This document provides an overview and analysis of cost savings projected for a composite organization transitioning various applications, including SAP BW, SAP ERP, and a custom application, to the SAP HANA platform over three years. Interviews with existing SAP HANA customers informed the analysis. The analysis projects that the composite organization could save 37% of total costs over three years by reducing hardware, software, and labor costs through the simplified and automated environment of the SAP HANA platform. Key projected savings include 70% reduction in software costs, 15% reduction in hardware costs, and 20% reduction in administration and development labor costs.
SAP Helps Reduce Silos Between Business and Spatial DataSAP Technology
Discover how spatial solutions from SAP can help your business leverage geographic and spatial data to deliver location intelligence, increase insight, and improve efficiency. Solutions include SAP HANA, SAP BusinessObjects Analytics, SAP Geographical Enablement Framework, SAP GEO.e, Galigeo.
Curious how your business can benefit from using
SAP HANA? This collection of case studies spans a
variety of the 27 industries SAP HANA is used in,
and shows why SAP HANA is the future of business.
SAP Helps Reduce Silos Between Business and Spatial DataSAP Technology
Discover how spatial solutions from SAP can help your business leverage geographic and spatial data to deliver location intelligence, increase insight, and improve efficiency. Solutions include SAP HANA, SAP BusinessObjects Analytics, SAP Geographical Enablement Framework, SAP GEO.e, Galigeo.
Curious how your business can benefit from using
SAP HANA? This collection of case studies spans a
variety of the 27 industries SAP HANA is used in,
and shows why SAP HANA is the future of business.
Predictive Analytics Infographic shows the SAP HANA native predictive analysis libraries (PAL), R integration for access to extensive library of statistical and data mining techniques, tools like SAP Predictive Analysis & SAP Lumira and SAP Applications leveraging Predictive capabilities. For more information please visit saphana.com/predictive-analytics
This Timeline shows SAP HANA's history, from it's development, to key achievements and customer adoption up until the first SAP HANA Anniversary. It's amazing what has been accomplished in such a short period of time and it will be interesting to see how SAP HANA will change the way we work.
For more information on SAP HANA please go to https://www.experiencesaphana.com and follow the conversation on Twitter @SAPInMemory.
Capture and Feed Telecom Network Data and More Into SAP HANA - Quicky and Aff...SAP Solution Extensions
Get details on how the SAP Big Data Integrator solution by DigitalRoute helps telecom firms integrate, analyze, and act on operational usage and customer data in real time to gain a huge competitive advantage
For more customer stories, please visit: http://bit.ly/1dsW5X1
Discover SAP HANA use cases applicable to your business needs, organized by SAP solution or business category. Read success stories from customers already implementing these use cases to build business value, and get guidance on how you can deliver the use cases to your business.
What does other companies with COPA reporting challenges do?
Remove the Pain Use - COPA HANA Accelerator (Operational Reporting in ECC)
Move to BW to get better Performance - BW on HANA (Transformation, Periodic Reporting, History)
Convert ECC Platform – HANA Integrated (Operational Reporting)
Most companies use a Hybrid solution to support corporate historic data for legal & financial reporting
This presentation is a supplement to the "Why SAP HANA?" video on Youtube. Download and follow along to the video. An added bonus to this presentation is an Appendix and Presentation Notes slides.
Video Link: https://www.youtube.com/watch?v=VCEr9Y8ZrVQ
Building Custom Advanced Analytics Applications with SAP HANASAP Technology
View the presentation from Greg Chase, Sr. Director, SAP HANA Customer Innovation, at the SAP Insider HANA 2014 conference in Orlando.
Learn how SAP is Building Differentiating Applications with SAP HANA to improve your company's economic moat. Using SAP HANA, we are achieving innovation and differentiating apps for your company and customers.
Also gain insight into SAP River for SAP HANA which allows rapid development of SAP HANA native applications and fast invention.
Predictive Analytics Infographic shows the SAP HANA native predictive analysis libraries (PAL), R integration for access to extensive library of statistical and data mining techniques, tools like SAP Predictive Analysis & SAP Lumira and SAP Applications leveraging Predictive capabilities. For more information please visit saphana.com/predictive-analytics
This Timeline shows SAP HANA's history, from it's development, to key achievements and customer adoption up until the first SAP HANA Anniversary. It's amazing what has been accomplished in such a short period of time and it will be interesting to see how SAP HANA will change the way we work.
For more information on SAP HANA please go to https://www.experiencesaphana.com and follow the conversation on Twitter @SAPInMemory.
Capture and Feed Telecom Network Data and More Into SAP HANA - Quicky and Aff...SAP Solution Extensions
Get details on how the SAP Big Data Integrator solution by DigitalRoute helps telecom firms integrate, analyze, and act on operational usage and customer data in real time to gain a huge competitive advantage
For more customer stories, please visit: http://bit.ly/1dsW5X1
Discover SAP HANA use cases applicable to your business needs, organized by SAP solution or business category. Read success stories from customers already implementing these use cases to build business value, and get guidance on how you can deliver the use cases to your business.
What does other companies with COPA reporting challenges do?
Remove the Pain Use - COPA HANA Accelerator (Operational Reporting in ECC)
Move to BW to get better Performance - BW on HANA (Transformation, Periodic Reporting, History)
Convert ECC Platform – HANA Integrated (Operational Reporting)
Most companies use a Hybrid solution to support corporate historic data for legal & financial reporting
This presentation is a supplement to the "Why SAP HANA?" video on Youtube. Download and follow along to the video. An added bonus to this presentation is an Appendix and Presentation Notes slides.
Video Link: https://www.youtube.com/watch?v=VCEr9Y8ZrVQ
Building Custom Advanced Analytics Applications with SAP HANASAP Technology
View the presentation from Greg Chase, Sr. Director, SAP HANA Customer Innovation, at the SAP Insider HANA 2014 conference in Orlando.
Learn how SAP is Building Differentiating Applications with SAP HANA to improve your company's economic moat. Using SAP HANA, we are achieving innovation and differentiating apps for your company and customers.
Also gain insight into SAP River for SAP HANA which allows rapid development of SAP HANA native applications and fast invention.
SAP HANA typical implementations today
Outlook for the next 12-18 months
Disaster Recovery capabilities of SAP HANA
Complete automation of Disaster Recovery for SAP HANA with SUSE Linux High Availability
Speakers: Dan Lahl (VP Database Product, SAP), Markus Guertler (Senior SAP Architect, SUSE)
The Infrastructure backbone is the core to any successful business. Customers planning their move to SAP S/4 HANA rely on Capgemini and HPE to modernize that core. Complexities can arise that delay companies from moving to SAP S/4 HANA. However, many customers are realizing near-term business value by modernizing now. Together we deliver a HANA ready environment today and a clear path to SAP S/4 HANA tomorrow.
Join us to learn how HPE and Capgemini jointly deliver modernization assessments that will help you define your organization's transformation.
Presented at HPE Discover Las Vegas 2016.
The Impact of SAP Hana on the SAP Infrastructure Utility Services MarketplaceLisa Milani, MBA
The introduction of Hana into the SAP architecture has disrupted SAP hosting services. By using the new models, sourcing and vendor management leaders who are focused on infrastructure technology service sourcing can develop major cost and service benefits for their businesses as they move to Hana.
Learn about the benefits of selecting IBM Power platform architecture as the SAP deployment which has critical effects on staffing, security, cost and satisfaction, as well as impressive reliability. Thus making the IBM Power platform a strong contender for an organization’s SAP deployment choice. For more information on Power Systems, visit
http://ibm.co/Lx6hfc.
Visit http://bit.ly/KWh5Dx to 'Follow' the official Twitter handle of IBM India Smarter Computing.
CIO Guide to Using SAP HANA Platform For Big DataSnehanshu Shah
This guide supports CIOs in setting up a system infrastructure for their business that can get the best out of Big Data. We describe what the SAP HANA platform can do and how it integrates with Hadoop and related technologies interplay, looking at data life cycle management and data streaming. Concrete use cases point out the requirements associated with Big Data as well as the opportunities it offers, and how companies are already taking advantage of them.
UiPath Test Automation using UiPath Test Suite series, part 4DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 4. In this session, we will cover Test Manager overview along with SAP heatmap.
The UiPath Test Manager overview with SAP heatmap webinar offers a concise yet comprehensive exploration of the role of a Test Manager within SAP environments, coupled with the utilization of heatmaps for effective testing strategies.
Participants will gain insights into the responsibilities, challenges, and best practices associated with test management in SAP projects. Additionally, the webinar delves into the significance of heatmaps as a visual aid for identifying testing priorities, areas of risk, and resource allocation within SAP landscapes. Through this session, attendees can expect to enhance their understanding of test management principles while learning practical approaches to optimize testing processes in SAP environments using heatmap visualization techniques
What will you get from this session?
1. Insights into SAP testing best practices
2. Heatmap utilization for testing
3. Optimization of testing processes
4. Demo
Topics covered:
Execution from the test manager
Orchestrator execution result
Defect reporting
SAP heatmap example with demo
Speaker:
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
Dr. Sean Tan, Head of Data Science, Changi Airport Group
Discover how Changi Airport Group (CAG) leverages graph technologies and generative AI to revolutionize their search capabilities. This session delves into the unique search needs of CAG’s diverse passengers and customers, showcasing how graph data structures enhance the accuracy and relevance of AI-generated search results, mitigating the risk of “hallucinations” and improving the overall customer journey.
