The cost of storing and maintaining data in your primary system can become overwhelming. This is where data archiving comes in as a strategic solution. It allows businesses to move inactive or obsolete data out of high-performance systems and into more cost-effective storage options. By doing so, companies can reduce storage expenses, improve system performance, lower IT operating costs, and ensure compliance.
Here’s how SAP users can benefit from data archiving to save in 2025.
1. Reduce Storage Costs
Data is the lifeblood of any organization, but not all data needs to remain in high-cost, high-performance storage. As companies generate large amounts of data, archiving becomes essential for long-term sustainability. By archiving obsolete or inactive data, SAP users can significantly reduce their dependency on expensive storage solutions.
According to our research, 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.
In 2025, leveraging cloud storage services such as AWS, Microsoft Azure, or Google Cloud for data archiving will become even more critical. These hyperscalers provide flexible and scalable storage at a fraction of the cost of traditional on-premise options.
2. Boost System Performance and Productivity
SAP systems, such as S/4HANA, rely on in-memory technology for processing large datasets quickly. However, storing excessive amounts of data in these systems can lead to performance bottlenecks, slower transaction times, and longer batch processing durations.
Our studies show that improved performance can lead to savings of 20-40% in operational costs due to reduced downtime and faster processing times.
By archiving irrelevant or outdated data, businesses can improve system response times, reduce database size, and speed up overall performance. In 2025, organizations that adopt effective archiving strategies will notice faster system operations and reduced maintenance windows, which directly translate into cost savings.
3. Enhance Compliance and Mitigate Risk
Organizations lose an average of $5.87 Million in revenue due to a single non-compliance event (Ponemon Insitute).
Compliance remains a critical concern for businesses, especially in industries where data retention regulations are stringent. SAP’s Information Lifecycle Management (ILM) solutions support compliant data archiving, helping companies retain data for the legally required periods and securely discard data that is no longer needed.
- Avoid Penalties: Proper archiving ensures that businesses comply with data retention regulations such as GDPR or HIPAA.
- Reduce Audit Costs: Archiving the right data helps businesses remain audit-ready, reducing the costs associated with non-compliance.
In 2025, the ability to manage retention periods and archive data in line with regulations will help SAP users avoid these compliance pitfalls and associated penalties.
4. Cut IT Operating Expenses
Beyond direct storage savings, data archiving also helps reduce ongoing IT operating expenses. As database sizes decrease, so does the strain on IT infrastructure, leading to lower operational costs.
- Reduced Labor Costs: Automation tools minimize manual interventions, allowing IT staff to focus on strategic initiatives.
- Lower Power and Cooling Costs: Smaller databases mean less energy required to power and cool servers.
- Decreased Backup and Recovery Times: Archiving reduces the volume of data that needs to be backed up or restored, shortening backup windows and recovery efforts, further lowering IT costs.
Organizations like Allison Transmission has saved over $1.4M in storage with data archiving. With a tailored, end-to-end DVM approach, the company was able to achieve significant savings year over year.
With automated archiving solutions, SAP users can automate the scheduling of archiving data on a regular basis, maintaining size and reducing growth. By 2025, tools like Data ASSIST, will play an even more critical role in cutting manual labor and automating the archiving process.
5. Legacy System Decommissioning
For many SAP users, legacy systems house historical data that’s required for legal or operational reasons but don’t justify the costs of ongoing maintenance. Gartner points that an average of 72% of IT budgets is spent on maintaining legacy systems alone.
By archiving this historical data, companies can decommission legacy systems, saving on licensing fees, support costs, and maintenance overhead.
In 2025, many companies will continue to transition from older SAP ECC systems to S/4HANA. Data archiving will allow them to migrate only relevant, active data to new systems while preserving historical data access. This approach helps minimize the financial burden of supporting outdated technologies.
6. Conduct Data Volume Assessments
Before implementing a data archiving strategy, companies should conduct regular Data Volume Management (DVM) assessments. These assessments identify high-growth areas in their databases, evaluate data retention requirements, and determine the most cost-effective strategies for archiving.
Customers data have implemented recommendations from tailored, comprehensive data volume assessments have seen Millions in savings. Center Point Energy is one of them. The company saw $4.4 Millions in cost reduction after implementing a data archiving and volume management strategy.
In 2025, companies that proactively manage their data volumes and prioritize archiving will see the most significant long-term ROI. Learn more about data volume assessments.
As companies continue to generate vast amounts of data, data archiving will become an increasingly vital part of their digital strategies in 2025. By adopting and automates archiving solutions and conducting regular data volume assessments, companies can maintain operational efficiency while reaping long-term financial benefits.
If you’re looking to start or enhance your data archiving efforts, 2025 is the perfect time to leverage these strategies for optimized SAP operations and reduced costs.
