1. Collaborative Content Workspaces
Market Research
Ohad Levy, PM

2. Market Trends
User Productivity Software is on the Verge of a Big
Leap Forward…

3. © 2011 SAP AG. All rights reserved. 3
Market Trend #1:
Consumerization
“People no longer distinguish between the applications they use at work and those they use
in their personal lives“, Dan Rosenberg, SVP UX, SAP
• Employees bring their private devices to work
(smartphones, tablets, …) and require using
them at work
• Users require applications which are
simultaneously powerful and intuitive to use,
same as their home appliances (Apple,
Facebook, Google…)

4. © 2011 SAP AG. All rights reserved. 4
• Mobile devices provide intuitive experience from anywhere –anytime
• 90MM iPhones sold worldwide. 12MM iPads sold in just 2 Qr’s! (50MM by 2012)
• 80% of Fortune100 deploy or pilot iPad
• Tablets played significant role in CES: iOS, Honeycomb, RIM, WP7, WebOs
Market Trend #2:
Smartphones and Tablets
Source: ZDNet http://www.zdnet.com/blog/hardware/apple-q111-financials-record-maciphoneipad-sales-highest-revenue-earnings-ever/10989
Tablets are about to change data consumption in the enterprise

5. © 2011 SAP AG. All rights reserved. 5
“I used to think, back when I started Salesforce, that why isn’t all enterprise software like Amazon?
Now I’m thinking: Why isn’t all enterprise software like Facebook?” Marc Benioff, CEO, Salesforce.com
• Demand driven by Gen Y employees
• 77% of workers use Facebook during work… causing 1.5% productivity loss…
• 50% of businesses used Enterprise 2.0 software in 2009
• Social networks expected to replace email for 20% of business users by 2014
• Will it replace traditional document management…?
Market Trend #3:
The “Social” Enterprise

6. © 2011 SAP AG. All rights reserved. 6
SaaS applications provide innovative interfaces (Facebook, Google Apps, Zoho…)
High expectations for frequent upgrade cycles
Drivers for adoption:
Pricing matches economic benefits
Reduced complexity and risk
Shifts Capex to Opex
Easier to trial
Problems around security, data ownership and real costs
Market Trend #4:
Software-as-a-Service

7. Collaborative Content
Workspaces Market
"We continue to see buyer demand for greater integration of collaboration, content
management, enterprise portals, and search — whether for intranet, extranet, or
publicly facing applications"
- Al Hilwa,
Program Director at IDC

8. © 2011 SAP AG. All rights reserved. 8
Collaborative Content Workspace (CCW)
=
Content Management + Portals + Search +
Social Collaboration

9. © 2011 SAP AG. All rights reserved. 9
Source: IDC CCW market 2010 http://www.idc.com/research/viewdocsyn`opsis.jsp?containerId=224211&sectionId=null&elementId=null&pageType=SYNOPSIS
$12B+ Potential Market Showing Strong Growth (7.6% YoY)
ECM
47%
Search
24%
Portals
19%
Social
Collab
10%
$9.3B $12.7B
4,118 4,346 4,645 4,983 5,378 5,817
2,111
2,282
2,477
2,697
2,935
3,201
1,650
1,713
1,804
1,919
2,055
2,206
930
987
1,067
1,171
1,309
1,489
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
2009 2010 2011 2012 2013 2014
Revenue($M)
Social Collab
Portals
Search
ECM
ECM is the dominant segment, while Search and Social
grow much faster

10. © 2011 SAP AG. All rights reserved. 10
Worldwide CCW Revenue Distribution
Americas (60%)
EMEA(30%)
APJ (10%)
Total 2009 = $8.8B

11. © 2011 SAP AG. All rights reserved. 11
Enterprise Content Management (ECM) will Remain the Biggest
Segment Until 2014 ($5.7B), with Nice Growth Rates (7-10%)
Strong M&A trend in 2010
More complex content: text, audio, video, web and social content
Vendors seek integration with SharePoint since customers require a single vendor

12. © 2011 SAP AG. All rights reserved. 12
Enterprise Portals is the Most Mature Segment ($2B Market)
with Slowest Growth Rates (5-6% YoY)
Not yet commoditized, due to emerging technologies:
Enterprise 2.0, Cloud and user experience standards

13. © 2011 SAP AG. All rights reserved. 13
Enterprise Search is a $2-3B Market Growing Rapidly (9-12%).
Offerings Include Software, Hardware Appliances and
SaaS Solutions

14. © 2011 SAP AG. All rights reserved. 14
Social Collaboration is the fastest growing segment with CAGR
of 38% (2009-2014) ; Revenue will surpass $760M in 2011
Jive lacks connection to business content.
Microsoft and IBM still in older collaboration models.
On-demand services (Yammer, Chatter) cover specific business scenarios.

