Case Study: Choosing Between SAP HANA Cloud and PostgreSQL – A Cost-Optimized Approach for SAP BTP Applications

Raven Infotech
Jun 21
2 min read

Client Scenario:

A mid-sized manufacturing company partnered with Raven Infotech while planning to build multiple BTP-based applications across departments—ranging from simple order dashboards to complex supply chain analytics.

They were considering:

SAP HANA Cloud for its native SAP integration and real-time power
PostgreSQL for its lower cost, open-source nature, and ease of use

But the question was: “How do we balance performance, reporting integrity, and cost efficiency—without over-investing?”

Our Research & Solution Approach

At Raven Infotech, we conducted a cost-performance analysis and architecture simulation using:

CAP-based applications connected to both SAP HANA Cloud and PostgreSQL
Common enterprise scenarios: CRUD apps, analytics dashboards, and event-driven updates
Live data replication experiments using BTP Data Integration services & Event Mesh

Key Findings from Our Deep-Dive Analysis

When PostgreSQL Works Well:

Simple CRUD apps (like form submissions, task tracking, document approval)
Non-mission-critical tools (internal employee apps, notifications, etc.)
Apps without need for SAP core integration or multi-dimensional reporting
PostgreSQL on SAP BTP Kyma or via hyperscaler integration is cost-effective and scales for SMB use

Where SAP HANA Cloud is Essential:

Real-time analytics, predictive models, or dashboards
Tight S/4HANA integrations where data structures need compatibility
High-performance transactional apps (supply chain, production planning)
Centralized data lake-style reporting across apps

Hybrid Architecture Recommendation:

To get the best of both worlds, we proposed:

1. Tiered Database Model

Use PostgreSQL for lightweight departmental apps (connected via Kyma runtime or CF services)
Use SAP HANA Cloud for core business processes + analytical workloads

2. Event-Driven Synchronization

Trigger data sync from PostgreSQL to HANA using SAP Event Mesh + Integration Suite
Only replicate relevant summary data, not entire tables, to optimize cost and performance

3. Centralized Reporting in SAP HANA

Aggregate core KPIs in SAP HANA Cloud to power dashboards (e.g., via SAP Analytics Cloud)
Leave transactional logs in PostgreSQL for historical or compliance storage

💸 Cost Impact:

~35–40% reduction in BTP database cost annually compared to using only HANA
Lower onboarding cost for smaller apps
Minimal compromise on performance with smart data partitioning and sync strategy

Conclusion:

The right database choice on BTP isn’t about “HANA vs PostgreSQL”—it’s about where to use what, and how to orchestrate data intelligently. Our architecture ensured: