In the recent years, HANA is the popular latest technology of SAP. This advanced in-memory database is made-up to accelerate applications’ speed, enhance the business processes as well as positively mark user experience is gaining interest from the customers. Before migrating to SAP HANA, what should be the things that you must know about it? What are those important considerations that can help you in migrating easily to SAP HANA environment? In order to cater to all these queries, here is a blog post. Give it a read!
HANA is Costly
The first thing about HANA migration usually is the cost and specifically license cost. So, this should be the major thing that you should ask before making an investment. It is costly. The main discussion must be of HANA advantages and does its migration worth ROI, however most of the customers does not get to the stage because investment is the biggest barrier that prevents migration or postpone decision to a particular point in the coming time. Following are some of the costs involved in migration to SAP HANA environment.
Currently, if you are running the SAP environment over Oracle database (DB2 or MS-SQL), then you are just paying yearly fees for the database, the purchasing cost of database had happened earlier.
Migration to SAP HANA means that you should buy new database – HANA. The Capex cost (initial database cost) would be 6-digit number in the US Dollars. It could proceed to 7-digit number as per what you perform at the SAP environment, affecting size of HANA appliance. Sizing is a critical point of SAP HANA.
2. Annual Maintenance Fees –
The yearly license fees of HANA would be over 15 percent of what you are making to SAP for different SAP licenses. For instance, if you are paying 1 Million Dollars per year to SAP as maintenance fees, so you have paid around 150,000 dollars yearly in the maintenance fees of HANA.
3. Infrastructure Cost of HANA –
Predominant method for connecting SAP HANA Cloud over dedicated appliance; price of appliance is according to size purchased by you. In addition, HANA could be installed as TDI (Tailored Database Integration), here HANA has been installed on a large basis, existing servers in the data center, instead of separate appliance. Within both the cases, HANA needs noteworthy hardware resources in order to run properly. As per the HANA license’ size, the overall hardware cost varies.
4. HANA Sizing –
Along with HANA, on every HANA appliance, you will be paying on every gigabyte. The cost on every GB applies on HANA license as well as to hardware appliance. Lets’ suppose if you are running ECC over 1TB appliance, so you have to buy HANA license for the same. It means size of the SAP landscape as well as how the company utilizes SAP on regular basis directly influence cost of HANA.
As you have paid the HANA fees according to the size, the HANA appliance’ correct sizing is a must. There is no need to purchase HANA appliance, which is big in size or pay extra for the ones you have not used. In addition, you surely do not wish to purchase small HANA appliance that is not sufficient for your requirements.
5. HANA Migration –
An additional cost that need to be considered is migration project’ cost. The in-house experts of SAP do not have an experience of performing migration projects. In order to do so, you have to hire services of expert company, where there is an experience of implementing best practices of migration are done.
Pros of HANA: It is not only about speed
The HANA is not only about the speed and it is necessary to know. Also, HANA is all about new technology. Today, there are numerous SAP consulting forms that will help in this particular area. In case, you wish to leverage the new functionality is an excellent reason of moving to HANA.
Although, if you are the one who is just interested in the enhanced speed of SAP applications, so HANA might not necessarily meet your expectations. While a few people have recognized 20x factor to the HANA, regarding increased speed. Reality is probably you will not get the same. Speed of process, such as HR or ERP could not go 20x fast for many processes.
There is nothing wrong in saying that customer processes perform faster after HANA migration. For instance, there was improvement within process running time and that was from 15 hours – 8 hours. It is nearly 2x, even after that customer was not satisfied. Customers expect a lot from HANA. According to their thinking, process would run in around an hour means 10x instant and it did not happen.
HANA is specifically designed in order to run the regular SAP processes means processes that are implemented as well as running similarly as SAP designed. In these cases, a process could run faster, around x10. It is among the major reasons why SAP tells the customers in order to “move back to standard”; SAP wishes customers to utilize standard processes designed by SAP so that customers could gain numerous benefits through HANA.
However, reality is different. Nowadays, many SAP customers have customized the SAP applications via help of consulting firms. It is estimated that around 90% of customers modified process developed by SAP to make process best aligned with particular business needs. While these changes affect speed improvement with the HANA as the modified processes are non- optimized for HANA. As a result, migration to SAP HANA brings improvements from 1.5x-2x in the speed as well as customers does not seem satisfied with this performance improvement.
Last Final Words
After reading this, if you want to migrate to HANA only for performance, means making the SAP fast then it is not a justified reason for the migration. Depending on process, you have to pay a lot and there is a possibility that you might not get any improvement in the speed for which you are hoping. Therefore, it is recommended to plan the HANA migration carefully, considering the additional benefits and this is how you will not regret your decision of HANA migration.