Epistemic Interaction - tuning interfaces to provide information for AI supportAlan Dix
Paper presented at SYNERGY workshop at AVI 2024, Genoa, Italy. 3rd June 2024
https://alandix.com/academic/papers/synergy2024-epistemic/
As machine learning integrates deeper into human-computer interactions, the concept of epistemic interaction emerges, aiming to refine these interactions to enhance system adaptability. This approach encourages minor, intentional adjustments in user behaviour to enrich the data available for system learning. This paper introduces epistemic interaction within the context of human-system communication, illustrating how deliberate interaction design can improve system understanding and adaptation. Through concrete examples, we demonstrate the potential of epistemic interaction to significantly advance human-computer interaction by leveraging intuitive human communication strategies to inform system design and functionality, offering a novel pathway for enriching user-system engagements.
Pushing the limits of ePRTC: 100ns holdover for 100 daysAdtran
At WSTS 2024, Alon Stern explored the topic of parametric holdover and explained how recent research findings can be implemented in real-world PNT networks to achieve 100 nanoseconds of accuracy for up to 100 days.
Securing your Kubernetes cluster_ a step-by-step guide to success !KatiaHIMEUR1
Today, after several years of existence, an extremely active community and an ultra-dynamic ecosystem, Kubernetes has established itself as the de facto standard in container orchestration. Thanks to a wide range of managed services, it has never been so easy to set up a ready-to-use Kubernetes cluster.
However, this ease of use means that the subject of security in Kubernetes is often left for later, or even neglected. This exposes companies to significant risks.
In this talk, I'll show you step-by-step how to secure your Kubernetes cluster for greater peace of mind and reliability.
DevOps and Testing slides at DASA ConnectKari Kakkonen
My and Rik Marselis slides at 30.5.2024 DASA Connect conference. We discuss about what is testing, then what is agile testing and finally what is Testing in DevOps. Finally we had lovely workshop with the participants trying to find out different ways to think about quality and testing in different parts of the DevOps infinity loop.
Alt. GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using ...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
Sudheer Mechineni, Head of Application Frameworks, Standard Chartered Bank
Discover how Standard Chartered Bank harnessed the power of Neo4j to transform complex data access challenges into a dynamic, scalable graph database solution. This keynote will cover their journey from initial adoption to deploying a fully automated, enterprise-grade causal cluster, highlighting key strategies for modelling organisational changes and ensuring robust disaster recovery. Learn how these innovations have not only enhanced Standard Chartered Bank’s data infrastructure but also positioned them as pioneers in the banking sector’s adoption of graph technology.
State of ICS and IoT Cyber Threat Landscape Report 2024 previewPrayukth K V
The IoT and OT threat landscape report has been prepared by the Threat Research Team at Sectrio using data from Sectrio, cyber threat intelligence farming facilities spread across over 85 cities around the world. In addition, Sectrio also runs AI-based advanced threat and payload engagement facilities that serve as sinks to attract and engage sophisticated threat actors, and newer malware including new variants and latent threats that are at an earlier stage of development.
The latest edition of the OT/ICS and IoT security Threat Landscape Report 2024 also covers:
State of global ICS asset and network exposure
Sectoral targets and attacks as well as the cost of ransom
Global APT activity, AI usage, actor and tactic profiles, and implications
Rise in volumes of AI-powered cyberattacks
Major cyber events in 2024
Malware and malicious payload trends
Cyberattack types and targets
Vulnerability exploit attempts on CVEs
Attacks on counties – USA
Expansion of bot farms – how, where, and why
In-depth analysis of the cyber threat landscape across North America, South America, Europe, APAC, and the Middle East
Why are attacks on smart factories rising?
Cyber risk predictions
Axis of attacks – Europe
Systemic attacks in the Middle East
Download the full report from here:
https://sectrio.com/resources/ot-threat-landscape-reports/sectrio-releases-ot-ics-and-iot-security-threat-landscape-report-2024/
Why You Should Replace Windows 11 with Nitrux Linux 3.5.0 for enhanced perfor...SOFTTECHHUB
The choice of an operating system plays a pivotal role in shaping our computing experience. For decades, Microsoft's Windows has dominated the market, offering a familiar and widely adopted platform for personal and professional use. However, as technological advancements continue to push the boundaries of innovation, alternative operating systems have emerged, challenging the status quo and offering users a fresh perspective on computing.
One such alternative that has garnered significant attention and acclaim is Nitrux Linux 3.5.0, a sleek, powerful, and user-friendly Linux distribution that promises to redefine the way we interact with our devices. With its focus on performance, security, and customization, Nitrux Linux presents a compelling case for those seeking to break free from the constraints of proprietary software and embrace the freedom and flexibility of open-source computing.
Removing Uninteresting Bytes in Software FuzzingAftab Hussain
Imagine a world where software fuzzing, the process of mutating bytes in test seeds to uncover hidden and erroneous program behaviors, becomes faster and more effective. A lot depends on the initial seeds, which can significantly dictate the trajectory of a fuzzing campaign, particularly in terms of how long it takes to uncover interesting behaviour in your code. We introduce DIAR, a technique designed to speedup fuzzing campaigns by pinpointing and eliminating those uninteresting bytes in the seeds. Picture this: instead of wasting valuable resources on meaningless mutations in large, bloated seeds, DIAR removes the unnecessary bytes, streamlining the entire process.
In this work, we equipped AFL, a popular fuzzer, with DIAR and examined two critical Linux libraries -- Libxml's xmllint, a tool for parsing xml documents, and Binutil's readelf, an essential debugging and security analysis command-line tool used to display detailed information about ELF (Executable and Linkable Format). Our preliminary results show that AFL+DIAR does not only discover new paths more quickly but also achieves higher coverage overall. This work thus showcases how starting with lean and optimized seeds can lead to faster, more comprehensive fuzzing campaigns -- and DIAR helps you find such seeds.
- These are slides of the talk given at IEEE International Conference on Software Testing Verification and Validation Workshop, ICSTW 2022.
PHP Frameworks: I want to break free (IPC Berlin 2024)Ralf Eggert
In this presentation, we examine the challenges and limitations of relying too heavily on PHP frameworks in web development. We discuss the history of PHP and its frameworks to understand how this dependence has evolved. The focus will be on providing concrete tips and strategies to reduce reliance on these frameworks, based on real-world examples and practical considerations. The goal is to equip developers with the skills and knowledge to create more flexible and future-proof web applications. We'll explore the importance of maintaining autonomy in a rapidly changing tech landscape and how to make informed decisions in PHP development.
This talk is aimed at encouraging a more independent approach to using PHP frameworks, moving towards a more flexible and future-proof approach to PHP development.
Smart TV Buyer Insights Survey 2024 by 91mobiles.pdf91mobiles
91mobiles recently conducted a Smart TV Buyer Insights Survey in which we asked over 3,000 respondents about the TV they own, aspects they look at on a new TV, and their TV buying preferences.
Climate Impact of Software Testing at Nordic Testing DaysKari Kakkonen
My slides at Nordic Testing Days 6.6.2024
Climate impact / sustainability of software testing discussed on the talk. ICT and testing must carry their part of global responsibility to help with the climat warming. We can minimize the carbon footprint but we can also have a carbon handprint, a positive impact on the climate. Quality characteristics can be added with sustainability, and then measured continuously. Test environments can be used less, and in smaller scale and on demand. Test techniques can be used in optimizing or minimizing number of tests. Test automation can be used to speed up testing.
Observability Concepts EVERY Developer Should Know -- DeveloperWeek Europe.pdfPaige Cruz
Monitoring and observability aren’t traditionally found in software curriculums and many of us cobble this knowledge together from whatever vendor or ecosystem we were first introduced to and whatever is a part of your current company’s observability stack.
While the dev and ops silo continues to crumble….many organizations still relegate monitoring & observability as the purview of ops, infra and SRE teams. This is a mistake - achieving a highly observable system requires collaboration up and down the stack.
I, a former op, would like to extend an invitation to all application developers to join the observability party will share these foundational concepts to build on:
In his public lecture, Christian Timmerer provides insights into the fascinating history of video streaming, starting from its humble beginnings before YouTube to the groundbreaking technologies that now dominate platforms like Netflix and ORF ON. Timmerer also presents provocative contributions of his own that have significantly influenced the industry. He concludes by looking at future challenges and invites the audience to join in a discussion.
Elizabeth Buie - Older adults: Are we really designing for our future selves?
SAP HANA Cost Analay
1. A Forrester Total Economic
Impact™ Study
Commissioned By
SAP
Project Director:
Shaheen Parks
April 2014
Projected Cost Analysis
of the SAP HANA
Platform
Cost Savings Enabled By
Transitioning to the SAP HANA
Platform
3. 3
Executive Summary
In September 2013, SAP commissioned Forrester
Consulting to conduct a cost-based analysis, utilizing the
Total Economic Impact™ (TEI) methodology, and examine
the potential cost savings and reduction in total cost of
ownership (TCO) that enterprises may realize by deploying
the SAP HANA platform. The purpose of this study is to
provide readers with a framework to evaluate the potential
financial impact of the SAP HANA platform on their
organizations, purely from the perspective of IT costs and
cost reductions.
