Posts Tagged ‘maintenance fees’

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Who Says Support Has To Be Bundled With Maintenance? Order epogen no prescription, About a decade back, vendors would offer support and maintenance as two separate line items on their contracts.  Support would run about 5 to 10% the license fee and so would maintenance.  Keep in mind, average support and maintenance fees were under 15% back then.  Here's a quick primer on what was covered:


  • Maintenance.  Traditional areas include basic bug fixes, functional and performance enhancements, upgrades, backward compatibility, and legislative and regulatory updates.

  • Support.  Most requests fall in the technical support category.  Support cases typically include installation issues, integration questions, third product compatibility, and complex scenario resolutions.


Today, almost every vendor in the enterprise apps world (i.e. Buy arimidex, ERP, CRM, Utah UT, För evista online, SCM, eCommerce, osta alennus cytoxan, Order evista online cheap, etc) has decided to bundle the two line items together. It's now known as software maintenance and support and vendors charge between 18 and 28% of net price, billiga epogen apotek. Cheapest iressa, Microsoft Dynamics Uniquely Provides A Separated Maintenance And Support Option With Choice, Value And Flexibility

While many in the software industry have obsessed with locking customers into maintenance and support contracts, bestill casodex online, Køb discount epogen, the Microsoft Dynamics team set out to differentiate the ownership experience around the key principles of choice, value, cheap casodex online, Pennsylvania PA Penn., and predictability (see Figure 1).


  • Choice.  After the initial purchase, purchase zometa, Comprar evista de descuento, Microsoft Dynamics has offered customers the option to purchase maintenance and support separately.  This is unique to the industry for three reasons because customers:

    1. Choose whether or not to buy maintenance.

    2. Determine who they go to for support.

    3. Separate the technical support from the maintenance decision.





  • Value.  Microsoft's maintenance plan bundles a series of customer friendly services that deliver value.  The include

    1. Unlimited acccess to eLearning.  Customers can get to any course at any time with their maintenance dollar.  There's no requirement for expensive week long training academies.

    2. 24 hour self-service support. Microsoft's invested in its self support community and has 1000 new users a month with 30,000 self-help posts to date.  Most questions can be addressed in the discussion forum or directly by an expert.

    3. 10 years of lifecycle support, order evista online without prescription. Most vendors provide a 5 year plan with escalating costs in the 6th and 7th years.  10 years represents a reasonable life cycle for ERP.





  • Predictability.  Along with the 10 years of lifecycle support, Microsoft Dynamics will use the original purchase price as the basis of calculating future maintenance fees.  Users must stay current on enhancements to qualify.


Figure 1: Microsoft Dynamics' Delivers Choice and Value In Its Support And Maintenance Offerings

screen-shot-2010-03-08-at-10320-am


The Bottom Line - Users Should Demand A Split In Maintenance And Support

Now's the time to seek options in maintenance.  Shelfware reduction, third party maintenance (3PM), and contract re negotiations should provide some relief at the business level.   However, decoupled maintenance from support options opens up the customer base to internal and third party options.  Sticking with maintenance and not support may prove to be the best value (i.e, order epogen no prescription. Kjøpe evista online, next to 3PM) and create a win-win between the vendors and customers.

The Bottom Line - Progressive Vendors Can Take Charge And Lead The Way, Minnesota MN Minn.. New Jersey NJ N.J.,

Software vendors must reexamine their offerings to understand what customers need.  Should economic conditions worsen, more third party maintenance (3PM) options will emerge and force pricing pressures against today's tired models.  Vendors must take action by phasing in or offering tiered maintenance offerings and minimal support

Your POV

Are you a Microsoft Dynamics customer?  Did you unbundle support from maintenance?  Are you looking at options to compare the vendors?  We'd love to hear your point of view.   Please post or send on to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity, Idaho ID. Michigan MI Mich., Let us know if you need help with your enterprise apps strategy by:


  • Conducting an ROI on 3rd party maintenance options

  • Identifying cost reduction opportunities

  • Renegotiating your software contracts

  • Improving innovation via SaaS and other deployment options


Take the new and improved survey on 3rd party maintenance and
Related resources and links

20091008 Deal Architect - Vinnie Mirchandani "Third Party Maintenance Is Really 4 Decades Old"

20071120 News Analysis: Too Early to Call the Death of Third Party Maintenance

20090210 Tuesday's Tip: Software Licensing and Pricing - Do Not Give Away Your Third Party Maintenance And Access Rights

20090709 Tuesday's Tip: Do Not Bundle Your Support and Maintenance Contracts.

20090622 News Analysis: Infor Flex Reflects Proactive Maintenance Policy

20090516 News Analysis: Rimini Street Launches Third Party Maintenance for SAP

20080909 Trends: What Customers Want From Maintenance And Support

20080215 Software Licensing and Pricing: Stop the Anti-Competitive Maintenance Fee Madness

20090428 News Analysis: SAP and SUGEN Make Progress on Enterprise Support

20090405 Monday's Musings: Total Account Value, ordering iressa from canada, Comprar evista, True Cost of Ownership, And Software Vendor Business Models

20090330 Monday's Musings: It's The Relationship, cheap generic gleevec, Cheapest arimidex online, Stupid. (Part 2) - Stop Slashing The Quality Of Support And Maintenance

20090324 Tuesday's Tips: Five Simple Steps To Reduce Your Software Maintenance Costs

20090223 Monday's Musings: Five Programs Some Vendors Have Implemented To Help Clients In An Economic Recession

20081012 Monday's Musings: 5 Steps to Restoring Trust in the Vendor - Customer Relationship

20091012 Research Report: Customer Bill of Rights - Software-as-a Service

20090910 Tuesday's Tip: Note To Self - Start Renegotiating Your Q4 Software Maintenance Contracts Now, casodex sale. Order iressa online without prescription,

20090602 Tuesday’s Tip: Now’s The Time To Consider SaaS Software Escrows


Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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Single Instance ERP Harder And Harder To Justify Buy cytoxan, The holy grail of an ERP implementation used to be the single instance deployment.  However, market forces, a move to adopt new disruptive technologies, slow pace of innovation from incumbent vendors, and high maintenance fees have changed many organization's perspectives.  Add a slew of rapidly changing business requirements battling rigid legacy infrastructures and next gen CIO's have been forced to depart from the standard apps strategies.  In fact, improved integration, web services, and SaaS deployments have now improved the success rates and ROI for Two-Tier ERP apps strategies.

Purpose Built Capabilities And Cost Savings Drive Push For Two-Tier Apps Strategies


Recent Software Insider data surveys of next gen IT leaders in Q3 2009 and Q1 2010 show a 10% increase among organizations considering a Two-Tier ERP apps strategy (see Figure 1).  Key drivers behind moving to a Two-Tier ERP approach stem from:

  • Purpose built or industry requirements (89.61%), evista online. Epogen, Next gen IT leaders remain frustrated by the lack of innovation and progress in completing out promised functional footprints.  As market competition intensifies, industry specific, φτηνές φαρμακείο cytoxan, Cytoxan en ligne afin, purpose built solutions provide the competitive advantage needed for survival and success.

  • Existing systems too expensive (70.13%). ROI calculations on existing ERP systems often show high cost factors.  The culprits - overruns in implementation, customization of reports, Koop korting iressa, Køb discount iressa, maintenance payments on shelfware, increasing costs to staff, kopen goedkope zometa, Cheap casodex, and rigidity of system.

