Your original destination: ERP Upgrade
It’s unsurprising that many organisations will have had an ERP upgrade on their list of current/upcoming critical IT projects. Many see ERP upgrades as an essential element of modernising an organisation’s IT and staying at the ‘front of the pack’ by staying on the latest updates – but is this really true?
Upgrades (especially reimplementation to the Cloud) are big, time intensive, and expensive projects that can involve lots of change management. Things that you probably don’t have time for given current market conditions.
That is why it is vital right now to ask the question: Are you upgrading because it will add value to your organisation, or because you feel forced to by vendor pressure and support deadlines?
It is in your vendor’s best interest to get you to upgrade as soon as possible
Oracle and SAP will always try, with the help of their business partners, to upgrade you. Even if an upgrade adds little additional value to your current setup. Even if an upgrade right now is not in your best interests.
That’s because Oracle and SAP have their own profit margins and sales targets to hit, as well as their goals of being a major Cloud player. This is why they are always trying to force customers to upgrade to their latest Cloud products, often by using questionable sales tactics, such as audits, and contract auto-renewals.
Oracle and SAP will not consider what an upgrade means for you.
Some organisations are already starting to realise this and are wondering what they can do to not only save money, but delay these unnecessary projects.
Pandemic redirect: Make critical IT savings
Our view is that organisations need to focus on making immediate savings, not investing in multi-year innovation projects – especially on stable solutions like ERP and databases.
Because of current market environments, it has become a priority for organisations to stop unnecessary spending and do what they need to survive.
We advise focusing on three things to make critical IT savings:
- Delay unnecessary projects like an ERP upgrade: Evaluate what added value the project will bring to your organisation and the timeframe of these results – is it worth it?
- Renegotiate with vendors: Speak to your IT vendors and see where you can make savings, freeze price increases, or renegotiate terms given your current situation and needs
- Rightsize your IT estates: Identify what your current needs are and remove any unnecessary licenses and subscriptions, surprisingly, this can be one of the largest areas of IT cost
Oracle/SAP customers: Switch to third-party support
While our above three tips will help you prioritise and cut costs from some of your budget, they will not help when dealing with a mega-vendor like Oracle and SAP.
Oracle and SAP will not reduce their costs, they will not stop charging you for shelfware, and they will still insist that you upgrade to their latest products (otherwise they increase support costs).
Luckily, there is a solution to tackling Oracle and SAP: third-party support.
By moving your support from Oracle/SAP to Support Revolution you can:
- Immediately cut your support bill in half
- Stop paying for shelfware
- Delay ERP upgrades for as long as you need
Unsurprisingly, we have seen a sharp rise in demand for third-party support, as documented by Gartner, as organisations across the world look for efficient ways to cut their largest IT costs and free up much needed resources to invest in other critical projects.
Now more than ever, organisations need to prioritise cash flow, and Support Revolution can help you. It is vital that all companies investigate all the cost-saving options available to them. Many are spending millions on SAP and Oracle legacy support that most of them can’t use or don’t need.Mark Smith, CEO of Support Revolution
Delay non-essential upgrades, not essential savings
As a recent example, we’ve been speaking to an organisation working in the travel industry. The organisation had, as part of their IT roadmap, an intention of upgrading to S/4HANA.
However, given the current market pressures, they’ve had to put their upgrade on hold. Like many other organisations, they understand that an S/4HANA upgrade will only bring a marginal return on investment, at a time when cost-saving is the utmost priority.
But, by switching to Support Revolution, they’ve been able to make a 50% in-year saving on their support costs and give themselves the freedom to continue using their current systems, ignore SAP’s 2027 deadline, and move at a time which suits them.
We’re delaying our S/4HANA migration for the foreseeable future with the help of Support Revolution. Our current systems are stable and do what we want them to do, and the savings right now are huge and obviously needed given the current market conditions.Leading global airline
Our support model doesn’t mean they can’t make that upgrade. It just means that their roadmap and timeline are back in their control, not SAP’s, and when they decide they’re ready to make the S/4HANA upgrade, we’ll still help them during that process and help them save money while doing it.
Switching to Support Revolution is a way of saving now, to invest in what matters now.