Sapdup Blogging about SAP

29Jul/090

Enterprise Support Costs Cut – User Groups Win!

Having been pointed to this rather innocuous press release from SAP back in April (so apparently this is old news) regarding their changes to Enterprise Support, it's now time to talk about the fact that SAP have finally back tracked (at least partially) on Enterprise Support.

No, you won't have an option of staying with standard maintenance, but you may in fact get Enterprise Support without paying for it.

There are two key points buried in that press release:

  1. Maintenance increases for existing licenses will not reach 22% until 2015 (instead of 2012).
  2. Maintenance increases will not occur at all unless they reach the benchmarks as measured by SUGEN (SAP User Group Executive Network).

To further elaborate on point (1).  Under the old proposal, if you had maintenance of $1m in year 0 (2008), then by 2010 this would have increased by $28.3k and by 2012 would be $50k.

Under the new framework, in 2010 your increase will be 19k, in 2012 it will be $31k and only reach $50k in 2015.  This cumulative saving mounts up to a theoretical $65,500, not insignificant even if SAP meet all their KPI's and many of you will have more than $1m maintenance budgets.

From my perspective, this is a great idea, it was unexpected and it's a real shame that SAP management didn't do this earlier as they would have saved themselves the millions of dollars in negative PR and lost sales, not to mention the customers that have made the risky decision to cancel their SAP maintenance.

23Jul/090

SAP Enterprise Support – Important Development

I'm aware of a very significant development in SAP's Enterprise Support model, but given I can't see anything on the SAP Newsroom site, I'm a little concerned about breaching confidentiality.  Hopefully someone leaks something, then I can talk about it...