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Your SAP cloud hosting isn’t saving you as much as you thought. Here’s why.

The hidden costs of SAP cloud hosting

This is part of our "8 ways to reduce costs in SAP series". You can return to the first article here.

In Part 5 of our series of ways to cut SAP running costs we explain why you should demand detail and a cost optimisation plan from your hosting provider

Most companies have started to look at hosting and may have started to migrate from an on-premise data centre and into a managed service. If you have already moved to the cloud, you will have already added some variability to your compute power and moved some of your fixed costs to variable costs.

But many companies who use hyperscalers are finding that the cost of a badly managed cloud is higher than the cost of dedicated data centres.

It shouldn’t be – and the answer comes in paying attention to the detail and monitoring your usage forensically for all environments, not just Production. You are paying for a utility service. Ensure the service includes detailed usage and ongoing optimisation metrics.

Breaking news for the cost savvy SAP users on AWS amongst us, SAP have certified the C5a family of EC2 virtual machines based on AMD EPYC processors. Put simply, they represent the best SAP Bang/$ ratio of any EC2 instance and are accessible at the speed of a simple reboot

You should also be looking to have periodic reviews with your infrastructure provider to ensure that what you purchased originally is still the best option for your company today. This may be complicated if you have separate parties managing the infrastructure and the layers on top such as monitoring but there should be someone who is able to provide a detailed plan for cost optimisation and explain the impact of varying compute power, or turning training environments off when they are not needed.

If you want help to optimise your SAP hosting costs, come and talk to us about reducing your SAP costs.

Next: How to put wasteful data on ice to reduce the cost of your SAP solution


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