  • Upgrade too expensive (45.45%). Many customers face upgrade costs equivalent to reimplementation.  Cost factors could equal up to 85% of the original implementation cost.

  • Need to innovate (35.06%). Some organizations find that their vendors have not innovated fast enough, South Carolina SC S.C.. Cheapest gleevec online, Social channels have not been accounted for.  User experiences seem dated.  Reporting and analytics require experts to deliver.  Paucity in mobile solutions hinder productivity.

  • Regulatory compliance (24.68%). The need to meet industry specific regulatory compliance drive organizations to choose purpose built solutions.  Many choose SaaS to mitigate the costs of legislative and regulatory updates.

  • Geographic requirements (19.48%), buy cytoxan. Country or region specific requirements may require two-tier strategies based on geography.  Some ERP systems lack the language or tax requirements and a separate instance will prove cheaper to run than customizing a monolithic large ERP solution.

  • Existing systems too rigid (15.58%), Osta gleevec online. Acheter capecitabine discount, Rigidity may lead to the inability to integrate and work with other systems, new channels, kopen goedkope gleevec, Halvalla evista apteekki, and emerging stakeholders.  Integration solutions can assist, but long term, billige gleevec Apotheke, Nevada NV Nev., next gen IT leaders will begin to surround legacy solutions with newer technologies.


Figure 1. Two Tier ERP Strategies Gain Favor In Next Gen IT Leader Apps Strategies

screen-shot-2010-03-02-at-53732-pm


Figure 2.  Industry Requirements And Cost Drive Push To Two-Tier Apps Strategies

screen-shot-2010-03-02-at-53724-pm


The Bottom Line - Users Should Consider Scenarios Based On Business Models And Geographic Needs

Detailed apps strategy conversations highlight 3 scenarios where Two-Tier ERP strategies make sense.  A number of vendors have proven to be strong partners in enabling Two-Tier ERP (see Figure 3), iressa online store. Gleevec farmacia a buon mercato,


  1. Different business models. Organizations with very different lines of businesses often consider hub and spoke implementations.  The drive to standardize on a single ERP system makes little sense when one subsidiary delivers services and the other manufactures goods.  Several large multi-national conglomerates leverage more than two-tiers of ERP to handle a warranty business, financial services, North Carolina NC N.C., Evista no prescription, and power generation manufacturing.

  2. Country specific deployments. Deploying a full scale ERP solution makes little sense for new subsidiaries when options exist at lower operating costs and higher ROI.  One large Japanese manufacturer found cost savings with local based systems in North America and EMEA.

  3. Phased modernization efforts. Organizations looking to upgrade and modernize their systems may keep some legacy systems in place as they upgrade to more modern systems.  One large entertainment concern has kept their financials systems and updated their retail systems with a more modern, web services based, generic epogen, District of Columbia DC D.C., SOA architected product.


Figure 3. Vendors To Watch In Two-Tier ERP Apps Strategies

screen-shot-2010-03-02-at-71143-pm


Your POV. Buy cytoxan, Have you deployed a Two-Tier ERP strategy. How has it gone?  What's worked, comprar en línea cytoxan. Order cytoxan without prescription, What's not?  You can post or send on to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity.

Please let us know if you need help with your enterprise apps strategy by:


  • Developing your enterprise apps strategy?

  • Addressing disruptive technologies like Social CRM, order arimidex online legally, Cloud Computing, SaaS deployment, and Two-Tier ERP?

  • Assessing the ROI of a Two-Tier ERP strategy?


* Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.

Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.


Related Resources

20091203  Strategy: 5 Lessons Learned From A Decade Of Naught

20091222 Tuesday's Tip: 10 Cloud And SaaS Apps Strategies For 2010

20091208 Tuesday's Tip: 2010 Apps Strategies Should Start With Business Value

20091102 Best Practices: Lessons Learned In What SMB's Want From Their ERP Provider

20091006 Tuesday's Tip: Why Free Software Ain't Really Free

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Order cheap iressa online, 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. Louisiana LA, Budgets continue to be at flat or have been reduced.  Organizations must do more with less.  Add pressures to innovate, CIO's must find fat without trimming bone.

  • Gaining minimal value in maintenance services, West Virginia WV W.Va.. Buy arimidex online legally, Most felt they were paying too much for too little.  An 8 point jump reemphasized the issue with a lack of tiered offerings.

  • Declining plans to upgrade. Worsening economic conditions from Q3 2009 to Q1 2010 led a 27 point increase in interest in 3PM.  Expect many respondents to change their point of view (POV) as economic conditions improve.

  • Expecting better service, cytoxan ordine on-line. Kjøpe billig epogen, Service continues to play a key factor in decisions to go to 3PM.  Over 60% of respondents had experienced poor levels of service.

  • Slowing pace of vendor innovation. Greater than half of respondents believe their vendor has been too slow to deliver new capabilities, order cheap iressa online. These include SaaS deployment options or key functionality in areas such as strategic HCM and social CRM.

  • Disliking the vendor, Maryland MD Md.. Buy iressa, About 1/3 of the survey respondents have bad experiences with their vendor.  Many times it comes from sales person or support rep experiences.

  • Delivering self support. Almost 30% of respondents already provide their own support.  These organizations have no need to pay maintenance when they are doing all the work.


Figure 1, order arimidex without prescription. Order capecitabine online cheap, Interest in 3PM grows 113.8% over 2 quarters.

screen-shot-2010-02-20-at-44436-pm


Figure 2. Order cheap iressa online, Cost Pressures, Value, And Decision Not To Upgrade Drive Current Trends to 3PM

screen-shot-2010-02-20-at-44448-pm


Limited Options Exist For Most Enterprise Apps Customers

Of the 101 respondents in Q1 2010 interested in 3PM, Oracle (88.1%) and SAP (76.2%) users expressed the greatest interest in seeking independent services (see Figure 3).  Over 80% of the users were from large companies greater than 1000 employees across the globe.  Most SAP users surveyed have mixed environments with Siebel, JD Edwards, and PeopleSoft joint installations.  Unfortunately, very few public options exist for sole SAP users (see Figure 4).  For example, SAP customers can only turn to Rimini Street.  Oracle customers on PeopleSoft, JD Edwards, and Siebel also have limited choices with Rimini Street, netCustomer, and Spinnaker among the options.  IBM, Infor, Lawson, Computer Associates, Epicor, Microsoft Dynamics, Oracle E-Business Suite and database customers have no options.  (Note: This data may not be completely statistically significant given the sample size of 240, but hopefully it provides some directional input.)

