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News Analysis: Rimini Street Vs Oracle Ruling Has No Negative Impact on Third Party Maintenance Rights

Recent Oracle vs Rimini Street Ruling Is About Customer Software License Rights Not Third Party Maintenance On February 13th, 2014, the United States District Court , District of Nevada Judge Larry Hicks issued a partial summary judgment in the Oracle vs Rimini Street Case. Here’s the executive summary to key questions about the ruling*: Is […]

Posted by R "Ray" Wang on February 17, 2014

3 Comments

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 […]

Posted by R "Ray" Wang on February 4, 2013

1 Comment

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 […]

Posted by R "Ray" Wang on March 25, 2012

0 Comments

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 […]

Posted by R "Ray" Wang on March 18, 2012

9 Comments

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 […]

Posted by R "Ray" Wang on January 4, 2011

4 Comments

Tuesday’s Tip: Dealing With Vendor Threats For “All Or Nothing” Maintenance Agreements

Recent Client Interactions Hint At Increasingly Aggressive Vendor Behavior Conversations with 11 enterprise apps customers in the past two months indicate stricter enforcement of vendor “All or Nothing” maintenance policies.  “All or Nothing” maintenance policies often require customers to put all licenses on maintenance or receive no maintenance from the vendor.  These policies also prevent […]

Posted by R "Ray" Wang on July 20, 2010

7 Comments

Monday’s Musings: Decoupling Support From Maintenance – What Apps Vendors Can Learn From Microsoft Dynamics

Who Says Support Has To Be Bundled With Maintenance? 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 […]

Posted by R "Ray" Wang on March 8, 2010

7 Comments

Tuesday’s Tip: When To Go With A Two-Tier ERP Strategy

Single Instance ERP Harder And Harder To Justify 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 […]

Posted by R "Ray" Wang on March 2, 2010

19 Comments

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 […]

Posted by R "Ray" Wang on February 22, 2010

7 Comments

News Analysis: Hasso Brings More Changes to SAP’s Management Team

New Changes Hint At Hasso’s Priorities 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, consulting, education, custom development, and quality.Gerhard’s contract has been extended till December 31, 2011. Point of View (POV):  Gerhard’s been a long-timer at […]

Posted by R "Ray" Wang on February 11, 2010

3 Comments

News Analysis: SAP’s CEO Léo Apotheker Resigns

Apotheker’s Contract Not Renewed.  SAP Puts Snabe and McDermott In Co-Ceo Roles. 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: SAP moves back to […]

Posted by R "Ray" Wang on February 7, 2010

2 Comments

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.

Posted by R "Ray" Wang on January 14, 2010

12 Comments

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
7. virtualization

Posted by R "Ray" Wang on January 5, 2010

13 Comments

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

(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), management restructuring, and issues with user groups […]

Posted by R "Ray" Wang on December 11, 2009

8 Comments

News Analysis: DSAG Project Team Members Resign Leadership of SUGEN KPI Working Group

DSAG project team and project leader departure could signal disagreement with methodology not SUGEN SAP embarked on an ambitious program to prove value in its Enterprise Support fee hike last year.   As planned, SAP should announce the results for the first set of SUGEN KPI’s in early December.  However, two key SUGEN KPI project […]

Posted by R "Ray" Wang on November 30, 2009

0 Comments

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

Building Innovation With And Around Your SAP Environment Location: Manchester CentralAuditorium Date:23/11/2009 Start Time: 16:25 End Time: 17:00 Speaker: R “Ray” Wang Company: Partner with Altimeter Group Keynote summary: Pace of change continues to increase in market forces, work dynamics, business models, and pace of technology adoption. Innovation is essential in this market. There’s a […]

Posted by R "Ray" Wang on November 25, 2009

4 Comments

Event Report: SAP UK & Ireland User Group Conference 2009

SAP users in UK and Ireland remain equally skeptical about SAP (Photos by R Wang & Insider Associates, LLC.   Copyright © 2009 All rights reserved.) The SAP user group hosted its annual event.  Conversations with 37 clients reflect the following broad trends in the UK and Ireland: SAP users remain skeptical about benefits promised […]

Posted by R "Ray" Wang on November 24, 2009

2 Comments

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

Connect.  Collaborate.  Innovate. Welcome to the first of many Altimeter Group research reports.  Before you dive deep into the Customer Bill of Rights: Software-as-a-Service report, we wanted to share with you a bit about the research process and how we work within the community. Connect.  We strive to bring new people together and share our […]

