Lockdown is slowly easing and orders are starting to come in, but organizations are still a long way from “normal”
yet. Redundancies are still being made, and as the furlough scheme comes to an end, a second wave of redundancies is
predicted.
In this week’s episode of #ThirdPartyThursdays, Support Revolution’s CCO, Victoria Molloy, discusses the impact of
redundancies on IT projects and more specifically, SAP S/4HANA implementations.
Customers are in limbo
Many SAP customers purchased S/4HANA licences over the past decade with a vision to implement the new Cloud-based
software in 2020.
Most organizations have either had to delay this migration or scrap the project entirely; it’s an expensive and
resource-intensive project and organizations currently don’t have the revenue or the staff.
This means they’re paying SAP for support on their existing ERP system, AND for support on their S/4HANA licences.
These customers have approached SAP to negotiate the double-payment, but so far, none have been successful.
Organizations can’t afford to pay for support, can’t afford to make any more redundancies, and can’t afford an
S/4HANA implementation. So, what can they do?
How can third-party support help?
By using a third-party support provider, organizations that SAP has stuck between a rock and a hard place can cut
their current ERP system support costs by at least 50%.
In addition to this, they no longer have to pay SAP for support on their unused S/4HANA licences, and they don’t have
to invest in a project they cannot reasonably justify.
Third-party support acts as a life jacket for organizations struggling through 2020, giving you time to breath and
delay your S/4HANA migration until you’re ready, while saving critical budget in the process.
A real world example
We’ve recently onboarded an organization that was paying over €1,000,000 a year in support for its SAP ERP and
S/4HANA licences. SAP wasn’t budging on the double-payment, so the organization came to us for help. We reduced its
annual costs to €200,000 and removed its deadline to migrate to the Cloud.
If SAP has your organization cornered, fight back with third-party support. Contact us using the form below or give
us a call on +44 (0) 1635 86 86 87.
