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TCO and ROI Analysis of SAP Landscapes  
using VMware Technology
WHITE PAPER / 51
TCO Reduction: Three Case Studies 
This chapter provides detailed information about the TCO savings and ROI achieved by three customers using 
VMware Infrastructure combined with powerful multi-core x86 hardware to virtualize their SAP systems. 
The calculation in the following tables shows costs both with and without SAP planned downtime reductions 
that were achieved by replacing clusters with VMware HA and reducing planned downtime for hardware 
maintenance with VMware VMotion. Many customers argue that planned downtime is free of charge as it is 
reserved in the SLAs as a maintenance task. Nevertheless, productive time can be gained back by reducing 
planned downtime. A company with worldwide production facilities can do business during this time that would 
have been lost before virtualization was in place. 
TCO and ROI Summary for Customer 1 
As shown in the following tables, Customer 1 achieved an 81 percent reduction in overall total cost of ownership 
over three years, and the return on investment period for the virtualization project was three months.
Customer 1 Three-Year TCO
WITHOUT VMWARE 
INFRASTRUCTURE
WITH VMWARE 
INFRASTRUCTURE
SAVINGS
Direct Costs
Investment Virtualization Check
$                -
$7,000
$(7,000)
Investment SAP P2V
$                -
$24,000
$(24,000)
Investment Training
$                -
$13,500
$(13,500)
Investment Hardware
 Includes Hardware 
Maintenance
- Includes Network Costs
- Includes OS, Cluster
 Includes VMware Licenses
- Includes HBAs
$1,888,842
$241,326
$1,647,516
SAP Deployment
$7,515
$4,523
$2,992
SAP Upgrade
$40,800
$31,200
$ 9,600
Total Direct Costs
$1,937,157
$321,549
$1,615,608
Indirect Costs
Power Costs
$27,063
$25,386
$1,677
Cooling Costs
$27,063
$25,386
$1,677
SAP Frontends VDI
$                -
$                -
$                -
SAP Planned Downtime
$                -
$                -
$                -
Total Indirect Costs
$54,126
$50,772
$3,354
Total Cost of Ownership
$1,991,283
$372,321
$1,618,962
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TCO and ROI Analysis of SAP Landscapes  
using VMware Technology
WHITE PAPER / 52
Customer 1 Return On Investment
YEAR 1
YEAR 2
YEAR 3
Investments
Investment Virtualization Check
$7,000 
$
$
Investment SAP P2V
$24,000
$
$
Investment Training
$13,500
$
$
Investment Hardware
- Includes Hardware Maintenance
- Includes Network Costs
- Includes OS, Cluster
- VMware Licenses
- Includes HBAs
$235,726
$2,800*
$2,800*
Total Investments
$       280,226
$        2,800 
$          2,800 
Savings
Server Hardware
$1,647,516
$
$
SAP Deployment
$2,992
SAP Upgrade
$9,600
Power Cost
$559
$559
$559
Cooling Cost
$559
$559
$559
SAP Frontend VDI
$
SAP Planned Downtime
$             -
$                  -
$                -
Total Savings
$1,661,226
$1,118
$1,118
Total Cumulative Investments
$280,226
$283,026
$285,826
Total Cumulative Savings
$1,661,226
$1,662,334
$1,663,462
Total Return on Investment
593%
587%
582%
ROI Time Frame (in months)
3
*VMware software maintenance (25 percent Platinum) cost per year
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TCO and ROI Analysis of SAP Landscapes  
using VMware Technology
WHITE PAPER / 53
TCO and ROI Summary for Customer 2
As shown in the following tables, Customer 2 achieved an 83 percent reduction in overall total cost of ownership 
over three years, and the return on investment period for the virtualization project was two months.
