TCO and ROI Analysis of SAP Landscapes using VMware …

TCO and ROI Analysis of SAP Landscapes using VMware Technology

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TCO and ROI Analysis of SAP Landscapes using VMware Technology

Table of Contents

Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Overview of the TCO/ROI Methodology. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

The Four TCO Categories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Downtime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Operation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Hardware and Software. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Direct and Indirect Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 TCO Calculation and Improvements for Virtualized SAP Systems. . . . . . . . . . . . . . . . . . . 11

TCO Calculation for SAP Data Center Server Hardware. . . . . . . . . . . . . . . . . . . . . . . . . . 11 Requirements and Sizing for New and Reused Hardware. . . . . . . . . . . . . . . . . . . . . . 11 Methodology for Calculation of Hardware Requirements. . . . . . . . . . . . . . . . . . . . . . 12 Productivity Improvement with New Hardware. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

SAP Data Center Storage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 TCO Calculation for Data Center Server Storage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Calculation of Storage Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Storage Productivity Improvement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

SAP Data Center Networking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 TCO Calculation for Data Center Networking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Methodology for the Calculation of Network Requirements . . . . . . . . . . . . . . . . . . . 15 Productivity Improvement due to Network Virtualization. . . . . . . . . . . . . . . . . . . . . . 15

Data Center Server Space. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Data Center Power and Cooling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

TCO Calculation for Data Center Power and Cooling. . . . . . . . . . . . . . . . . . . . . . . . . . 15 Calculation of Power and Cooling Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Productivity Improvement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 SAP Data Center Provisioning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 TCO Calculation for Server and Software Provisioning. . . . . . . . . . . . . . . . . . . . . . . . 17 Methodology for the Calculation of Provisioning Savings. . . . . . . . . . . . . . . . . . . . . . 17 SAP Deployment Provisioning Improvement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 SAP Data Center Server Administrative Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Resource requirements for newer SAP releases. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 TCO Calculation for SAP Administrative Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Methodology for the Calculation of SAP Administrative Costs. . . . . . . . . . . . . . . . . 19 Improvement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

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TCO and ROI Analysis of SAP Landscapes using VMware Technology

Reduced Business Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 TCO Calculation for Business Risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Methodology for the Calculation of Business Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Improvements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 SAP Clustering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 TCO Calculation for SAP Clustering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Methodology for the Calculation of SAP High Availability . . . . . . . . . . . . . . . . . . . . . 21 Improvement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 SAP and VMware Server Load Balancing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 TCO Calculation for Load Balancing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Improvement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 SAP Installation and Upgrades. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 SAP Installation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 SAP Downtime Minimized Upgrade Method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 SAP Resource Minimized Upgrade Method. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Building Up an SAP Landscape. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 SAP Software and Hardware Maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 SAP Support Packages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 SAP Kernel Patches. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Industry-Standard (x86) Hardware Maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Non-Industry Standard Hardware and Software Contracts. . . . . . . . . . . . . . . . . . . . 24 SAP Enhancement Packages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 TCO Calculation for SAP Maintenance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Improvement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 SAP Planned Downtime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Methodology for the Calculation of SAP Planned Downtime. . . . . . . . . . . . . . . . . . . 25 TCO Calculation for SAP Planned Downtime. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Improvement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 VMware Infrastructure investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 VMware Infrastructure Licensing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 VMware Infrastructure Training. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Training Class Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 VMware Virtualized SAP Environment Design and Planning. . . . . . . . . . . . . . . . . . . . . . 28 Heterogeneous or Homogenous SAP Migration Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Investment for SAP Physical to Virtual Migration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 System Copy Categories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 SAP Heterogeneous System Copy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 SAP Homogenous System Copy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

