Benefits and cost optimization strategies of SAP on AWS


When it comes to the implementation of new improvements of ERP, there are numerous benefits to be gained by organizations running SAP on AWS.

SAP offers extensive implementations of application systems which offers strategic support to various segments in businesses.

Should be aimed at ensuring these applications that are hosted on AWS enjoy the benefits of cloud computing such as scalability, reliability and cost effectiveness.

This article aims at discussing the benefits of adopting AWS for a company that involves running SAP as well as cost optimisation strategies for the same.

 

1. Scalability and Flexibility

 

In this context, elasticity will be useful in meeting the business demands as elaborated below.

Another benefit of using SAP on AWS is regarding the outlining that resource capacity can be flexibly adjusted up or down according to business requirements.

It is characterized by the flexibility of elastic computing capacity and storage, meaning an organization can easily scale-up or scale-down the power of their computing and capacity as needed.

It is especially helpful for organizations with varying workloads or those in growth situations, as it allows them to plan for the maximum traffic without having some of the resources lie idle at other times.

 

Tailored Resource Allocation

 

It offers elasticity in resource allocation which allows workloads in SAP to be partitioned in a way that addresses specific business needs that may require boosted performance of applications like SAP HANA, SAP S/4HANA, and SAP Business Suite of applications.

It also means that businesses can directly align the infrastructure to today’s various operational demands, whether it is the facsimiles of transactions or the analysis of data.

You can have a detailed read by clicking on this link.

 

2. Cost Efficiency

 

Pay-as-You-Go Pricing Model

 

In this scenario, It follows the model of pricing where the consumer only pays for the amount used by the organization.

This economical model could be significantly more advantageous and efficient when compared to the traditional method of deploying as well as managing own housed HW equipment.

Such expense models are efficient as they help to prevent big one-shot investments and to reduce costs to the level of operational costs that are easier to plan and provide with all necessary funds given the company’s budget and financial capabilities.

 

Cost Management Tools

 

As it will be seen in the following case studies, users have at their disposal several tools under AWS concerning cost as they provide details of resource consumption and expenses.

There are some that exist as tools such as Cost Explorer AWS Budgets; which help a firm in the process of cost optimization, reviewing the AWS environment of the firm for additional cost saving avenues and analysis of the AWS ecosystem of the firm respectively.

These tools assist the organizations in managing their It costs in a correct way by facilitating them to take correct decisions in retaining the necessary IT investments /projects in addition to ensuring that these investments are launched in the right , and cost effective manner.

Read about this advantage in detail here.

3. Enhanced Performance

 

High-Performance Computing

 

SAP applications must have high availability in their logical systems, which is a possibility through Amazon’s Data Center services including HPC.

For instance, there are elongated services such as Amazon EC2(Elastic Compute Cloud) and other separate services such as services encouraged for SAP HANA used in business entities and resulting in better and improved processing time.

This is true more so in a time when an enterprise relies on its capacity to process current events and at the same time, the one that is undertaking a lot of transactions.

 

Optimized Storage Solutions

 

Notably, this has Amazon EBS or Elastic Block Storage, and Amazon S3, Simple Storage Service where specific configuration can be made to meet the performance needs of SAP apps.

These methods involve high throughput, low latency, and scalability that allows it to handle a huge SAP workload data while ensuring the applications run effectively.

 

4. Reliability and Availability

 

Global Infrastructure

 

Third, it offers a presence in multiple AZs and Regions, these characteristics give Amazon WEB services a strong foundation to host SAP applications.

This distributed infrastructure guarantees high availability and the elimination of single points of failure as the workloads in certain locations can be doubled to prevent downtimes due to failure of the hardware or some other unconstructive events.

 

Disaster Recovery Solutions

 

Disaster recovery services are also available on AWS which consist of AWS Backup and Elastic Disaster Recovery.

These services consider the effective backup and prompt recovery of important SAP information to assist the firms in retaining vital business information and avoiding unnecessary downtime.

This degree of dependability is crucial in sustaining business operations and lessening the consequences of these disruptive situations.

All you need to know about this is right here.

