Gartner Research

Leverage Key Trends Impacting SAP Maintenance and Support Costs to Negotiate Better Deals

Published: 14 June 2013

ID: G00252760

Analyst(s): Alexa Bona, Roberto Sacco

Summary

IT procurement professionals are under pressure to reduce costs, and high operating expenditure costs, such as software maintenance, are under particular scrutiny. For those with SAP licenses, we highlight trends and their impacts to help them optimize these large maintenance investments.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • SAP's maintenance and support is all or nothing, making it hard to reduce maintenance fees on unused licenses.
  • For some functionality, SAP is "double dipping" on annuity fees, requiring both subscriptions fees in the cloud and maintenance fees on-premises for the same functionality to guarantee enhancements.
  • Gartner has seen an increased awareness and interest in third-party support options for SAP, which can be leveraged to reduce maintenance and support costs.
  • SAP is tightening the eligibility criteria for Product Support Large Enterprise at 17% of the net license fee.

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