Calculating ROI for SAP Managed Hosting: Data Center, Hardware and Network

This post concludes our three-part series on calculating return on investment (ROI) for SAP Managed Services. The previous two posts outlined employee and vendor-management expenses related to on-premise SAP. Now let’s take a look at costs pertaining to the data center, hardware and network.

Although they often go overlooked, the cost components we’ve discussed thus far are all fairly straightforward. The same holds true for hardware and network costs. Hardware includes servers, SAN, racks, cabling, virtualization software, etc. Network includes redundant communication providers, as well as software and hardware support. While these items aren’t surprising, once you combine them in one place you begin to see their overall impact.

Most data-center costs are also commonplace, such as UPS, generators, cooling equipment, physical security, fire-suppression, electricity, etc. When calculating the overall cost of these components, it’s important to consider that companies often make data-center purchases based on what they can afford, not what they need. In addition, capital dollars are often easier to get approved when tied to a major project, while follow-on data-center enhancements can often be more difficult to get approved. This leads companies to spend more on the front end to support their landscape over a longer period of time. Allowing a fully qualified SAP Managed Services provider like itelligence to provide the data center / infrastructure investment and support the SAP landscape can help eliminate this type of waste and provide an environment that is constantly updated.

Again, all of these cost factors are fairly obvious when pointed out, but can remain elusive until combined in a list. Our free SAP Managed Hosting ROI Calculator accounts for dozens of cost components across five categories. We created this reference guide to help businesses see the potential ROI when leveraging itelligence as their SAP Managed Services provider.

To receive the full, completely free calculator tool, just email us at

We will also discuss the full spectrum of SAP Managed Services cost components at this week’s Outsourcing In Your SAP Environment 2011 conference. Our session is titled, “How to achieve quick ROI and maximum value when using hosted applications or technical services.” You can also visit us at booth #510. For more information on our SAP Full Managed Hosting services, click here.

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