SAP is regarded as one of the most comprehensive and secure SaaS options available, but in light of necessary cost-cutting measures, optimizing SAP systems is seen as an ideal way to save money. The good news is that there are several viable options to achieve that. The bad news is that’s because your organization has probably not been using SAP effectively for a variety of reasons:
Most SAP solutions are not designed with minimizing operational costs in mind. When SAP is first implemented, businesses want to take advantage of its amazing features. In doing so, they may initiate projects and processes that wouldn’t have otherwise gotten off the ground.
Some functions are rarely or only partially used. Not only are these features superfluous, but they require more support, both on a user level and while updating software.
Companies acquire more licenses than necessary. It’s important to monitor who in your organization actually needs access to SAP, and to what level (Professional vs. Limited Professional vs. Self-Service).
Your SAP is not up to date. This could be a result of either a lack of updates that limit function capability or a lack of review of which functions you actually need in your operations. One of the biggest cost concerns with SAP, though, is in its architecture. Many organizations incorporated SAP in the days before cloud computing was a realistic option. They still may be relying on these antiquated legacy systems when transitioning to a cloud-based environment will both save money and allow a more convenient, adaptable workflow.
There are several different options for how to make the transition to a cloud infrastructure, and fortunately the experts at Katalyst are available to help you in the process. Migrating to the cloud is significantly less expensive than investing in new hardware, and depending on where you are in your service contract, now could be the right time to look into making the change.
The Benefits of Cloud-Based Infrastructure for SAP
Aside from hardware purchasing and maintenance, there are several ways in which the cloud approach is beneficial for your business’s bottom line.
Pay per use pricing. Using this structure, you only pay for environments when you actually need them (e.g. not overnight or when not in use).
Disaster recovery. Disaster recovery systems are flexible in that they only require full capacity of resources in the event of a system failure or outage. A dedicated physical system is probably excessive; cloud storage is more advantageous.
Archiving. Many companies have never implemented comprehensive archiving procedures, requiring more storage space. Adjusting accessibility could lead to significant savings.
Security. A perceived lack of data security is one of the top reasons why organizations remain hesitant to forgo legacy systems. However, cloud services have proven to be a protective, manageable solution for companies at small and large scales.
Though it may be challenging to change practices, now is the time to explore solutions that will save money and ready your organization for the challenges ahead. As always, Katalyst is here to help. Contact us today!