Gartner Research

Key Terms to Negotiate in SAP Cloud Service Agreements to Reduce Unanticipated Indirect Costs and Risks

Published: 20 July 2016

ID: G00304219

Analyst(s): Dawn Hubbard , Alexa Bona, Lori Samolsky

Summary

SAP made significant changes to its cloud contracting structure and terms, which can result in some improved entitlements. However, other terms, such as SLA remedies and SAP's ability to diminish functionality and terms, need negotiation to reduce their effect on long-term indirect costs and risks.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Include Not-to-Diminish and Rebundling Protections, Together With a High-Level Description of the Scope of SAP Functions and Services Subscribed to in the Contract
  • Negotiate Newly Introduced Price Escalation Caps to Apply Once on Renewal
  • Negotiate Data Extraction, Exit Clauses and Termination Assistance
  • Negotiate Improved SLAs and Remedies If the SLAs Are Missed
  • Negotiate More SLAs Related to Performance, Backup and Recovery
    • Do Not Expect All SAP Cloud Service Terms to Be Negotiable

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