA relate to SAP’s existing portfolio of cloud solutions? .913. Is SAP S/4HANA, cloud edition a public cloud offering? .1014. How does the SAP HANA Enterprise Cloud service relate to the SAP S/4HANA, cloud edition? .1015. Is SAP S/4HANA, cloud edition multitenant? .1016. How does SAP HANA Cloud Platform relate to SAP S/4HANA? .1017. Does SAP provide prepackaged integration for SAP S/4HANA to the existing cloud solutions from SAP? .1018. What is the benefit to the data model for using an in-memory platform? .1119. Can customers run different SAP S/4HANA editions in parallel in their enterprise architecture? .1120. Do SAP S/4HANA and SAP Business Suite share the same data semantic? .1121. Will SAP continue to deliver innovations to SAP Business Suite customers on any DB? .1122. Does SAP Business Suite powered by SAP HANA still exist? .1223. What is really new in SAP S/4HANA compared to SAP Business Suite powered by SAP HANA? .1224. What is the fundamental difference between the SAP Business Suite code line and the new SAP S/4HANA product code line? .1325. What is the typical journey for an existing SAP Business Suite customer? .1326. What is the typical journey for a net-new customer? .1427. How can SAP partners support the move of a customer to SAP S/4HANA? .1428. What happens to existing modifications when a customer moves to SAP S4/HANA? .1529. What happens to existing legacy interfaces if a customer moves to SAP S/4HANA? .1530. How does SAP S/4HANA relate to and coexist with the existing SAP landscapes? .1531. Can a customer choose to run the traditional SAP user interface and custom screens or is SAP Fiori mandatory? .1532. What is the pricing model for SAP S/4HANA? .1533. Are SuccessFactors, Ariba, Concur, SAP hybris Marketing, and other cloud solutions from SAP included in the SAP S/4HANAproduct license? .1634. Will customers that have licensed SAP Accounting powered by SAP HANA get a credit? .1635. How does SAP S/4HANA relate to s-innovations? .1636. How does SAP S/4HANA relate to SAP Business ByDesign and SAP Business One? .1637. How does SAP S/4HANA relate to SAP BW? .1638. Where can I learn more? .173

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SAP S/4HANA – EXTERNAL FAQTo help customers run simple, we are breaking the limitations of the past. On February 3, 2015,SAP announced a new business suite, fully built for SAP HANA, with all that only SAP HANA can dotoday. SAP S/4HANA is a new product and our biggest innovation since SAP R/3.1.What is SAP S/4HANA?SAP S/4HANA is the next-generation business suite. It is a new product fully built on the mostadvanced in-memory platform today – SAP HANA – and modern design principles with the SAPFiori user experience (UX). SAP S/4HANA delivers massive simplifications (customer adoption, datamodel, user experience, decision making, business processes, and models) and innovations(Internet of Things, Big Data, business networks, and mobile-first) to help businesses run simple inthe digital economy.Internetof ThingsSAP Fiori UXPeoplerole-based user experience for all devicesSAP S/4HANA applications and extensionsinstant insight-driven applications for all lines of business and industriesSAP HANA platformBusinessnetworksin-memory platform for all DataAriba2.DevicesNative integration for hybridscenariosConcurFieldglasshybris SuccessFactorsWhat does the name of SAP S/4HANA stand for?SAP S/4HANA is the short form for SAP Business Suite 4 SAP HANA. It brings the next big wave ofSAP innovation to our customers, similar to the transition from SAP R/2 to SAP R/3.SAP S/4HANA is a new product with a new code line.3.What are the deployment options offered?SAP offers on-premise, cloud, and hybrid deployments to give real choice to customers. SAPS/4HANA also gives customers the option to fully leverage the new HANA multitenancyfunctionality as provided by the SAP HANA platform (currently support package 9) for the cloud.5

SAP S/4HANA – EXTERNAL FAQ4.Is SAP S/4HANA available today?The SAP S/4HANA, on-premise edition is available for customers in all industries and regions.The SAP S/4HANA cloud edition is also available as announced at SAPPHIRE NOW event in Orlandoon May 6th 2015 .5.What are the key benefits for a customer to move now to SAP S/4HANA?SAP’s vision and strategy is to help customers run simple in the digital economy. To deliver on thismission, we are redefining how enterprise software creates value.SAP S/4HANA is designed to drive instant value across lines of business and industries with theultimate sophistication: simplicity.From a business value perspective, this means that SAP S/4HANA creates unique opportunities toreinvent business models and drive new revenues and profits. First, enterprises can now easilyconnect to people, devices, and business networks to deliver new value to their customers on anychannel – the Internet of Things and Big Data become accessible to any business. Second,enterprises can dramatically simplify their processes, drive them in real time and change them asneeded to gain new efficiencies – no more batch processing is required. And finally, business userscan now get any insight on any data from anywhere in real-time: planning, execution, prediction,and simulation – decisions may be made on the fly with a high level of granularity for fasterbusiness impact.6

SAP S/4HANA – EXTERNAL FAQDigital EconomyDigital CoreInternetof ThingsBig DataDigital TransformationSegmentof 1BusinessnetworksProcess EnrichedScalability I Real time I Prediction I SimulationDevicesLive DataGranular I Responsive I AccurateLot sizeof 1At scaleUser EmpoweredInstant insight I Contextual information I eTraditional SAP value playSAP S/4HANA value playLeading-edge processesIntegrated systemDigital transformationof business modelsFrom an IT value perspective, this means that SAP S/4HANA creates unique opportunities tosimplify the landscape and help reduce total cost of ownership (TCO) with SAP HANA as the greatsimplifier. First, enterprises can now reduce their data footprint and work with larger data sets inone system (for example, ERP, CRM, SRM, SCM, PLM co-deployed) to save hardware costs,operational costs, and time. Second, innovation is also made simple with an open platform (SAPHANA Cloud Platform) to drive advanced applications – for example, predicting, recommending,and simulating – while protecting existing investments. Third, business users can leverage a simpleand role-based user experience based on modern design principles which minimizes trainingefforts while increases productivity. We also support customers with simple configuration: settingup the system and during its use. And finally, enterprises get choice of deployment: cloud, onpremise, and even hybrid to drive quick time-to-value.7

SAP S/4HANA – EXTERNAL FAQKey facts about SAP S/4HANA: Smaller total data footprintHigher throughputFaster analytics and reportingLess process stepsERP, CRM, SRM,SCM, PLM co-deployedNo locking, parallelismActual data (25%) and historical (75%)Unlimited workload capacity Predict, recommend, simulateSAP HANA Cloud Platform extensionsSAP HANA multitenancyAll data: social, text, geo, graph, processingNew SAP Fiori UX for any device (mobile, desktop, tablet)Choice of deployment: on premise, cloud, hybridSAP S/4HANA is only built on SAP HANA because, as of today, only the SAP HANA platform candeliver such level of massive simplifications and innovations.6.What is the current business scope of the two editions?The business scope for each edition was designed to offer maximum choice to customers inalignment with their business requirements: SAP S/4HANA, on-premise edition, already offers a business scope that is similar in terms ofcoverage, functionality, industries, and languages as the current SAP Business Suite. Withinthis scope, SAP S/4HANA also includes the transformational simplifications delivered withSAP Simple Finance (SAP Accounting powered by SAP HANA) as well as a planned integrationwith SuccessFactors Employee Central and Ariba Network.The on-premise edition is intended to offer a yearly innovation cycle through innovationpackages. The next innovation package is planned for the end of 2015. SAP S/4HANA, cloud edition already covers specific business scenarios for the marketingline of business and for the professional services industry as well as the most essentialscenarios to run an entire enterprise in the cloud with a digital core including: finance,accounting, controlling, procurement, sales, manufacturing, plant maintenance, projectsystem, and product lifecycle management, plus integration with SuccessFactors EmployeeCentral, Ariba Network, SAP hybris Marketing, Field Glass and SAP JAM. Three offerings arecurrently available as part of the SAP S/4HANA , cloud edition: SAP S/4HANA, cloud marketing edition – for the marketing line of business SAP S/4HANA, cloud project services edition – for the professional services industry SAP S/4HANA, cloud enterprise edition – for a full ERP scopeThe cloud edition is intended to offer a quarterly innovation cycle.8