The SAP HANA platform is a distributed in-memory data
platform that enterprises can use to support real-time
analytics, predictive and text analytics, and extreme
transaction volumes. The next-generation data platform
demands looking at these new technologies to help deliver
the speed, agility, and new insights critical to helping your
business grow. For decades, organizations have built the
transactional, operational, and analytical layers to support
various applications, operational reporting, and analytics.
However, with the growing need to support real-time data
sharing driven by mobile enterprise, separate transactional,
operational, and analytical layers are creating an obstacle in
supporting such an initiative. Distributed in-memory data
platform offers a new approach to collapse the technology
stack that can eliminate redundant hardware, software, and middleware components to save money and reduce complexity
through automation and integrated systems that can help developers and DBAs become more productive.
THE SAP HANA PLATFORM TOTAL COST OF OWNERSHIP FRAMEWORK
To better understand the costs and risks associated with an implementation of SAP HANA software, Forrester interviewed
several customers with multiple years of experience using the SAP HANA platform and conducted a survey of 25 additional
SAP HANA platform users. Drawing on the experiences of these customers, as well as Forrester expertise in this area, we
constructed a financial model to represent the potential savings associated with using the SAP HANA platform as a
replacement for a traditional database platform in several different ways. While the customers had just begun to use the SAP
HANA platform in this way, they were able to discuss the projected impact as they continued to expand their use of the SAP
HANA platform as a replacement platform. In this financial analysis, we include the impact of using the SAP HANA platform
in conjunction with the SAP Business Warehouse (BW) powered by SAP HANA, SAP Enterprise Resource Planning
powered by SAP HANA, and a custom-developed application. For each case, we project the costs associated with using a
traditional database platform, as well as with using the SAP HANA platform, and calculate the comparative TCO. We project
a migration for SAP BW in the first year of the analysis; in Year 2, the composite organization begins using the SAP HANA
platform in conjunction with its current SAP ERP deployment; in Year 3, the former ERP environment is retired and it is run
on the SAP HANA platform; and, we project the costs and cost avoidance associated with developing a custom application
on the SAP HANA platform (as compared with developing it on a traditional database platform) in the third year. The financial
analysis is based on this scenario, as shown in Figure 1. The cost projections are based on information gathered through
interviews and surveys, pricing information from SAP, and Forrester knowledge of database and application market rates.
The SAP HANA platform changes the cost equation
through simplification. It can help save costs on
hardware and software, as well as reduce labor
required for administration and development needs.
The SAP HANA platform supports various use
cases. Based on a composite cost model, the SAP
HANA platform can save an organization 37%
across hardware, software, and labor costs,
depending on various factors.
70%+ on software
15%+ on hardware
20%+ on administration and
development labor
In this case study, we project the reduction in total
cost of ownership for an organization using the
SAP HANA platform in conjunction with SAP BW,
SAP ERP, and a custom-developed application. The
cost saving projection is derived based on actual
customer interviews conducted independently by
Forrester.
4. 4
FIGURE 1
Framework Summary
Year 1 Year 2 Year 3 Year 4
SAP BW Moved to the
SAP HANA
platform; older
system retired
after 6 months
Savings calculated with avoided software, hardware, and labor
costs
SAP ERP Launched on the
SAP HANA
platform; run in
parallel with
older system
Older system retired; savings
calculated with avoided software,
hardware, and labor costs
Custom
application
Developed and
launched on the
SAP HANA
platform in place
of alternate
solution
Savings
calculated with
avoided
software,
hardware, and
labor costs
Source: Forrester Research, Inc.
Prior to the SAP HANA platform, customers were using traditional database platforms for their applications (both SAP and
non-SAP), incurring costs associated with required hardware and software for processing and data storage, as well as the
labor required for development and administration. By transitioning these applications to the SAP HANA platform, Forrester
projects that customers are able to reduce the hardware and software required for these applications, as well as reduce the
efforts for administration and development resources. This is due to the way that the SAP HANA software eliminates or
reduces the need for a variety of associated software and hardware, and adds efficiency to the development and system
maintenance processes.
Many of the customers we interviewed stressed that the SAP HANA platform also provided significant benefit to the
business. However, for the purposes of this analysis, we focus entirely on the IT impact.
5. 5
Our interviews with four existing customers, survey of 25 additional customers, and subsequent financial analysis found that
a composite organization based on these interviewed organizations could expect to experience the risk-adjusted costs and
costs savings shown in Figures 2 and 3 when utilizing the SAP HANA platform for this purpose.
1
(See Appendix A for a
description of the composite organization.) As demonstrated by the total cost savings with SAP HANA software, there were
significant reductions in the hardware, software, and labor required for each application.
FIGURE 2
Financial Summary Showing Three-Year Results
TCO savings
across modeled
scenarios:
37%
Total cost with
the SAP HANA
platform:
$19,663,124
Total cost
without the SAP
HANA platform:
$31,324,017
Net cost savings
with the SAP
HANA platform:
$11,660,893
Source: Forrester Research, Inc.
FIGURE 3
SAP HANA Platform TCO Summary
Source: Forrester Research, Inc.
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Baseline SAP HANA Platform
Custom App
SAP ERP
SAP BW
6. 6
› Savings. Based on the composite total cost model, the sample organization experienced the following risk-adjusted
benefits (that represent those experienced and projected by the interviewed companies):
• Reduced hardware cost (simpler data footprint/simpler landscape/simpler setup). Moving to the SAP HANA
platform allows customers to reduce the volume of servers and storage required, due to the data compression, as
well as efficiencies gained due to the functionality of SAP HANA software.
• Lower software costs (simpler data footprint/simpler landscape/simpler setup). The SAP HANA platform also
allows for a reduction and elimination in many of the software products such as ETL, data replication, management,
and other middleware software. Additionally, the SAP HANA platform includes advanced analytics capabilities such
as text, geospatial, and predictive analytics as part of its platform offering without additional license.
• Faster development time (simpler application development/simpler user experience). All of the interviewees
cited a faster, more efficient application development process through automation and minimizing complexity, which
allowed for a reduction in resource time.
• Increased productivity for administrators (simpler processing and operations). Due to the simplification of the
environment with the SAP HANA platform, customers are able to reduce the amount of administration time required
to tune, optimize, and manage databases and servers.
› Costs. The sample organization experienced the following risk-adjusted costs:
• Appliance delivery cost. In this model, we have included the appliance delivery as the hardware for the
deployment. However, we note that SAP also offers the tailored data center integration delivery approach for the
SAP HANA platform, allowing customers to utilize enterprise hardware and potentially offering additional cost
savings.
• Software licensing costs. This includes the software cost associated with the SAP HANA platform, as well as the
costs of the application software. We include initial costs as well as ongoing maintenance.
• Development cost. This cost category includes the resource cost for development for the applications moved to the
SAP HANA Platform.
• Administration cost. This cost category includes the resource cost for administration for the applications moved to
the SAP HANA Platform.
Disclosures
The reader should be aware of the following:
› The study is commissioned by SAP and delivered by Forrester Consulting. It is not meant to be used as a competitive
analysis.
› Forrester makes no assumptions as to the potential cost savings that other organizations will receive. Forrester strongly
advises that readers use their own estimates within the framework provided in the report to determine the appropriateness
of an investment in the SAP HANA platform.
› SAP reviewed and provided feedback to Forrester, but Forrester maintains editorial control over the study and its findings
and does not accept changes to the study that contradict Forrester's findings or obscure the meaning of the study.
› SAP provided the customer names for the interviews but did not participate in the interviews.
7. 7
TEI Framework And Methodology
INTRODUCTION
From the information provided in the interviews, Forrester has constructed a Total Economic Impact™ (TEI) framework for
those organizations considering implementing SAP HANA software. The objective of the framework is to identify the cost,
benefit, flexibility, and risk factors that affect the investment decision.
APPROACH AND METHODOLOGY
Forrester took a multistep approach to evaluate the impact that the SAP HANA platform can have on an organization (see
Figure 4). Specifically, we:
› Interviewed SAP marketing, sales, engineering, and information technology personnel, along with Forrester analysts, to
gather data relative to the SAP HANA platform and its marketplace.
› Interviewed four organizations currently using the SAP HANA platform to obtain data with respect to costs, benefits, and
risks and conducted a survey of 25 additional SAP HANA platform users.
› Designed a composite organization based on characteristics of the interviewed organizations (see Appendix A).
› Constructed a financial model representative of the interviews using the TEI methodology. The financial model is
populated with the cost data obtained from the interviews as applied to the composite organization, as well as Forrester
projections based on industry standards.
› Risk adjustment is a key part of the TEI methodology. While the interviewed organizations provided some of the cost
estimates, some categories included a broad range of responses or had a number of outside forces that might have
affected the results.
Forrester employed three fundamental elements of TEI in modeling the SAP HANA platform’s service: costs, flexibility, and
risks.
