How to Understand SAP’s Cloud Upcharge on AWS Storage

Executive Summary

  • SAP is marking up AWS storage.
  • In this article, we provide a specific example of the upcharge and the percentage.

Introduction

SAP’s strategy of charging AWS, GCP, Azure and private cloud providers like HPE give customers an excellent reason to never use the SAP Cloud (which we refer to as SAP Cloud UaaS or Upcharge as a Service).

The Storage Example

AWS sells storage in Europe/Frankfurt for $2.3 per 100 GB/month. SAP resells the same storage block in the same region for $7.86. That’s a %342 premium. Storing 1 TB on AWS costs $276/year. The same 1 TB on SAP using AWS as a provider in the same region costs $943/year.

See the following screenshot.

Conclusion

This is consistent across all of AWS services when they are activated through SAP’s UaaS. This is why the SAP Cloud UaaS is so dangerous. SAP’s strategy is to markup the cloud infrastructure of other providers while doing very little work itself.

The Problem: A Lack of Fact-Checking of SAP

There are two fundamental problems around SAP. The first is the exaggeration of SAP, which means that companies that purchased SAP end up getting far less than they were promised. The second is that the SAP consulting companies simply repeat whatever SAP says. This means that on virtually all accounts there is no independent entity that can contradict statements by SAP.

Being Part of the Solution: What to Do About SAP

We can provide feedback from multiple SAP accounts that provide realistic information around SAP products — and this reduces the dependence on biased entities like SAP and all of the large SAP consulting firms that parrot what SAP says. We offer fact-checking services that are entirely research-based and that can stop inaccurate information dead in its tracks. SAP and the consulting firms rely on providing information without any fact-checking entity to contradict the information they provide. When SAP or their consulting firm are asked to explain these discrepancies, we have found that they further lie to the customer/client and often turn the issue around on the account, as we covered in the article How SAP Will Gaslight You When Their Software Does Not Work as Promised.

If you need independent advice and fact-checking that is outside of the SAP and SAP consulting system, reach out to us with the form below or with the messenger to the bottom right of the page.

Financial Disclosure

Financial Bias Disclosure

Neither this article nor any other article on the Brightwork website is paid for by a software vendor, including Oracle, SAP or their competitors. As part of our commitment to publishing independent, unbiased research; no paid media placements, commissions or incentives of any nature are allowed.

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References