5. Security and Compliance

 

Comprehensive Security Measures

 

It indeed demonstrates high levels of security thus offering organizations several mechanisms for securing SAP systems.

These measures include; data encryption for storage and in transit, identity and access management, and Network layer solutions including firewalls and Intrusion detection systems.

Using these security measures the business information will be well protected from leakage to unauthorized parties, thus meeting the regulatory requirements of the industry.

 

Compliance Certifications

 

Compliance Standards operates and maintains compliance with several professional standards, including; ISO 27001, SOC 1/2/3 and GDPR.

SAP operation on AWS guides organizations to match applicable laws throughout the world, and it is efficient in industries that require strict security requirements for their information like the financial and medical industries.

You can read about the layers of security here.

 

6. Rapid Deployment and Innovation

 

Quick Provisioning

 

It helps a great deal in deploying SAP environments faster compared to if one was to set up the infrastructures manually.

For instance, through Quick Starts, enterprises can install SAP solutions in more effective ways within a few hours, not days, weeks, or even months.

It also enables organizations to provision services at a faster pace and meet necessary needs for new projects and initiatives.

 

Access to Advanced Technologies

 

One of the benefits of running SAP on AWS is the availability of a large set of modern technologies such as artificial intelligence, machine learning, and Internet of Things (IoT) Services.

The above-mentioned technologies make integration with SAP applications innovative, improve the quality of decision making, and optimize operation.

For instance, enterprises can utilize channeling main AI/ML offerings for an enhanced understanding of SAP data or apply IoT offerings for supply chain enhancement.

 

7. Simplified Management and Automation

 

Centralized Management

 

Similar to the previous one, It focuses on automation tools for managing SAP environments, like AWS Management Console and CloudFormation.

Such tools offer a single point of control across resource allocation, performance surveillance, and manual tasks, easing the age-old problems of IT departments and optimizing Processes.

 

Automation Capabilities

 

The degree and extent of automation that results from running SAP on AWS are yet another advantage.

Hence using services such as AWS Systems Manager and Lambda, inconsequential yet cumbersome maintenance tasks such as patching, backups, and scaling of resources can be managed automatically.

There is less likelihood of manual mistakes, and the results are more uniform with high levels of repeatability; and it allows IT staff to be more elevated by steering them away from repetitive tasks.

Read about automation by clicking on this link.

8. Improved Collaboration and Accessibility

Remote Access and Mobility

 

That way, It supports SAP applications to be accessed through the internet so employees can work from home if needed.

Even more, this capability is highly beneficial when working in a rather mobile and remote manner more often because of the pandemic.

In secure remote access solutions means that companies can maintain productivity and connectivity and their workforce even where they are.

 

Collaborative Tools

 

There are numerous other collaboration tools that can be integrated with AWS with a view of improving teamwork and communication.

Web conferencing and file sharing services of Amazon Chime and WorkDocs mean people can always stay connected and collaborate on SAP’s details in real-time.

 

9. Innovation and Future-Proofing

 

Continuous Innovation

 

It is also rapidly evolving and provides its customers with new services and product improvements.

When organizations decide to achieve SAP hosting on it, they can then draw benefits from these innovations in SAP environments.

From new computer instances, storage options or artificial intelligence and machine learning services, it  offers companies the elements to maintain relevance in the market and being able to easily respond to demands.

 

Future-Proofing IT Investments

 

This means that the cost of holding infrastructure is minimal because by having Amazon web service in place, organizations are future-ready.

This adaptability lies in the fact that cloud platforms add value and updates and SAPs support of new technologies enables businesses to continuously upgrade implemented systems without vast capital expenditure.

Such future-proofing helps guarantee that companies will remain versatile and equipped for the knowledge and utilization of different innovations.

 

10. Comprehensive Support and Ecosystem

 

AWS Support

 

The Amazon web service support and developer relations are also available at various packages which can be selected concerning the status and size of each firm.

Whether for simple need or for an establishment of enterprise-grade support, A provides tools and guidance to companies to efficiently operate their SAP systems.

