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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

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

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

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

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

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

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

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

Speaking Engagement: Responding to the SAP Maintenance Hike – Insights from 200 Forrester Clients

Title: Speaking Engagement: Responding to the SAP Maintenance Hike – Insights from 200 Forrester Clients Location: Forrester Teleconference Link out: Click here Description: Responding to the SAP Maintenance Hike – Insights from 200 Forrester Clients Thursday, October 09, 2008, 1:00 p.m.-2:00 p.m. Eastern time (18:00-19:00 UK time) Presented By: R “Ray” Wang Vice President, Principal […]

Posted by R "Ray" Wang on September 26, 2008

1 Comment

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

Margin Pressures Drive Maintenance Fee Increases Announced at the 2008 Field Kick Off Meeting (FKOM), the elimination of the Standard and Premium support offerings was originally developed just for new customers. However, today’s announcement that existing customers will be “transitioned” to Enterprise Support as of January 1, 2009 will come as an unpleasant surprise to […]

Posted by R "Ray" Wang on July 16, 2008

12 Comments