For internal SAP and partner use only

Frequently Asked Questions (FAQs)

SAP S/4HANA

FAQ

Contents
1. WHAT IS SAP S/4HANA? ............................................................................................................................................ 2
2. WHAT DOES THE NAME OF SAP S/4HANA STAND FOR? ........................................................................................ 2
3. FOR WHICH CUSTOMERS IS SAP S/4HANA? ........................................................................................................... 2
4. WHAT WILL BE DEPLOYMENT OPTIONS OFFERED? ................................................................................................ 2
5. IS SAP S/4HANA AVAILABLE TODAY? ...................................................................................................................... 2
6. HOW WILL SAP S/4HANA BE LICENSED (PAPERWORK/CONTRACTS)? ............................................................... 3
7. WHAT IS THE ORDERING PROCESS FOR S/4HANA? ............................................................................................... 3
8. WILL CASH MANAGEMENT BE INCLUDED INTO SAP S/4HANA FOUNDATION ..................................................... 3
9. WILL INTEGRATED BUSINESS PLANNING BE INCLUDED INTO SAP S/4HANA FOUNDATION ............................. 3
10. WHAT IS THE VALUE PROPOSITION OF SAP S/4HANA FOR CUSTOMERS? ........................................................ 3
11. WHAT IS REALLY NEW IN SAP S/4HANA COMPARED TO SAP BUSINESS SUITE POWERED BY SAP HANA? ..... 4
12. HOW DOES SAP S/4HANA RELATE TO SAP SIMPLE FINANCE POWERED BY SAP HANA?.................................. 5
13. WHAT IS THE BUSINESS SCOPE OF SAP S/4HANA? ............................................................................................. 5
14. DO YOU HAVE CONCRETE EXAMPLES OF NEW BUSINESS USE CASES? ............................................................. 5
15. WHAT IS THE TYPICAL JOURNEY FOR AN EXISTING SAP BUSINESS SUITE CUSTOMER? .................................. 6
16. WHAT IS THE TYPICAL JOURNEY FOR A NET-NEW CUSTOMER?.......................................................................... 7
17. WILL SAP CONTINUE TO DELIVER INNOVATIONS TO SAP BUSINESS SUITE CUSTOMERS ON ANY DB? .......... 7
18. WHAT IS THE VALUE PROPOSITION OF SAP S/4HANA FOR A PARTNER? ........................................................... 7
19. HOW ARE ADD-ONS SOLUTIONS FROM PARTNERS AFFECTED BY THE TRANSITION TO SAP S/4HANA? ....... 8
 For internal SAP and partner use only

20. DOES A SAP S/4HANA CUSTOMER HAVE TO ACTIVATE ALL SIMPLIFICATIONS? .............................................. 8
21. WHAT IS THE TIMELINE FOR PARTNERS TO RESELL AND SERVICE SAP S/4HANA? .......................................... 8
22. HOW DOES SAP S/4HANA RELATE TO OUR EXISTING PORTFOLIO OF CLOUD SOLUTIONS? ........................... 8
23. IS THE PUBLIC CLOUD EDITION OF SAP S/4HANA MULTITENANT? .................................................................... 8
24. ARE YOU LEVERAGING SAP HANA ENTERPRISE CLOUD AS A SERVICE FOR SAP S/4HANA? ........................... 9
25. HOW DOES THE SAP HANA CLOUD PLATFORM RELATE TO SAP S/4HANA? ...................................................... 9
26. WHAT IS THE PRICING MODEL AND BUSINESS OBJECTIVES FOR SAP S/4HANA IN 2015? .............................. 9
27. HOW DOES SAP S/4HANA RELATE TO S-INNOVATIONS? .................................................................................... 9
28. WHAT DOES THE SAP S/4HANA PARTNER ENABLEMENT PROGRAM LOOK LIKE? ........................................... 9

1. WHAT IS SAP S/4HANA?

SAP S/4HANA, short for SAP Business Suite 4 SAP HANA, is our next-generation business suite. It is a new
product fully built on the SAP HANA platform and designed with SAP Fiori user experience (UX). SAP
S/4HANA delivers massive simplifications (adoption, data model, user experience, decision making, and
processes) and innovations (Internet of Things, Big Data, business networks, and mobile-first) to help
reinvent businesses.