Given the increasing sophistication that enterprises have regarding ROI analyses related to IT investments, Forrester’s TEI
methodology serves to provide a complete picture of the total economic impact of purchase decisions. Please see Appendix
B for additional information on the TEI methodology.
FIGURE 4
TEI Approach
Source: Forrester Research, Inc.
Perform due
diligence
Conduct
customer
interviews
Design
composite
organization
Construct
financial
model using
TEI framework
Write case
study
8. 8
Analysis
COMPOSITE ORGANIZATION
For this study, Forrester conducted a total of four interviews with representatives from the following companies, which are
SAP customers based globally:
› An electricity supply company for a large region of the western United States
› An American global aerospace, defense, security, and advanced technology company
› An Italian multinational manufacturing company with over 20 production sites and a network of 10,000 distributors and
retailers
› A German regional energy service provider for electricity and gas
All of the interviewees, and the majority of the survey respondents, were long-term SAP customers migrating from other
databases to the SAP HANA platform. IT-based goals for the move included simpler data management, simpler IT
operations, and simplified code to write and manage, leading to improved business processes supported by IT. Based on the
interviews, Forrester constructed a cost framework, a composite company, and an associated TCO analysis that illustrates
the areas financially affected. The composite organization that Forrester synthesized from these results represents an
organization with the following characteristics:
› A US-based manufacturing company
› 40,000 employees
› Prior to implementing the SAP HANA platform, the Company
has:
• 40 TB SAP BW database system
• 10 TB SAP ERP (SAP Business Suite)
• 2 TB custom (homegrown) application
The Company uses the SAP HANA platform as a replacement rather than refreshing the hardware for existing database
platforms. For the purposes of this analysis, we assume that the Company begins by moving its SAP BW implementation
onto the SAP HANA platform, followed by ERP in the next year, and then a custom application in the following year. The
custom application is developed on the SAP HANA platform, instead of using an alternate database platform. This financial
analysis begins with the SAP BW transition.
INTERVIEW HIGHLIGHTS
In order to illustrate the potential cost savings that companies may realize by utilizing the SAP HANA platform to eliminate
intermediate layers of the stack and reduce complexity, Forrester has modeled a scenario for the composite organization
representing a move to SAP BW powered by SAP HANA in the first year, SAP ERP in the second year, and a custom
application in the third year. In each of these scenarios, we model the SAP HANA platform deployment initially, followed by
the retirement of the existing deployment in the following six months to a year. This follows the behavior of the interviewed
customers, many of whom choose to implement the SAP HANA platform initially as a sidecar, before considering a
replacement of their existing systems.
The customers we interviewed all cited the business benefits of the SAP HANA platform as the initial draw, but identified the
potential for TCO savings as an additional driver for the move to the SAP HANA platform. Although none had completed a
move to the SAP HANA platform across their applications, most of the interviewees planned to gradually increase and
“Over 10 years, we would spend
33% less with the SAP HANA
platform.”
~SAP HANA platform user
9. 9
expand their use of SAP HANA software as opportunity arose.
Therefore, in this model, we have spaced out the deployment of
each application over a four-year analysis, allowing ample time to
implement and bring each SAP HANA platform deployment up to
speed before retiring older platforms.
The interviews revealed that:
› The SAP HANA platform was initially brought in for business
needs. All of the interviewees spoke about the business
advantages of the speed of SAP HANA software and reporting
capabilities, and described the ways in which this had
transformed the way decisions were made.
› Long term, the SAP HANA platform offers a compelling
opportunity to reduce IT spend. Although initially the SAP HANA platform was deployed as a sidecar to the current
environment, all of the interviewees projected a move to the SAP HANA platform as they refreshed the hardware for their
applications, and anticipated that this would ultimately lead to significant hardware and software cost savings.
› Data footprint reduction is key. All of the interviewees cited large data compression ratio with the SAP HANA platform,
ranging from 4 to 10 times. One interviewee stated, “Our data growth on BW has been 34% per year, but we’ve cut down
to 12% with the SAP HANA platform.” Additionally, data compression is only one of many factors that leads to overall data
footprint reduction. Forrester’s interviews with customers and app development teams have revealed these additional
major factors: a simpler data model, the elimination of aggregates/indices, the elimination of redundant copies of data in
SAP ERP and SAP BW, and columnar/dictionary-based data compression, all of which contribute to the data footprint
reduction.
› The SAP HANA platform provides increased efficiency for development and administration. Interviewees described
the SAP HANA software as “simple to use” with some initial learning curve but cited productivity savings of 20% to 40% on
both development and administration. Specifically, one mentioned, “You reduce the amount of development you need to
create reports and analysis. You’re not rematerializing into a data warehouse — you can reach into the source system.”
› Software license costs vary widely. The majority of customers surveyed used full use licenses versus runtime licenses
for their database software. This study has calculated savings based on runtime software license cost to better compare
similar costs between the SAP HANA platform and potential alternatives. Using full use licenses will raise the software cost
associated with the scenarios not based on the SAP HANA platform for SAP BW and SAP ERP significantly; we
encourage the reader to consider which type of license makes sense in the appropriate environment.
“The overhead is hugely
reduced through automation,
integrated appliance, and
common data platform.”
~SAP HANA platform user
10. 10
COST ANALYSIS
We now focus on the details of the comparative cost calculation, examining each of the three scenarios in detail. There are
several assumptions underlying all of these calculations, as shown in the following tables. For the hardware calculations, we
make certain assumptions both for the scenarios based and not based on the SAP HANA platform in order to project the
costs for each. These include estimating the hardware needs for both, in terms of processing and storage, and then
assigning cost based on the number of sockets and volume of storage (for machines not running SAP HANA software) and
the number of appliances required (for the scenarios based on the SAP HANA platform). For software, we estimate prices for
database, ETL, management, and data services software based again on the number of sockets, with variations for
production and nonproduction licenses. Forrester notes that the SAP HANA platform also includes capabilities such as
OLAP and advanced analytics, which can contribute to a lower TCO, as these features might require additional licenses with
alternate solutions. However, for the purposes of this analysis, we have not included this category of cost avoidance, as we
did not have sufficient data about the comparative requirements. However, in the case of a custom application developed on
the SAP HANA platform, we do include an estimate of the comparative cost for additional analytic capability, as it is
particularly relevant in this scenario.
For both hardware and software, we include ongoing maintenance at a rate of 22%, based on industry average. For labor
costs, we use a fully loaded rate for administrators and developers, as listed below. For implementation costs, we include
both an internal and external (services) cost at the rates shown. The exact numbers for each scenario are detailed in the
following sections; however, these assumptions are used in each calculation.
For the hardware assumptions, shown in Table 1, we list the average cost of sockets and storage, both production and non-
production. In each of the three scenarios, we then estimate the number of servers and associated sockets required for that
scenario, without using SAP HANA software, and use these guidelines to estimate the cost of these machines. We then
estimate the number of appliances required for the same scenario, using the compression factor listed below, and project the
total cost of the appliances required. For all hardware, we use an ongoing maintenance rate of 22%. For each scenario, we
detail the exact projections made, using these metrics.
TABLE 1
Cost Analysis Assumptions — Hardware
Description Value
Average cost per CPU (baseline, production machine) $25,000
Average cost per CPU (baseline, nonproduction machine) $15,000
Average cost of storage (baseline, per TB, production) $8,000
Average cost of storage (baseline, per TB, nonproduction) $5,000
Number of cores per CPU 8
Appliance delivery (sample pricing for calculation purposes) $150,000 - $325,000
Data footprint reduction with the SAP HANA platform (conservative) 4x
Hardware maintenance rate 22%
Source: Forrester Research, Inc.
11. 11
For the software requirements, we estimate these separately for each scenario and describe them in the following sections;
however, for all software, we include a maintenance rate of 22%, as shown in Table 2. Much of the software pricing is per
core; as stated above, we use an assumption of 8 cores per CPU.
TABLE 2
Cost Analysis Assumptions — Software
Description Value
Software maintenance rate 22%
Source: Forrester Research, Inc.
In Table 3, we list the assumptions made for labor costs for administration and maintenance, development, and professional
services. In each scenario, we list the required resources and use these metrics to project the associated cost.
TABLE 3
Cost Analysis Assumptions — Labor
Description Value
Administrator salary (fully loaded) $150,000
Developer salary (fully loaded) $140,000
Professional services (hourly rate) $150
Source: Forrester Research, Inc.
Scenario 1: Business Warehouse
In order to project the cost savings attributable to moving SAP BW to the SAP HANA platform, we first project the likely costs
of moving SAP BW to the SAP HANA platform, and then forecast the costs avoided (which would be the costs incurred had
the former environment been refreshed). In projecting the costs of the SAP HANA platform, we assume that it is
implemented in the first year of the analysis, so that all initial hardware, software, implementation, and labor costs are
accrued upfront. Over the following three years of the analysis, we project the hardware and software maintenance costs, as
well as the ongoing development and administration costs associated with SAP BW powered by SAP HANA. These costs
are shown in Tables 4 (hardware), 5 (software), and 6 (labor).