Posted by R "Ray" Wang on October 12, 2009

35 Comments

Thursday’s Thanks: Customer Bill of Rights – Software-as-a Service

This post has been cross posted on the Enterprise Advocates blog A New Way Of Creating Research – Collaborative Input And Review Some time early next week, we (i.e. Altimeter Group’s Jeremiah Owyang and I) will be publishing a Customer Bill of Rights – Software-as-a-Service.  Through the generous input of 57 collaborators and organizations, this […]

Posted by R "Ray" Wang on October 8, 2009

1 Comment

Tuesday’s Tip: Why Free Software Ain’t Really Free

Free Software Gimmicks From Some On-Premise Vendors Only Address The License Cost Issue Recently, readers and clients have been approached by on-premise vendors offering free software modules to incentivize new license purchases.  However, free should not be confused with the Open Source (i.e. Freeware) movement, where source code is provided with minimal copyright restrictions.  Free […]

Posted by R "Ray" Wang on October 6, 2009

6 Comments

News Analysis: Siemens Cancels SAP Maintenance Contract

Potential Announcement of * Siemens cancellation represents a shift in mood by one of SAP’s most loyal customers What’s been rumored for the past few months has now publicly been confirmed discussed.  Golem.de (Babelfish Translation in English) *Wiwo.de,(Wirtschaftswoche the German equivalent of BusinessWeek) (Babelfish Translation in English) reports that Siemens says SAP Tschüß (i.e. ciao, […]

Posted by R "Ray" Wang on September 12, 2009

8 Comments

Tuesday’s Tip: Note To Self – Start Renegotiating Your Q4 Software Maintenance Contracts Now!

Labor Day (US Holiday) traditionally marks the end of summer BBQ’s, the beginning of the fall conference season, and yes, the time to begin a review of your software maintenance contacts that expire end of year.   As clients prepare for this seasonal ritual, a few trends in 2009 should set the stage for negotiations: […]

Posted by R "Ray" Wang on September 1, 2009

2 Comments

Monday’s Musings: Users Now Expect More Advocacy From Their User Groups

Many user groups currently meet the basic requirements… Today’s independent and vendor sponsored user groups serve a key role in building community among a common interest group.  Typical mission and objectives often include: Creating an environment to share information and best practices Exposing issues and limitations with a vendor’s product and partner solutions Soliciting member […]

Posted by R "Ray" Wang on August 3, 2009

1 Comment

Tuesday’s Tip: 3 Approaches To Return Shelfware

Declining demand and diminishing output increase the pressure for enterprises to reduce their software license maintenance costs.  As part of a larger enterprise apps strategy, shelfware reduction provides an area for significant cost savings.   However, shelfware reduction is often hard to achieve because many vendors impose: Enterprise wide agreements. These “all you can eat” agreements […]

Posted by R "Ray" Wang on July 21, 2009

7 Comments

Tuesday’s Tip: Do Not Bundle Your Support and Maintenance Contracts!

In the past 2 weeks, emails from 31 software insider readers highlight a growing and concerning trend with support and maintenance contracts.  Vendors concerns about support and maintenance contract retentions has led to new initiatives to consolidate contracts.  At first glance, this may appear to be proactive and beneficial to customers.  In fact, common rationale […]

Posted by R "Ray" Wang on July 7, 2009

3 Comments

News Analysis: Infor Flex Reflects Proactive Maintenance Policy

Infor announced two new maintenance options for its customers today. These actions represent a proactive approach to provide its customers with new ownership models.  The key offerings include: Flex Upgrade: customers move to the latest application version, no change to existing maintenance and support costs, little or no license fees POV: Support and maintenance fees […]

Posted by R "Ray" Wang on June 22, 2009

3 Comments

Tuesday’s Tip: Seven Signs Your Software Vendor Can’t Innovate Fast Enough

Collective support and maintenance, constant innovation, best practices, and improved ROI represent the key arguments that led enterprises to packaged applications such as ERP. Today, this promise appears to be broken as enterprises question the value received for their support and maintenance monies.   In addition, on-premise upgrades require painful testing and down time to innovate […]

