Gartner Research

SAP SaaS: Minimize Unbudgeted Costs and Risk by Negotiating Six High-Impact Terms

Published: 13 March 2018

ID: G00348874

Analyst(s): Bill Ryan , Dawn Hubbard

Summary

Although SAP often presents its SaaS contracts as non-negotiable, this is more perception than reality. This research lays out six proven, high-impact terms that sourcing and vendor management leaders have successfully negotiated to optimize costs and contain risk.

Table Of Contents
  • Key Challenges

Introduction

  • SAP's SaaS Services Contracts Include High-Impact Terms With Long-Term Cost and Risk Implications, So Proceed Carefully

Analysis

  • Protect the Business From Cumulative Renewal Price Increases
  • Negotiate Lower Subscription Fees for the Initial, Nonproductive Months of Implementation
  • Negotiate Stronger Penalties for Missing Service-Level Agreement Targets
  • Gain Price Transparency by Requiring List Price, Discount and Net Pricing for Each Line Item and by Confirming Fees for Excess Use
  • Include Not-to-Diminish and Rebundling Protections, Along With a High-Level Description of the Scope of SAP Functions and Services in the Contract
  • Negotiate Pricing Reductions for SAP's Preferred Care Offering, and Make Pricing Visible in the Order Form
  • Do Not Expect All These High-Impact SAP SaaS Service Terms to Be Negotiable

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