Table 4 shows the hardware costs, which include the appliances’ (for the SAP HANA platform) and SAP BW servers’
production, high availability and disaster recovery, quality assurance, and development. Additionally, we include costs
associated with high and low end storage. As outlined here, SAP BW powered by SAP HANA configuration assumes 20% of
hot data will persist in in the SAP HANA database, with cold data kept in near line storage. There is no additional software
license for IQ as it is part of the 8% SAP HANA platform license. We include both the hardware for the SAP HANA database
configuration as well as the additional hardware required for the remainder of the data. Forrester notes that the SAP BW
powered by SAP HANA configuration is an upgrade over original SAP BW without the SAP HANA database configuration to
meet growing business needs.
12. 12
TABLE 4
SAP BW Powered By SAP HANA — Hardware Costs
Metric Details Calculation Year 1 Ongoing
Appliance delivery
for SAP HANA
platform
9x 1TB scale-out
appliances required
based on assumption
2TB compressed (40
TB) datasize; Primary:
4production; 1 standby:
high availability
Secondary: 4disaster
recover; test and
development
9*$150,000 $ 1,350,000 $297,000
SAP NetWeaver
Production: 4 CPU,
64GB memory, 5TB
high-end storage
Nonproduction: 2
CPU, 32GB memory,
5TB storage (2
needed)
(4*$25,000 + 5 *$8,000)+
((2*$15,000+
5*$5,000)*2)
$250,000 $55,000
Additional hardware
for cold (not stored
in SAP HANA
database) data
Production: 2 CPU, 1TB
memory, 8TB high end
storage; Nonproduction:
disaster recovery (same
as production);1
development and QA
machine: 2 CPU (at
$15,000), 8TB storage
(2*(2*$25,000+8*$8,000))+
(2*$15,000+8*$5,000) $298,000 $65,560
Total $1,898,000 $417,560
Source: Forrester Research, Inc.
For the software costs, we include the costs of the SAP HANA platform runtime license on SAP BW, which is based on the
total current maintenance base for SAP applications. This base is made up of the total cost of SAP applications in the
environment, which for this sample organization consists of the $2,000,000 SAP ERP license (more details on the SAP ERP
scenario are provided in the following section). This leads to an initial SAP HANA platform license cost of $160,000, with
ongoing maintenance of 22% in the following years. Forrester notes that the SAP BW license is included as part of the SAP
Business Suite/SAP ERP purchase and therefore has no additional cost.
TABLE 5
BW On HANA — Software Costs
Metric Details SAP Application Value Year 1 Ongoing
SAP HANA platform license
cost
Percentage of total
SAP application cost
$2,000,000 $160,000 $35,200
Source: Forrester Research, Inc.
For the implementation costs, we include the upfront costs associated with both internal and external labor, at 1,500 hours
each (the rates for each are in the assumptions). We also include the administration and development resource costs, which
demonstrate an increase in productivity over environment before implementing the SAP HANA platform. These costs
continue to go down over the first three years, as efficiency in using the SAP HANA platform increases within the
13. 13
organization. For administration, we include at the initial deployment, 4 FTEs; for development, we include 8 FTEs. This
represents an initial savings of 20% over the labor required in the scenario without the SAP HANA platform, which ramps up
to 25% and 30% in the subsequent years.
TABLE 6
SAP BW Powered By SAP HANA — Labor Costs
Metric Calculation Year 1 Year 2 Year 3 Year 4
Implementation (internal) $108,173
Implementation (professional
services)
$157,500
Administration resources $600,000 $562,500 $525,000 $525,000
Development resources $1,120,000 $1,050,000 $980,000 $980,000
Total $1,985,673 $1,612,500 $1,505,000 $1,505,000
Source: Forrester Research, Inc.
TABLE 7
SAP BW Powered By SAP HANA — Total Costs
Metric Year 1 Year 2 Year 3 Year 4 Total
Present
Value
Total hardware costs $1,898,000 $417,560 $417,560 $417,560 $3,150,680 $2,936,410
Total software costs $160,000 $35,200 $35,200 $35,200 $265,600 $247,537
Total implementation
costs
$265,673 $0 $0 $0 $265,673 $265,673
Total labor cost $1,720,000 $1,612,500 $1,505,000 $1,505,000 $6,342,500 $5,560,440
Total SAP BW powered
by SAP HANA cost
$4,043,673 $2,065,260 $1,957,760 $1,957,760 $10,024,453 $9,010,060
Source: Forrester Research, Inc.
In order to project the costs avoided without the SAP HANA platform, we consider what the costs would have been had the
Company not moved to SAP BW powered by SAP HANA. To do this, we include the costs of hardware, software, and labor
for administration and development. To project the hardware cost, we rely on the metrics listed in the assumptions above to
calculate a reasonable cost for the hardware required, as detailed in the table below. This hardware cost avoidance begins in
Year 1, as we assume that the Company moves to the SAP HANA platform instead of refreshing its current environment. We
note that the Company is able to eliminate both the database server (replaced by the SAP HANA platform) and the
operational reporting server, as it is no longer needed with the SAP HANA platform.
14. 14
TABLE 8
SAP BW Hardware Costs (Without the SAP HANA platform)
Metric Details Calculation Year 1 Ongoing
Database server
Production: 8 CPU, 64GB
memory, 50TB high-end
storage; nonproduction: 2
CPU, 32GB memory,
20TB storage (3 needed)
(8*$25,000+
50*$8,000)+
((2*$15,000+
20*$5,000)*3)
$990,000 $217,800
SAP NetWeaver
Production: 4 CPU,
64GB memory, 5TB
high-end storage
Nonproduction: 2
CPU, 32GB memory,
5TB storage (2
needed)
(4*$25,000 + 5 *$8,000)+
((2*$15,000+
5*$5,000)*2)
$250,000 $55,000
Operational
reporting server (40
TB)
Production: 4 CPU, 64GB
memory, 40TB high-end
storage
(4*$25,000)+(40*$8,000)
$420,000 $92,400
Total $1,660,000 $365,200
Source: Forrester Research, Inc.
For software, we consider the required software, including alternate database software, as well as ETL software. However,
as these licenses are already purchased, we include only the cost associated with ongoing maintenance (22% of license
cost). In the first year, we include 50% of the cost avoidance, assuming that for the first six months, the old software is still in
use as the SAP HANA platform is deployed and ramped up (so these licenses are retired after the initial six months). The
database software is priced as a percentage of the SAP ERP license cost, the same as the the SAP HANA platform
licenses; these are both prices for runtime licenses. Forrester notes that many customers choose full licenses for their
database software, which would raise the cost of software in this alternate scenario. The details of these costs are shown in
Table 9 below. As in the the SAP HANA platform scenario, the SAP BW license is included with the SAP ERP purchase, so
there is no incremental license cost associated with BW.
TABLE 9
SAP BW Software Costs (Without the SAP HANA platform)
Metric Calculation Year 1 Ongoing
Database license cost
percentage of SAP ERP license (same as the
SAP HANA platform scenario); runtime license
$160,000 $35,200
ETL license cost
$11,500 per production core;
$5,750 per nonproduction core
$212,520 $425,040
Total
$372,520 $460,240
Source: Forrester Research, Inc.
We also include costs associated with ongoing administration and development, as shown in the table below. Similar to the
software licenses, we assume that for the first six months, these resources are still needed before the move to the SAP
HANA platform is complete, so we include this cost avoidance at 50% of the annual total saved in later years. For
administration, we include 5 FTEs; for administration, we include 10 FTEs.
15. 15
TABLE 10
SAP BW Labor Costs (Without the SAP HANA platform)
Metric Calculation Year 1 Year 2 Year 3 Year 4
Administration resources
$375,000 $750,000 $750,000 $750,000
Development resources
$700,000 $1,400,000 $1,400,000 $1,400,000
Total
$1,075,000 $2,150,000 $2,150,000 $2,150,000
Source: Forrester Research, Inc.
TABLE 11
SAP BW Without the SAP HANA platform — Total Cost Avoidance
Metric Year 1 Year 2 Year 3 Year 4 Total
Present
Value
Total hardware costs $1,660,000 $365,200 $365,200 $365,200 $2,755,600 $2,568,198
Total software costs $372,520 $460,240 $460,240 $460,240 $1,753,240 $1,517,069
Total implementation
costs (N/A)
Total labor cost $1,075,000 $2,150,000 $2,150,000 $2,150,000 $7,525,000 $6,421,732
Total BW cost avoidance $3,107,520 $2,975,440 $2,975,440 $2,975,440 $12,033,840 $10,506,999
Source: Forrester Research, Inc.
The net difference between the two scenarios is shown in Figure 5 and Table 12, below.
16. 16
FIGURE 5
SAP BW TCO Summary
Source: Forrester Research, Inc.
TABLE 12
Net SAP BW Savings With SAP HANA platform
Metric Year 1 Year 2 Year 3 Year 4 Total
Present
Value
Total hardware costs ($238,000) ($52,360) ($52,360) ($52,360) ($395,080) ($368,212)
Total software costs $212,520 $425,040 $425,040 $425,040 $1,487,640 $1,269,532
Total implementation
costs (N/A)
($265,673) $0 $0 $0 ($265,673) ($265,673)
Total labor cost ($645,000) $537,500 $645,000 $645,000 $1,182,500 $861,292
Total net BW savings
with HANA
($936,153) $910,180 $1,017,680 $1,017,680 $2,009,387 $1,496,939
Source: Forrester Research, Inc.