Customer 2 Three-Year TCO
WITHOUT VMWARE 
INFRASTRUCTURE
WITH VMWARE 
INFRASTRUCTURE
SAVINGS
Direct Costs
Investment Virtualization Check
$               -   
$7,000
$(7,000)
Investment SAP P2V
$               -   
$14,400
$(14,400)
Investment Training
$               -   
$9,000
$(9,000)
Investment Hardware
 Includes Hardware 
Maintenance
- Includes Network Costs
- Includes OS, Cluster
 Includes VMware Licenses
- Includes HBAs
$732,660
$82,182
$650,478
SAP Deployment
$5,625
$2,858
$2,767
SAP Upgrade
$          -
$              -
$             -
Total Direct Costs
$738,285
$115,440
$622,845
Indirect Costs
Power Costs
$16,923
$8,094
$8,829
Cooling Costs
$16,923
$8,094
$8,829
SAP Frontends
$            -
$                - 
$             -
SAP Planned Downtime
$            -
$                -
$             -
Total Indirect Costs
$33,846
$16,188
$ 17,658
Total Cost of Ownership
$772,131
$131,628
$640,503
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TCO and ROI Analysis of SAP Landscapes  
using VMware Technology
WHITE PAPER / 54
Customer 2 Return On Investment
YEAR 1
YEAR 2
YEAR 3
Investments
Investment Virtualization Check
$7,000
$
$
Investment SAP P2V
$14,400
$
$
Investment Training
$9,000
$
$
Investment Hardware
- Includes Hardware Maintenance
- Includes Network Costs
- Includes OS, Cluster
- VMware Licenses
- Includes HBAs
$79,382
$1,400*
$1,400*
Total Investments
$109,782
$1,400 
$1,400 
Savings
Server Hardware
$732,660
$         
$        
SAP Deployment
$2,767
SAP Upgrade
$            
Power Cost
$2,943
$2,943
$2,943
Cooling Cost
$2,943
$2,943
$2,943
SAP Frontend VDI
$            
SAP Planned Downtime
$               -
$               -     
$               -
Total Savings
$741,313
$5,886
$5,886
Total Cumulative Investments
$109,782
$111,182
$112,582
Total Cumulative Savings
$741,313
$747,199
$753,085
Total Return on Investment
675%
672%
669%
ROI Time Frame (in months)
2
* VMware software maintenance (25 percent Platinum) cost per year
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TCO and ROI Analysis of SAP Landscapes  
using VMware Technology
WHITE PAPER / 55
TCO and ROI Summary for Customer 3 without VMware VDI
As shown in the following tables, Customer 3 achieved a 49 percent reduction in overall total cost of ownership 
over three years for its SAP data center, and the return on investment period for the virtualization project was six 
months. These figures do not include the customer’s desktop virtualization project TCO and ROI.
Customer 3 Three-Year TCO Without VDI 
WITHOUT VMWARE 
INFRASTRUCTURE
WITH VMWARE 
INFRASTRUCTURE
SAVINGS
Direct Costs
Investment Virtualization Check
$               -   
$7,000
$(7,000)
Investment SAP P2V
$               -   
$14,400
$(14,400)
Investment Training
$               -   
$4,500
$(4,500)
Investment Hardware
 Includes Hardware 
Maintenance
- Includes Network Costs
- Includes OS, Cluster
 Includes VMware Licenses
- Includes HBA
$198,750
$82,182
$116,568
SAP Deployment
$13,545
$4,276
$9,269
SAP Upgrade
$              -
$                -
$                -
Total Direct Costs
$212.295
$112.358 
$99.937 
Indirect Costs
Power Costs
$20,235
$8,094
$12,141
Cooling Costs
$20,235
$8,094
$12,141
SAP Frontends
$            -
$                - 
$               -
SAP Planned Downtime
$            -
$                -
$               -
Total Indirect Costs
$40,470
$16,188
$24,282
Total Cost of Ownership
$252,765
$128,546
$124,219
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TCO and ROI Analysis of SAP Landscapes  
using VMware Technology
WHITE PAPER / 56
Customer 3 Return On Investment Without VDI
YEAR 1
YEAR 2
YEAR 3
Investments
Investment Virtualization Check
$7,000
$                    
$                   
Investment SAP P2V
$14,400
$             
$            
Investment Training
$4,500
$                     
$                
Investment Hardware
- Includes Hardware Maintenance
- Includes Network Costs
- Includes OS, Cluster
- VMware Licenses
- Includes HBAs
$79,382
$1,400*
$1,400*
Total Investments
$105,282
$1,400
$1,400
Savings
Server Hardware
$198,750
$         
$        
SAP Deployment
$13,545
SAP Upgrade
$            
Power Cost
$4,047
$4,047
$4,047
Cooling Cost
$4,047
$4,047
$4,047
SAP Frontend VDI
$                -   
$               -
$               -
SAP Planned Downtime
$                -
$               -
Total Savings
$220,389
$8,094
$8,094
Total Cumulative Investments
$105,282
$106,682
$108,082
Total Cumulative Savings
$220,389
$228,483
$236,577
Total Return on Investment
209%
214%
219%
ROI Time Frame (in months)
6
* VMware software maintenance (25 percent Platinum) cost per year
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TCO and ROI Analysis of SAP Landscapes  
using VMware Technology
WHITE PAPER / 57
TCO and ROI Summary for Customer 3 with VMware VDI
As shown in the following tables, Customer 3 achieved a 40 percent reduction in overall total cost of ownership 
over three years for its SAP front end client deployment with VMware VDI, and the return on investment period 
for this part of the virtualization project was six months.
