The Ultimate Guide to SAP Budgeting for AWS Migration Success

A shocking 74% of companies go over their planned cloud migration budgets.

SAP workloads moved to AWS without careful budget planning can become a financial disaster. Companies often face surprise costs, puzzling pricing structures, and struggle to optimize resources during their transition.

Your SAP budget planning needs a solid grasp of AWS cost structures and your company’s unique requirements. Each choice affects your expenses – from selecting instance types to handling licenses and storage costs.

We created this complete guide to help you through the maze of SAP costs on AWS. You’ll discover tested strategies to plan, execute, and optimize your SAP migration budget while steering clear of expensive mistakes.

Want to take control of your SAP migration budget? Let’s look at the key elements you need to think over.

Understanding AWS Pricing Models for SAP

Picking the right pricing model is a vital part of optimizing your SAP costs on AWS. Recent data shows companies can save an average of 26% in total ownership costs by running SAP workloads on AWS.

On-Demand vs Reserved Instances

SAP workloads come with two main pricing models. On-Demand instances let you pay as you go, which works great for environments that need varying availability like sandbox or project setups. Reserved Instances make more sense for workloads that run more than 70 hours weekly and can help you save up to 72%.

Reserved Instances give you these benefits:

• You get guaranteed capacity in specific Availability Zones
• Your budget becomes more predictable
• Standard and Convertible options fit different workload needs

Savings Plans Analysis

Savings Plans offer a better way to optimize costs. You can get great savings by committing to a one or three-year term. SAP workloads typically use these two types:

License Management Strategies

Most SAP solutions on AWS use a bring-your-own-license (BYOL) model. This lets you keep using your existing SAP licenses without buying new ones. Products like SAP BusinessObjects need special attention – you should know about Concurrent Sessions, Named User, and CPU License types to keep costs down.

Unlock the secrets to SAP budgeting on AWS! Learn how to save up to 72% on your infrastructure costs with our comprehensive guide to pricing models and license management.

Mapping SAP Workloads to AWS Services

Here’s a guide to map your SAP workloads to AWS services that will save you money. Companies can save up to 50% on SAP administration and DevOps costs by mapping their workloads correctly.

Resource Requirement Analysis

SAP resources substantially fluctuate, so you just need to analyze your requirements carefully. A careful analysis should look at:

• Usage patterns from the last 3 months
• Maximum usage during quarter-end closures
• Your company’s growth plans
• Each workload’s performance needs

Service Selection Criteria

Here’s our AWS services mapping guide for SAP workloads:

Cost Impact Assessment

The right service selection can save you money. Most organizations reduce their total ownership
costs by 26%. These savings come from:

• Infrastructure optimization: 43% savings on hardware and software
• Operational efficiency: 37% lower operational costs
• Maintenance optimization: 36% reduction in maintenance costs

Our customers save an average of 6 minutes per user each week with these mapping strategies. This adds up to substantial productivity gains throughout their organization.

Implementing Cost Control Measures

Successful SAP operations on AWS depend on effective cost control. Our team discovered that reliable cost management measures provide practical insights and save money upfront.

Budget Alerts and Monitoring

AWS Budgets provides powerful capabilities to manage costs. You can set up automated actions when budgets go beyond specific thresholds. These actions come in three types:

• IAM policies adjustments
• Service Control Policy implementation
• EC2/RDS instance targeting

These monitoring recommendations work best:

Resource Tagging Strategy

Resource tagging plays a vital role in cost management. Our team created tagging strategies that add metadata to AWS resources. This makes SAP-related cost management and filtering easier. Tags prove valuable for:

• Cost allocation across business units
• Environment identification (prod/non-prod)
• SAP system tracking (SID-based)
• Backup policy assignment

Automation for Cost Optimization

Our team utilizes several AWS tools to automate cost optimization:

AWS Cost Explorer shows detailed visualizations of our top five cost-accruing services. This creates an excellent starting point to optimize costs. AWS Compute Optimizer studies actual usage data to balance performance and cost. This helps prevent over-provisioning while meeting SAP performance requirements.

Automated checks help us maintain a continuous optimization cycle that has:

1. Regular spend reviews using the AWS Billing Console
2. Implementation of practical findings
3. Monitoring of optimization effects

Optimizing Long-term Operational Costs

Our work with SAP implementations on AWS shows that long-term operational cost optimization needs a well-planned approach beyond the original setup. Companies can save up to 72% compared to On-Demand prices through proper optimization, according to industry data.

Performance Tuning for Cost Efficiency

Proper sizing plays a vital role in cost-effective performance. The right instance sizing requires at least three months of actual usage data that includes business peaks and quarter-close periods. AWS Compute Optimizer with better infrastructure metrics allows us to:

• Study actual resource utilization patterns
• Compare recommendations with SAP EarlyWatch Alert reports
• Find opportunities for instance family standardization
• Move to newer generation instances for better price-performance ratio

Storage Optimization Techniques

The best storage optimization balances performance with cost efficiency. Here’s our approach to different storage types:

Lifecycle policies for S3 storage help reduce costs by moving less frequently accessed data to lower-cost storage tiers automatically.

Continuous Cost Management

Several AWS tools support our optimization approach:

1. AWS Cost Explorer for detailed spending analysis
2. AWS Trusted Advisor for ongoing optimization recommendations
3. Regular review cycles for storage utilization

Organizations typically achieve their cost savings goals within two years. The data shows 43% save on hardware and software, while 37% reduce operational costs.

Conclusion

Smart planning and execution in multiple areas determine your SAP migration budgeting success. The right AWS pricing model can reduce costs by up to 72%. Smart workload mapping cuts administrative expenses by up to 50%.

Budget alerts, resource tagging, and automation build a solid base to optimize costs. Our method combines performance tuning, storage optimization, and non-stop monitoring to boost your ROI.

Your SAP budgeting on AWS needs constant monitoring and fine-tuning. These strategies will improve your SAP workloads’ cost efficiency and performance on AWS.

Do you need expert guidance? VIZIO’s tailored services support your migration journey. We help you achieve optimal results and avoid budget-draining mistakes.

Master your SAP migration budget with VIZIO’s comprehensive guide! Learn proven strategies to cut costs by up to 72% while optimizing performance. Get expert insights on AWS pricing, resource mapping, and long-term optimization.