Scenario 2: ERP
Similar to our projections for moving SAP BW onto the SAP HANA platform, we have developed a model to forecast the
costs of moving SAP ERP to the SAP HANA platform, as compared with remaining on an alternate database platform. In this
case, we project that the Company moves its SAP ERP instance to the SAP HANA platform in the second year of the
analysis, once the SAP BW move is complete, and retires the existing environment in the following year (Year 3 of the
analysis). Below, we show the costs of moving the existing SAP ERP to the SAP HANA platform. As before, we show the
hardware, software, and labor costs.
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
SAP BW Baseline SAP BW powered by SAP
HANA
Labor
Implementation
Software
Hardware
17. 17
Table 13 shows the hardware costs associated with moving SAP ERP onto the SAP HANA platform, for the appliances,
application servers, and additional storage.
TABLE 13
SAP ERP Powered By SAP HANA — Hardware Costs
Metric Details Calculation Year 1 Ongoing
Appliance
delivery
3x 4TB (4TB sufficient
as not that high
analytical workload)
appliances required
based on assumption
2,5TB compressed
(10TB) database size;
Primary: 1 production;
1-standby: high
availability; secondary:
1 disaster recovery; test
and development
3*$325,000
$975,000 $214,500
SAP
NetWeaver
Production: 4 CPU,
64GB memory, 5TB
high-end storage
Nonproduction: 2
CPU, 32GB Memory,
5TB storage (3
needed)
(4*$25,000 + 5 *$8,000)+
((2*$15,000+
5*$5,000)*3)
$305,000 $67,100
Total $1,280,000 $281,600
Source: Forrester Research, Inc.
For the software costs, we include the maintenance costs of the SAP ERP license, as well as the SAP HANA license cost.
We assume that the SAP ERP license cost has been acquired prior to the move to the SAP HANA platform, and therefore is
a sunk cost for the purposes of this analysis.
TABLE 14
SAP ERP Powered By SAP HANA — Software Costs
Metric Details SAP Application Value Year 1 Ongoing
SAP ERP powered by SAP
HANA software cost
Depends on the
numbers of users
$2,000,000*22%maintenance $440,000 $440,000
SAP HANA software
license cost
Derived as % of the
SAP application cost
$300,000 $66,000
Total $740,000 $506,000
Source: Forrester Research, Inc.
For the implementation costs, we include the upfront costs associated with both internal and external labor, at 1,500 hours
each (the rates for each are in the assumptions). We also include the administration and development resource costs, which
demonstrate an increase in productivity over the environment before implementing the SAP HANA platform. These costs
continue to go down over the first three years, as efficiency in using the SAP HANA platform increases within the
18. 18
organization. For administration, we include at the initial deployment, 4 FTEs; for administration, we include 4 FTEs. This
represents an initial savings of 20% over the labor required in the non-HANA scenario, which ramps up to 25% and 30% in
the subsequent years.
TABLE 15
SAP ERP Powered By SAP HANA — Labor Costs
Metric Calculation Year 1 Year 2 Year 3 Year 4
Implementation (internal) $108,173
Implementation (professional
services)
$157,500
Administration resources $600,000 $562,500 $525,000
Development resources $560,000 $525,000 $490,000
Total $1,425,673 $1,087,500 $1,015,000
Source: Forrester Research, Inc.
Table 16 shows the total costs associated with moving SAP ERP onto the SAP HANA platform.
TABLE 16
SAP ERP Powered By SAP HANA — Total Costs
Metric Year 1 Year 2 Year 3 Year 4 Total
Present
Value
Total hardware costs $0 $1,280,000 $281,600 $281,600 $1,843,200 $1,607,934
Total software costs $0 $740,000 $506,000 $506,000 $1,752,000 $1,471,074
Total implementation
costs $0 $265,673 $0 $0 $265,673 $241,521
Total labor cost $0 $1,160,000 $1,087,500 $1,015,000 $3,262,500 $2,715,890
Total SAP ERP
powered by SAP
HANA cost $0 $3,445,673 $1,875,100 $1,802,600 $7,123,373 $6,036,420
Source: Forrester Research, Inc.
As with SAP BW powered by SAP HANA, in order to project the costs avoided without the SAP HANA platform, we consider
what the costs would have been had the Company not moved SAP ERP to the SAP HANA platform. To do this, we include
the costs of hardware, software, and labor for administration and development that are avoided, beginning in Year 3 of the
analysis (when the former SAP ERP environment is retired). To project the hardware cost, we rely on the metrics listed in the
assumptions above to calculate a reasonable cost for the hardware required, as detailed in the table below. This hardware
cost avoidance begins in Year 3, when we assume that the Company is able to avoid refreshing its current environment. We
note that the Company is able to eliminate both the database server (replaced by the SAP HANA database) and the
operational reporting server, as it is no longer needed with the SAP HANA platform.
19. 19
TABLE 17
SAP ERP Hardware Costs (Without the SAP HANA platform)
Metric Details Calculation Year 1 Ongoing
Database server (20
TB)
Production: 8 CPU,
128GB memory, 30TB
high-end storage;
nonproduction (2 needed):
4 CPU, 64GB memory,
20TB storage (6 needed)
((8*$25,000+
30*$8,000)*2)+
((4*$15,000+
20*$5,000)*6)
$1,840,000 $404,800
Application server
Production: 4 CPU,
64GB memory, 5TB
high-end storage;
nonproduction: 2 CPU,
32GB memory, 5TB
storage (3 needed)
(4*$25,000 + 5 *$8,000)+
((2*$15,000+
5*$5,000)*3)
$305,000 $67,100
Operational
reporting server (20
TB)
Production: 4 CPU, 64GB
memory, 20TB high-end
storage
(4*$25,000)+(20*$8,000)
$260,000 $92,400
Total $2,405,000 $564,300
Source: Forrester Research, Inc.
For software, we consider the required software, including alternate database software, ETL software, data services
software, and management tools. As in the previous scenario, we note that the database software is priced for full use
licenses, as compared with the SAP HANA platform prices for runtime licenses. However, as these licenses are already
purchased, we include only the cost associated with ongoing maintenance (22% of license cost), starting in the third year
when this software is no longer required. Similar to the previous use-case, the database software cost is calculated in the
same way that the SAP HANA software license is calculated, as a percentage of the SAP ERP license cost; this represents
the cost of a runtime license. Again, Forrester recognizes that many customers choose to purchase full licenses for their
database software, which would raise the software cost in the scenario without the SAP HANA platform.
TABLE 18
SAP ERP Software Costs (Without the SAP HANA platform)
Metric Calculation Ongoing
SAP ERP license cost Maintenance fee based on license cost of $2,000,000 $440,000
Database license cost Percentage of SAP ERP license; runtime license $66,000
ETL license cost
$11,500 per production core;
$5,750 per nonproduction core
$769,120
Data services license cost
$25,000 per production core;
$12,500 per nonproduction core
$1,672,000
Management tools license cost
$10,000 per production core;
$5,000 per nonproduction core
$668,800
Total $3,615,920
20. 20
Source: Forrester Research, Inc.
We also include costs associated with ongoing administration and development, as shown in the table below. For both
administration and development, we include 5 FTEs each.
TABLE 19
SAP ERP Labor Costs (Without the SAP HANA platform)
Metric Calculation Year 1 Year 2 Year 3 Year 4
Administration resources 5*$150,000 $750,000 $750,000
Development resources 5*$140,000 $700,000 $700,000
Total $1,450,000 $1,450,000
Source: Forrester Research, Inc.
The total costs eliminated, beginning in Year 3, are shown in Table 20.
TABLE 20
SAP ERP Without the SAP HANA platform — Total Cost Avoidance
Metric Year 1 Year 2 Year 3 Year 4 Total
Present
Value
Total hardware costs $0 $0 $2,405,000 $529,100 $2,934,100 $2,623,636
Total software costs $0 $0 $3,615,920 $3,615,920 $7,671,840 $6,606,142
Total implementation costs
(N/A)
Total labor cost $0 $0 $1,450,000 $1,450,000 $2,900,000 $2,516,529
Total SAP ERP cost
avoidance $0 $0
$7,470,920 $5,595,020 $13,505,940 $11,746,307
Source: Forrester Research, Inc.
The net difference between the two scenarios is shown in Figure 6 and Table 21, below.
21. 21
FIGURE 6
SAP ERP TCO Summary
Source: Forrester Research, Inc.
TABLE 21
Net SAP ERP Savings With the SAP HANA platform
Metric
Year
1 Year 2 Year 3 Year 4 Total Present Value
Total hardware
costs $0
($1,280,000) $2,123,400 $247,500 $1,090,900 $1,015,702
Total software
costs $0
($740,000) $3,109,920 $3,109,920 $5,919,840 $5,135,068
Total
implementation
costs (N/A) $0
($265,673) $0 $0 ($265,673) ($241,521)
Total labor
cost $0
($1,160,000) $362,500 $435,000 ($362,500) ($199,361)
Total net SAP
ERP savings
with the SAP
HANA platform $0
($3,445,673) $5,595,820 $3,792,420 $6,382,567 $5,709,888
Source: Forrester Research, Inc.
