Optimizing Costs for SAP Migration to AWS: An Executive Guide

Introduction to the SAP Migration Project

Migrating an SAP landscape to AWS is a pivotal decision for enterprises seeking enhanced scalability, flexibility, and cost optimization. As companies transition from on-premises infrastructure to the cloud, understanding the financial implications is critical for C-level executives and stakeholders. This blog post provides an executive overview of the SAP migration process, focusing on cost estimation, AWS savings plans, and preparing a financial presentation for decision-makers.

Understanding the Current On-Premises Infrastructure

Before diving into AWS cost optimization strategies, it’s essential to map out the current on-premises infrastructure. This includes evaluating servers, databases, storage, and network components supporting SAP systems. Understanding the performance and capacity of the on-prem resources helps identify potential cost-saving opportunities when transitioning to AWS.

Moreover, the current infrastructure’s maintenance, operational costs, and scalability limitations can highlight how cloud migration could unlock cost efficiencies while enabling growth.

Estimating Migration Costs with AWS Calculator

AWS offers robust tools, such as the AWS Pricing Calculator, to estimate migration costs. This tool helps businesses compare the costs of running SAP workloads on-premises against AWS’s cloud-based solutions. You can quickly generate detailed cost reports by entering specifications such as compute, storage, and memory requirements.

Critical AWS services to consider include:

Amazon EC2: For computing capacity.
Amazon RDS: For managed SAP databases.
Amazon S3: For scalable, durable storage.
AWS Direct Connect: Establish secure, high-bandwidth connections between your on-prem and AWS environments.

These reports are vital in understanding upfront and ongoing costs and clarifying executives planning the migration.

Leveraging AWS Savings Plans for Long-Term Cost Efficiency

One significant benefit of migrating SAP workloads to AWS is the opportunity to optimize costs with AWS Savings Plans. Savings Plans offer flexible pricing models that provide substantial discounts compared to on-demand pricing in exchange for a commitment to consistent computing usage over one or three years.

For SAP workloads that typically run 24/7, compute savings can be substantial. When presenting to executives, emphasize how these plans can reduce costs long-term by:

Reducing compute expenses for Amazon EC2.
This will allow savings to be applied to a broad range of AWS services beyond EC2, such as AWS Lambda and Fargate.

By strategically selecting and applying these plans, companies can minimize operational expenses and ensure predictable cloud costs.

Preparing the Executive Presentation on Infrastructure Costs

Presenting the migration cost overview to executives requires clarity, data-driven insights, and strategic recommendations. Here’s how to prepare the financial presentation:

Outline the Current vs. Projected Costs: Outline the current costs of maintaining SAP on-premises, including hardware depreciation, power, cooling, and staff overhead. Using the AWS Pricing Calculator, compare these figures with AWS migration costs.
Highlight AWS Savings Opportunities: Showcase potential savings from AWS Savings Plans and Reserved Instances. Demonstrating the value of long-term cost reductions will help executives understand the move’s financial viability.
Include Migration and Operational Costs: While AWS offers cost-saving opportunities, it’s crucial to include the initial costs of migrating data, training staff, and optimizing workloads post-migration.
Provide a Roadmap: Offer a high-level migration roadmap with cost milestones, detailing when savings will be realized and how quickly the company will break even on the migration investment.

Conclusion: The Path Forward for SAP Migration to AWS

Migrating SAP to AWS is a strategic investment that can yield long-term operational efficiency and cost savings. Executives can make informed decisions that benefit the business and IT teams by thoroughly understanding the current on-premises infrastructure, leveraging tools like the AWS Pricing Calculator, and applying AWS Savings Plans. The key is a clear financial strategy and executive buy-in, ensuring that the migration leads to sustainable growth and cost management.