Monday, October 6, 2025

Managing Cost for SAP BTP is very important!

 Managing costs on SAP Business Technology Platform (BTP) effectively requires a mix of governance, monitoring, and architectural best practices. BTP offers both Pay-As-You-Go (PAYG) and Subscription models, and costs can quickly escalate if resources aren’t managed carefully. Below is a comprehensive breakdown of how to manage and optimize costs on SAP BTP:


🔹 1. Understand Your Commercial Model

Before optimizing, you need to know how you’re being billed:

  • Pay-As-You-Go (PAYG): You pay for actual usage of services (measured in credits or currency).

  • Cloud Platform Enterprise Agreement (CPEA): Prepaid credits with flexibility to use different services.

  • Subscription: Fixed cost for specific services.

🟩 Tip: For dynamic workloads or development environments, PAYG or CPEA models offer flexibility. For stable, long-term workloads, subscription pricing is more predictable.


🔹 2. Use the SAP BTP Cockpit Cost Explorer

SAP BTP includes Cost Explorer (similar to AWS Cost Explorer):

  • Visualizes spend by subaccount, region, or service.

  • Identifies which services consume the most credits.

  • Provides daily and monthly breakdowns.

👉 Navigate to:
Global Account → Usage Analytics / Cost Explorer

🟩 Tip: Enable alerts or budgets for usage thresholds to prevent surprises.


🔹 3. Set Up Account and Subaccount Structure Wisely

A clean hierarchy helps isolate and control costs:

  • Use separate subaccounts for environments (dev/test/prod).

  • Assign quotas or entitlements at the subaccount level.

  • Map subaccounts to cost centers or departments for internal chargeback.

🟩 Tip: Use SAP Landscape Management or SAP BTP Account Modeler to plan account structures that align with cost accountability.


🔹 4. Monitor Resource Usage Proactively

Regularly check:

  • Service Instances: Deprovision unused services (like HANA Cloud instances or Kyma clusters).

  • Storage: Optimize retention in Object Store, Document Management, or Event Mesh.

  • Compute Units: Scale down or shut off non-production systems after hours.

🟩 Tools:

  • SAP BTP Cockpit → “Instances and Subscriptions”

  • SAP CLI (btp command-line tool) → automate cleanup scripts


🔹 5. Automate Lifecycle and Scaling

Implement automation and autoscaling where possible:

  • For Kyma or Cloud Foundry workloads, define resource limits (CPU/memory).

  • Use CI/CD pipelines to deploy ephemeral environments for testing and destroy them after.

  • Schedule automatic stopping/starting of apps (via scripts or SAP Automation Pilot).


🔹 6. Use Quotas and Budgets

In the BTP Global Account:

  • Define entitlements (quotas) per subaccount to prevent overconsumption.

  • Track spending per service category and region.

  • Apply cost center tagging using metadata labels.

🟩 Example:
Tag subaccount with "CostCenter=FIN-IT-001" for internal reporting.


🔹 7. Optimize Service Usage

Some SAP BTP services can be tuned or replaced with cheaper options:

Service Cost Control Tip
SAP HANA Cloud Adjust memory tiers; move cold data to cheaper storage.
SAP Integration Suite Reuse existing iFlows; archive old message logs.
SAP Build Apps/Process Automation Use production-only tenants for runtime; develop locally when possible.
Kyma Runtime Use autoscaling and small cluster sizes for non-prod.

🔹 8. Leverage Reporting and APIs

You can extract usage and cost data via:

  • SAP BTP Consumption APIs

  • SAP Cloud ALM or SAP Analytics Cloud dashboards for trend analysis

This helps identify anomalies or opportunities for consolidation.


🔹 9. Governance and Cost Awareness

Create governance policies and educate teams:

  • Define ownership for each subaccount.

  • Review service usage monthly.

  • Automate cost anomaly detection.

🟩 Tip: Some enterprises integrate SAP BTP usage into FinOps tools (e.g., CloudHealth, Apptio) for cross-cloud visibility.


🔹 10. Engage SAP for Optimization Reviews

SAP offers:

  • Quarterly Business Reviews (QBRs) for CPEA customers.

  • SAP Enterprise Support advisory sessions for architecture and cost optimization.


Summary: Key Actions

Area Action
Visibility Enable Cost Explorer & usage reporting
Governance Use quotas, subaccounts, and cost centers
Optimization Decommission unused services, use autoscaling
Automation Use scripts and CI/CD cleanup
Review Monthly cost reviews with stakeholders