How Much Can I Save with Data Archiving in SAP?

Enterprises generate and process an enormous amount of data daily. For organizations using SAP systems, managing this data efficiently is crucial for performance, compliance, and cost management. As data accumulates, the demands on the system increase, potentially slowing down operations and making data retrieval more cumbersome. Data archiving emerges as a strategic solution to these challenges, offering a way to offload infrequently accessed data to a more cost-effective storage solution.

Data archiving in SAP involves moving data that is no longer actively used from the primary database to a less expensive storage solution. The archived data remains accessible for compliance and reporting purposes, ensuring that businesses can meet regulatory requirements without retaining all data in the primary, high-cost storage environment. By relocating this less frequently accessed data, the primary system’s resources are preserved for more critical, current operations. This alleviates the strain on the system, leading to improved performance and efficiency.

A question that business leaders often ask is how much they can save by archiving data that is not frequently accessed within the SAP ecosystem. To effectively calculate the impact of archiving, factors such as storage costs, system performance, compliance, and overall operational efficiency should be considered. By addressing these factors, businesses can gain a clearer picture of the substantial savings and performance improvements that data archiving can offer within the SAP ecosystem.

What Are Some Benefits of Data Archiving?

Reduction in Storage Costs

Primary storage, especially high-performance storage systems used for active SAP databases, can be expensive. With data archiving in SAP, the infrequently accessed data goes to less costly storage solutions, businesses can significantly reduce their storage expenses. The cost differential between primary and secondary storage, such as data archiving with Hyperscalers, can be substantial, leading to immediate and long-term savings.

Improved System Performance

As the volume of data in the primary database grows, system performance can degrade. Query times increase, backups take longer, and system maintenance becomes more complex and costly. By archiving old data, businesses can maintain optimal system performance, reducing the need for frequent hardware upgrades and lowering IT operational costs.

Lower Database Management Costs

Large databases require more resources to manage, including administrative time, hardware, and software. Archiving reduces the data volume of the primary database, simplifying management tasks such as backups, restores, and disaster recovery. This can lead to significant cost savings in terms of both time and resources.

Enhanced Compliance and Reduced Risk

Compliance with data retention regulations is a critical aspect for many businesses. Failure to comply can result in hefty fines and legal consequences. SAP’s archiving tools ensure that data is retained for the required retention periods and then archived or deleted appropriately. This not only mitigates legal risks but also reduces the costs associated with potential non-compliance.

Operational Efficiency

With a leaner, more efficient database, employees can access and process data more quickly, enhancing overall productivity. Faster report generation and improved transaction processing times contribute to a more efficient business operation, indirectly translating into cost savings.

Quantifying the Savings

The actual savings from data archiving in SAP can vary widely depending on several factors, including the size of the organization, the volume of data, the cost of storage solutions, and the efficiency of the existing SAP system. However, several case studies and industry reports provide insight into potential savings:

• Storage Cost Reduction: Businesses can save between 20-50% on storage costs by archiving inactive data. Some companies see much higher cost savings, like SaskPower’s 90% database reduction.
• System Performance Improvement: Improved performance can lead to savings of 20-40% in operational costs due to reduced downtime and faster processing times.
• Database Management Costs: Organizations can see a 15-25% reduction in database management costs due to easier and faster data management tasks. Monetary savings can be tremendous, for example, Grainger saved over $4 Million with data archiving in SAP.
• Compliance and Legal Costs: While harder to quantify, the avoidance of fines and legal fees can result in significant savings, potentially in the millions for large enterprises.

Data archiving in SAP’s ecosystem offers substantial cost-saving opportunities for businesses. A strategic approach to data archiving, supported by SAP’s robust tools, ensures that these savings are realized while maintaining data integrity and accessibility. Implementing data archiving requires careful planning and execution, but the potential savings and efficiency gains make it a worthwhile investment for any business looking to optimize its SAP environment.

Explore other case studies and how Allison Transmission was able to save over $1M and reduce size by 84%.