» VIEW ALL POSTS Jul 29 2008   11:37AM GMT

Users rebel over SAP’s higher maintenance fees



Posted by: JackDanahy
Tags:
SAP

Recently, SAP decided to raise support costs from 17% to 22% percent of licensing costs on the basis that all users would henceforth receive Enterprise Support instead of the more basic Standard Support. The change, which will be immediate for new customers and phased in for existing customers, is meeting with stiff and public resistance from the UK and Ireland SAP Users Group. Alan Bowling, Chairman of the group, issued a press release stating that, “The mandatory nature of this change along with the increase in cost has received hugely negative feedback from our membership to date.” Bowling further characterized the increased fees as “particularly difficult…to accept.”

The UK and Ireland SAP Users Group even included DSAG, the German-speaking SAP user group, in the spirit of revolt, noting that, “along with…DSAG we are sceptical that the Enterprise Support offering is sized appropriately and we remain concerned on its suitability for many small and medium-sized enterprises.”

SAP has consistently maintained that the increase in support costs was a customer-driven phenomenon, but the UK and Ireland SAP Users Group’s press release puts that claim into serious dispute. Even before the press release, it was clear that many smaller SAP users would simply have no use for Enterprise Support.

It’ll be worth watching to see if smaller SAP users intend merely to complain about the cost of support, or whether they will take action, perhaps by migrating to a third-party support provider.

Demir Barlas, Site Editor

6  Comments on this Post

 
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  • JackDanahy
    Hi, I live in Australia and we are actually very unhappy with what SAP is doing. We are actually looking for other products. It will take a lot of effort in migrating across to another product but it will save lots of money in the long term. SAP is not doing a good job with the BO product. Licences and maintenance have both gone up!
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  • JackDanahy
    It's not that black and white. I've identified at least six different customer scenarios that could lead to different conclusions. SAP has a lot of work to do in communicating the use cases and convincing customers that the business case stands up.
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  • JackDanahy
    Hello! It's truly good to see that the UK and Ireland and DSAG user groups have decided to represent their users best interests. We have received a number of inquiries in the Americas wondering what can be done to not only work collaboratively with SAP, but also stop the maintenance fee madness. As one of our SAP customer put it this week, "they (SAP) keep coming back for more money, yet I still never got the functionality request I asked for 4 years ago. To say we wanted all this extra support is ludicrous. I call these guys 5 times a year and pay $1M for maintenance. That's 200k a call and I'm still on R/3 4.6c" R "Ray" Wang Vice President Forrester Research, Inc.
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  • JackDanahy
    Hello! It's truly good to see that the UK and Ireland and DSAG user groups have decided to represent their users best interests. We have received a number of inquiries in the Americas wondering what can be done to not only work collaboratively with SAP, but also stop the maintenance fee madness. As one of our SAP customer put it this week, "they (SAP) keep coming back for more money, yet I still never got the functionality request I asked for 4 years ago. To say we wanted all this extra support is ludicrous. I call these guys 5 times a year and pay $1M for maintenance. That's 200k a call and I'm still on R/3 4.6c" Dennis is correct. In some large enterprise scenarios where users are on 4.7 and are buying time by not moving to customer specific maintenance, users will see a savings. We've done the analysis and there are about 7 scenarios. 5 will cost customers more. R "Ray" Wang Vice President Forrester Research, Inc.
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  • JackDanahy
    The support costs are to high as compared to the benefits acheived. The customer is left with little choice but to accept it.
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  • Ganpati
    SAP meaning is itself SAP= "SUCKS AFTER PROJECT"
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