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

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.

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TOPICS: Cloud, SAP
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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

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  • SAP HANA Pricing

    The reality is SAP almost NEVER sells anything at list. I don't know about the hosting but I would guess it is the same there. The discounts may not be as large as the on-premise licensing but I would be surprised if there aren't decent discounts making SAP **very** competitive.
    wjwood64