This includes recourse to technical consultants, probative advice, and vigilant surveillance services.

 

11. Global Presence and Domestic Law

 

Extensive Global Footprint

 

It has regional presence in many areas, with a total of data centers in different regions and availability zones to enable organizations to deploy SAP applications closer to their clients

This global reach ensures there is a decreased level of latency thus enhancing the performance of the application leading to a more efficient use of the application.

Since organizations are operating across different countries they are able to replicate their SAP environment to different regions to address performance or geographical issues as well as data sovereignty stipulations.

 

Local Compliance Adherence

 

Numerous countries contain regional mandates concerning data storage locality or data privacy compliance.

Meeting these local compliance is made possible by it since it has its data centers located in different countries across the globe.

By deciding to run SAP on AWS in a particular region, organizations can be assured that their data will reside within the chosen geo-location which may be mandated by the rules and policies of the country in question.

 

12. Environmentally Sustainable Operations

Commitment to Sustainability

 

It is important to mention that the system is concerned with environmental issues and uses its data centers’ resources with energy conservation.

Amazon web service continues to sign up to the Amazon Climate Pledge and is committed to being fully carbon-neutral by 2040 and is charging ahead in renewable energy projects around the world.

SAP operations also provide benefits that organizations may need from it’s commitment to sustainability, that is, bring down on their carbon emissions and conform to global environmental goals.

Diminishing the consumption of energy through efficient utilization and the use of resources for achieving maximum value and results.

It has a very developed infrastructure architecture, and all of it is conceived with attention to power saving.

What this implies is that the effectiveness of running SAP applications on it tends to be greener than on data centers which are installed traditionally.

It makes it its business to focus on the development of newer and more effective methods of making its processes more efficient in terms of energy consumption, which is great for businesses looking to vice their ecological footprint.

 

13. One of the coolest things about Lambda is that it integrates really well with other AWS services.

 

Data analytics services are integrated with their product.

 

SAP integration with this solution provides hassle-free interconnectivity with AWS’s comprehensive data and analytics offerings like Amazon Redshift, AWS Glue, and Amazon QuickSight.

These integrations help to load massive SAP business data quickly and powerfully, and make it easier to collect, transform, and analyze SAP data for organizations.

This integration strategy improves the worth of SAP data to apprehend and evaluate it efficiently for analytical and business intelligence undertakings.

It can be noted how the use of AWS IoT and AI/ML capabilities has been leveraged.

AWS also provides IoT and AI/ML services that can be used with SAP systems as they also have interconnectivity.

For instance, businesses can leverage AWS IoT services to collect fresh information from the connected devices and blend this information with SAP for improved decision making.

Likewise, for AI/ML, services such as Amazon SageMaker in AWS can be employed to create new predictive models and extract valuable insights from SAP data leading to the expanded implementation of innovation and positive business results.

 

14. Improve Disaster Recovery: Business Continuity

 

Multi-Region Disaster Recovery

 

To maintain strong disaster recovery management, the AWS offers valuable features that help businesses to replicate SAP workloads in different regions.

This geographic replication guarantees that SAP applications are always reachable even via the regional blackout.

With AWS, it means it is possible to perform backup and implement pilot light, warm standby or active-active to suit the company’s needs depending on RTO.

 

Business Continuity Planning

 

It may be suggested that AWS’s broad portfolio of solutions provides robust business continuity management.

AWS CloudFormation is good for creating and launching environments for recovery because there will be a small number of downtimes, and recovery will consequently be swift in the event of a calamity.

Moreover, AWS’s broad-based system and reliable connectivity enable the uninterrupted business operation, this is good news for organizations that depend on SAP systems to perform important tasks.

 

15. Simplified Migration and Modernization

 

Streamlined Migration Process

 

AWS uses multiple services and tools aiming to provide simple and easy migration of SAP applications to the cloud environment.

AWS Migration Hub is a single location for monitoring and managing migrations; AWS server migration service and AWS DB migration service are used to migrate server and DB workloads respectively.

They help minimize the challenges and possible threats that come with migration of SAP systems for the realization of companies cloud solutions.