Scenario 3: Custom Application
For the final scenario, we project the costs of developing a custom application on the SAP HANA platform, as compared with
developing this application on the previous platform. Some of the interviewees mentioned this kind of application, which was
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
SAP ERP Baseline SAP ERP powered by SAP
HANA
Labor
Implementation
Software
Hardware
22. 22
extremely business specific. In both cases, the applications involved tracking and analyzing large amounts of data and using
the results to make decisions and improve customer service.
We begin with the hardware costs associated with using the SAP HANA platform for this work. As shown in Table 22, we
include two appliance deliveries at a cost of $150,000 each.
TABLE 22
Custom Application Developed On the SAP HANA Platform — Hardware Costs
Metric Details Calculation Year 1 Ongoing
Appliance delivery
2 x 1TB appliances
required based on
assumption 512GB
compressed database
size; disaster recovery
runs on primary; test
and development run on
secondary
2*$150,000
$300,000 $66,000
Source: Forrester Research, Inc.
For the software costs, we include only the HANA license cost, which is based on the amount of memory required. For this
custom application, approximately 1 TB of HANA is needed. This leads to a total software cost of $1,920,000, and an
ongoing cost of 22% of this, or $422,400, as shown in Table 23.
TABLE 23
Custom Application Developed On the SAP HANA platform — Software Costs
Metric Details Calculation Initial Ongoing
SAP HANA software license
cost
1TB required $1,920,000 $422,400
Source: Forrester Research, Inc.
For the implementation costs, we include the upfront costs associated with both internal and external labor, at 1,500 hours
each (the rates for each are in the assumptions). We also include the administration and development resource costs, which
demonstrate an increase in productivity over the environment without the SAP HANA platform . These costs continue to go
down over the first three years, as efficiency in using the HANA platform increases within the organization. For
administration, we include at the initial deployment, 4 FTEs; for administration, we include 4 FTEs, both of which are 20%
lower than the comparable labor totals without the SAP HANA platform.
TABLE 24
Custom Application Developed On the SAP HANA platform — Labor Costs
Metric Calculation Year 1 Year 2 Year 3 Year 4
Implementation (internal) $108,173
Implementation (professional
services)
$157,500
Administration resources $600,000 $562,500
23. 23
Development resources $560,000 $525,000
Total $1,425,673 $1,087,500
Source: Forrester Research, Inc.
Table 25 shows the total costs associated with developing the custom application on the SAP HANA platform.
TABLE 25
Custom Application Developed On the SAP HANA platform — Total Costs
Metric Year 1 Year 2 Year 3 Year 4 Total
Present
Value
Total hardware costs $0 $0 $300,000 $66,000 $366,000 $327,273
Total software costs $0 $0 $1,920,000 $422,400 $2,342,400 $2,094,545
Total implementation costs $0 $0 $265,673 $0 $265,673 $241,521
Total labor cost $0 $0 $1,160,000 $1,087,500 $2,247,500 $1,953,306
Total custom application on
SAP HANA platform cost $0 $0 $3,645,673 $1,575,900 $5,221,573 $4,616,645
Source: Forrester Research, Inc.
As in the prior two cases, in order to project the costs avoided with the SAP HANA platform, we consider what the costs
would have been had the Company developed this application on its prior platform. To do this, we include the costs of
hardware, software, and labor for administration and development that are avoided, beginning in Year 3 of the analysis
(when the application is developed). To project the hardware cost, we rely on the metrics listed in the assumptions above to
calculate a reasonable cost for the hardware required, as detailed in the table below. This hardware cost avoidance begins in
Year 3, when we assume that the Company is able to avoid acquiring this hardware.
TABLE 26
Custom Application Hardware (Without the SAP HANA platform)
Metric Details Calculation Year 3 Year 4
Database server (2
TB data)
Production: 4 CPU,
128GB memory, 6TB
high-end storage;
nonproduction: 2 CPU,
64GB memory, 8TB
storage (2 needed)
(4*$25,000+
20*$8,000)+
((2*$15,000+
20*$5,000)*2)
$288,000 $63,360
Application server
Production: 2 CPU,
64GB memory, 5TB
high-end storage;
nonproduction: 2 CPU,
32GB memory, 5TB
storage (2 needed)
(2*$25,000 + 5 *$8,000)+
((2*$15,000+
5*$5,000)*2)
$200,000 $44,000
Total $488,000 $107,360
Source: Forrester Research, Inc.
24. 24
For software, we consider the required software for developing this application. These costs start in the third year when this
software was not required (since the application is developed on the SAP HANA platform, these costs are never incurred).
Therefore, in Year 3, we include the initial license cost, and in Year 4, the ongoing maintenance cost. To estimate the
database cost, we use the license rate of $25,000 per core for production and $12,500 for nonproduction, as in the previous
scenarios; however, we then add an additional $25,000 per core ($12,500 for nonproduction) for analytics and text
capabilities. This provides a more complete comparison to the SAP HANA software license, which includes these
capabilities. Forrester notes that these costs can vary widely based on the pricing and discounts offered by various vendors;
we use these values as representative but encourage the reader to consider the most realistic pricing for this technology,
based on the intended use and existing environment.
TABLE 27
Custom Application Software (Without the SAP HANA platform)
Metric Calculation Year 3 Year 4
Homegrown app written in
Java/.NET
No incremental cost
Database software
license cost
$50,000 per production core;
$25,000 per non-production core
$5,600,000 $1,232,000
Application Server
software:
WebLogic/WebSphere
Estimated as 15% of database cost
$840,000 $184,800
Total $6,440,000 $1,416,800
Source: Forrester Research, Inc.
We also include costs associated with ongoing administration and development, as shown in the table below. For both
administration and development, we include 5 FTEs each.
TABLE 28
Custom Application Labor (Without the SAP HANA platform)
Metric Calculation Year 1 Year 2 Year 3 Year 4
Administration resources $750,000 $750,000
Development resources $700,000 $700,000
Total $1,450,000 $1,450,000
Source: Forrester Research, Inc.
The total costs eliminated, beginning in year 3, are shown in Table 29.
25. 25
TABLE 29
Custom Application — Total Cost Avoidance
Metric Year 1 Year 2 Year 3 Year 4 Total
Present
Value
Total hardware costs $0 $0 $488,000 $107,360 $595,360 $532,364
Total software costs $0 $0 $5,520,000 $1,214,400 $6,734,400 $6,021,818
Total implementation costs
(N/A)
Total labor cost $0 $0 $1,450,000 $1,450,000 $2,900,000 $2,516,529
Total custom application cost
avoidance $0 $0
$7,458,000 $2,771,760 $10,229,760 $9,070,711
Source: Forrester Research, Inc.
The net difference between the two scenarios is shown in Figure 7 and Table 30, below.
FIGURE 7
Custom Application TCO Summary
Source: Forrester Research, Inc.
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
$10,000,000
Custom Application
Baseline
Custom Application on
the SAP HANA platform
Labor
Implementation
Software
Hardware
26. 26
TABLE 30
Net Custom Application Savings With the SAP HANA platform
Metric Year 1 Year 2 Year 3 Year 4 Total
Present
Value
Total hardware costs $0 $0 $300,000 $66,000 $366,000 $327,273
Total software costs $0 $0 $1,920,000 $422,400 $2,342,400 $2,094,545
Total implementation
costs (N/A) $0 $0
$265,673 $0 $265,673 $241,521
Total labor cost $0 $0 $1,160,000 $1,087,500 $2,247,500 $1,953,306
Total net custom
application savings with
the SAP HANA platform $0 $0
$3,645,673 $1,575,900 $5,221,573 $4,616,645
Source: Forrester Research, Inc.
FLEXIBILITY
Flexibility, as defined by TEI, represents an investment in additional capacity or capability that could be turned into business
benefit for some future additional investment. This provides an organization with the “right” or the ability to engage in future
initiatives but not the obligation to do so. There are multiple scenarios in which a customer might choose to implement the
SAP HANA platform and later realize additional uses and business opportunities. Flexibility would also be quantified when
evaluated as part of a specific project (described in more detail in Appendix B).
For the purposes of this study, we have not quantified the impact of flexibility, as it would add additional complexity to this
already lengthy projection. However, all of the interviewees cited the future value of SAP HANA software as an underlying
platform, and planned to expand their use of the SAP HANA platform to other workloads including transactional and custom
applications. The interviewees agreed that the potential benefit was exponential, as they were able to reap benefits in terms
of efficiency gains and hardware and software savings across various applications once they were on a common platform.
RISKS
Forrester defines two types of risk associated with this analysis: “implementation risk” and “impact risk.” “Implementation risk”
is the risk that a proposed investment in the SAP HANA platform may deviate from the original or expected requirements,
resulting in higher costs than anticipated. “Impact risk” refers to the risk that the business or technology needs of the
organization may not be met by the investment in the SAP HANA platform, resulting in lower overall total benefits. The
greater the uncertainty, the wider the potential range of outcomes for cost and benefit estimates.
Quantitatively capturing investment risk and impact risk by directly adjusting the financial estimates results provides more
meaningful and accurate estimates and a more accurate projection of the ROI. In general, risks affect costs by raising the
original estimates, and they affect benefits by reducing the original estimates. The risk-adjusted numbers should be taken as
“realistic” expectations since they represent the expected values considering risk.
