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This blog will answer the IT support question "What factors are used to determine SAP hosting pricing?"  There are three SAP hosting pricing types:

  1. ROM or Rough Order of Magnitude
  2. Budgetary.  Better than ROM but still has room for variability due primarily to unknowns still existing.
  3. Fixed and final.  When all the unknowns have been sorted out and a contract agreement has been finalized.SAS 70 Type II

Experience is the primary driver of the ROM method.  This blog will examine the budgetary pricing factors.  We will leave the fixed and final to a complete and interactive discussion with the end customer, the parties actually doing the SAP Application Implementation, and to iStreet when called on to do the hosting.

To establish a budgetary price the main item we are interested in to start is the SAP application module or modules that need to be hosted.  With that information we can start to make assumptions.  The initial assumption is that each module will require, per SAP best practice, a development instance, a quality or test instance, and of course a production instance.   So you can see that the number of systems can add up quickly.

After the modules have been identified each SAP production scenario is examined further.  The types of information here include usage information.  Knowing the number and type of users will set the stage for the sizing of the SAP hosting solution. 

SAP directs us to a tool called the SAP Quick Sizer to get the next bit of information, the number SAPs that the system is expected to perform to.  There are two types of sizings; user based and throughput based.  User based provides the quickest answer to getting the number of SAPs the hardware needs to perform to.

If the SAP Quick Sizer returns and answer of 5000 SAPs, any SAP Certified hardware manufacturer who has rated there equipment can provide a server type to handle the SAPs required, the amount of memory needed depending on the whether the system will be single or dual stacked, and the approximate size of data storage required.

It should be noted that memory is a far more important requirement to have correctly filled than processing power.  Today’s quad Intel and AMD chips rate well above the 5000 SAPs typically needed for small environments.  They can easily go into the 20,000+ SAPs for medium and small large system environments.  Keep in mind that large environments are better sized by using through put sizings.

Armed with this data a budgetary price can be established.  While much better than ROM pricing, budgetary pricing can swing plus/minus 20% or so.  To establish fixed and final pricing, a combination of the SAP Quick Sizer and experience is required.

iStreet offers a free IT support SAP hosting pricing service to help establish a fixed and final price.  Contact us directly at 866-595-8470 or sapinfo@istreetsolutions.com and we will be happy to assist you.  SAP AMS

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