"It's The Economy, Stupid" - Introducing the Cloud Worthiness Index (CWI) – Amazon Web Services achieves CWI of 59 for SAP Business Suite
Heidelberg, 2012/04/26 – Everybody believes that the economics are among the key factors driving the seismic shift from client/server to cloud. But fascinatingly enough there is nearly no mathematically proven evidence of the cost savings potential for SAP Business Suite users. Leveraging its industry-leading benchmarking intelligence VMS AG has developed a true indicator of the economic value of cloud platforms called the Cloud Worthiness Index (CWI). Applying this mathematical model on Amazon Web Services (AWS) proves its IaaS cost-leadership position for SAP Business Suite deployments.
Amazon Web Services (AWS) is the broadest cloud platform with hundreds of thousands of customers in over 190 countries ranging from smaller, fast-growing start-ups to Global 500 enterprises. AWS provides highly scalable computing infrastructure that enables organizations around the world to requisition compute power, storage, and other technology infrastructure services in the cloud. These services are available on-demand so a customer doesn’t need to think about controlling them or maintaining them. Customers access the services when they need them and pay for only what they use. One of the primary benefits of the AWS cloud is that it enables companies of all sizes to focus on the differentiating factors of their business as opposed to the infrastructure required to run it.
For more than 10 years VMS AG has deeply studied, measured and analyzed more than 2,600 SAP installations in order to develop resilient statistical cost models. Today VMS AG possesses the broadest intelligence of total costs of SAP operations. Expanding these cost models into the world of the new cloud platforms was a natural move for VMS AG. The remaining challenge was how to depict the economic value of the cloud in such a form that is easy to grasp and compare. The solution was the introduction of the Cloud Worthiness Index (CWI). The CWI provides a single simple figure indicating the true cost savings achievements for a specific customer as well as a specific cloud platform. The rating is applicable to all leading cloud platforms comprising private as well as public clouds. Thus cloud providers and customers can easily assess whether a move to the cloud makes sense or not.
As a proof of concept AWS and VMS jointly applied the CWI model and formula to AWS. The results are stunning. AWS continues to be cost-leader for IaaS deployments of SAP Business Suite implementations.
“We are impressed with the deep SAP background and experience that VMS has applied to this innovative TCO methodology and analysis”, said Terry Wise, Director of AWS Worldwide Partner Ecosystem. “As more customers turn to AWS to achieve their business objectives, detailed analysis of this kind provides valuable information into long-term cost savings that are possible on AWS. We’re pleased that VMS has applied their years of experience with SAP to provide customers with detailed answers to questions about cost savings in the cloud.”
"Amazon AWS is the proven cost leader in Infrastructure as a service", said Ralph Treitz, CEO of VMS AG. "Based on our deep benchmarking intelligence we are now able to testify this leadership position also for the SAP Business Suite. Indeed, we are more than happy, to assign the Cloud Worthiness Index (CWI) of 59 to Amazon AWS." (A CWI of 59 means AWS induced cost savings of 62% to 69%).
For the first time the CWI allows to calculate and express the economic value of cloud platforms in financial figures. Nothing less nothing more!
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VMS stands for Common Sense Analytics. The characteristics of Common Sense Analytics are real-time, facts-based, future-oriented, simple-to-use and relevant. VMS helps CIOs to optimize cost, performance and quality of their SAP systems. VMS helps CFOs of SAP customers to take smarter decisions about their Working Capital allocations. VMS operationalizes statistical analytics.