2. WHAT 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 of SAP
innovation to our customers, similar to the transition from SAP R/2 to SAP R/3.

Please do not position SAP S/4HANA as the successor of SAP Business Suite. SAP S/4HANA is a new
product with a new code line.

3. FOR WHICH CUSTOMERS IS SAP S/4HANA?

SAP S/4HANA is the default offering for net new customers. Also all existing Business Suite customers can
go to S/4HANA solution immediately. It is the go-to release for our installed base customers that want to
leverage SAPs next big wave of innovations and simplifications on their journey to the Perfect Enterprise. It
is the first step for those customers who want to embark on a digital transformation journey.

4. WHAT WILL BE DEPLOYMENT OPTIONS OFFERED?

On-premise, cloud, and hybrid deployments will be offered to give real choice to customers. SAP S/4HANA
also gives customers the option to fully leverage the new multi-tenancy functionality enabled by SAP HANA
for the cloud.

5. IS SAP S/4HANA AVAILABLE TODAY?

The on-premise edition of SAP S/4HANA is already available today for customers in all industries and
regions. It replaces and extends the former SAP Business Suite powered by SAP HANA. Moving forward,
our go-to-market efforts will only focus on SAP S/4HANA and no longer on SAP Business Suite powered by
SAP HANA. SAP Business Suite powered by SAP HANA customers will have an easy path to move to SAP
S/4HANA without disruption and with minimal effort as they are already on the right platform.

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6. HOW WILL SAP S/4HANA BE LICENSED (PAPERWORK/CONTRACTS)?

SAP S/4HANA will be licensed via a new product on the pricelist called SAP S/4HANA foundation -
promotion, SKU 7018105. As a promotion until end of Q3/2015 customers having licensed or licensing Suite
on HANA (i.e. the HANA limited Runtime Edition for the Suite, LREA) will get the SAP S/4HANA foundation -
promotion at no additional cost. SAP S/4HANA foundation promotion will as of Feb 2nd be part of every
customers BoM licensing LREA for the Suite.

No need to migrate customers to a new contract. A new EULA document/appendix will be used to facilitate
licensing and delivery of S4HANA Foundation. Partner and/or Customer (depending on license model) need
to sign addendum to EULA for S4HANA Foundation -promotion. By signing it the customers accept that
SAP S/4HANA is a new product and as such not with feature parity to the SAP Business Suite.

Maintenance contract follows standard VAR-D or SAP-D processes

7. WHAT IS THE ORDERING PROCESS FOR S/4HANA?

S4HANA Foundation Quote, Deal Approval and Ordering follow the standard Q2C for Indirect on premise
ordering process

Excel QT, GAF (Global Approve Form) need to be used in the interim and as long as Q2C is not able to
support zero line item pricing and zero Quote Price for the S4HANA Foundation promotion product (Q2C
enhancement is on the way)

Online Ordering needs to be used as long as Q2C is not able to support zero value pricing of the S4HANA
Foundation-promotion product.

S4HANA Foundation Deals require Contract Management approval; i.e. no Auto Approval in Q2C and GAF
needs to be raised, if Q2C cannot be used.

8. WILL CASH MANAGEMENT BE INCLUDED INTO SAP S/4HANA FOUNDATION

PROMOTION AS WELL?

While Cash Management is technically a part of SAP S/4HANA and demonstrates like SAP Accounting the
value of financial simplifications, the license for this solution is NOT included into the SAP S/4HANA
foundation promotion, but has to be purchased separately.

9. WILL INTEGRATED BUSINESS PLANNING BE INCLUDED INTO SAP S/4HANA

FOUNDATION PROMOTION AS WELL?

While Integrated Business Planning demonstrates, like SAP Accounting the value of financial simplifications,
the license for this solution is NOT included into the SAP S/4HANA foundation promotion, but has to be
purchased separately.

