SAP’s ability to resell Oracle licences due to expire

Back in December 2014, SAP and Oracle extended their agreement for a further three years. The agreement was to allow SAP to resell Oracle licences to its customers.

However, what they also did as part of this deal was to increase the cost of these licences. They went up from 15% of SAV (SAP Application Value) to 19%. SAP responded by offering HANA licences for 15% of SAV.

Does this give an advantage to SAP HANA? We don’t think so, and here’s why…

SAP customers need to migrate to S/4HANA by 2027 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 difficult. It’s likely to require a full reimplementation of a customer’s ERP applications, with the huge costs and complexity involved. Are customers going to do this in their droves? Of course not.

sap purchase oracle dbms licences

According to a briefing note available from Gartner, customers have a number of options. We feel that most customers will take Option 1 which is to do nothing. Or they might opt for the complementary option. This option is using a third-party support provider such as Support Revolution.

Support Revolution can help SAP customers with these options:

  • We offer third-party software support and maintenance for Oracle and SAP software, guaranteeing a minimum saving of 50% on current fees
  • We provide managed services so can manage your estate, or move it to the Cloud, allowing your team to concentrate on value-added strategic projects

Most importantly, SAP customers need to decide on their plans as soon as possible. This has to be in advance of being locked in to their 2018 SAP Support contract which comes into effect on 30 September 2017. This is especially after this most recent news on the ability of SAP to resell Oracle licences.

Contact us to discuss your options and to find out how we can help your organisation make considerable savings on SAP costs.

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