The following impact risk (that affects cost savings) is identified as part of the analysis:
› In order to realize this type of TCO savings, the costs associated with the environment before implementing the SAP
HANA platform must either be eliminated or redeployed to recapture the value. We have projected savings associated with
avoiding refreshed hardware, eliminating software and reducing labor. However, there is a risk that software licenses will
not be terminated or that developers or administrators may not efficiently use the time gained.
27. 27
The following implementation risk (that affects costs) is identified as part of this analysis:
› The projected costs associated with the SAP HANA platform and the complementary hardware, software, and labor needs,
are made based on estimated data and industry metrics. These may vary widely in any particular deployment.
The risk factors are not quantified in the financial framework due to the complexity of the model. However, Forrester
recommends that readers apply risk adjustments (to raise costs and lower cost savings) when applying the model to their
own situation. For more information about risk calculations, see Appendix B.
28. 28
Financial Summary
The following three tables show the total cost savings of all three use cases listed above, as well as present values (PVs)
discounted at 10%.
TABLE 31
Total Costs Incurred With HANA
Benefit Year 1 Year 2 Year 3 Year 4 Total
Present
Value
Total SAP BW powered
by SAP HANA cost
$4,043,673 $2,065,260 $1,957,760 $1,957,760 $10,024,453 $9,010,060
Total SAP ERP
powered by SAP HANA
Cost
$0 $3,445,673 $1,875,100 $1,802,600 $7,123,373 $6,036,420
Total custom app on
SAP HANA platform
cost
$0 $0 $3,645,673 $1,575,900 $5,221,573 $4,616,645
Total SAP HANA
platform cost
$4,043,673 $5,510,933 $7,478,533 $5,336,260 $22,369,399 $19,663,124
Source: Forrester Research, Inc.
TABLE 32
Total Costs Avoided
Benefit Year 1 Year 2 Year 3 Year 4 Total
Present
Value
Total SAP BW cost $3,107,520 $2,975,440 $2,975,440 $2,975,440 $12,033,840 $10,506,999
Total SAP ERP cost $0 $0 $7,470,920 $5,595,020 $13,505,940 $11,746,307
Total custom
application cost
$0 $0 $7,458,000 $2,771,760 $10,229,760 $9,070,711
Total baseline cost $3,107,520 $2,975,440 $17,904,360 $11,342,220 $35,769,540 $31,324,017
Source: Forrester Research, Inc.
29. 29
TABLE 33
Net Savings With the SAP HANA Platform
Benefit Year 1 Year 2 Year 3 Year 4 Total
Present
Value
Percent
savings
with
HANA
SAP BW
powered by SAP
HANA - TCO
savings
($936,153) $910,180 $1,017,680 $1,017,680 $2,009,387 $1,496,939 14%
SAP ERP
powered by SAP
HANA – TCO
savings
$0 ($3,445,673) $5,595,820 $3,792,420 $6,382,567 $5,709,888 49%
Custom app
TCO savings
with the SAP
HANA platform
$0 $0 $3,812,327 $1,195,860 $5,008,187 $4,454,066 49%
Total ($936,153) ($2,535,493) $10,425,827 $6,005,960 $13,400,141 $11,660,893 37%
Source: Forrester Research, Inc.
30. 30
The SAP HANA Platform: Overview
The following information is provided by SAP. Forrester has not validated any claims and does not endorse SAP or its
offerings.
The SAP HANA platform is a completely reimagined platform for real-time business. It converges database and application
platform capabilities in-memory to transform transactions, analytics, text analysis, predictive, and spatial processing so
businesses can operate in real time.
This new architecture enables converged OLTP and OLAP data processing within a single in-memory column-based data
store with ACID compliance, while eliminating data redundancy and latency. By providing advanced capabilities, such as
predictive text analytics, spatial processing, data and query federation, on the same architecture, it further simplifies
application development and processing across big data sources and structures. This makes the SAP HANA platform the
most suitable platform for building and deploying next-generation, real-time applications and analytics.
31. 31
Appendix A: Composite Organization Description
Based on the interviews, Forrester constructed a TEI framework, a composite company, and an associated ROI analysis that
illustrates the areas financially affected. The composite organization that Forrester synthesized from these results represents
an organization with the following characteristics:
› A US-based manufacturing company
› 40,000 employees
› Before deploying the SAP HANA platform, the Company has:
• 40 TB SAP BW database system
• 10 TB SAP ERP (SAP Business Suite)
• 2 TB custom (homegrown) application
The Company uses the SAP HANA platform as a replacement rather than refreshing the hardware for existing database
platforms. For the purposes of this analysis, we assume that the Company begins by moving their SAP BW implementation
onto the SAP HANA platform, followed by SAP ERP in the next year, and then a custom application in the following year.
This financial analysis begins with the SAP BW transition.
32. 32
Appendix B: Total Economic Impact™ Overview
Total Economic Impact is a methodology developed by Forrester Research that enhances a company’s technology decision-
making processes and assists vendors in communicating the value proposition of their products and services to clients. The
TEI methodology helps companies demonstrate, justify, and realize the tangible value of IT initiatives to both senior
management and other key business stakeholders.
The TEI methodology consists of four components to evaluate investment value: benefits, costs, flexibility, and risks.
BENEFITS
Benefits represent the value delivered to the user organization — IT and/or business units — by the proposed product or
project. Often, product or project justification exercises focus just on IT cost and cost reduction, leaving little room to analyze
the effect of the technology on the entire organization. The TEI methodology and the resulting financial model place equal
weight on the measure of benefits and the measure of costs, allowing for a full examination of the effect of the technology on
the entire organization. Calculation of benefit estimates involves a clear dialogue with the user organization to understand
the specific value that is created. In addition, Forrester also requires that there be a clear line of accountability established
between the measurement and justification of benefit estimates after the project has been completed. This ensures that
benefit estimates tie back directly to the bottom line.
COSTS
Costs represent the investment necessary to capture the value, or benefits, of the proposed project. IT or the business units
may incur costs in the form of fully burdened labor, subcontractors, or materials. Costs consider all the investments and
expenses necessary to deliver the proposed value. In addition, the cost category within TEI captures any incremental costs
over the existing environment for ongoing costs associated with the solution. All costs must be tied to the benefits that are
created.
FLEXIBILITY
Within the TEI methodology, direct benefits represent one part of the investment value. While direct benefits can typically be
the primary way to justify a project, Forrester believes that organizations should be able to measure the strategic value of an
investment. Flexibility represents the value that can be obtained for some future additional investment building on top of the
initial investment already made. For instance, an investment in an enterprisewide upgrade of an office productivity suite can
potentially increase standardization (to increase efficiency) and reduce licensing costs. However, an embedded collaboration
feature may translate to greater worker productivity if activated. The collaboration can only be used with additional
investment in training at some future point. However, having the ability to capture that benefit has a PV that can be
estimated. The flexibility component of TEI captures that value.
RISKS
Risks measure the uncertainty of benefit and cost estimates contained within the investment. Uncertainty is measured in two
ways: 1) the likelihood that the cost and benefit estimates will meet the original projections, and 2) the likelihood that the
estimates will be measured and tracked over time. TEI applies a probability density function known as “triangular distribution”
to the values entered. At a minimum, three values are calculated to estimate the underlying range around each cost and
benefit.
33. 33
Appendix C: Glossary
Discount rate: The interest rate used in cash flow analysis to take into account the time value of money. Companies set
their own a discount rate based on their business and investment environment. Forrester assumes a yearly discount rate of
10% for this analysis. Organizations typically use discount rates between 8% and 16% based on their current environment.
Readers are urged to consult their respective organizations to determine the most appropriate discount rate to use in their
own environment.
Net present value (NPV): The present or current value of (discounted) future net cash flows given an interest rate (the
discount rate). A positive project NPV normally indicates that the investment should be made, unless other projects have
higher NPVs.
Present value (PV): The present or current value of (discounted) cost and benefit estimates given at an interest rate (the
discount rate). The PV of costs and benefits feed into the total NPV of cash flows.
Payback period: The breakeven point for an investment. This is the point in time at which net benefits (benefits minus costs)
equal initial investment or cost.
Return on investment (ROI): A measure of a project’s expected return in percentage terms. ROI is calculated by dividing
net benefits (benefits minus costs) by costs.
A NOTE ON CASH FLOW TABLES
The following is a note on the cash flow tables used in this study (see the example table below). The initial investment
column contains costs incurred at “time 0” or at the beginning of Year 1. Those costs are not discounted. All other cash flows
in years 1 through 3 are discounted using the discount rate at the end of the year. PV calculations are calculated for each
total cost and benefit estimate. NPV calculations are not calculated until the summary tables are the sum of the initial
investment and the discounted cash flows in each year.
TABLE [EXAMPLE]
Example Table
Ref. Metric Calculation Year 1 Year 2 Year 3
Source: Forrester Research, Inc.
34. 34
Appendix D: Endnotes
1
Forrester risk-adjusts the summary financial metrics to take into account the potential uncertainty of the cost and benefit
estimates. For more information see the section on Risks.