10. WHAT IS THE VALUE PROPOSITION OF SAP S/4HANA FOR CUSTOMERS?

SAPs vision and strategy is to help customers run simple to drive the perfect enterprise. To deliver on this
mission, we are redefining how enterprise software creates value in a digital, networked, yet complex world.

SAP S/4HANA is designed to drive instant value across lines of business and industries with the ultimate
sophistication: simplicity.

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From a business value perspective, this means that SAP S/4HANA creates unique opportunities to reinvent
business models and drive new revenues. First, enterprises can now easily connect to people, devices, and
business networks to deliver new value to their customers the Internet of Things and Big Data become
accessible to any business. Second, enterprises can dramatically simplify their processes and change them
as needed to gain new efficiencies no more batch processing is required. And finally, business users can
now get any insight on any data from anywhere in real-time: planning, execution, prediction, and simulation
all decisions can be made on the fly with the highest level of granularity for faster business impact.

From an IT value perspective, this means that SAP S/4HANA creates unique opportunities to dramatically
simplify the landscape and reduce TCO with SAP HANA as the great simplifier. First, enterprises can now
significantly reduce their data footprint and work with larger data sets in one system (reintegrate ERP, CRM,
SRM, SCM, and PLM in one system) to save hardware costs, operational costs, and time. They will no
longer face discrepancies between the different systems with one common source of live data on one
system. Second, innovation is also made simple with an open platform (SAP HANA Cloud Platform) to drive
advanced applications - for example predicting, recommending, simulating - while protecting existing
investments. Third, business users can leverage a simple and role-based user experience based on modern
design principles minimizing training efforts while increasing productivity. And finally, enterprises get choice
of deployment: cloud, on premise and even hybrid to drive easy adoption.
Here are key facts on SAP S/4HANA:
Smaller total data footprint: 10x
Higher throughput: 7x
Faster analytics and reporting: 1800x
Less process steps: 4x
ERP, CRM, SRM,SCM, PLM in one system
No locking, parallelism
Actual data (25%) and historical (75%)
Unlimited workload capacity
Predict, recommend, simulate
SAP HANA Cloud Platform extensions
SAP HANA multi-tenancy
All data: social, text, geo, graph, processing
New SAP Fiori UX for any device (mobile, desktop, tablet)
Three deployment options: on-premise, public cloud, managed cloud

SAP S/4HANA is only built on SAP HANA because only SAP HANA can deliver such simplifications and
innovations today.

11. WHAT IS REALLY NEW IN SAP S/4HANA COMPARED TO SAP BUSINESS SUITE
POWERED BY SAP HANA?

With SAP Business Suite powered by SAP HANA, we were the only vendor in the market to allow SAP
Business Suite customers bring together transactions and analysis into a single in-memory platform. This
innovation has been extremely successful in the market as 1,850+ customers (existing and new) acquired
SAP Business Suite powered by SAP HANA in only two years to run their business in real time, making it
one of the fastest-growing products in SAPs history.

With SAP Business Suite powered by SAP HANA, our product approach has been focused primarily on
porting the applications and optimizing the code to allow customers gain significant performance in their
mission-critical business processes and reporting activities. In other words, the applications remained
unchanged and primarily optimized to run on SAP HANA in a non-disruptive way for customers SAP HANA
representing a new database alternative for existing customers, with a simple database migration to get
there.

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SAP S/4HANA is a new product. With SAP S/4HANA, we are building on the success of the SAP Business
Suite powered by SAP HANA with a completely new and reimagined suite:

SAP S/4HANA is natively built on SAP HANA for massive simplifications (simplified data model: no
aggregates, no indices, no redundancies) and innovations (for example, open in-memory platform for
advanced applications predicting, recommending, and simulating)
SAP S/4HANA is natively designed with the SAP Fiori UX, offering an integrated user experience
with modern usability 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-time
collaboration (machine-to-machine, Ariba Network, Concur)
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, easy onboarding, from the
discovery of the solution via cloud trials to the deployment with preconfigured best practices)

In addition, SAP HANA Cloud Platform serves as open extension, agility layer for SAP S/4HANA. The
extensions built on the cloud platform can run against either deployment of SAP S/4HANA: in the cloud and
on premise.