Posted by R "Ray" Wang on June 8, 2009

5 Comments

News Analysis: Rimini Street Launches Third Party Maintenance for SAP

(Photo: Rimini Street movable billboard outside SAPPHIRE 09.   Courtesy of Rimini Street.  All rights reserved) Almost one year after Rimini Street announced its intention to provide third party maintenance, on May 11th, 2009, the ground breaking support services provider announced that it had signed its first SAP clients and launched immediate availability of its […]

Posted by R "Ray" Wang on May 16, 2009

3 Comments

News Analysis: Oracle Waives Fees On Extended Support Offerings

Oracle President Charles Phillips pleasantly surprised Oracle Applications User Group (OAUG) Collaborate 09 attendees this morning during his keynote with the decision to waive Extended Support fees for a number of product lines through 2010 and 2011. As customers and prospects face one of the worst global economic crises, proactive relief on support and maintenance […]

Posted by R "Ray" Wang on May 4, 2009

8 Comments

News Analysis: Details On The SUGEN KPI’s For SAP Enterprise Support

More details have emerged on the actual 10 or 11 KPI’s that SUGEN and SAP have agreed to as well as the SAP’s targets for showing value.  To start with, here are the main KPI’s for each category: SUGEN KPI’S Business Continuity Increased business solution availability Reduced amount of work related to all SAP incidents […]

Posted by R "Ray" Wang on April 29, 2009

11 Comments

News Analysis: SAP and SUGEN Make Progress on Enterprise Support

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 […]

Posted by R "Ray" Wang on April 28, 2009

3 Comments

Event Report: Lawson CUE 2009

Keynote highlights include themed presentations around value Customers, partners, and prospects gathered together in the always spectacular San Diego Convention Center for Lawson CUE 2009.  Moments before the keynote, the team unveiled the latest Lars Larson video, “Lost and Found”!  In true Lars Lawson fashion, the final solution reflected simplicity.  The keynote then kicked off […]

Posted by R "Ray" Wang on April 25, 2009

2 Comments

Quips: The Fervor Over Vendor Sales Tactics

Blogosphere highlights broken software vendor business models What a crazy few days in the blogosphere!  Economic pressures force clients to become more attuned to the business models of software vendors.  Vendors have amped up sales tactics as they face earnings pressures.  Fellow colleagues in the analyst/blogger/media world have responded in full force to the observations […]

Posted by R "Ray" Wang on April 17, 2009

1 Comment

Speaking Engagement: ZDNet Japan Business Applications Conference

ZDNet Japan Business Applications Conference Bellesalle Yaesu, Tokyo, Japan June 10, 2008  13:00-18:00 R “Ray” Wang Keynote Speech: Insights Into Building A Recession Proof Apps Strategy ZDNet Japan ビジネス・アプリケーション カンファレンス 不況だからって、アプリケーションを止められますか? いうまでもなく、不況です。不況はITコストの削減を生みます。しかし、いまや、ITは止められないばかりか、進化を続けなければなりません。 企業は情報システムへの投資をこれまで通り続けられない状況にあります。こうした状況においてこそ、情報システムを真剣に考え直すべきです。本イベントでは、そのなかでも、最もビジネスに近い層であるビジネスアプリケーションについて議論します。 小さく導入したアプリケーションを統制・連携するためのアーキテクチャーとしてはSOA、ビジネスの効率化をITに実装するためのBPM、所有から使用への新たな選択肢として脚光を浴びるSaaS…… 不況下でも企業が情報システムにできることはたくさんあるのです。 » 来場事前登録はこちら 開催概要 名称 ZDNet Japan ビジネス・アプリケーション カンファレンス 開催日時 2009年6月10日(水)  12:30開場  13:00開演 場所 ベルサール八重洲 [会場について] 参加費 無料(事前登録制) 定員 300人 対象 CIO(情報に関する資源の統括、戦略立案、実行する責任者の方)/IT部門のマネージャ/業務でERP、CRM等アプリケーションに携わる方 特典 「来場者アンケート」にご回答いただいた方にQuoカードをプレゼントいたします。 […]

Posted by R "Ray" Wang on April 10, 2009

0 Comments

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

Recession creates an opportunity for frank vendor – client discussion A fine equilibrium exists between the vendor’s success and a client’s success.  Its time for the enterprise software industry to have a frank and honest conversation about software costs and vendor business models. To date, comparing cost among different vendors remains difficult as license, maintenance, […]

Posted by R "Ray" Wang on April 5, 2009

6 Comments

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