SAP S/4HANA – EXTERNAL FAQ7.Which industry solutions will be available in SAP S/4HANA and by when?SAP S/4HANA, on-premise edition, supports current lines of business and industries.SAP S/4HANA, cloud edition, is planned to ultimately have a similar industry coverage as the onpremise edition. SAP S/4HANA cloud edition is open for all industries.Support for industry-specific solutions are planned according to market prioritization.8.What is the product roadmap for SAP S/4HANA?SAP customers and partners can access the detailed roadmap on the SAP Service Marketplace:here9.Which SAP S/4HANA edition do you recommend for my enterprise?The SAP S/4HANA, on-premise edition is designed for enterprises across industries that need adeep and broad level of functionality combined with a high degree of flexibility in customization.The SAP S/4HANA, cloud edition is designed for enterprises that need a standardized cloudoffering primarily covering the core business scenarios of an enterprise or specific businessscenarios of lines of business in industries - combined with a fast innovation cycle (quarterly).In addition, the SAP S/4HANA editions offer the opportunity for customers to deploy real hybridscenarios - combining on-premise and cloud solutions - for unprecedented IT flexibility andaccelerated business innovation.10. How can I try SAP S/4HANA?A free 14-day cloud edition trial system is available to help you experience the value of simplicityacross key business scenarios: project manager scenario, cash manager scenario, general ledgeraccountant scenario, accounts receivable accountant scenario, accounts payable accountantscenario.You can access the trial on: www.sap.com/s4hana-trial11. How does SAP S/4HANA relate to SAP Simple Finance powered by SAP HANA?The SAP Simple Finance solution marked the first step in our SAP S/4HANA road map forcustomers. The solution has demonstrated the value of simplification (for example, no indexes, noaggregates, and no redundancies) and instant insight in Finance. SAP S/4HANA, on-premise editionleverages the full scope of SAP Accounting powered by SAP HANA included in SAP Simple Finance.The SAP S/4HANA, cloud edition is intended to deliver a similar scope.12. How does SAP S/4HANA relate to SAP’s existing portfolio of cloud solutions?SAP S/4HANA is also available with a cloud edition. However, SAP S/4HANA will not replace ourexisting portfolio of line-of-business cloud solutions; it will integrate with and expand it. Our9

SAP S/4HANA – EXTERNAL FAQcomprehensive offering is planned to allow SAP S/4HANA customers to build hybrid scenariosbetween SAP S/4HANA and cloud solutions from SAP, including those from SuccessFactors andAriba as well as integration with SAP hybris Marketing, Fieldglass and SAP JAM. This waycustomers can leverage the cloud at their own pace, based on their needs, while keeping all theintegration and business benefits of their existing SAP solutions. In addition, SAP S/4HANA isdesigned to easily connect with global business networks such as, for example, the Ariba Networkand Concur.13. Is SAP S/4HANA, cloud edition a public cloud offering?Yes. The SAP S/4HANA, cloud edition has all the qualities of a public cloud offering.Please note that the SAP S/4HANA, cloud enterprise edition provides additional services forcustomers that require broader extensions and configuration capabilities.14. How does the SAP HANA Enterprise Cloud service relate to the SAP S/4HANA, cloud edition?We are leveraging the same infrastructure as a service (IaaS), data centers, and security qualities,though the lifecycle management is different. Innovation updates for the cloud edition areplanned on a quarterly basis, to be consumed by the customer, and managed by SAP.15. Is SAP S/4HANA, cloud edition multitenant?SAP S/4HANA gives customers the option to leverage the HANA multitenancy functionality asprovided by the SAP HANA platform (currently support package 9).16. How does SAP HANA Cloud Platform relate to SAP S/4HANA?In the context of SAP S/4HANA, SAP HANA Cloud Platform serves as an extension platform andagility layer. It is possible to build specific capabilities extending the scope of SAP S/4HANA byeither integrating non-SAP functions or building your own capabilities. The cloud platform not onlyserves as the development platform but also as the runtime foundation for the developedsolutions. The extensions built on the cloud platform can run with both cloud and on-premiseeditions of SAP S/4HANA.17. Does SAP provide prepackaged integration for SAP S/4HANA to the existing cloud solutionsfrom SAP?Yes, this service is provided as SAP Rapid Deployment solutions with SAP S/4HANA and is deliveredwith prepackaged integration (for example integration between SuccessFactors and SAPS/4HANA).10