12. HOW DOES SAP S/4HANA RELATE TO SAP SIMPLE FINANCE POWERED BY SAP
HANA?

SAP Simple Finance marked the first step in our SAP S/4HANA road map for customers. The solution has
demonstrated the value of simplification for the SAP Business Suite (for example, no indices, no aggregates,
and no redundancies). SAP S/4HANA will offer further simplifications of this kind for other areas such as
logistics, inventory management, procurement, and more.

13. WHAT IS THE BUSINESS SCOPE OF SAP S/4HANA?

For the on-premise edition of SAP S/4HANA, the business scope is as broad in terms of coverage
functionality, industries, and languages as our current SAP Business Suite. Within this scope, it also includes
the transformational simplifications delivered with SAP Simple Finance, and moving forward, will be
extended to the ERP scope and beyond.

The business scope of the cloud deployment options (public cloud and managed cloud) of SAP S/4HANA will
be different:

The public cloud edition will address specific business scenarios and lines of business
The managed cloud edition will address the same business scope as the on-premise edition

The first public cloud edition will already be available in Q1/2015, directly followed by the managed cloud
edition in Q2/2105.

14. DO YOU HAVE CONCRETE EXAMPLES OF NEW BUSINESS USE CASES?

Finance
Today: A single source of truth with superior granularity for all transactions and analytics to streamline
and eliminate cycle times and reconciliations of the data. Reconciliation becomes inherent.
Before: Separate systems and documents driving complexity across finance and a lot of manual
reconciliation efforts

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Example of unique innovation: central journal to get a consolidated, real-time view of the state of the
business across all entities this was simply not possible before

Proof points with SAP Simple Finance experience at SAP:

70% less intercompany reconciliation time
Lengthy iterations eliminated in intercompany reconciliation
Today: Intercompany reconciliation on-the-fly for accelerating financial close. Unlimited simulations
apply historic data to continuously changing business context
Before: Only extensive transactions and batch processing, no real-time simulation

Proof points with SAP Simple Finance experience at SAP

71% faster batch input processing in financial close
40% less posting corrections in financial close
400 hours less processing time at quarter-end close

Marketing
Listening to your customers
Capture and analyze customer interactions from different channels
Get customer and consumer trends in a single view

Targeting the right customers

Perform customer segmentation with high speed on any data
Build dynamic target groups
Interpret behavior with scoring and attribution

Engaging with your customers

Execute personalized omnichannel campaigns
Analyze success of campaigns on open, clicks, and so on
Monitor impact on funnel and sales orders

Project-based services
Insights into current bids and past projects
Intuitive project manager self-service creation and planning of projects
Real time capture and faster billing of time and expenses
Seamless user experience across front and back offices

Forecasts of project profitability

Cross project analysis to easily identify profitable customers and projects
Always up to date with latest transactional information
Proactive alerts to drive direct action
Accelerated processing and closing
Accelerated cash receipt and vendor payment
Empowered front office to resolve issues directly with the customer
Continuous close capabilities

15. WHAT IS THE TYPICAL JOURNEY FOR AN EXISTING SAP BUSINESS SUITE
CUSTOMER?

SAP Business Suite customers can take advantage of SAP S/4HANA in a non-disruptive way.
Moving to SAP S/4HANA for a typical existing SAP ERP 6.0 customer will require a database migration from
any DB to SAP HANA combined with a move to the latest enhancement package and the deployment of the
exchange innovation (current code replaced by the new one).

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Moving to SAP S/4HANA for an existing SAP Business Suite powered by SAP HANA customer is even
faster as only the deployment of the exchange innovation is required (current code replaced with the new
one).

In addition, partners and SAP will support customers in their journey with predefined migration, system
conversion in the cloud, and deployment packages for quicker time to value.

16. 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 simpler adoption
example: guided configuration, easy onboarding from the discovery of the solution via cloud trials to the
deployment with preconfigured best practices.

17. WILL SAP CONTINUE TO DELIVER INNOVATIONS TO SAP BUSINESS SUITE

CUSTOMERS ON ANY DB?