Figure 3. Oracle And SAP Users Drive Interest In 3PM

screen-shot-2010-02-20-at-44457-pm


Figure 4, Illinois IL Ill.. Cheap zometa online without prescription, Very Few Public Options Exist For Customers

screen-shot-2010-02-20-at-100912-pm


The Bottom Line For Users - Users And User Groups Must Band Together To Guarantee 3PM Rights. Don't Take These For Granted, buy evista online. αγοράζουν online arimidex,

Although the latest surveys show a 17 point increase in the belief that 3PM is a right, this right is under fire by big vendors such as Oracle who have taken legal actions against 3PM providers for improperly (i.e, farmacia evista barato. TomorrowNow) and allegedly (i.e, order cheap iressa online. Um casodex online, Rimini Street) violating intellectual property rights.  If providers have violated such laws, Oracle rightfully should defend its positions and those providers be punished.  However, cheap gleevec tablet, Epogen pill, there's a lot of money at stake.  For most vendors, maintenance represents 50% to 80% of their revenue stream.  Consequently, iressa without a prescription, Nebraska NE Nebr., users and user groups have a responsibility to:


  • Demand that their contracts include provisions that protect their right to 3PM

  • Require vendors to work out rules on how 3PM providers can deliver services without violating software IP provisions

  • Seek anti-trust class action with the US DOJ (i.e. Christine A, cheapest zometa price. Washington WA Wash., Varney) and the EU Compeition (i.e. Joaquín Almunia) against software vendors who hinder 3PM providers from providing services


Users and user groups must vigorously defend their positions in contracts and legal action or lose this right.  Failure will result in a continued software maintenance monopoly.  Success will ensure market competition and renewed innovation.  Attention: OAUG, District of Columbia DC D.C., Order epogen online, Quest, and SUGEN leadership your members need your help, Hawaii HI.
Figure 5.  A Growing Body Of Users Believe 3PM Is A Right

screen-shot-2010-02-20-at-44509-pm


The Bottom Line For Vendors - Proactively Address The Issue Or Expect A Groundswell Of Activism
Order cheap iressa online, SaaS, subscription pricing, 3PM, and the economy provide a confluence of forces that will continue to attack maintenance revenue streams.  Many legal cases have been fought over this issue including IBM vs Amdahl and Geac vs Grace ConsultingSAP's failed attempt to convince customers on the value of Enterprise Support led to a public relations disaster and a factor in the resignation of their CEO.  The result - many vendors considering price hikes held back.  In fact, some savvy software vendors retooled and restored the client -vendor relationship by:

  • Offering more entry points and tiers to support options. Ostaa halvalla evista, The three pillars of software maintenance and support policies still apply.  However, several vendors are now offering more tiers of support as lower entry points.  Two vendors have finalized plans to offer just the bare bones legal and regulatory updates.  Other vendors have made it easier to come back with maintenance amnesty plans.

  • Providing flexible maintenance policies. Vendors who change rigid policies have experienced success among customers.  Some Both Infor through Infor Flex and Micrsoft Dynamics allow like for like swap credits to migrate between existing products.

  • Renegotiating existing terms. Some vendors are helping clients meet the realities of the current market conditions. Big on the list is helping clients address shelf ware without repricing of contracts.  For clients who paid full maintenance on software that’s at least 4 years old, some vendors are offering to reduce up to 20% of the overall licenses not in use.  This leads to lower maintenance revenue but engenders good will among key clients.  Further, several vendors have allowed clients to apply credit towards another module as an alternative.

  • Delivering amnesty programs. Several vendors have allowed customers to return to maintenance programs after years of not paying.  Such programs play a key role in helping customers upgrade but should be used sparingly as customers may become accustomed to this practice.

  • Creating better peer forums to share information. Almost every vendor surveyed has a program to improve the online support capabilities.  Applying Social CRM use cases,  user generated content in peer forums tops the list of initiatives.  Other plans focus on sharing data on benchmarks, operational metrics, and best practices.

  • Assisting with vendor financing, order cheap iressa online. Clients seek access to financing, especially many in the mid-market who’s credit lines have been zapped.  Microsoft has led the charge by providing 0% financing for its Microsoft Dynamics ERP and Microsoft Dynamics CRM Customers.  Other vendors such as IBM, Infor, Oracle, SAP, Sage also offer vendor led financing programs that include hardware, implementation, training, and other services.

  • Lowering cost of usage and ownership. Though tops on the list as a conceptual practice, most vendors will need to roll out such initiatives over the next 24 months.  A few notable exceptions include Agresso with its VITA architecture which allows customers to rapidly make business and UI changes, Microsoft Dynamics customers who report back significantly lowered implementation and training costs compared to most vendors, and Epicor customers who report significant productivity gains with Service Connect.  SaaS customers already experience such gains.


Your POV

Take the new and improved survey on 3rd party maintenance and let us know if you need help with your enterprise apps strategy by:


  • Conducting an ROI on 3rd party maintenance options

  • Identifying cost reduction opportunities

  • Renegotiating your software contracts

  • Improving innovation via SaaS and other deployment options


Please post or send on to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity.
Related resources and links

20091008 Deal Architect - Vinnie Mirchandani "Third Party Maintenance Is Really 4 Decades Old"

20071120 News Analysis: Too Early to Call the Death of Third Party Maintenance

20090210 Tuesday's Tip: Software Licensing and Pricing - Do Not Give Away Your Third Party Maintenance And Access Rights

20090709 Tuesday's Tip: Do Not Bundle Your Support and Maintenance Contracts.

20090622 News Analysis: Infor Flex Reflects Proactive Maintenance Policy

20090516 News Analysis: Rimini Street Launches Third Party Maintenance for SAP

20090504 News Analysis: Oracle Waives Fees On Extended Support Offerings

20080909 Trends: What Customers Want From Maintenance And Support

20080215 Software Licensing and Pricing: Stop the Anti-Competitive Maintenance Fee Madness

20090428 News Analysis: SAP and SUGEN Make Progress on Enterprise Support

20090405 Monday's Musings: Total Account Value, True Cost of Ownership, And Software Vendor Business Models

20090330 Monday's Musings: It's The Relationship, Stupid. (Part 2) - Stop Slashing The Quality Of Support And Maintenance

20090324 Tuesday's Tips: Five Simple Steps To Reduce Your Software Maintenance Costs

20090223 Monday's Musings: Five Programs Some Vendors Have Implemented To Help Clients In An Economic Recession

20081012 Monday's Musings: 5 Steps to Restoring Trust in the Vendor - Customer Relationship

20100114 News Analysis: SAP Revives Two Tier Maintenance Options

20091012 Research Report: Customer Bill of Rights - Software-as-a Service

20090912 News Analysis: Siemens Cancels SAP Maintenance Contract

20090910 Tuesday's Tip: Note To Self - Start Renegotiating Your Q4 Software Maintenance Contracts Now.

20090602 Tuesday’s Tip: Now’s The Time To Consider SaaS Software Escrows


Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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New Changes Hint At Hasso's Priorities Buy cytoxan without prescription, In a not surprising update, SAP makes changes to Executive Board and management.  Here are the changes:


  • Gerhard Oswald becomes COO. Gerhard has experiences in support, farmacia capecitabine barato, Bestill capecitabine online, consulting, education, cheap epogen overnight delivery, Jotta epogen verkossa, custom development, and quality.Gerhard's contract has been extended till December 31, billige arimidex apotek, Cytoxan cheap, 2011.

    Point of View (POV):  Gerhard's been a long-timer at SAP with 30 years of experience.  He replaces Erwin Gunst who's been out for almost a year with medical issues.  SAP needs a strong COO in place and Gerhard has the credibility and experience to execute.  Hasso's putting a trusted lieutenant in charge.


  • John Schwarz resigns. The former BOBJ leader leaves.  He was responsible for SAP BusinessObjects, Ecosystem and Corp Dev.

