Sapdup Blogging about SAP


SAP Reverses Policy on Enterprise Support

In a rather remarkable turnaround, SAP have announced that they will be returning the option of  'Standard Support' in addition to their preferred option (and for the last year only option) 'Enterprise Support'.

They also announced that despite meeting the SUGEN benchmarks as agreed, they will not be increasing the Enterprise Support costs for existing customers in 2010 but leaving them at 18.36%.

So customers will be faced with a tricky choice of 18.36% for Enterprise Support in 2010 or 18% for Standard Support.  On $10m of licensing this is just $36k.  The question that you'll need to ask is whether your choice to 'opt out' of Enterprise Support is a one time only option or can be reviewed annually.  Because once SAP cranks this up to the full 22% and we're talking about a difference of $400k per year on that same $10m license, that money is a lot more challenging to justify.


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.


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...


SAP Enterprise Support Complaints

So, how's everyone's experience of SAP's Enterprise Support going?  Have you upgraded your Solution Manager, are you getting your continuous quality checks?  Are SAP meeting their SLA's?

So far I have a few complaints:

- SAP are not meeting their SLA's for 'High' and 'Very High' messages. I reported this to SAP, but we only created 19 calls during the quarter, so should not be entitled to any credit against our maintenance bill.

- SAP are not providing Global 24x7 support.  Recently we had a call which was only being dealt with in EMEA hours.  For anyone from EMEA who has tried to work with someone in NZ or vice versa, they will see the problem.  8am in Paris is about 8pm here in Auckland and 5pm in paris is about 5am in Auckland.  So as you can see, there is no crossover in business hours.

This means that "follow the sun" support is a big win for us.  However SAP is not deliverying it.

So, leave your comments on your Enterprise Support experiences.  If I see some trends I'll update them into this post.