Yes. We remain committed to protect our customers investments. We recently announced that we are
extending our maintenance commitment until at least 2025. This is an unprecedented commitment to
customers in the IT industry. We will also continue to deliver innovations without disruption (through
enhancements packages) to SAP Business Suite customers on anyDB and on SAP HANA.

However, transformational business and IT simplifications require a transformational platform and this is why
SAP S/4HANA runs only on SAP HANA. It is the logical next step for our installed base customers and the
biggest step forward for 10+ years with fully upward compatibility with SAP ERP 6.0.

18. WHAT IS THE VALUE PROPOSITION OF SAP S/4HANA FOR A PARTNER?

SAP has an established partner ecosystem (value-added retailers and systems integrators) that is ready to
resell and service SAP S/4HANA for our joint installed base and net-new customers to implement future
innovations. SAPs partners will be critical for the success of SAP Business Suite 4 SAP HANA due to their
customer proximity, industry expertise and delivery capabilities.

More than 33.000 customers are still on ERP and R/3. Moving these customers to HANA is in total a 6-8
billions EUR license opportunity for SAP and its ecosystem.

Migrating to S/4HANA enables a significant pipeline extension including new application and services.
Revenue from business consulting potentially increases along the customers adoption of Simplifications
Service Partners can increase their profitability in implementation services, as the guided configuration
provided allows to configure the system faster, simply and more affordably as the use of highly expertized
senior consultants is no longer required.

Hosting partners can reduce their running costs as the new simplified data model allows less administration
afford and hardware resources.

In addition, the partner ecosystem can deliver implementation and migration services including the above
mentioned packages as before. Companies of all sizes will benefit from the high-quality service and reseller
capabilities our partners provide. A significant number of channel and services partners have already
undergone an enablement workshop for SAP Simple Finance and continue enablement according to the
SAP S/4HANA innovations and delivery road map. SAP S/4HANA is an opportunity for partners and
customers to jointly plan their perfect enterprise.

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19. HOW ARE ADD-ONS SOLUTIONS FROM PARTNERS AFFECTED BY THE TRANSITION
TO SAP S/4HANA?

Most likely partner developed solutions will run; SAP as always recommends testing them. SAP provides
tools, such as code inspector, SQL monitors, etc., which have been used by partners in the past. In addition
the SAP Learning Hub is planning to offer SAP S/4HANA development trainings for customers and partners.

Official Interfaces are kept stable, so that external solutions can connect to SAP S/4HANA as in the past.
The basis tables (BKPF, BSEG/BSEG_ADD and FAGLFLEXA) remain almost unchanged.
Index and totals tables have been replaced with compatibility views (aka equally named views). These
views have the same name as the original tables, contain the same fields and shall allow for a smooth
transition to the new data model in the standard as well as in the partner and customer coding.

20. DOES A SAP S/4HANA CUSTOMER HAVE TO ACTIVATE ALL SIMPLIFICATIONS?

No, in the on-premise option for SAP S/4HANA (for both I/B and N/N), the customer has a choice: new SAP
S/4HANA innovations, i.e. currently Simple Finance, can be installed (default for N/N customers, but not
mandatory; prerequisite: customer is on ERP6 EhP7 on HANA), but then due to the simplifications in the
code-line, certain functionality available in the classical Suite will no longer be available (details see Note
1968568), as new S/4HANA innovations are simplified and optimized versions of these solutions.

Alternatively customers can choose to keep feature parity to existing Suite, therefore not install new SAP
S/4HANA innovations. In such a case, SAP S/4HANA customers will still receive innovations through
Enhancement Packs like Business Suite customers on any DB.

21. WHAT IS THE TIMELINE FOR PARTNERS TO RESELL AND SERVICE SAP S/4HANA?

SAP S/4HANA will be available for direct and indirect go-to-market efforts as of February 3, 2014. The
enablement of SAP Simple Finance, the first shipment/module of SAP S/4HANA, for reseller and services
partners already started in Q3/2014 and will be continued and continuously adjusted according to the SAP
Simple Finance road map. SAP Business Suite powered by SAP HANA customers will have an easy path to
move to SAP S/4HANA without disruption and with minimal effort as they are already on the right platform.