    POV: After being passed up for the CEO job, ordering epogen online legally, Billig kaufen iressa, it was obvious that John would be leaving.  Expect many of the BOBJ members in product management,  product marketing, buy cytoxan, Hawaii HI, and development to be reshuffled as their support will be shifted.  Those who didn't fight hard for embedding T-Rex (inMem) and pushing out "Timeless Software" may be most impacted.


  • Peter Lorenz named as a corporate officer. Peter currently is the Executive Vice President for Small and Mid-size Enterprise (SME).  He reports to Jim Hagemann Snabe.

    POV: The corporate officer position serves as an extended board member role.  This hints at the importance of SME to SAP's strategy.  SAP also needs to build bench strength in SME.



The Bottom Line - SAP's Making Big Changes.

Hasso's acting fast to make changes.  John Schwarz will be missed by many of the BOBJ team. Expect a ripple of changes as the management shake out finalizes over the next 8 to 12 weeks.   Look for new product road maps to arrive prior to Sapphire 2010, purchase zometa online. Buy capecitabine cheap, Your POV

Are you an SAP customer?   How do you feel about the transition?  Would you like to learn more about:


  • Building a next gen SAP roadmap?

  • Improving your SAP apps strategy?

  • Augmenting SAP with SaaS?

  • Putting third party maintenance and optimization to work?


Please post or send on to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity.
Related Links And Resources

Official SAP Press Release

Here's a list of related reports, buy capecitabine without prescription. Casodex online kopen, 20100114 News Analysis: SAP Revives Two-Tier Maintenance Options

20091211 Event Report: 2009 SAP Influencer Summit - SAP Must Put Strategy To Execution In Order To Prove Clarity Of Vision

20091125 Speaker Notes: Keynote - SAP UK & Ireland User Group Conference 2009

Here’s a list of related links of news during Léo's tenure.  They will be added on an ongoing basis and updated as appropriate.


Copyright © 2010 R Wang and Insider Associates, cheap cytoxan without prescription, LLC. All rights reserved.
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Apotheker's Contract Not Renewed.  SAP Puts Snabe and McDermott In Co-Ceo Roles.

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Rumors began circulating early this weekend that Léo Apotehker's contract would not be renewed.  The highest level sources had confirmed this early in the morning and the afternoon press release provided confirmation of the details.  A few key facts:


  • Order cytoxan, SAP moves back to Co-CEO management structure. Cheapest capecitabine online, Bill McDermott, head of field organization and Jim Hagemann Snabe, buy cytoxan overnight delivery, South Dakota SD, head of product development become Co-CEO's. Point of View

    (POV): For undisclosed reasons, Leo's contract was not renewed, District of Columbia DC D.C.. Koop korting epogen, Both Bill and Jim have extensive experience at SAP and have been hard at work revitalizing the organization from both the sales and product sides.  Many observers may be surprised not to see former Business Objects CEO John Schwarz in the running.


  • Executive Board elevates role of products and technology, New Mexico NM N.Mex.. Where to buy cheap epogen, Vishal Sikka, chief technology officer (CTO) now appointed to the SAP Executive Board.

    POV: Vishal has the trust and ear of Hasso Plattner and Jim Snabe.  The net result may be more unified road maps, cheap capecitabine no rx, Nevada NV Nev., better prioritization of R&D assets, and less issues with product development.



The Bottom Line - Timing Is Everything, buy epogen online, Gleevec, But SAP's Inflection Point Is Good News For Customers

Though a seasoned executive with over 20 years with SAP, Leo was in the wrong place at the wrong time.  He was responsible for doing a bang up job in sales when Henning Kagermann (i.e, epogen prescription. the former CEO) was around.   In fact, he made Henning look good despite the difficulties in launching mySAP ERP 2007, SAP ByD, and a host of other failed projects.  Unfortunately, he entered a down market while in charge of a sinking ship.  Low morale among the Walldorf engineering team, the issue with Enterprise Support and maintenance, and uncontrollable poor quarterly performance proved to be factors beyond his control.  Customers over the past 2 to 3 years began to wonder how to tap SAP's innovation.  A clear need emerged for having more technologists at the helm, order cytoxan. Pharmacie capecitabine bon marché, Putting McDermott as Co-CEO makes sense.  He is an excellent sales guys but the issues is not sales.  It's products.  Snabe and Vishal will need strong product vision to right SAP and point it in a forward direction.   Engineering and products need more attention to bring out trapped innovation at SAP.

Your POV

Are you an SAP customer?   How do you feel about the transition?  Would you like to learn more about:


  • Building a next gen SAP roadmap?

  • Improving your SAP apps strategy?

  • Augmenting SAP with SaaS?

  • Putting third party maintenance and optimization to work?


Please post or send on to rwang0 at gmail dot com or r at softwaresinsider dot org and we’ll keep your anonymity, Washington WA Wash.. Purchase gleevec,
Related Links And Resources

Here's a list of related reports.

20100114 News Analysis: SAP Revives Two-Tier Maintenance Options

20091211 Event Report: 2009 SAP Influencer Summit - SAP Must Put Strategy To Execution In Order To Prove Clarity Of Vision

20091125 Speaker Notes: Keynote - SAP UK & Ireland User Group Conference 2009

Here’s a list of related links of news during Léo's tenure.  They will be added on an ongoing basis and updated as appropriate.


Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.



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Standard Support Returns After Much Deliberation

SAP announced today that they would be reintroducing their Standard Support offering.  Customers now gain choice Order cytoxan without prescription, with a 2-tier maintenance offering. Here are the details between standard support and enterprise support, comprar casodex. Georgia GA Ga.,


  • Standard Support Offering reintroduces at 18%. Customers seeking core bug fixes, gleevec kopen, Ordering capecitabine, support packages, risk mitigation, Mississippi MS Miss., Tennessee TN Tenn., 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%, pharmacy capecitabine. Iowa IA, 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, acquistare online capecitabine, Goedkope casodex apotheek, 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, buy zometa. Other programs such as Max Attention, Safeguarding, and Product Support for Large Enterprises (PSLE) will continue to be available by choice and invitation.


Figure 1, order cytoxan without prescription. Ordering evista overnight delivery, SAP's New Support Pricing Scale

[caption id="attachment_4087" align="alignnone" width="529" caption="(Source: SAP)"]screen-shot-2010-01-14-at-74603-am[/caption]

The Bottom Line - Best Support Scenarios Will Depend On Your Previous and Current Contracting Prowess

The good news - SAP's spent considerable amount of time listening to their customers.  The result - customers do want choice and there are plenty of choices to be made.  Decisions on which option is best can be best summarized by asking a few key questions:


  • Are you expanding your use of SAP in the next 3 to 5 years? Determine your pace of adoption for SAP products.  If you are planning to add more modules then you will want to consider Enterprise Support.  If you are not, then you should be moving to standard support and considering 3rd party maintenance in 12 to 18 months.

  • Do you have a CPI increase in your contract, capecitabine farmacia a buon mercato. Buy zometa online without prescription, If you do, then you'll want to see if the total is above the inflation rate or the enterprise support ramp up of 6% per annum.  The best case is to have negotiated CPI + 0% but most SAP customers have CPI +5% as standard, arimidex kopen, Arimidex online kaufen, well over the 6%.

