An SAP HANA® cloud migration can start organizations down the road to powerful innovation. Moving to SAP HANA dramatically speeds SAP applications across the board — allowing deeper analysis, richer business intelligence and the ability to respond to a changing market in real-time. The price of this innovation is largely paid in hardware costs, which are substantial enough to discourage many SMBs from migrating to an on premise solution.
By leveraging an SAP HANA cloud solution, Symmetry can shift the cost of hardware needed to support an SAP HANA solution to the service provider, eliminating CapEx entirely and reducing total cost of ownership (TCO) for a typical organization by 35% over the first three years.
For companies currently using on-premise enterprise resource software (ERP), an SAP HANA cloud migration may also cause fewer disruptions than an on-premise SAP HANA migration. Existing onsite IT infrastructure won’t have to be expanded or reconfigured, so it will be able to run core SAP applications uninterrupted, while a new SAP HANA cloud solution is built, configured and tested.
Organizations should carefully weigh the costs and benefits of owning their own hardware against the advantages of adopting SAP HANA in the cloud. Here’s what you can expect to pay in CapEx, OpEx and TCO over the first three years:
SAP HANA Appliance
SAP-certified appliances are designed around the heavy processing needs of SAP HANA. They’re rigorously tested and carefully sized for individual use cases, allowing organizations to select the right level of computing power for their needs.
The downside for a lot of companies is the cost. Prices vary based on use case, but a typical SAP HANA appliance is priced at around $90,000. With software, configuration, on-site integration and support, total CapEx is $129,000. OpEx is also considerable. Between hardware support (including power, cooling, network and backup infrastructure), remote administration services and SAP Basis administration, you’ll pay $287,323 OpEx, or $416,323 TCO over the first three years.
And keep in mind that, even a top of the line SAP HANA appliance won’t support your needs forever. As your business grows, so will your storage, memory, and processing power needs, obligating you to upgrade, build out, or replace your appliance.
As an SAP certified hosting provider, Symmetry works with enterprise class hardware manufacturers to provide complete support for hardware. We can even provide complete IT managed service, security and compliance for your SAP system. And since all of our infrastructure is already in place and configured, we’ll be able to execute your SAP HANA cloud migration more quickly, providing more rapid ROI.
Tailored Datacenter Integration
Tailored Datacenter Integration (TDI) is a common alternative to purchasing a new appliance, or moving to an SAP HANA cloud; new servers and infrastructure are connected to existing hardware, creating a cluster with enough power to support SAP HANA. Instead of paying for a brand new appliance, you’ll only have to purchase the extra power you need.
Unfortunately, it’s not as simple as buying new servers and running cables. SAP-certified technicians need to design the system, install and configure HANA and test everything for reliability and performance.
For economies of scale, like SAP hosting providers and the largest enterprises, it may be affordable, but for most businesses, the costs are prohibitive. Just installing and configuring a system costs $61,500, and that doesn’t even count CapEx for new hardware — likely tens of thousands of dollars.
Additionally, you’ll most likely be incorporating older hardware, which may be less reliable, require more service and need to be replaced more quickly than a new SAP HANA appliance. You’ll also have restrictions on the support SAP provides. And because OpEx is no cheaper for TDI than for a new SAP HANA appliance, you’ll save little or nothing on TCO over the first three years.
Learn What an SAP HANA Cloud Offers
There are understandable reasons to invest in TDI or a new HANA appliances. Companies may feel tied to previous hardware investments, or not understand the benefits of moving to an enterprise cloud. For most businesses, however, an SAP HANA cloud can drastically slash TCO, improve agility and remove the burden of maintaining aging hardware. Contact us to learn how our custom IT solutions can help you.