Posted by: badarrow
Barbara Darrow, maintenance fees, Oracle, SAP, support
SAP, the ERP leader, recently decided to defer maintenance fee increases until it proves to customers that the fees are worth the money. The first question that comes to mind is if Oracle will follow suit.
My guess: No. At least not publicly.
All of this is, as those in publishing are known to say, is “off the rate card.” C-level and upper management IT execs at large accounts claim (not for attribution, of course) that they are getting significantly better deals from Oracle and from other vendors. But the negotiations can be bloody.
Two IT sources said they are working, vendor by vendor, deal by deal, to get maintenance fees down below 20% per annum. And both said they have cut deals with Oracle –at least on parts of their business–that are in that range.
Given the pallid economic situation, expect more companies to get aggressive on this front and play vendors against each other to get better deals. Some partners say they have been asked by customers to help them negotiate better terms in return for a piece of the savings.
This could get really interesting.