News Analysis: New SAP Customers Face Maintenance Hike
SAP Plans A Standard Support Maintenance Fees Hike Of 5.5%For New Customers For new customers, SAP announced its intent to raise its standard support maintenance fee from 18% to 19% effective July 15, 2013. The standard support option was reintroduced in January 14, 2010, after much pressure from user groups. A few key takeaways: Price […]
Monday’s Musings: Trends In The Top Software Insider Posts of 2012 (#softwareinsider)
Thank You For Your Support SoftwareInsider.org generated almost 10 million page views in 2012 (see Figure 1). This does not include syndication through Constellation Research, Forbes (discontinued in 2012), Enterprise Irregulars, Computerworld UK, and other great media partners. Figure 1. Software Insider Achieved 9.8M Page Views for 2012 Classic Posts Address The Key Fundamentals In […]
News Analysis: UsedSoft Vs Oracle Ruling Opens Up Monopolistic Practices By Software Vendors
Used Software Pioneers Gain A Small Victory In A Shrinking On-Premises Software World The surprise July 3rd, 2012 judgment by the Court of Justice of the European Union for UsedSoft GmbH v Oracle International Corp rules that “An author of software cannot oppose the resale of his ‘used’ licenses allowing the use of his programs […]
News Analysis: Spinnaker Expands JD Edwards Support With Versytec Acquisition
Versytec Acquisition Addresses Growing Demand For JD Edwards Support Denver, Colorado based Spinnaker Management announced on March 6th, 2012 its acquisition of competitor Versytec. For those who remember their third party maintenance (3PM) history, Versytec was among the first firms to announce third-party maintenance services within a year after PeopleSoft acquired JD Edwards in July […]
Research Summary: Best Practices – Three Simple Software Maintenance Strategies That Can Save You Millions
Forward And Commentary Software ownership costs continue to escalate as vendors accelerate their efforts to capture support and maintenance revenues. Some vendors have gone to the extreme to eliminate third-party options for their customers. This best practices report examines three strategies to free up unnecessary costs to fund innovation and new projects. A. Introduction On […]
Monday’s Musings: Lessons Learned From Amazon’s Cloud Outage
Amazon’s Cloud Outage Catches Most Clients Offguard The recent Amazon cloud outage at its Northern Virgina data center from 5 am Thursday, April 21, 2011 to roughly 5 am Friday, April 22 has shaken the confidence of some executives on public cloud computing. Most notably, FourSquare, HootSuite, Reddit, and Quora publicly suffered visible performance issues. […]
Tuesday’s Tip: Dealing With Pesky Software Licensing Audits
Organizations Report Increase In Software Licensing Audits Across the board, the largest complaints about software vendors and their business practices have come from increasingly aggressive software auditing practices. Once thought to be a small possibility, the software vendors now wield this big stick to drive up sales and of course ensure compliance. Given the 32 […]
Research Report: Constellation’s Research Outlook For 2011
Organizations Seek Measurable Results In Disruptive Tech, Next Gen Business, And Legacy Optimization Projects For 2011 Credits: Hugh MacLeod Enterprise leaders seek pragmatic, creative, and disruptive solutions that achieve both profitability and market differentiation. Cutting through the hype and buzz of the latest consumer tech innovations and disruptive technologies, Constellation Research expects business value to […]
Research Summary: Software Insider’s Top 25 Posts For 2010
Themes In 2010 Reflected The Buy Side Demand For Both Optimization and Innovation Technology buyers in 2010 focused most of their priorities on finding cost savings through legacy optimization, navigating a flurry of disruptive technologies, and designing/experimenting with new business model innovations. Consequently, the top 25 posts for 2010 reflected these 3 major themes: Legacy […]
Monday’s Musings: Why Users Must Preserve Their Third Party Maintenance Rights
Apps Users Seek Third Party Maintenance For Cost, Value, and Service Updated surveys from inquiries, client conversations, and user group meetings show a 113.8% increase in interest in third party maintenance (3PM) services from Q3 2009 to Q1 2010 (see Figure 1). Key factors stem from (see Figure 2.): Continuing cost pressures. Budgets continue to […]
News Analysis: SAP Revives Two-Tier Maintenance Options
Standard Support Returns After Much Deliberation
SAP announced today that they would be reintroducing their Standard Support offering. Customers now gain choice with a 2-tier maintenance offering. Here are the details between standard support and enterprise support.
* Standard Support Offering reintroduces at 18%. Customers seeking core bug fixes, support packages, risk mitigation, and related new functionality will have choice in staying on standard support. The program is designed for customers who seek to keep their systems up and running. Customers with CPI clauses in their contracts will want to take note – the first set of consumer price index (CPI) price increases will begin January 1st, 2012.
* Enterprise Support remains at 22%. SAP will continue to offer Enterprise Support at 22% for new customers and a ramp up for existing customers (see Figure 1). Enterprise support includes features such as best practices for IT operations, proactive monitoring and reporting, and transparency for business process performance. Customers who choose to go with Enterprise Support prior to March 15th, 2010 will be eligible for ramp up.
* Supplemental offerings still available. Other programs such as Max Attention, Safeguarding, and Product Support for Large Enterprises (PSLE) will continue to be available by choice and invitation.
Tuesday’s Tip: The SAP Optimization List – Key Ecosystem Vendors You Should Know
High Cost Of Ownership And Changing Requirements Drive SAP Users To Seek Optimization Solutions
As users await SAP to regain its mojo (see Dennis Howlett’s post) and implement it’s “Voice of the Customer” strategy in 2010, users must continue to reduce their cost of ownership and complexity. In addition, rapidly changing business requirements require some users to seek SaaS alternatives, additional point solutions, and extensions.
Consequently, vendors providing SAP optimization and extension solutions represent one of the fastest growing parts of the $78.7B (2009 Altimeter Group estimate), 850,000 SAP service partner and developer ecosystem. SAP users already embrace many of the solutions from vendors on this inaugural SAP Optimization List as part of their business value oriented apps strategy. The living list covers seven areas including:
1. application extension and usability;
2. application life cycle management;
3. archiving, storage, and test data management;
4. license management and optimization;
5. Microsoft Office integration;
6. third party maintenance; and