SAP ability to resell Oracle DBMS licenses – due to expire 31 December 2017
Back in December 2014, SAP and Oracle extended their agreement for a further 3 years to allow SAP customers to buy Oracle runtime DBMS licenses from SAP. However, what they also did as part of this deal was to increase the cost of these licenses from 15% of SAV (SAP Application Value) to 19%. SAP responded by offering HANA licenses for 15% of SAV.
Does this give the advantage to SAP HANA? We don’t think so, and here’s why . . .
SAP customers need to migrate to S/4HANA by 2025 to be fully supported. Changing databases from Oracle to HANA is not an easy task; moving from SAP Business Suite on Oracle to S/4HANA is likely to require a full re-implementation of a customer’s ERP applications, with the massive costs and complexity involved. Are customers going to do this in their droves? Of course not.
According to a briefing note available from Gartner, customers have a number of options, of which we feel that most customers will either take Option 1 (do nothing), Option 4 (buy any additional Oracle DBMS licenses they need from Oracle / an Oracle Partner), or the complementary option of using a third-party support provider such as Support Revolution.
Support Revolution can help SAP customers with all of these options:
- Our parent company (PDG Consulting) is an Oracle and SAP reseller. We can provide any ERP or DBMS licenses that you might need
- We offer third-party software support and maintenance for Oracle and SAP software, guaranteeing a minimum saving of 50% on current fees with many customers banking in excess of 75% of savings; and
- We provide traditional managed services and can manage your Oracle and SAP estates for you, or move them to the Cloud and provide Managed Cloud Infrastructure Services – where we manage the Cloud Infrastructure allowing your team to concentrate on value-added strategic projects.
Most importantly, SAP customers need to decide on their plans asap and in advance of being locked in to their 2018 SAP support contract which comes into effect on 30 September 2017. Contact us to discuss your options and to find out how we can help your organisation make considerable savings on SAP costs.