  • What's your overall SAP apps strategy. How will you harness innovation within and around SAP?  What's your plan in the next 12 to 18 months?  What will you be doing with SaaS?  How will you be incorporating portals such as Sharepoint?

  • Can you make a decision on Enterprise Support by March 15, buy gleevec cheap, Order casodex online, 2010? Existing customers who have not moved to Enterprise Support must make a decision in order to go with the slow ramp up.  Those who wait after March 15, 2010 will start at 22% maintenance.


A sample output for clients would be a decision matrix based on multiple factors.  Below is one example for used with clients in an early morning call with 2 key factors of CPI increase in contract versus adoption of SAP.  Other factors will include when your contracts began and what lifecycle of adoption your organization are in, comprar iressa. Mississippi MS Miss., (See Figure 2):

Figure 2.  Sample SAP Support Decision Matrix

[caption id="attachment_4088" align="alignnone" width="599" caption="Copyrighted © 2001- 2010 R "Ray" Wang and Insider Associates LLC."]Copyrighted © 2001- 2010  R "Ray" Wang and Insider Associates LLC.[/caption]

Your POV

Need help with your contract negotiations?  Tap into the experience of thousands of contract negotiations.  Have a story to share about SAP contracts. Order cytoxan without prescription, Please post or send on to rwang0 at gmail dot com and we’ll keep your anonymity.

* Not responsible for any factual errors or omissions.  However, Osta zometa online, Buy zometa online cheap, happy to correct any errors upon email receipt.

Other Useful Software Contract Negotiations Links

Tuesday's Tips: Five Simple Steps To Reduce Your Software Maintenance Costs

Tuesday's Tip: Do Not Bundle Your Support and Maintenance Contracts, Michigan MI Mich.. Billige zometa apotek,

Tuesday's Tip: Software Licensing and Pricing - Do Not Give Away Your Third Party Maintenance And Access Rights

Tuesday's Tip: 3 Approaches To Return Shelfware

Tuesday's Tip: Software Licensing and Pricing - Now's The Time To Remove "Gag Rule" Clauses In Your Software Contracts


Related Blogs, Press, Nebraska NE Nebr., and Links

MUST READ - 2010017 Irregular Enterprise - Dennis Howlett "SAP's Maintenance Cost Sleight of Hand"

News Analysis: SAP Moves All Customers Onto More Expensive Enterprise Support

News Analysis: SAP and SUGEN Make Progress on Enterprise Support

20100115 SearchSAP.com/TechTarget - Courtney Bjorlin " Choosing Standard or Enterprise support more difficult for SAP customers with no KPIs "

20100114 IDC - Amy Konary at IDC "Guest Post: Back by Popular Demand, A Basic Maintenance Offering from SAP"

20100114 Forrester Blogs - Paul Hamerman "SAP's Tiered Support Announcement Diffuses a Contentious Issue"

20100114 IDG News - Chris Kanaracus "SAP shakes up support structure, executive organization"

20100114 Enterprise System Spectator - Frank Scavo "Flash: SAP backs down on 22% maintenance fees"

20100114 Information Week - Doug Henschen "SAP Reintroduces Tiered Maintenance"

20100114 ComputerWorldUK - Mike Simons "Update: SAP does U-turn on Enterprise Support"


Copyright © 2010 R Wang and Insider Associates, LLC. All rights reserved.

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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 Buy cheap gleevec online, in 2010, users must continue to reduce their cost of ownership and complexity (see Figure 1).  In addition, rapidly changing business requirements require some users to seek SaaS alternatives, additional point solutions, and extensions.

Figure 1.  Cost Reduction Top of Mind for SAP users

What SAP users want from SAP

Consequently, vendors providing SAP optimization and extension solutions represent one of the fastest growing parts of the $78.7B (2009 Altimeter Group estimate), Illinois IL Ill., 850,000 person strong 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, buy cheap gleevec, and data management;

  4. license management and optimization;

  5. Microsoft Office integration;

  6. third party maintenance; and

  7. virtualization


1. Application Extension and Usability

Users often complain about the poor usability of SAP solutions.  These solutions allow users to change their user experience with SAP.  In some cases, Order arimidex, the solutions provide composite app creation capabilities in other tool sets to inter-operate with SAP.


  • Adobe - provides interactive forms for the SAP environment in both an off-line and on-line deployment.  Submitted forms are then entered into SAP.  Forms can include validations and other secure features.

  • ERP-Link - allows users to extend the SAP environment for business intelligence, document management, content management, Connecticut CT Conn., and composite application creation using Microsoft tools.  The i_Net platform creates SAP-Microsoft interoperability.

  • GuiXT - provides users with the ability to deliver customized user interfaces in SAP applications.  GuiXT is often used by clients to simplify screens and user flows without impacting SAP code.


2. Application Life Cycle Management

Whether it may be instance consolidation, upgrades, test data management, or performance planning, these vendors ease the process of managing the SAP application life cycle, buy cheap gleevec online.


  • Hayes Technology - assists customers with replicating production application data for dev, Buy epogen overnight delivery, testing, and training environments.  Gold Client allows organizations to replicate the data sets they need in SAP configuration, master data, and transcational data.

  • Hyperformix - builds on SAP internal monitoring capability, αγοράζουν φτηνά zometa.   Organizations gain a performance monitoring tool that identifies hardware, infrastructure, Virginia VA Va., and architecture optimization opportunities.

  • Intellicorp - provides an artificial intelligence based optimization solution called Live Compare that compares version of SAP for use in testing, upgrade planning, and other life cycle activities. The solution helps clients understand their pre and post environment.

  • Panaya - delivers a SaaS based optimization tool for SAP upgrades, Iowa IA, enhancement packages, and ABAP code cleansing.  Customers generate a code analysis to determine differentials between versions.  The tool proactively tells user what will break, Rhode Island RI R.I., how to fix it, and where to test.

  • Tidal Software - optimizes the allocation of SAP support resources through a root cause analysis methodology.  Performance, IT Process, and Workload automation solutions address both day to day and upgrade scenarios such as a system refresh.

  • West Trax - uses a benchmark tool based on over 300 clients in 13 industries to determine system optimization opportunities for upgrades and  consolidations.  KPI Scan, iressa online cheap, KPI Optimizer, and KPI QA help organizations identify opportunities, Lowest price arimidex, make suggestions, and assist with compliance.


3. Archiving, Storage, cheap gleevec from canada, and Data Management


  • EMC - provides content management and archiving solutions to support compliance requirements.  Other capabilities include cloning, backup, Kopen goedkope casodex, and recovery, and information protection.

  • IBM Optim - delivers a suite of integrated data management solutions that includes data privacy, test data management, archiving, ordering gleevec online without prescription, retention and E-discovery, and upgrade consolidations.


4. License Management and Optimization
Buy cheap gleevec online, Solutions in this category focus on helping clients manage their license usage.  Many large enterprises lack the understanding of how much shelfware may be in production.  In addition, the used software market provides users with opportunities to unload or acquire older releases of software. Rhode Island RI R.I.,

  • Flexera (formerly Acresso, Macrovision) - helps clients with a software solution to understand usage, ensure compliance, centralize updates, buy evista without prescription, predict future demand, and improve contract negotiation leverage.

  • SUSEN Software - provides a market place to buy and sell used software or shelfware.

  • UsedSoft - supports a market place to buy and sell used software or shelfware.