 

Modernizing SAP Applications

 

Once on AWS, organizations can take full advantage of capabilities to transform and innovate their SAP applications.

This entails embracing new offerings such as SAP S/4HANA or SAP Leonardo, or extending the solution with AWS services for Artificial Intelligence, Machine learning or IoT.

This means that updating SAP applications on AWS enables organizations to minimize risk and constantly ensure they are transitioning to the right technology for their businesses, which will in turn, help them learn how to keep up with the latest progressing trends or updates.

You can read about customer success stories here.

Cost Optimisation strategies for SAP on AWS

1. Choosing the right instance types of EC2 is essential for cost control and efficient performance of services.

 

1.1 Instance Sizing

 

This is a crucial step given that it determines what is needed in terms of EC2 instance type and size in order to meet the targeted costs.

If one under-sizes, the machine may easily create some performance bottlenecks and conversely, if one goes for over-sizing, that will lead to many unnecessary costs.

AWS provides several tools to help determine the right instance size:

AWS Compute Optimizer: It is very useful in recommending the best instance types that match customers usage habits.

Amazon CloudWatch: Analyzes the current instance performance and the utilization degree of its resources.

 

1.2 Instance Families

 

AWS offers various instance families optimized for different use cases:

General Purpose (e.g., M5, T3): Whenever possible, the creation of a solution with balanced compute, memory, and networking requirements.

Compute Optimized (e.g., C5): Intensive computational tool to carry out high compute ‘load’ used in high-end applications.

Memory Optimized (e.g., R5, X1): Suitable for memory-bound applications such as SAP HANA since they have more access to memory than CPU cycles.

 

This means that there is a lot of obligation, but choosing the right family by workload characteristics can minimize expenses.

 

1.3 ‘Reserved Instances’ and ‘Savings Plans’

 

For long-term SAP workloads, consider Reserved Instances (RIs) or Savings Plans to save up to 75% compared to On-Demand pricing:For long-term SAP workloads, consider Reserved Instances (RIs) or Savings Plans to save up to 75% compared to On-Demand pricing:

Reserved Instances: Alternatively, it offers one to opt for consecutive one-year term service that entails getting a deeper discount.

Savings Plans: Pricing more elastic than RIs, which provide volume discounts if the instances are consumed across various instance families or regions.

 

1. 4 Spot Instances

 

Non-production environments allow savings of up to 90% at a fee of spot instances. 

They are excellent for applications that can be paused for shorter periods, for instance in development and testing scenarios.

You can read more about choosing the right one here.

2. Optimizing Storage Costs

 

2. 1 EBS Volume Types

 

Amazon EBS offers several volume types with different characteristics which are designed for certain specific purposes. 

Choosing the right EBS volume type can help reduce costs:Choosing the right EBS volume type can help reduce costs:

General Purpose SSD (gp2/gp3): Mid-range price and serious performance, this model is suitable for most SAP applications requirements.

Provisioned IOPS SSD (io1/io2): To enhance access to frequently-accessed data for I/O-intensive applications.

 

Cold HDD (sc1) and Throughput Optimized HDD (st1): Some options that are less expensive as the data they hold are accessed at a lesser frequency.

 

2. 2 EBS Snapshots

 

Taking EBS volume snapshots is important in backing up your data but this service attracts charges and these charges can be quite steep if you are taking the snaps frequently. Optimize snapshot costs by:

Deleting unnecessary snapshots: It is pivotal to pin down that snapshots should be reviewed on a sort of basis and any duplicate or no longer important ones should be removed.

Using Amazon Data Lifecycle Manager (DLM): Schedule creation, retention and deletion of snapshots through policies in order to minimize the amount of images that are created.

 

2.3 S3 Storage Classes

 

Amazon S3 offers various storage classes designed for different access patterns and retention requirements:Amazon S3 offers various storage classes designed for different access patterns and retention requirements:

 

Standard: For the most frequently used data and for online analytical processing, out-of-line storage is recommended, it is used for data that is accessed most often.

