Friday | 21 November, 2008
New SAP customers face price hike
Enterprise replaces cheaper support offerings
Darren Pauli 11/03/2008 13:25:21

SAP has assured existing enterprise customers that they will not face a price hike following a restructure of its support model.

The new model could be implemented as soon as next month after which all new contracts could cost up to 5 percent more.

Maintenance and support costs are the surreptitious money spinners of software contracts
Gartner

Support costs will be lifted from 17 percent to 22 percent of the software license cost, according to Forrester

SAP users contacted by Computerworld were unaware of the imminent changes which affect new customers only.

Grant Bayle, IT director at sports clothing manufacturer Skins, said it will maintain its basic support model despite the changes.

"Charging22 percent is getting steep for the support and maintenance we need," Bayle said.

"You don't tend to switch vendors at the drop of a hat once you're on a big platform."

Skins uses BusinessOne 2005 and SAP reseller Evolution Software Services for support and maintenance which has updated the platform twice since it was installed mid last year.

Anne Kremer, group business technology manager at apparel distributor True Alliance, said would need additional IT skills if it moved onto the new model.

"We use the standard support model and use external consultants to pick up any extra support we need that isn't included," Kremer said.

"Over the years you adjust to the kind of support delivery, and you develop relationships with external consultants for non-product faults.

The million-dollar question, according to Kremer, is whether the enterprise contract will justify the price increase.

"It's possible the higher price could match the additional services, but we'll have to wait and see," she said.

True Alliance uses SAP Enterprise 4.7 with IS retail.

More about SAP, Bill, Oracle, Gartner, Wang
Additional Resources
Executive Guides
Whitepapers
Zones
Zone logoZones provide focussed content from Computerworld and leading technology partners.
Newsletter Subscription
Sign up for our Computerworld newsletters!
RSS Feeds
Market Place

 

Smart SOA World Tour

Discover how SOA can create smarter outcomes for your business.

Attend and learn:

  • How SOA is helping leading companies to become more agile
  • Where you should be applying SOA processes in your company
  • The top SOA implementation mistakes to avoid

Click here for more information.
Whitepaper

Business Intelligence and Enterprise Performance Management: Trends for Emerging Businesses

Hyperion surveyed 163 companies to understand BI and EPM requirements, evaluation processes, and extent of adoption. Top areas of current and future investment for emerging businesses include budgeting and planning as well as management reporting solutions. Read on to discover more.

Enterprise IT Buyer's Guide
Find Technology Vendors Fast
 
Find vendors by name | Find by category
Sponsored Links