SAP Launches Co-Innovation Lab in Tokyo

Location Takes Advantage of Region’s Strength of Innovation and Quality to Collaborate on Solutions for Green IT, Enterprise SOA and Virtualization; Joins Original Lab in Palo Alto to Foster Co-Innovation with SAP Ecosystem of Partners and Customers

TOKYO - July 2008 - SAP AG (NYSE: SAP) today announced the opening of a second SAP Co-Innovation Lab in Ohtemachi, Tokyo, Japan. Joining the first co-innovation lab, located in Palo Alto, California, the addition further broadens efforts by SAP to work with software solution partners, technology partners, service partners and customers to accelerate the innovation and delivery of solutions designed to address industry-specific business issues for companies around the world.

Taking advantage of Japan’s rich history of custom development, members of the Tokyo co-innovation lab will focus on identifying opportunities to address pressing business needs, including enterprise service-oriented architecture (enterprise SOA) adoption, green IT and virtualization techniques to assist with enterprise software implementation. The SAP Co-Innovation Lab Tokyo is endorsed by the following partners: ABeam Consulting Ltd., Dell Japan Inc., FUJITSU LIMITED, F5 Networks Japan K.K., HITACHI, Ltd., IBM Business Consulting Services K.K., IBM Japan, Ltd., Intel Corporation, Microsoft Co., Ltd., Mitsubishi Electric Information Systems Corporation, NEC Corporation, NetApp K.K., REALTECH JAPAN Co., Ltd., Sun Microsystems K.K., Tecnos Japan Inc., Toyo Business Engineering Corporation and VMware K.K.

“Japan is recognized as the leader in the world for high-value technology,” said Yoichiro Yatsurugi, president and CEO, SAP Japan. “The SAP Co-Innovation Lab in Tokyo will be a hub, where SAP Japan and partners can prototype and showcase solutions with the newest technology to meet the specific needs of Japanese customers, as well as introduce innovative ideas from Japan to the world.”

The SAP Co-Innovation Lab will focus on utilizing a global talent pool and fostering collaboration on projects based around a simulated heterogeneous data center integrating hardware and infrastructure software from the participating vendors. To best meet the needs of companies in today’s global environment, the lab’s work will re-create real-world situations on Web-enabled and Internet- or intranet-accessible business applications.

As part of the SAP Co-Innovation Lab Tokyo launch, two engagements have already delivered results, exemplifying the rapid benefits that co-innovation can deliver.

Reducing IT-Related Energy Consumption
Intel Corporation and SAP have been cooperating closely worldwide, and, in Japan, their collaboration focuses on so-called “green IT” projects. Green IT is a key topic in Japan, a country that has initiated many environmental campaigns. In the facility that today becomes the SAP Co-Innovation Lab Tokyo, Intel and SAP have completed a green IT-related validation effort focused on identifying opportunities to reduce energy consumption and CO2 emissions with enterprise solutions.

Using servers powered by Quad Core Intel® Xeon® processors that replace older, single-core processors, total energy consumption related to the use of SAP® ERP was reduced by more than 50 percent. These energy consumption measurements used SAP ERP load cycles simulating 24 hours of server usage, including daily dialog processing and night batch job processing running under absolutely comparable conditions. These results are being made available to the public for the first time, which will help customers make more intelligent investment decisions.

“We welcome the opening of the SAP Co-Innovation Lab in Tokyo,” said Kaz Yoshida co-president, Intel K.K. “Intel new multicore processor products based on Intel® 45nm High-k silicon process technology are eco-friendly processors with high performance and excellent power efficiency. We expect that the co-innovation lab will accelerate the R&D of eco-friendly and innovative solutions on an Intel-based platform that meet the needs of customers in Japan. We also expect that the efforts of the SAP Co-Innovation Lab Tokyo will help business development.”

Speeding Time to Value for ERP Upgrades
Together with VMware Japan, SAP used the lab setting to identify the advantages of employing virtualization in SAP ERP upgrade projects using servers equipped with multi-core Intel processors. The one-month project proved that unifying existing servers into a virtual environment is possible through upgrade, and that system-proving activities can be done more easily utilizing VMware solutions. The result of this project was a white paper that partners and customers can use as a guide to achieving advantages throughout the upgrade process. As adoption of SAP ERP continues to build, SAP and partners are providing relevant tools and solutions that enable companies to take advantage of opportunities to improve business processes within the implementation process, enabling them to more rapidly deliver benefits to the business.

Inagural Co-Innovation Lab Exemplifies Success
Opened in June 2007, SAP’s inaugural co-innovation lab in Palo Alto, California has demonstrated continuous success in innovation. With projects covering topics such as enterprise collaboration, SOA management, disaster recovery for SAP environments and business performance management, SAP and its lab partners have identified numerous solutions to address specific customer needs (see June 18, 2008 press release, titled “Ground-Breaking Projects Emerging from SAP Co-Innovation Lab Address Today’s Pressing Business Challenges”).

“The addition of the SAP Co-Innovation Lab in Tokyo exemplifies the reach and power of the SAP ecosystem,” said Zia Yusuf, executive vice president, Global Ecosystem and Partner Group, SAP. “It is a natural fit for Japan, a global leader in technological innovations, to be the location of our second co-innovation lab. The region’s traditionally strong focus on custom development makes it a prime location for co-innovation with customers and partners, which can be delivered to SAP’s global customer base. We are proud of our recognized spirit of collaboration.”
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