Gartner Research

Key Terms to Negotiate in SAP Cloud Services Agreements to Reduce Cost and Risk

Published: 30 September 2013

ID: G00255889

Analyst(s): Jeff Freyermuth, Alexa Bona


IT procurement professionals can reduce financial risk by negotiating SAP cloud services agreements to include renewal price escalation caps, broader SLAs and stronger penalties for missed SLAs, in addition to improved service and support and reduced subscription fees during implementation.

Table Of Contents
  • Key Challenges



  • Don't Overbuy Because of Bundled Discounts
  • Negotiate Price Caps and Get Warning of any Pricing or Contract Changes 60 Days Prior to Renewal
  • Negotiate for a Payment Holiday or Reduced Subscription Fees During the Initial Months of Implementation
  • Negotiate Data Extraction, Exit Clauses and Termination Assistance
  • Negotiate Broader SLAs Related to Performance, Backup And Recovery
  • Negotiate Improved SLAs and SLA Remedies if the SLAs Are Missed
  • Try to Negotiate Premium Plus Support Included in the Subscription Fee
  • Include a High-Level Description of the Scope of SAP Functions and Services in the Contract With Rebundling Protections
  • Ensure That the Capabilities Offered Are Global With No Premium Prices for Language Versions
  • Protect Your Own Process Intellectual Property
  • Define User and Profile Usage to Ensure That Categories That Derive Lower Value Attract Higher Discounts

Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.