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News Analysis: SAP and SUGEN Make Progress on Enterprise Support
Posted By R "Ray" Wang On April 28, 2009 @ 23:33 In 3rd party maintenance,Apps Strategy,Contract Negotiations,contract strategy,enterprise applications,enterprise apps,Enterprise apps strategy,Enterprise Software,ERP,lessons learned,license policy,maintenance fees,Maintenance Hike,News Analysis,Oracle,R "Ray" Wang;,SaaS,SAP,software licensing,software licesing and pricing,software pricing,software vendors,SUGEN,user groups,vendor strategy | 3 Comments
Since SAP’s announcement of its single tier Enterprise Support plan last July , customers have continued to express dissatisfaction. In response to such complaints, the SAP User Group Executive Network (SUGEN) of 12 SAP user groups and SAP have been engaging in discussions around the value derived from this new offering. This morning SAP and SUGEN announced an agreement on three key areas of the Enterprise Support offering:
POV: The four areas measure how choice, value, and predictability  of investment come together in the overall maintenance offering. If successful, this represents a unique and transparent approach to demonstrating value in maintenance. In the coming weeks, SAP users will want to seek details of the specific KPI’s and determine how those KPI’s will be measured on a consistent basis across different types of organizations.
POV:Benchmarking remains the critical factor in this program. SAP customers should pay close attention for balance in the representative customer sample. Key variables include level of internal SAP competency, size of organization, complexity of environment, number of instances, industry, and geographic focus. One can not overemphasize the importance of this program. The results not only impact future maintenance fee increases, but also provide important benchmark data on SAP operations.
The bottom line – progress on Enterprise Support issue may result in a win – win for SAP customers
Expect customers to take the news with cautious optimism. Should the benchmarks succeed, customers may gain value. Failure to meet targets meet a freeze on maintenance. In any case, this is welcomed news and provides a hard fought win-win for the customer and the vendor-client relationship.  Congratulations go out to SUGEN and SAP for coming to a common ground! This shows the importance of preserving independent user groups and the role active users play in shaping the overall agenda. The one thing left in the choice, value, predictability equation is choice – meaning a tiered maintenance program or access to third party maintenance. With the less than positive Q1 earnings report announced today, let’s wait to see how other chips will fall into place.
Do you think SAP met its promise to SUGEN? Will this help you with your commitment to SAP? Do you feel SAP has now done the right thing? Send me a private email to rwang0 at gmail dot com. Posts are preferred! Thanks and looking forward to your POV!
For more POV’s:
Dennis Howlett – April 28, 2009 “SAP software revenues plummet, announces new deal on maintenance” 
Copyright © 2009 R Wang. All rights reserved.
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URL to article: http://blog.softwareinsider.org/2009/04/28/news-analysis-sap-and-sugen-make-progress-on-enterprise-support/
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 Enterprise Support plan last July: http://blog.softwareinsider.org/2008/07/16/news-analysis-sap-moves-all-customers-onto-more-expensive-enterprise-support/
 choice, value, and predictability: http://blog.softwareinsider.org/2008/11/17/mondays-musings-the-three-pillars-of-software-maintenance-and-support-policies/
 vendor-client relationship.: http://blog.softwareinsider.org/2008/10/12/mondays-musings-5-steps-to-restoring-trust-in-the-vendor-customer-relationship/
 user groups and the role active users play : http://blog.softwareinsider.org/2008/11/10/mondays-musings-the-role-of-user-groups-check-and-balance/
 “SAP software revenues plummet, announces new deal on maintenance”: http://blogs.zdnet.com/Howlett/?p=866
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