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Physical to Virtual Migration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 VMware Converter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Customer P2V SAP Migration Costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Use Case Scenarios Before and After Virtualization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 SAP Solution Architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Customer SAP Solution-Based Landscapes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 SAP Landscapes Before Virtualization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 SAP Landscapes After Virtualization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Annual Hardware and Software Cost Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Annual A/C and Power Savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Annual Cooling Costs for SAP Servers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Deploying an SAP Solution with VMware Templates. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Cost of Deploying a Solution Before Virtualization. . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Cost of Deploying a Solution After Virtualization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 High Availability and Clustering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 SAP Database. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 SAP Message and Enqueue Service. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 HA and Clustering Before Virtualization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 HA and Clustering After Virtualization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Summary of SAP clustering and VMware high availability. . . . . . . . . . . . . . . . . . . . . 45 SAP Front End Client Systems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Client Systems Before Virtualization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Capital Investment in VMware VDI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 Client Systems After Virtualization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 SAP Upgrades and Patches. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Upgrades and Patches Before Virtualization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Upgrades and Patches After Virtualization. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

TCO Reduction: Three Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 TCO and ROI Summary for Customer 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 TCO and ROI Summary for Customer 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 TCO and ROI Summary for Customer 3 without VMware VDI . . . . . . . . . . . . . . . . . . . . 55 TCO and ROI Summary for Customer 3 with VMware VDI. . . . . . . . . . . . . . . . . . . . . . . . 57 Customer 1 TCO /ROI Summary with Planned Downtime Costs. . . . . . . . . . . . . . . . . . 59 Customer 2 TCO /ROI Summary with Planned Downtime Costs. . . . . . . . . . . . . . . . . . 61 Customer 3 TCO /ROI Summary with Planned Downtime Costs. . . . . . . . . . . . . . . . . . 63 Customer 3 TCO /ROI Summary with Planned Downtime Costs and VMware VDI. . 65

Virtualizing Large Enterprise Applications with VMware vSphere. . . . . . . . . . . . . . . . . . . 67

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TCO and ROI Analysis of SAP Landscapes using VMware Technology

Executive Summary

This study examines how VMware software reduces total cost of ownership (TCO) for SAP landscapes. It focuses on three German reference customers, representing three different industry sectors with different numbers of concurrent SAP users.

SAP Customer Descriptions

CUSTOMER

INDUSTRY SECTOR

IMPLEMENTATION SCENARIO

CONCURRENT SAP USERS

1

Automotive

Heterogeneous SAP migration from a 400

mainframe to x86

2

Pharmaceutical

Heterogeneous SAP migration from a 200

UNIX Cluster/Oracle to x86 hardware

3

Government

Homogeneous SAP migration from

100

X86 physical servers into virtual with

VMware Converter

Source: VMware partner AddOn

These customers have virtualized their entire SAP infrastructure together with the associated databases. Some of the data was collected during the project phase using in-house questionnaires. All three customers run productive SAP systems on VMware? Infrastructure 3. The projects have been finalized to the customers' complete satisfaction. The detailed results for a three-year calculation before and after the SAP landscape virtualization have been combined and can be found in the appropriate chapters following.

The following tables summarize the TCO and return on investment (ROI) calculations for the three companies based on their successful migration from physical SAP environments to VMware infrastructure. All pre-defined customer objectives have been fully achieved.

The cost savings for SAP planned downtime is based on an estimate of $120,000 US per hour, which can vary in different use cases. The contribution to the TCO in this study is weighted at 30 percent. The planned downtime reduction is achieved with the use of VMware VMotion and the simplification of building clusters.

Please note that all monetary amounts in this document are expressed in $US.

TCO Savings with VMware Virtualization

CUSTOMER

TOTAL COSTS WITHOUT VMWARE INFRASTRUCTURE*

TOTAL COSTS WITH VMWARE INFRASTRUCTURE

SAVINGS

TCO IN %

Customer 1** Customer 2 Customer 3*** Customer 3****

$1,991,280 $772,131 $252,765 $399,165

$372,321 $131,628 $128,546 $240,646

$1,618,962

81

$640,503

83

$124,219

49

$158,519

40

* Reference prices based on customer information and quotes for pre-virtualization environment ** Value for simplified SAP Upgrade is included ***Value for VMware VDI is not included ****Value for VMware VDI is included

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