Customer 3Three-Year Total Cost of Ownership with VDI  
WITHOUT VMWARE VDI
WITH VMWARE VDI
SAVINGS
Direct Costs
Investment Virtualization Check
$               -   
$7,000 
$(7000)
Investment SAP P2V
$               -   
$14,400
$(14,000)
Investment Training
$               -   
$4,500
$(4,500)   
Investment Hardware
 Includes Hardware 
Maintenance
- Includes Network Costs
- Includes OS, Cluster
 Includes VMware Licenses
- Includes HBA
$198,750
$82,182
$116,568 
SAP Deployment
$13,545  
$4,276
$9,269
SAP Upgrade
$          -
$              -
$             -
Total Direct Costs
$212.295
$112.358 
$99.937 
Indirect Costs
Power Costs
$20,235 
$8,094 
$12,141 
Cooling Costs
$20,235
$8,094
$12,141 
SAP Frontends
$146,400
$112,100 
$34,300
SAP Planned Downtime
$          -
$              -
$              -
Total Indirect Costs
$186,870
$128,288
$58,582
Total Cost of Ownership
$399,165  
$240,646
$158,219
TCO and ROI Analysis of SAP Landscapes  
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WHITE PAPER / 58
Customer 3 Return On Investment With VDI
YEAR 1
YEAR 2
YEAR 3
Investments
Investment Virtualization Check
$7,000 
$                    
$                   
Investment SAP P2V
$14,400 
$             
$            
Investment Training
$4,500   
$                     
$                
Investment Hardware
- Includes Hardware Maintenance
- Includes Network Costs
- Includes OS, Cluster
- VMware Licenses
- Includes HBAs
$79,382              
$1,400**         
$1,400*         
Total Investments
$105,282
$1,400 
$1,400 
Savings
Server Hardware
$198,750 
$         
$        
SAP Deployment
$13,545
SAP Upgrade
$            
Power Cost
$4,047  
$4,047  
$4,047  
Cooling Cost
$4,047  
$4,047  
$4,047  
SAP Frontend VDI
$11,433   
$11,433
$11,433
SAP Planned Downtime
$       
Total Savings
$231,822
$19,527
$19,527
Total Cumulative Investments
$105,282 
$106,682      
$108,082
Total Cumulative Savings
$231,822 
$251,349
$270,876
Total Return on Investment
220%
236%
251%
ROI Time Frame (in months)
6
* VMware software maintenance (25 percent Platinum) cost per year
TCO and ROI Analysis of SAP Landscapes  
using VMware Technology
WHITE PAPER / 59
Customer 1 TCO /ROI Summary with Planned Downtime Costs
As shown in the following tables, when costs of planned downtime are included in the analysis Customer 1 
achieved a 61 percent reduction in overall total cost of ownership over three years, and the return on investment 
period was two months.
Customer 1 Three-Year Total Cost of Ownership
WITHOUT VMWARE 
INFRASTRUCTURE
WITH VMWARE 
INFRASTRUCTURE
SAVINGS
Direct Costs
Investment Virtualization Check
$               -   
$7,000 
$(7,000)
Investment SAP P2V
$               -   
$24,000
$(24,000)
Investment Training
$               -   
$13,500       
$(13,500)  
Investment Hardware
 Includes Hardware 
Maintenance
- Includes Network Costs
- Includes OS, Cluster
 Includes VMware Licenses
- Includes HBA
$1,888,842
$241,326         
$1,647,516   
SAP Deployment
$7,515  
$4,523
$2,992
SAP Upgrade
$40,800
$31,200
$9,600
Total Direct Costs
$1,937,157 
$321,549 
$1,615,608 
Indirect Costs
Power Costs
$27,063 
$25,386 
$1,677 
Cooling Costs
$27,063
$25,386 
$1,677 
SAP Frontends
$            - 
$            - 
$               -
SAP Planned Downtime
$3,456,000
$1,728,000
$1,728,000
Total Indirect Costs
$3,510,126
$1,778,772   
$1,731,354
Total Cost of Ownership
$5,447,283  
$2,100,321
$3,346,962
TCO and ROI Analysis of SAP Landscapes  
using VMware Technology
WHITE PAPER / 60
Customer 1 Return on Investment Including Costs of Planned Downtime
YEAR 1
YEAR 2
YEAR 3
Investments
Investment Virtualization Check
$7,000 
$                    
$                   
Investment SAP P2V
$24,000 
$             
$            
Investment Training
$13,500   
$                     
$                
Investment Hardware
- Includes Hardware Maintenance
- Includes Network Costs
- Includes OS, Cluster
- VMware Licenses
- Includes HBAs
$235,726             
$2,800*         
$2,800*         
Total Investments
$280,226
$2,800 
$2,800 
Savings
Server Hardware
$1,647,516 
$         
$        
SAP Deployment
$2,992
SAP Upgrade
$9,600
Power Cost
$559   
$559
$559
Cooling Cost
$559
$559
$559
SAP Frontend VDI
$            
SAP Planned Downtime
$576,000
$576,000
$576,000
Total Savings
$2,237,226
$577,118    
$577,118
Total Cumulative Investments
$280,226 
$283,026      
$285,826
Total Cumulative Savings
$2,237,226 
$2,814,344
$3,391,462
Total Return on Investment
798%
994%
1187%
ROI Time Frame (in months)
2
*VMware software maintenance (25 percent Platinum) cost per year
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