Construction Company Trims Cost by 40% by Migrating its SAP Workload on Azure
Use Cases - AZURE, Construction Industry, SAP
The client is a leading construction and real estate management firm headquartered in the USA. To reduce cost, optimize performance, and speed innovation, the client decided to migrate all its SAP applications to Microsoft Azure. This strategic decision enabled the company to reduce costs by 40 % and improve overall SAP performance.
The client has diversified business. They are active in real estate management, develops and distributes construction materials, and owns and manages the investments and operating properties in collaboration with nine other partners in the USA.
Having widespread dealings, the client was looking for ways to operate its business more cost-effectively. It had earlier moved most of IT workloads, that included its SAP estate, to a third-party hosting facility, but service costs were high with not enough flexibility for the size of their IT operation. They were paying for server resources even when not using them, and over time they hit performance limits. This badly affected the business process and billing.
The client had earlier engaged with MSRComos— a Microsoft Gold partner with SAP on Azure Advanced specialization and had hired us to manage their SAP infrastructure. Our team together with the client assessed the pain points and after a few meetings we suggested them to move their SAP servers to Microsoft Azure. Microsoft Azure was a unanimous choice as the client was already using Microsoft Office 365 cloud-based productivity applications, and Azure is a totally flexible and highly secure cloud-based, cost-effective platform. Also, choosing Azure would give them the foundation for growth and migration from SAP ECC 6 to a different ERP in the future.
Our team orchestrated the migration planning and executed it over a weekend. Now, the client’s production versions of SAP, SAP ERP, Solution Manager run on Azure Storage, Azure Virtual Machines, and Azure Virtual Network. SAP runs under the Windows Server operating system and the SAP MaxDB database.
Since moving to Azure, the client realized a 40% reduction in its SAP hosting costs as the pricing is consumption-based. Lower IT costs have enabled them to compete with others in a price-sensitive market. Besides, the performance has improved drastically. They can resolve issues in minutes by upgrading to larger Azure Virtual Machines. There is a lot of flexibility than before. Their monthly process which used to take at least two days can now be completed in an hour or two.
Azure provides them a faster, more reliable network link to mobile devices. Employees can access SAP data anytime and update them as and when needed.