15. © 2011 SAP AG. All rights reserved. 15
Portfolio
Growth
0
MSFT
16%
IBM
13%
OTEX
7%
ORCL
6%EMC
5%
Others
52%
Source: IDC CCW market 2010 http://www.idc.com/research/viewdocsynopsis.jsp?containerId=224211&sectionId=null&elementId=null&pageType=SYNOPSIS
Microsoft Dominates the Market in All Dimensions.
IBM, Oracle, EMC and OpenText are Far Behind
SAP is a niche player (<1%) - mainly around Portals

16. © 2011 SAP AG. All rights reserved. 16
50% penetration to all organizations
$1.5B+ revenue in 2010
130MM licensed users
6-pillars define CCW market
Microsoft play in the Middleware field
SharePoint, started as a departmental portal tool, has become
the most successful CCW solution

17. © 2011 SAP AG. All rights reserved. 17
Pros
• Low Capex
• Easy installation
• “Swiss-army-knife”
• Good document management
• Better scalability (2010 edition)
Overall, end-users are usually happy with SharePoint
Cons
• High Opex (x4)
• Governance
• Security
• “Walled-garden”
• Departmental silos
• Social media

18. © 2011 SAP AG. All rights reserved. 18
WebSphere & Lotus in 5% of organizations
ECM leader (FileNet)
Losing momentum in other segments
Complex portfolio makes hard cross-sell vs. SharePoint
Search being integrated into several products
Recent acquisitions strengthen governance
No real social media
Total 2009 = $1.2B
ECM
58%
ES
3%
EP
36%
Social
Collab
3%
Sources: IDC WW CCW market 2010; SAP Marketing Intelligence

19. © 2011 SAP AG. All rights reserved. 19
Total = $580M
ECM-centric (83%)
Highly acquisitive strategy strengthened ECM portfolio
Many deals around compliance with SAP
Also partners with Microsoft and Oracle
ECM
83%
ES
8%
EP
6%
Social
Collab
3%
Sources: IDC WW CCW market 2010; SAP Marketing Intelligence

20. © 2011 SAP AG. All rights reserved. 20
Total = $550M
Fusion middleware - ECM and Portals
WebCenter 11g ECM unifies DM, RM, WCM & DAM
Search product (SES) is currently independent
Beehive and WebCenter for Social Collaboration
Tries leveraging on integration with install-base
ECM
66%
ES
1%
EP
33%
Sources: IDC WW CCW market 2010; SAP Marketing Intelligence

21. © 2011 SAP AG. All rights reserved. 21
Sources: IDC WW CCW market 2010; SAP Marketing Intelligence
Strong ECM with Documentum
Collaboration with CenterStage (ex. eRoom)
Recently developed new search engine to replace FAST
Highly integrable with SharePoint for better UI
Total = $476M
ECM
95%
Social
Collab
5%

22. SAP Market & Product
Strategy
CCW is a both a risk and an opportunity to SAP

23. © 2011 SAP AG. All rights reserved. 23
SAP CCW Offerings are Scattered, Incomplete and
Loosely Integrated
EP
ECM
ES
Social
BI
Business
Processe
s
NetWeaver
Portal
7.3
OpenText
/KM
NWES
/BWA
Jive
/StreamWork
Aurora
4.0
Bus Suite
Apps/
CE/BPM

24. © 2011 SAP AG. All rights reserved. 24
Threatens to ‘front-end’ SAP core business
Potential opening for MS Dynamics
Strong pressure on BI
Acceptable substitute for “real” ECM
Price erosion
SAP Concerns about SharePoint

25. © 2011 SAP AG. All rights reserved. 25
Do we want to put all eggs in one basket…?
SharePoint is not Enterprise-ready
Cooperation vs. Coopetition
Can SAP give up direct sales in $12B market…?
Why Not Simply Use Duet Enterprise?

