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

Summary

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

Introduction

Analysis

  • 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

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