Cost optimisation within SAP Cloud Infrastructure is a strategic priority for enterprises looking to maximise the return on their cloud investments.
Given the central role SAP systems play in managing core business processes, migrating to the cloud presents both opportunities and challenges.
The transition from on-premises to cloud infrastructure offers significant advantages, such as greater scalability, flexibility, and improved performance. However, these benefits can be compromised by inefficient resource management, limited cost visibility, and suboptimal configurations. To overcome these challenges, enterprises need to implement targeted strategies that not only drive cost savings but also maintain optimal system performance and reliability.
This article outlines effective strategies for reducing costs while ensuring operational excellence, reliability, and scalability in enterprise environments. Key approaches include optimising resource allocation: right-sizing of virtual machines, implementing autoscaling policies, and adopting efficient storage solutions to prevent overprovisioning.
It also explores the benefits of using Reserved Instances (RIs) and Savings Plans to achieve sustained cost savings. Furthermore, robust monitoring and cost management tools, including SAP Cloud ALM and trusted third-party solutions, provide enhanced visibility into resource consumption and cost patterns, empowering organisations to make informed, data-driven decisions.
Reducing the cost of SAP cloud-based servers (such as SAP S/4HANA Cloud or running on SAP AWS, Azure, or Google Cloud) depends on how your organisation’s environment is set up and its specific needs.
The Cost Challenge in SAP Cloud Deployments
SAP workloads are among the most resource-intensive in any enterprise IT portfolio. Whether you’re running SAP S/4HANA, ECC, or BW/4HANA in the cloud, these environments require high-performance computing, large memory instances, and significant storage – all of which come at a premium.
While cloud providers like AWS, Microsoft Azure, and Google Cloud offer native tools to monitor and manage costs, the complexity and criticality of SAP systems often demand more tailored strategies. Many organisations find themselves overprovisioning resources “just to be safe”, leading to significant waste and inefficiency.
Why Cost Optimisation in SAP Cloud Infrastructure Matters
- Budget Control: Unchecked cloud spend can quickly exhaust IT budgets, especially when SAP landscapes are scaled without governance.
- Improved ROI: Optimising costs ensures that the organisation realises the full return on its cloud investment.
- Sustainability Goals: Efficient cloud usage aligns with green IT initiatives by reducing unnecessary compute and storage consumption.
- Business Agility: Reallocating savings from cloud optimisation can fund innovation and new business initiatives.
Common Cost Drains in SAP Cloud Infrastructure
- Overprovisioned Instances: SAP systems are often deployed with more memory or compute than required.
- Idle Resources: Non-production environments running 24/7 consume resources even when unused.
- Underutilised Licences: SAP licensing in the cloud is complex, and misalignment can lead to unused or unnecessary entitlements.
- Inefficient Storage: Using high-performance storage tiers where standard storage would suffice drives up costs.
Strategies for SAP Cloud Cost Optimisation
- Rightsizing Resources: Continuously monitor system performance to align instance types with actual usage.
- Automation and Scheduling: Use automation to shut down dev/test environments during off-hours.
- Adopt Reserved Instances or Savings Plans: For predictable workloads, long-term commitments can yield substantial discounts.
- Leverage Monitoring Tools: Use both cloud-native and third-party tools specifically built for SAP cost analysis.
- Governance and FinOps: Build a FinOps culture where finance, IT, and business teams collaborate to manage cloud investments.
Managing SAP Systems in the Cloud – Challenges
In conclusion, moving SAP workloads to the cloud brings flexibility and scalability but also a unique set of challenges. Enterprises often grapple with managing cloud resources efficiently, as SAP systems demand precise configurations for optimal operation. Common pitfalls include overprovisioned virtual machines, underutilised infrastructure, and rapidly increasing storage costs.
Moreover, the dynamic nature of modern enterprise operations means SAP environments must continually adapt to fluctuating workloads. Without clear visibility into resource usage and associated costs, maintaining efficiency becomes increasingly difficult. This makes robust cost management and performance optimisation practices not just beneficial but essential for long-term success in the cloud.
At On Device Solutions, we help enterprises overcome these challenges with tailored tools and strategies that simplify SAP cloud management and drive cost efficiency.
Get in touch with our experts here to discover how On Device Solutions can support your SAP cloud optimisation strategy. Alternatively, email us at info@ondevicesolutions.com.