26. © 2011 SAP AG. All rights reserved. 26
SAP Customers feel SAP is not Strategically Committed to Solve
their Problem and Turn to Alternative Solutions
User access SAP via desktop or browser
Dissatisfied with non-friendly UI’s
Obsolete KM
No social interaction
Inability to enjoy UI enhancements (EhP-dependent)

27. © 2011 SAP AG. All rights reserved. 27
How can SAP win?
Leverage SAP’s sustainable competitive advantages:
Best-of-breed Business Processes
Business Intelligence
Scalability
Governance
Security
Position SAP as Enterprise-ready solution coexisting with
SharePoint
Be first to market with Social Media around business
scenarios
Provide Timeless Software

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Adopt gradual approach for shortest TTM
Fit the right solution to the right audience
Approach Install-base first
Utilize existing platforms (Portal, EWS)
Position new offering as “Social”
Offer existing On-Demand services (StreamWork, BIOD)
Short-term Strategy

29. © 2011 SAP AG. All rights reserved. 29
Value Proposition
Best-of-breed business processes and BI tightly integrated with
leading ECM and Social Media solutions
Enterprise-ready due to SAP strong governance, security and
scalability (compared to SharePoint)
Modularity allows usage of CCW components according to
specific customer needs
Enterprise 2.0 - enhanced social capabilities wrap ECM, BI, and
Business Processes for enhanced collaboration

30. © 2011 SAP AG. All rights reserved. 30
How Could SAP Solution Look Like?
Web-based Framework
BI/ Analytics
Content Management
Document Management
Portal Content Management
Portal Integration iViews
Desktop interface email, office
Workflows decisions, approvals
Archiving (basic)
Content Gallery
Bus Suite
Assets
Portal
Content
External
Sources
Analytics Dashboards
Profile
Teams Blogs
Feeds
Social
Doc Mgt
Social Search
Mobile Access (iOS, Android, RIM…)
Social Media
Business Processes
Enterprise Search
Documents, Records, Web
Wikis

31. © 2011 SAP AG. All rights reserved. 31
A Look into the Future…
CCW 2 = iPad + Social + SaaS
Social Document Management
Social Decisions / Feeds
Social Search
BI On-demand

32. © 2011 SAP AG. All rights reserved. 32
• SAP customers see room for improvement in their user
experience (organizing their own workspace, modern UI,
SAP & non-SAP sources, doc mgt, social interaction) without
losing productivity or interactivity
User Productivity Opportunity
• IDC defines the “Collaborative Content Workspaces”
(CCW) market by combining four areas that were
traditionally analyzed separately:
• Enterprise Portals
• Enterprise Content Mgt
• Enterprise Search
• Collaborative &
Social Applications
• It’s a $10B+ market experiencing
rapid growth
• SAP is currently a minor
player (from a revenue
perspective) with less
than 1% share
• Microsoft dominates the
market with SharePoint
• Other large players include IBM,
Open Text, Oracle, EMC
• While SAP’s messaging & offerings
have been inconsistent, SharePoint has
established its position with a solution that
is easy to deploy, has low overall TCO, and
provides good features, spread evenly across the full range
of CCW capabilities
• With our messaging around Duet Enterprise and Gateway,
we have created the impression that SAP endorses
SharePoint over its own solutions
• Organize and enrich business
content in a highly productive
workspace, bringing together:
• SAP business content
• Document management &
portal content
• Social interaction
• Business analytics
• Search
• Work within customers’ & users’ preferences
• Windows desktop client and browser-based client
• Timeless software – support older ERP versions
• On-premise, on-demand, and hybrid
• Do not focus on problems that SharePoint has already
solved (stay focused on enhancing business content)
Customer
Discovery
Market
Opportunity
Competition
&
Challenges
Solution Scope
&
Value
Proposition
• The user experience has been improved in the
latest versions of the Business Suite (NWBC in
Ehp5, Portal 7.3), but, these improvements
reach most end users slowly
• SAP’s NetWeaver User Productivity
apps address some of these
concerns, but at the same time they
exclude large groups of customers
from the potential target market

33. © 2011 SAP AG. All rights reserved. 33
SWOT Analysis - SAP
Strengths Weaknesses
Business processes well integrated processes & best-
practices per each Industry/LoB
Governance structured and integrated solutions allow
easy governance and risk compliance
 Security highly secured systems
Business Intelligence top-notch BI enhanced by
BusinessObjects tools
Scalability highly scalable systems targeting the LE
High TCO
Business-centric not human-centric
Obsolete UIs
Low Adoption in SMB
Document Management - niche player
Search tools
Social tools
Opportunities
Market size
Regulation tougher regulation in post subprime world
requires better GRC systems, in which SAP excels
Data explosion stored data doubles every 3 years,
driving strong demand for BI tools
Mobile Sybase platform provides big opportunity in the
proliferating mobile market
Social applications big opportunity for leapfrog if tight
integration with SAP core apps is achieved
SharePoint gains momentum as robust platform for LE
Customer dissatisfaction with SAP UIs sends them to
seek alternatives
Cloud computing offers intuitive interfaces and simpler
installation (Azure, Database.com)
Freemium offerings pave the way for upgrades to paid-
for SKUs
Open Text heavy reliance, partners with competition
Threats