SAP S/4HANA – EXTERNAL FAQ18. What is the benefit to the data model for using an in-memory platform?SAP S/4HANA delivers high-volume transaction processing (OLTP) and high volume real-time analyticalprocesses (OLAP) based on a unified data model without the redundant data layers typically required bytraditional RDBMS based systems. This reduces TCO while providing new opportunities to increase businessvalue from existing investments.Examples for redundant data layers are custom-built layers based on database tuning efforts such assecondary indexes, or application built-in performance accelerators such as aggregate tables or multiplegeneral ledger versions for different managerial reporting needs.The massive simplifications of the data model and the data processing layers enable business andtechnological innovations on a broad scale across all lines-of-business and industry solutions.The new application architecture simplifies system landscape architectures and accelerates clouddeployments on an economical scale.19. Can customers run different SAP S/4HANA editions in parallel in their enterprise architecture?Yes, SAP S/4HANA editions are integrated and run mostly on the same data semantic.20. Do SAP S/4HANA and SAP Business Suite share the same data semantic?With SAP S/4HANA, SAP has developed a new product that leverages basic data structures and elements ofthe SAP Business Suite for maximum compatibility, non-disruptive migration and hybrid scenarios.However, SAP S/4HANA provides new business functionality on top of these data structures natively builton the SAP HANA platform and designed with the SAP Fiori UX principles.SAP Business Suite on-premise customers on the latest enhancement package can easily move to this newproduct simply by migrating to the SAP HANA database and applying the exchange innovation (new code)to their current SAP Business Suite environment.21. Will SAP continue to deliver innovations to SAP Business Suite customers on any DB?Yes. SAP remains committed to protect our customers’ investments. We recently announced thatwe are extending our maintenance commitment until at least 2025. This is an unprecedentedcommitment to customers in the IT industry. We will also continue to deliver innovations withoutdisruption (through enhancement packages for example) to SAP Business Suite customers on anyDB and on SAP HANA.However, transformational business and IT simplifications require a transformational platform andthis is why as of today SAP S/4HANA runs only on SAP HANA. It is the logical next step for ourinstalled base customers and the biggest step forward for 10 years with full compatibility withSAP ERP 6.0.11

SAP S/4HANA – EXTERNAL FAQ22. Does SAP Business Suite powered by SAP HANA still exist?Yes. For many customers this has been the first step in their roadmap to SAP S/4HANA, onpremise edition. It is a proven product with more than 2000 customers.You can explore the full journey map for getting a comprehensive overview:soh.sapjourneymap.com/23. What is really new in SAP S/4HANA compared to SAP Business Suite powered by SAPHANA?With SAP Business Suite powered by SAP HANA, SAP was the only software vendor in the marketat that time to allow SAP Business Suite customers to bring together transactions and analysis intoa single in-memory platform. This innovation has been extremely successful in the market as2,000 customers (existing and new) acquired SAP Business Suite powered by SAP HANA – in lessthan two years – to run their business in real time, making it one of the fastest-growing product inSAP’s history.With SAP Business Suite powered by SAP HANA, our product approach has been to port theapplications on the SAP HANA platform and optimize the code to allow customers the ability togain significant performance in their mission-critical business processes and reporting activities,and by that, in turn, also improve performance on relational databases. SAP HANA represented anew database alternative for existing customers, with a simple database migration required todrive the entire business in real time.SAP S/4HANA is a new product. With SAP S/4HANA, we are building on the success of the SAPBusiness Suite powered by SAP HANA with a completely new and reimagined suite: SAP S/4HANA is running on SAP HANA for massive simplifications (simplified data model: no indexes,no aggregates, no redundancies) and innovations (for example, open in-memory platform for advancedapplications predicting, recommending, and simulating) SAP S/4HANA is natively designed with SAP Fiori UX, offering an integrated user experience withmodern usability and instant insight on any device (role-based, three steps max to get the job done,mobile-first, consistent experience across lines of business) SAP S/4HANA is natively connected to the Internet of Things and business networks for real-timecollaboration (planned: machine-to-machine, Ariba Network, Concur) in the networked economy SAP S/4HANA is natively engineered for providing choice of deployment (on premise, cloud and hybrid) SAP S/4HANA is natively born for easy adoption (guided, configuration, and easy onboarding, from thediscovery of the solution through cloud trials to deployment with preconfigured best practices)In addition, SAP HANA Cloud Platform serves as open extension, agility layer for SAP S/4HANA. Theextensions built on the cloud platform can run against either deployment of SAP S/4HANA: in thecloud and on premise.12