22. HOW DOES SAP S/4HANA RELATE TO OUR EXISTING PORTFOLIO OF CLOUD
SOLUTIONS?

SAP S/4HANA will also be available with public cloud and managed cloud deployment options. However,
SAP S/4HANA will not replace our existing portfolio of cloud solutions (for example, from Ariba and
SuccessFactors) but will rather integrate with it and expand it. Our comprehensive offering will allow
customers to define their own pace to the cloud based on their needs while keeping all the integration and
business benefits of their existing SAP solutions. In addition, SAP S/4HANA is designed to easily connect
with global business and social networks such as the Ariba Network, SAP Financial Services Network, and
Concur.

23. IS THE PUBLIC CLOUD EDITION OF SAP S/4HANA MULTITENANT?

SAP S/4HANA also gives customers the option to fully leverage the multi-tenancy functionality of the SAP
HANA platform support pack 9.

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24. ARE YOU LEVERAGING SAP HANA ENTERPRISE CLOUD AS A SERVICE FOR SAP
S/4HANA?

We are leveraging the same infrastructure (IaaS), data centers, and security qualities for the managed cloud
edition of SAP S/4HANA, though we differentiate in lifecycle management, as we will provide innovation
updates every quarter, to be consumed by the customer, and managed by SAP.

25. HOW DOES THE SAP HANA CLOUD PLATFORM RELATE TO SAP S/4HANA?

In the context of SAP S/4HANA, SAP HANA Cloud Platform serves as an extension, agility layer. It is
possible to build specific capabilities extending the scope of SAP S/4HANA by either integrating non-SAP
functions or building own capabilities. The cloud platform not only serves as the development platform but
also as the runtime foundation for the developed solutions. The extensions built on the cloud platform can
run against both cloud and on-premise deployments of SAP S/4HANA.

26. WHAT IS THE PRICING MODEL AND BUSINESS OBJECTIVES FOR SAP S/4HANA IN
2015?

For the on-premise edition, the pricing model is similar to the one we had with the SAP Business Suite
powered by SAP HANA: new license for the applications (only if net-new customer, if existing customer, then
a new license will only be required if scope is extended), SAP HANA runtime license (priced at 15% HSAV),
and a specific license for the simplifications delivered (SAP S/4HANA foundation license).

For the cloud, the pricing model will be subscription-based and communicated at a later stage.

From a sales perspective, we envision an even higher adoption rate as we saw with SAP Business Suite
powered by SAP HANA in the last two years (1,850+ customers). We believe that our existing and net-new
customers that need to simplify and modernize their IT and drive their business transformations will
massively move to SAP S/4HANA. It delivers unique value in the market only possible with SAP HANA
today.

Every SAP Cloud solution on the partner price list can be combined with SAP S/4 HANA on premise resell

27. HOW DOES SAP S/4HANA RELATE TO S-INNOVATIONS?

S-innovations was the internal project name for our development program. It represents the development
guiding principles for SAP S/4HANA. The s-innovations term should not to be used in any external
communication. SAP S/4HANA leverages the innovations that are delivered as part of this development
program.

28. WHAT DOES THE SAP S/4HANA PARTNER ENABLEMENT PROGRAM LOOK LIKE?

SAP is rolling out an SAP S/4HANA partner enablement program in all regions. The program is targeting
sales, pre-sales and service partners and is a mix of interactive class-room training, remote sessions and
virtual self-learning sessions. According to the SAP S/4HANA shipment roadmap the program will extend
during the year with new classes and content to train partners on new innovations coming within the SAP
S/4HANA product.

780 authorized SAP resellers can immediately start with reselling and servicing SAP S/4HANA into their local
market units. More than 300 SAP support certified partners have the knowledge to service and support their
customers for SAP S/4HANA. 8,000 trained SAP HANA service consultants, who are already managing 65%
of all SAP HANA projects, are prepared for SAP S/4HANA implementations too.

Visit the SAP S/4HANA landing page on the sappartneredge.com portal to get more information and access
to the latest enablement assets.

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