Gartner Research

Gain a Competitive Edge in SAP Negotiations by Applying Gartner's T4 Process

Published: 13 April 2016

ID: G00301864

Analyst(s): Lori Samolsky, Roberto Sacco, Alexa Bona

Summary

SAP's recent license evolution and its new product releases, including S/4HANA, have increased buyer confusion. Gartner's T4 process, which includes SAP-specific negotiating tips and tactics, will assist technology procurement professionals in optimizing negotiations for the best commercial outcome.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Tactics: Create a Competitive Environment of Viable Alternatives to SAP to Acquire Commercially Favorable Offerings
    • Organizations Can Negotiate Superior Discounts With SAP When Leveraging Competitive Solutions
    • Migrating From On-Premises to Cloud Solutions With SAP Must Be Competitive to Maximize Outcomes
    • Leverage the Purchase of Strategic Products or Services
    • SAP Customers Purchasing S/4HANA Have More Leverage Than They've Had in Decades
  • Templates: Optimize Your Negotiations, by Using RFI/RFQ/RFP Checklists to Reveal Pricing Options and Hidden Costs
    • SAP Has Multiple Delivery Options for Some Products and Multiple Payment Mechanisms
    • There Are Multiple SAP Maintenance and Support Options
    • SAP Has Changed Its Pricing Metrics Significantly During the Past Few Years
    • Require SAP to Describe the Relationship Between License Bundles and Functionality Entitlement
  • T&Cs: Maintain SAP-Specific T&Cs Checklists for Negotiations to Achieve Optimal Commercial Outcomes
    • T&Cs Critical to SAP On-Premises Licensing
    • T&Cs Critical to SAP Cloud Licensing
  • Timing: Develop a Negotiating Strategy Based on Team Collaboration Involving CxO-Level Management That Strategically Aligns With SAP Fiscal Quarter-End and Year-End Dates

Gartner 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?

Purchase this Document

To purchase this document, you will need to register or sign in above

Become a client

Learn how to access this content as a Gartner client.