How to Understand SAP’s Cloud Upcharge on AWS Storage

Last Updated on March 1, 2021 by Shaun Snapp

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 never to use the SAP Cloud (which we refer to as SAP Cloud UaaS or Upcharge as a Service).

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Lack of Financial Bias Notice: We have no financial ties to SAP or any other entity mentioned in this article.

  • This is published by a research entity.
  • Second, no one paid for this article to be written, and it is not pretending to inform you while being rigged to sell you software or consulting services. Unlike nearly every other article you will find from Google on this topic, it has had no input from any company's marketing or sales department. 

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.