5. Cheapest zometa in the world, Microsoft Office Integration

Organizations require easy ways to leverage Microsoft Office as an interface into SAP.  Common scenarios include Outlook, Excel, Access, and Word integration, köpa gleevec online.


  • SAP Duet - represents a solution in joint partnership between Microsoft and SAP to provide interoperability.  Current users complain about the slow pace of innovation and high cost.  A new version addressing these issues will be out in 2010.

  • Winshuttle - facilitates data exchange between SAP and Microsoft Excel or Access.   Winshuttle's data management tools automate data entry, Price of gleevec, data download, and reporting tasks for the entire SAP BusinessSuite 7.


6. Third party maintenance

Customers seeking relief from maintenance choose solutions that provide maintenance, tax updates, and regulatory changes for often half the cost of existing SAP maintenance prices.  The clear leader in the market is Rimini Street though some other system integrators have been quietly providing such services, buy cheap gleevec online.


  • Rimini Street- delivers maintenance options for SAP customers who do not seek to upgrade but would like to keep their existing systems up to date with tax, compliance, cheapest capecitabine in the world, and other break-fix issues.  Rimini Street's charter program has met significant success with over 100 client cases for SAP customers.

  • Your System Integrator of Choice - The recent Siemens SAP maintenance contract negotiations revealed that other vendors such as IBM and HCL were bidding for the maintenance business.   Many SoftwareInsider readers have shared with us that many system integrators, especially those in Europe provide such services.


7. Farmacia epogen barato, Virtualization

Virtualization allows organizations to consolidate server infrastructure costs for development, testing, training, and production environments, buy arimidex no rx.


  • EMC - provides virtualization solutions that include high availability (HA), backup and recovery (BR), Ohio OH, and cloning.

  • VMWare -  reduces an organizations physical infrastructure footprint with its solutions.  VMWare provides additional solutions that deliver high availability (HA) and disaster recovery (DR).  In addition to cost savings, many Software Insider readers report performance improvements.


The Bottom Line - Lots Of Proven Solutions, Expect More Details In Future Friday's Features

Over the course of the next 6 months, we will be profiling many of these vendors.  Key questions that will be answered:


  1. What's the appropriate use case?

  2. What other customers have used these solutions?

  3. What are sample ROI's achieved?


Meanwhile, let's see what news, programs, and innovations develop at SAP's Field Kickoff Meeting (FKOM 2010) the third week of January.

Your POV.

Have you worked with any of these vendors?  Feel free to share your experiences.  Am I missing anyone?  This list will be continuously updated so please share with us your thoughts.  Feel free to post your comments here or send me an email at rwang0 at gmail dot com or r at softwareinsider dot org.

Copyright © 201o R Wang and Insider Associates, LLC. All rights reserved.

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Boston Park Plaza Lobby Buy evista, nTag at SAP Summit Schwarz and Becher The Future Leadership of SAP?
(Photos by R Wang & Insider Associates, LLC.   Copyright © 2009 All rights reserved.)

Re-innovation Now At The Heart Of SAP's Focus And Strategy

SAP has faced a rough two years.  From the continuing market pressure on new license revenue, false-start launch of Business By Design (ByD), comprar gleevec de descuento, management restructuring, and issues with user groups and Enterprise Support, one could kindly say its been a brutal period.  Looking forward to a fresh start in 2010, senior executives and key personnel have been hard at work "re-innovating" SAP at both the product and marketing level.  As intended, Cheap gleevec overnight delivery, many of the 275 analysts, bloggers, customers, influencers, and media attendees of this year's SAP Influencer Summit left Boston with the perception that the company is in the midst of such transition. However, epogen en ligne afin, the clarity of that message and the perception of innovation depended on the topic at hand.

Five key themes drove most formal and informal conversations throughout the event:


  • SAP continues to be innovative. John Schwarz, SAP Executive Board Member, keynoted on stage that " We are not your grandmother's SAP" and addressed SAP's aspiration to become more customer focused and innovative.  Jim Hagemann Snabe, παραγγείλετε online zometa, Executive Board Member in charge of Business Technology and Solutions, touted the product vision.  Vishal Sikka, SAP's Chief Technology Officer (CTO) focused his conversation on Timeless Software and SAP's cloud orientation.  He emphasized the size of future data volumes and the case for why In-Memory applications would provide the access speed and key meta-data required to draw inference for usage in business intelligence and analytics.  Meanwhile, John Wookey, who leads SAP's OnDemand for Large Enterprise effort commented on the Cloud by stating, "SAP sees On-Demand as the next major change in computing models and we're very serious about on-demand, For cytoxan online. Innovation in on-demand (deployment options) is still largely in front of us."

    Point of view (POV): SAP's working hard to highlight its innovations.   With €1.6B spent a year in R&D, innovation exists in SAP Labs but management and tribal politics often keep good ideas from becoming productized.  Users will need to work closely with SAP to identify needs and requirements and help SAP prioritize what should go to market.  Cloud strategy remains hazy in specifics, buy evista. In-memory approach will benefit customers but will take time to develop across all products.  OnDemand for Large Enterprises could slow in-roads by pure-play SaaS vendors.




  • Business analytics and intelligence play a key role in the platform. Executive Vice-President and General Manager, Marge Breya spent much time talking about SAP's support for heterogeneous data sources.  As the BOBJ assets integrate into NetWeaver, her emphasis would be to deliver information across new platforms and use cases.  Project Kona for business intelligence (BI) OnDemand in mobility would play a key role in changing how users access SAP information.

    POV: Customers need better information in order to make key decisions.  BI plays a significant role in delivering such value to customers and the Business Objects acquisition provides the enabler.  However, SAP users still find data quality and data governance to be a key hole in the SAP information strategy.  SAP will need to address the different approaches in master data management (MDM) and help customers understand which set of tools should be applied in each customer scenario.




  • Future growth rests with success in small and medium enterprises.  With most of the large enterprise saturated with packaged apps such as ERP, Oklahoma OK Okla., SAP's future growth rests on its ability to move down market.  The SME team led by Hans-Peter Klaey shared progress on their 3-prong product strategy with Business One (B1), Business All in One (BAiO), and Business by Design (ByD).   B1 continues to gain traction in the small end of the market and SAP has published a product road map well past 2014.  The key issues remain the future of ByD and how SAP plans to scale growth.

    POV: With hopes of getting ByD to scale, Feature Pack 2.5 promises to bring in-memory analytics, multi-tenant support, mobile device enablement, iressa online kaufen, Microsoft Silverlight UI's, and a software development kit based on Microsoft Visual Studio.  Scaling remains a big issue but now becomes technically feasible.  Conversations with Rainer Zinow, Senior Vice President for SME Strategic Solution Management; Christoph Behrendt, Senior Vice President for Midsize Enterprises; Peter Lorenz, Illinois IL Ill., Senior Vice President, SME Solutions; Jeff Stiles, Senior Vice President for SME Marketing; and others, highlight the advanced progression in SAP's SME thinking.   Early indications show promise that they will eventually approach the market with the right scaling, go to market plan, comprare gleevec, and cost structure to succeed. Movement towards more Microsoft technologies will help attract B1 partners, especially many at Sage who may be disgruntled but technically competent and customer service oriented.


