Tuesday's Tip: Dealing With Vendor Offers To Cancel Shelfware And Replace With New Licenses
Reduction Of Shelfware Remains A Key Pillar In Legacy Optimization Strategies Shelfware (i.e. purchased software, not deployed, but incurring annual maintenance fees) is one of the biggest drains on operational expenses for enterprises. In the latest Software Insider survey, 57% of global enterprises own more software licenses than deployed. With average maintenance fees hovering above […]
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 […]
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 […]
News Analysis: SAP Revives Two-Tier Maintenance Options
Standard Support Returns After Much Deliberation
SAP announced today that they would be reintroducing their Standard Support offering. Customers now gain choice with a 2-tier maintenance offering. Here are the details between standard support and enterprise support.
* Standard Support Offering reintroduces at 18%. Customers seeking core bug fixes, support packages, risk mitigation, and related new functionality will have choice in staying on standard support. The program is designed for customers who seek to keep their systems up and running. Customers with CPI clauses in their contracts will want to take note – the first set of consumer price index (CPI) price increases will begin January 1st, 2012.
* Enterprise Support remains at 22%. SAP will continue to offer Enterprise Support at 22% for new customers and a ramp up for existing customers (see Figure 1). Enterprise support includes features such as best practices for IT operations, proactive monitoring and reporting, and transparency for business process performance. Customers who choose to go with Enterprise Support prior to March 15th, 2010 will be eligible for ramp up.
* Supplemental offerings still available. Other programs such as Max Attention, Safeguarding, and Product Support for Large Enterprises (PSLE) will continue to be available by choice and invitation.
Tuesday’s Tip: The SAP Optimization List – Key Ecosystem Vendors You Should Know
High Cost Of Ownership And Changing Requirements Drive SAP Users To Seek Optimization Solutions
As users await SAP to regain its mojo (see Dennis Howlett’s post) and implement it’s “Voice of the Customer” strategy in 2010, users must continue to reduce their cost of ownership and complexity. In addition, rapidly changing business requirements require some users to seek SaaS alternatives, additional point solutions, and extensions.
Consequently, vendors providing SAP optimization and extension solutions represent one of the fastest growing parts of the $78.7B (2009 Altimeter Group estimate), 850,000 SAP service partner and developer ecosystem. SAP users already embrace many of the solutions from vendors on this inaugural SAP Optimization List as part of their business value oriented apps strategy. The living list covers seven areas including:
1. application extension and usability;
2. application life cycle management;
3. archiving, storage, and test data management;
4. license management and optimization;
5. Microsoft Office integration;
6. third party maintenance; and
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 […]