Intelligent-Tiering: Notifies the system when data is accessed least frequently and then automatically migrates the data to the lowest cost tier of access.

Standard-IA (Infrequent Access): Where data is accessed only once in a considerably long interval, but then called for frequently.

Glacier and Glacier Deep Archive: These are the types of documents that are stored for record-keeping and regulatory purposes and are accessed less frequently as compared to operational data.

 

Selecting S3 storage class can minimize the cost significantly.

 

3. Database Cost Optimization

 

3. 1 For Amazon RDS as well as Aurora, the following is offered.

 

The Amazon RDS and Amazon Aurora are the Amazon services designed for the fully managed relational database that is compatible with SAP and include the provision of the automated backups, patching, and scaling. Cost optimization strategies include:

 

Instance Sizing: Synchronize the instances of your database in accordance with the optimization demands.

Reserved Instances: Like EC2, there is an option for RDS using Reserved Instances that allow for cheaper usage with long-term leases.

Aurora Serverless: For fluctuating workloads, Aurora Serverless adjusts the database’s resources based on their real demand, so that costs of idle times are minimized.

 

3. 2 Fine-tuning The SAP HANA On AWS

 

SAP HANA requires high-performance infrastructure, but there are still opportunities to optimize costs:

 

Right-Sizing: Instance type and size selection should be according to the memory and CPU demand of the specific applications.

Scaling: SAP HANA dynamic tiering would employ availability at a less expensive tier for data not used very often.

Operational Efficiency: Minimize operational overhead through configuration, updating and tracking of any modification from the default configurations.

Read more about this here.

 

4. Network Cost Optimization

 

4. 1 Data Transfer Costs

 

They should pay close attention to the costs associated with the transfer of data from one node to another, particularly in a distributed environment, since these costs tend to add up very fast. 

Strategies to minimize these costs include:Strategies to minimize these costs include:

 

Use Same Availability Zone: By ensuring that the resources are intact in the same Availability Zone, you can avoid incurring the additional cost of inter-AZ data transfer.

VPC Endpoints: There are VPC endpoints for S3 and DynamoDB to help contain the communication restrictively within the Amazon web services network thus apparently reducing on transfer charges.

Content Delivery Network (CDN): Take advantage of Amazon CloudFront to cache content at different locations closer to the consumers in an aim of cutting on the data transfer and get optimum results.

 

4. 2. VPC peering and transit gateway

 

For multi-region or hybrid environments, consider the following options to optimize network costs:

VPC Peering: Improve and build low cost, high bandwidth connectivity between VNets located in different regions.

AWS Transit Gateway: Simplify the interconnect infrastructure, merge and lessen the dependence on many peering sessions and secured VPN links.

 

Get a detailed read by clicking on this link.

 

5. Operational Best Practices

5. 1 Automation and Orchestration

 

The repetitive actions are time consuming and expensive, but properly executed automations can lower both of these elements considerably. 

Tools to consider include:

 

AWS CloudFormation: Provision resources at Amazon Web Services using templates whenever possible.

AWS Systems Manager: Order AWS resources and facilitate the simplification of operational jobs on the cloud.

 

SAP Landscape Management (LaMa): The second goal is to bring SAP operations on Amazon web services to the level of automation and orchestration.

 

5. 2 Monitoring and Optimization

 

Regular monitoring and optimization of your SAP environment can prevent cost overruns and improve resource utilization:

 

Amazon CloudWatch: The usage of resources has to be controlled, and specific alarms have to be put in their use cases.

AWS Trusted Advisor: Get cost optimization suggestions regarding the best practices obtained from analysis.

AWS Cost Explorer: Examine your more probable spending habits to see if there are areas where it is possible to cut down on expenses.

 

5. 3 Governance and Control

 

Implementing governance policies ensures that resources are used efficiently and cost-effectively:

 

AWS Organizations: Centralize the management of an organization for a given number of accounts and enforce compliance to governance policies.

Service Control Policies (SCPs): Develop and implement the general structures of policies over the utilization of ‘Resources’ within an organization.

Budgets and Alerts: Establish expense and usage estimates with email notifications for losing controls before danger level.

