Organisations have invested a lot of time and money over the years implementing and stabilising their SAP systems. Although SAP software is relatively mature and reliable now, the vendor is still charging high fees to support and maintain it – between 17% and 22% of your license fees every year for support and maintenance – is a substantial percentage of SAP cost of ownership.
Support is not extra – it’s most of the cost!
For those organisations that don’t realise there are better value support options available, SAP will provide standard support for 5 years from initial software release. Thereafter they will usually provide extended support for an extra two years, reducing the level of support and potentially charging an additional fee. These annual charges mean that over time the cost of support far outstrips the cost of the initial perpetual licenses. With a third-party support option cutting charges in half as a minimum, considerable savings can be made to SAP cost of ownership.
By looking at the total amount paid for SAP vendor support and dividing by the number of incidents raised, you will likely see a high cost per support request. This might lead you to question the value of service SAP are providing for such a reliable and stable platform.
Read this white paper if you are planning on giving notice to SAP
“SAP software has evolved into a robust and mature platform over the years. Many find that upgrading at regular intervals simply isn’t necessary and paying so much for support for software that works without many incidents just isn’t offering value for money. Organisations now have the added complication of SAP’s 2025 deadline for not supporting ECC6 and third party databases and instead incentivising customers to move across to S/4 HANA, SAP’s cloud offering”
Our white paper will aid your decision in what your options are regarding your SAP support and what your decision really means for your organisation.