SAP S/4HANA – EXTERNAL FAQ24. What is the fundamental difference between the SAP Business Suite code line and the newSAP S/4HANA product code line?The development approach of SAP S/4HANA is to eliminate all artefacts that have been introducedas performance workarounds for classical row-based RDBMS. These are aggregates andprogrammed indexes that contained no semantic value and only provided fast access to sums anddata. On the downside, these created interconnections in the application and complexity in howto lock the system to avoid conflicting updates in aggregates. Moreover, significant code had to bedeveloped for lengthy ETL (extract-transform-load) scenarios incurring data preparation andexception management routines caused by latency.This portion of the code did not carry business semantic in itself, but served as “performanceproliferation” in business processes.With SAP S/4 HANA, these different types of workaround on restrictions based on technicallimitations are no longer necessary, as the latest information and the time travel from thecolumnar store can be accessed instantaneously across all inserts and updates and thereforeeliminates the need for any overhead of the index and aggregates.25. What is the typical journey for an existing SAP Business Suite customer?Moving to SAP S/4HANA for a typical existing SAP ERP 6.0 customer will require a move to thelatest enhancement package, followed by a database migration from any DB to SAP HANAcombined with the deployment of the exchange innovation (new code). From an executionperspective, these steps can be executed in sequence or as a combined step.Moving to SAP S/4HANA for an existing SAP Business Suite powered by SAP HANA customer iseven faster as only the deployment of the exchange innovation (new code) is required.Both journeys are well proven in the market with several hundred of live SAP Business Suitepowered by SAP HANA customers as well as SAP Simple Finance live customers.13

SAP S/4HANA – EXTERNAL FAQ26. What is the typical journey for a net-new customer?The journey is defined by a net-new implementation of an SAP S/4HANA system with simpleradoption – example: guided configuration, easy onboarding from the discovery of the solutionthrough cloud trials to the deployment with preconfigured best practices. We defined three majorscenarios supported by tools and pre-configuration delivered through our SAP Rapid Deploymentsolutions:STARTING POINT ANew customerCloudUp and running with bestpractices in two daysHybridDeploy new installationOn premiseOn premiseCloudHybridUpgrade to latest EHP, migrate DB toSAP HANA, deploy exchange innovationTransfer data to the cloudSTARTING POINT BCustomer with SAPBusiness Suite on anydatabaseSTARTING POINT CCustomer with SAP Business Suitepowered by SAP HANAOn premiseCloudDeploy exchange innovationTransfer data to the cloudHybridYou can explore the full journey-map for getting a comprehensive overview:s4hana.sapjourneymap.com/27. How can SAP partners support the move of a customer to SAP S/4HANA?SAP has an established partner ecosystem (value-added retailers and systems integrators) that isready to resell and service SAP S/4HANA for our joint existing and new customers to implementfuture innovations. More than 50% of the SAP Business Suite powered by SAP HANA projects weremanaged by partners.Partners and SAP will support customers in their journey with predefined migration, systemconversion in the cloud, and deployment packages for quicker time to value. Companies of all sizeswill benefit from the high-quality service and reseller capabilities our partners provide.14

SAP S/4HANA – EXTERNAL FAQ28. What happens to existing modifications when a customer moves to SAP S4/HANA?In any scenario, the move to SAP S/4HANA is a great opportunity to validate the existingmodifications and simplify your solution. It has not been unusual for customers to realize that 50%of the modifications that hamper fast release cycles and require long test cycles were no longernecessary to run the business.When moving to SAP S/4HANA, customers can leverage the SAP HANA Cloud Platform to managetheir extensions. In fact, standard field extensions can directly be done within the SAP Fiori UXwhile SAP HANA Cloud Platform can be leveraged for more significant developments.In general, the SAP HANA extension framework uses SAP HANA as the common platform for SAPS/4HANA and offers additional choices - such as for example the integration of open sourcesolutions. The extension framework has the advantage to isolate modifications from the core anddrive agility for the on-premise deployment and safeguard agility for cloud deployments. Thismeans that rather than modifying the core code, enhancements are put in a “safe” environmentso that innovation packages can

SAP announced a new business suite, fully built for SAP HANA, with all that only SAP HANA can do today. SAP S/4HANA is a new product and our biggest innovation since SAP R/3. 1. What is SAP S/4HANA? SAP S/4HANA is the next-generation business suite. It is a new product fully built on the most advanced