  • Sustainability is more than a trend.  Building on its Clear Standards acquisition, SAP continues to drive mind share in the field of sustainability tracking.  Key topics include the usual suspects of carbon emissions, Generic epogen, energy consumption, and compliance. The Business Objects Sustainability Performance Management offering showcased new areas such as product and workplace safety.  Its recent Sustainability Report highlights how SAP uses its own software to achieve its corporate objectives.  Sustainability shows growth as a board-level topic and issue of concern.

    POV: More than just buzzwords, SAP's making a considerable investment in sustainability.  By providing the right templates and KPI's for external reporting, SAP will transform social responsibility aspirations to reality for its interested customers.   Peter Graf, SAP's Chief Sustainability Officer, αγοράζουν φτηνά arimidex, has harnessed the do-good spirit of SAP's employees in building out SAP's offerings.  Expect sustainability to be a key area in repairing SAP's current image.  Conversations with customers indicate that sustainability may not be a primary reason to choose SAP today, but SAP's investment and commitment in this arena brings SAP into conversations with key business leaders and has led to deal flow.  However, long term success in sustainability will require good master data management (MDM) and SAP must rapidly address this issue or face the prospect of false promises.


  • Partners and ecosystems matter. The partner ecosystem team continues to evolve and innovate with new programs that not only attract new partners, but also improve partner readiness.  SAP currently works with 7000 go to market partners and the SAP Developer Network boasts 2.5M developers.  Efforts such as the SAP Mentor program, Cheap evista no prescription, SAP Partner Edge, SAP EcoHub, and SAP Community Network by Zia Yusuf and his successor, Singh Mecker, Senior Vice President of GEPG provide proof points of progress and success.

    POV:
    Buy evista, The EcoHub provides customers, partners, suppliers, and internal employees with a collaboration point for subject matter experts, trouble shooting, and fostering community.  SAP's partner ecosystem remains its strongest asset.  In order to capitalize on their success, SAP must make the necessary investment in revamping the technology platforms partners build on.  Should they fail in providing an easier platform, they will lose traction and adoption.  Partner-led innovation will move to easier platforms to work with and business models that sustain profitability.


SAP's Efforts In Strategy To Execution Rates A "B-" For Now

Applying a quick Vendor Scorecard grading system, here is a subjective evaluation of SAP's 2009 efforts to date*:


  • Leadership: "B-". Leo Apotheker and Bill McDermott failed to show up again at a key event.  While this was Q4 and a tough quarter, arimidex pharmacy, customer and influencer perceptions remain low on Leo given his decision to push Enterprise Support and the lack of clarity into his vision and approach to date.  To be fair, he has faced a tough hurdle in cleaning up mistakes from his predecessor, Henning Kagermann, and has had to streamline research and development as well as a sprawling bureaucracy.  The good news - their absence highlighted the emerging bench strength of talent within SAP.  This brought some confidence to many in attendance that SAP may have the right stuff to emerge. Order zometa pill, The bad news - rumors abound on when a successor (Co-CEO) would be announced as Leo's contract expires in June 2010.

  • Product strategy: "B+". Sustainability, integration of Business Objects componentry, Enhancement Packages (EhP), and In-Memory apps receive praise.  Meanwhile, adoption of ERP 6.0, Nevada NV Nev., remains slow.  SAP cites 50% of all product instances on to ERP 6.0.  However, actual customer counts may be less given the fact some customers have 25 to 50 instances of SAP.   Only 3500 customers have used Enhancement  Packages.  Customers remain confused on the value of Business Suite 7, upset with paying twice for BW and Business Objects, and disappointed with SAP's slow approach to SaaS and onDemand.  Successful relaunch of ByD in 2010 may help SAP gain traction.  Customers await delivery on OnDemand offerings for Large Enterprise but can not wait much longer.  InMemory Apps planned for 2014 must be delivered on-time to compete with Oracle's Fusion Apps.  Despite the lack of clarity, Acheter cytoxan, SAP still has the richest set of business functions and ability to handle the greatest set of complex scenarios.

  • Technology strategy: "C+". Middleware strategy remains murky at best.  SAP should revamp NetWeaver or junk it.  NetWeaver is to Blackberry as Salesforce.com's Force.com is to iPhone.  It's so much easier to build apps on Force.com and iPhone than it is for SAP's NetWeaver and RIM's Blackberry.  The decision to emphasize the NetWeaver ABAP stack over the NetWeaver Java stack will leave customers and partners confused despite how much more efficient it is to build on ABAP.  In addition, the lack of good business process orchestration at both run time and design time remains a critical hole for investment and gives vendors such as IBM and Cordys opportunities to sit on-top of SAP apps.  Mobile strategy at first seems less emphasized with the rare mention of native apps development on Blackberry and other platforms.  Nevertheless, SAP's decision to leave mobile platform integration of Blackberry and others at the NetWeaver Mobile layer may prove to be the most efficient and effective approach.  The move to in-Memory will help with future development, yet customers lack confidence in SAP's execution of the Timeless Software argument, despite its best intentions.  It appears that SAP will have 2 OnDemand strategies.  Lighter applications will be built on Java.  More complex applications to be built on the OnDemand stack.

  • Go to market strategy: "B+", cheap evista tablet. "Best Run Now" packages deserve credit for bringing business value from analytics into core business processes.  Slow adoption can be blamed on a sales teams who treated this as a new license sales opportunity instead of an entry point to showcase SAP value.  Customers could see the sales reps salivating with each interaction for a new sale.  Kudos go to SAP for finally admitting failure with ByD and working hard with customers and partners to revamp efforts.  SAP's marketing team remains the most innovative and effective.  Just wait till they get products that keep up with their marketing.

  • Innovation agenda: "B-", buy evista. SAP's making in-roads in the right areas.  Project Constellation, integration with Google Wave, and social networking investments highlight some movement towards disruptive technologies.  SAP must rapidly productize innovations from the SAP Imagineering team, worldwide SAP Labs, Alaska AK, SAP COIL, and its consulting partners.   SAP needs to tap into its ecosystem and bring out innovation.

  • Service and support: "C+". Customers continue to self-support and question SAP's value.  As more customers consider third party maintenance, SAP will have to fight harder to demonstrate value.  On the positive front, SAP's Value Academy shows promise in helping customers optimize their SAP investments.  Initial discussions with Chakib Bhoudary, SAP's Chief Value Officer, Kaufen gleevec, indicate the deep level of experience and data provided.  Customers will want to see how to access these services with minimal investment or redirected maintenance investment.

  • Customer satisfaction: "C+". Conversations with over 400 customers in 2009 highlight severe disappointment with their SAP relationship.  Sales reps compensated on net new license sales no longer invest in guiding customers through the SAP offerings.  Customers fail to adopt due to lack of knowledge.  They no longer trust their SAP sales reps nor do they have high confidence in the system integrators to guide them to the most cost effective solution.  SAP sales reps need to understand their products better.  Those customers who are able to make a trip to Walldorf (WDF), find solace that the old SAP still exists with passionate and dedicated engineers.  Customers appreciate the honesty in WDF about what can or can not be accomplished with SAP.  However, this is not a scalable model for SAP.  SAP will need to retrain and reincentivize its sales reps.  Applying social enterprise methods to the great SAP ecosystem may prove to be fruitful in scaling out more personalized approaches.

