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Lockdown is slowly easing and orders are starting to come in, but organisations 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 organisations have either had to delay this migration or scrap the project entirely; it’s an expensive and resource-intensive project and organisations 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.
Organisations 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?
By using a third-party support provider, organisations 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 organisations 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.
We’ve recently onboarded an organisation 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 organisation 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 organisation 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.
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