 

Customer Success story

How AeonX assisted CK Birla hospital migrate to SAP on AWS

 

Customer Challenge

 

CK Birla Hospitals is a network of care that offers its services from multiple nodes and hence needs a centralized healthcare data access solution.

Nevertheless, the infrastructure for the SAP in the on-premises environment was expensive to manage, and they experienced decreased efficiency.

This made it imperative to find a solution that would allow them to enhance utilization of force on their SAP processes, the reliability factor as well as reduce the complexity of the IT structure.

This was an assessment of a potential partner who should be in a position to offer the level of advice and tips for efficient SAP migration to AWS.

 

Why did CK Birla Hospitals choose AeonX Digital?

 

Coping with what type of crisis, you would like to familiarize with the success story of CK Birla Hospitals and its successful collaboration with AeonX Digital

As this Healthcare giant has worked with AeonX before, they were confident in their past experiences working on healthcare data and the specifics of SAP and AWS products.

These reasons made AeonX most suitable for this critical migration; they were willing to avail an all-encompassing plan for planning and eager to offer quick consultants to help start this move to AWS.

 

AeonX Solution

 

For helping CK Birla Hospitals manage SAP workloads on the AWS cloud, AeonX initiated the process of migrating their SAP workloads towards AWS by utilizing AWS services like AWS Lambda, AWS S3, AWS Glacier, AWS Cloud Watch and AWS EBS.

The disruption provided massive cost optimization and the obtained funds helped CK Birla Hospitals in the development of modern data analytic solutions to enhance patiet care and efficacy.

AeonX, through its comprehensive solution, was able to bring down the IT proposition of CK Birla Hospitals by simplifying it while increasing effectiveness.

The ever-in Metten’s business applications were converted to cloud-based and mobile-enabled SAP applications which enhanced end user experience, and access to new SAP technologies that encouraged innovation.

Data immediacy provided operational management and visibility to the hospital environments with better access to the required information, and the flexibility of the AWS hosting platform was beneficial to create a solution that could grow as per the business needs of CK Birla Hospitals.

 

Results and Benefits

 

The impact of migrating SAP workloads to AWS was profound.

CK Birla Hospitals experienced a 40% year-over-year growth and a 17% reduction in expenses since the migration.

The integration of multiple systems resulted in enhanced productivity through automatic monitoring and real-time access to transactional data.

In addition to SAP workloads, AeonX also hosted CK Birla Hospitals’ SAP disaster recovery (DR) and high availability (HA) on AWS.

This provided improved reliability, scalability, cost savings, enhanced security, and a highly available and scalable infrastructure for SAP systems.

AeonX’s automation reduced manual tasks, increased efficiency, and ensured a consistent and dependable experience for CK Birla Hospitals.

This transformation allowed CK Birla Hospitals to prepare for future expansion, upgrade applications, and offer them as software-as-a-service, further enhancing their digital transformation journey.

In conclusion, CK Birla Hospitals’ partnership with AeonX Digital on their SAP migration to AWS resulted in substantial cost savings, improved performance, and a more agile and innovative healthcare organization, ultimately benefiting both patients and the business.

Read the full synopsis of the case by clicking here.

 

Conclusion

 

They include the following: These are the basic spheres of the general merits of running SAP on AWS, which are not limited only by the merits such as the ability to scale, cost optimization, and high performance.

Thus, the presented use cases illustrate how, using AWS global availability, environmental responsibility, and integration features, the existing SAP settings can be improved to meet organizational demands.

The quality disaster recovery solutions and standard migration services of Amazon Web Services also guarantees business continuity increasing the ease in moving to the cloud.

Furthermore, AWS’s drive to continuously innovate and modernize their services help industries in safeguarding their SAP portfolios toward the future and stay relevant in the current world market environment.

In conclusion, this paper has established that operating SAP on AWS has even more benefits than merely improving business operations and addressing expenditures since it offers the company a solid groundwork for growth, innovation, and sustainability.

Absorbing these benefits leads organizations to the full potential of SAP applications, so organizations can meet their business goals.

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