SAP's hosted HANA priced at premium, but not out of whack

Summary:The devil will be in the details and functionality for any HANA vs. Hadoop configurations, but the primary takeaway is that SAP's pricing isn't way off.

SAP's hosted HANA in-memory analytics pricing appears to be in the ballpark with big data alternatives, but in most cases is priced at a premium.

The big question is whether the premium would be worth it.

In a research report, Cowen analyst Peter Goldmacher compared HANA's pricing with Hadoop alternatives. Hosted HANA pricing ranges from $4,595 a month at the low end to $83,000 a month at the high end.

Goldmacher said:

Our analysis suggests that SAP's hosted HANA offerings are actually within a stone's throw of emerging data management alternatives that we believe can match HANA's performance. However, we find that at each price level, there are comparable alternatives that are 13%+ cheaper than HANA.

At the low end ($4,595/month), we find that HANA is more cost-effective than a Hadoop system we conservatively configured to be able handle Spark and Shark, comparable in-memory solutions that are currently evolving for Hadoop. However, at the low end, HANA does not have functionality like text management/search that are available in Hadoop. HANA is priced at a 13% premium to Amazon Redshift, a transactional MPP DB powered by ParAccel. At the high end of the price range ($83K/month), HANA offers functionality that broadens its use cases, making a comparison with Redshift less appropriate.

Goldmacher's analysis compares a Hadoop implementation on premise with HANA on demand and Redshift. On the low- and high-end HANA is more expensive than Redshift and on-premise Hadoop.

The devil will be in the details and functionality for any HANA vs. Hadoop configurations, but the primary takeaway is that SAP's pricing isn't way off.

Here's a look at SAP's HANA App Services pricing ranges.

saphana pricing

 

Topics: Cloud, SAP

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.