34. © 2011 SAP AG. All rights reserved. 34
Total Available Market*
500+
Employees
10-500 Employees
LE
SMB
<10 Employees
SOHO
Rev.
$B
FTE’s
#
Firms
#
50%80-85%2,200
(55%)
56M
(50%)
17K
(0.3%)
50%10-15%1,400
(36%)
44M
(39%)
1.2M
(24%)
340 (9%)12M
(11%)
3.7M
(75%)
SMBLE
Employ 40% of workforce and draw 36% of total revenueConstitute only 0.3% of US firms but employ 50% of
workforce and draw 55% of total revenues
Agile, risk takers, quickly adapt to changes, less prudent
about data, more open to new technologies and On-
demand services.
Conservative, prefer longer cycles, data-protective,
slowly scale, less prone to move to On-demand but may
consider hybrid OD/OP solutions
SharePoint dominancy (50%). SAP much softer (10-15%).
SharePoint expending from SMB to LE
SAP realm (85% of Fortune 500). SharePoint expends
quickly. Peaceful co-existence at the moment.
* US only. Source: Statistics about Business Size , US Census Bureau, 2004 http://www.census.gov/epcd/www/smallbus.html

35. © 2011 SAP AG. All rights reserved. 35
Total Available Market (LE)
SAP
(80% of LE)
Portal
(20% of SAP)
CCW Solution
(>50% of SAP)
Total Addressable Market

36. © 2011 SAP AG. All rights reserved. 36
User Segmentation
Expected
performance
10-15% 10%
70-80%
Manager
CXOBusiness User
Power User
High
Access frequency
High
2-3%
Reports
Decision workflows
Search
Doc mgt & sharing
UI-sensitive
Personalization
BI to some extent
Desktop oriented
Transactional work
Reports
Governance awareness
Social networks
Search
Doc mgt & sharing
WCM
UI-sensitive
Personalization
BI - key factor
Cockpits & dashboards
Reports
Governance awareness
OP
OD

37. © 2011 SAP AG. All rights reserved. 37
Sources
1.IDC CCW market 2010
http://www.idc.com/research/viewdocsynopsis.jsp?containerId=224211&sectionId=null&elementId=null&pageType=SYNOPSIS
2.Gartner MQ ECM 2009 http://bexhuff.com/2009/10/oracle-ecm-rated-a-leader-in-gartner-magic-quadrant
3.Gartner MQ EP 2009 http://imagesrv.gartner.com/media-products/pdf/reprints/ibm/external/volume4/article18.pdf
4.Gartner MQ ECM 2010 http://www.hyland.com/hyland-software/media-room/analyst-coverage/magic-quadrant-2010.aspx
5.http://searchsap.techtarget.com/news/2240024578/SAP-hopes-to-make-users-work-easier-with-better-UI-designs
6.http://intranetblog.blogware.com/blog/_archives/2008/11/4/3961991.html
7.http://www.cmswire.com/cms/enterprise-20/what-is-sharepoint-2010-vision-and-reality-007513.php
8.http://www.prescientdigital.com/articles/sharepoint/sharepoint-the-swiss-army-knife-of-portals/
9.http://kalsing.blogspot.com/2008/08/sharepoint-versus-netweaver-portal.html
10.Statistics about Business Size , US Census Bureau, 2004 http://www.census.gov/epcd/www/smallbus.html
11.https://partner.microsoft.com/US/program/competencies/compportalsandcollaboration
12. Forrester Research, The Enterprise 2.0 Buyer Profile: 2009
http://www.forrester.com/rb/Research/enterprise_20_buyer_profile_2009/q/id/54277/t/2
13. http://www.gartner.com/it/page.jsp?id=1467313
14. http://www.gartner.com/it/page.jsp?id=1497215
15. http://www.computerworld.com/s/article/9135795/Study_Facebook_use_cuts_productivity_at_work