  • Execution to date: "C-". Order capecitabine from canada, Failures abound in execution in Enterprise Support, NetWeaver adoption, ByD roll-out, Duet usage, and Solution Manager capabilities.  SAP's current state is similar to Microsoft's prior to the launch of Bing and Windows 7.  SAP needs a success story soon to not only raise morale, but also gain customer confidence in its ability to deliver.  Jim Hagemann Snabe's efforts at streamlining and centralizing development provides at least a positive indicator.

  • Partner ecosystem: "A", acheter zometa bon marché. Buy evista, The team has built one of the best technology partner ecosystems in the market.  The emphasis on community outreach, influencer participation, and investment in a partner's success continues to be a differentiator.  SAP's ecosystem strategy should be credited with saving SAP during this round of crisis.  A move towards Microsoft technologies such as SharePoint and Silverlight will help in gaining developer traction and adoption.  Fix NetWeaver and the ecosystem will have a tool they can innovate from.

  • Overall reputation: "B". SAP carries significant brand presence in emerging markets and the SME space.  Many companies equate ownership of SAP as a sign of success in their markets.  Yet, existing customers have soured on the brand and continue to wonder when SAP will innovate in their requirements and not be distracted by other pursuits.  In general, SAP still carries considerable brand equity which will buy it time as it reinnovates.


* A=4.0, A-=3.7., Epogen without prescription, B+=3.3, B=3.0, B-=2.7, C+=2.3, C=2.0, C-=1.7, New Mexico NM N.Mex., D+=1.3, D=1.0, D-=0.7, F=0

The Bottom Line  - SAP's Turning The Corner

Credit must be given to SAP for charting a new course.  A shift in the management philosophy and product direction will take years to realize, Capecitabine online kaufen, however, its not too late for change.  SAP must remember its roots and become more German and less American.  The renewed focus must put customer requests and priorities ahead of SAP's bureaucracy.  The emphasis must focus on the relationship.  When that reemerges in how SAP works with customers, partners, influencers, and its own employees, SAP will be back in good graces.  In the meantime, ostaa halvalla cytoxan, it's  time to get to work and deliver.  Oracle's Fusions Apps are coming soon and competitors such as IBM, Microsoft, Epicor, IFS, and SalesForce.com will not relent.

Your POV.

If you get a chance, let us know:


  • Which SAP products do you use?

  • What do you think about the progress with SAP?

  • Are you considering alternatives to SAP?

  • Do you feel SAP is innovating fast, ok, or slow enough?

  • What do you think of SAP's new reinnovation strategy?


Feel free to post your comments here or send me an email at rwang0 at gmail dot com or r at softwareinsider dot org.
Other related links and good resources

SPECIAL: Video clips from the SAP Influencer Summit from SAP

20091211 ZDNet Software & Services Safari - Brian Sommer "SAP Business ByDesign Update: Multi-tenancy, In-Core Memory DB and More"

20091211 MichaelFauscette.com - Michael Fauscette "SAP Coming Out From the Clouds"

20091210 ZDNet Collaboration 2.0 - Oliver Marks "SAP: The clear path forward for the supertanker..."

20091209 ZDNet IT Project Failures - Michael Krigsman "Is on-premise ERP obsolete?"

20091209 ZDNet Social CRM: The Conversation - Paul Greenberg "SAP Business Influencers Summit: A Clear Path Forward?"

20091209 Spend Matters - Jason Busch "SAP Influencer Summit, Dispatch 1: On-Demand Differentiation and Vision"

20091209 Monkchips - James Governor " SAP: Out with the Old, Shrugging off the Tag"

20091209 Merv's Market Strategy For IT Suppliers - Merv Adrian "SAP Promises Acceleration on a "Clear Path" - Will it Be Enough?"

20091209 CIO Reinvented Blog - Prasanth Rai "Interesting Data/Statistics About SAP...(Influencer Summit)"

20091209 DealArchitect - Vinnie Mirchandani "SAP and The Boston Park Plaza"

20091209 Cloud Avenue - Zoli Erdos "Twitter in the Enterprise - Round 56745327"

20091208 ZDNet IT Project Failures - Michael Krigsman "SAP Influencer Summit: First Impressions"


Copyright © 2009 R Wang and Insider Associates, LLC. All rights reserved.

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DSAG project team and project leader departure could signal disagreement with methodology not SUGEN Buy capecitabine online cheap, SAP embarked on an ambitious program to prove value in its Enterprise Support fee hike last year.   As planned, Alaska AK, Epogen discount, SAP should announce the results for the first set of SUGEN KPI's in early December.  However, two key SUGEN KPI project sponsors (revised 11/30/2009) team members have left from the German SAP user group (DSAG).  Confirmed by a spokeswoman to IDG News Service on November 27th, αγοράζουν online iressa, αγοράσετε iressa έκπτωση, 2009, both project leader Andreas Oczko and project sponsor Otto Schell resigned from their roles on November 18th.  Several outcomes may potentially have led to this departure:


  1. The methodology used by the auditing firm (Gartner Consulting) could be quite inconsistent

  2. Teams may not have had enough time to review the data to check for statistical errors.

  3. The KPI's measured were only the first set, purchase evista online, Evista ordine on-line, not the complete set.

  4. A few months does not provide enough trending data

  5. SAP's attempting to announce results prior to when 90%+ of its maintenance renewal occurs in Q4


To be clear, DSAG remains a SUGEN member and has not pulled out of the group or project.  The leadership members have just left the project and have been active with the SUGEN group on other projects and issues, Louisiana LA. Buy gleevec no prescription, SAP Should Still Be Given Credit For Undertaking A Huge Endeavor

Despite attempting to raise get away with a large (revised 11/30/2009) maintenance fees hike in the middle of one of the worst global recessions, the SUGEN agreement with SAP is a good faith gesture and a step in the right direction.  While this is not a legally binding agreement, acquistare a buon mercato capecitabine, Indiana IN Ind., the deal calls for SAP to limit increases until demonstrable results from the KPI's have been achieved.  This is not an easy challenge but a few props should go out to SAP because:


  1. SAP's embarking on a risky but unique program to show value

  2. Benchmarking 100 global customers against 10/11 KPI's creates data consistency challenges

  3. Agreeing to present results in the face of public opinion takes courage


The Bottom Line For Users -  Remain Vigilant And Compare SUGEN Results With Your Own

SAP customers should work with their user groups to understand the methodology used and gain access to the underlying data with these 100 customers.  Keep in mind SAP's Value Academy already has benchmarking data for a broader set of customers.  The result - selection of the 100 customers by the user groups will significantly impact the outcome.  Users should see how their situation fares compared to the benchmarks to gauge their own potential value achieved from SAP's Enterprise Support

The Bottom Line For Vendors - Provide Customers With Tiered Maintenance Plans

Pressures from SaaS deployments and mid-market competitors will erode the 70 to 80% margins in maintenance fees.  Customers will begin to demand third party maintenance options and include such protections in future contracts.  Those vendors who keep tiered maintenance based on the life of the product in production will engender the most loyalty by providing customers with the right balance between sustaining maintenance and incentives to upgrade.  At the end of the day, customers have to migrate on their own terms.  Maintenance fees should reflect the value that customers receive and not be an impediment in the client - vendor relationship, order evista. Oregon OR Ore., Your POV.

If you get a chance, let us know:


  • Which SAP products do you use?

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