What SAP support costs are rising?
After increasing the prices of their Standard Support, SAP Enterprise Support, and SAP Product Support for Large Enterprises at the beginning of this year, SAP unveiled that they will not only be raising the cost of your on-premises support again, for the second year in a row, but that you won’t be receiving any new innovations for your on-premises product.
They will, however, be lowering costs for customers in their cloud.
Put simply, SAP would really like you to invest in their cloud solution as soon as possible — regardless of whether you’re ready to do so.
Like many, Martin Biggs, vice president and managing director for EMEA and strategic markets at Spinnaker Support, was outraged at the news of SAP increasing support costs. “Effectively, organizations have been pushed onto S/4HANA and now they’ve been told it is a dead environment, and they will need to go through another significant migration project involving significant levels of cost,” he said.
Jon Gill, EMEA head of sales at Spinnaker, commiserated: “”How are those customers going to respond? How do you go back to your board and say, ‘Yes, I’ve just done one significant SAP migration. And now we’re going to have to go and do another one.’ What’s the return? Well, nothing,”
What do the SAP support cost rises mean for you?
Even if you decide to opt into the cloud, it, unfortunately, not only takes time to transition, but there’s no short-term solution to bridge the gap — and it’s expensive. However you look at it, you’ll likely be giving SAP far more money than you originally anticipated this year without seeing a return on your investment for many years to come.
That is, unless you choose a third-party solution to keep your current system running and operational until you’re ready to move to the cloud.
Not only will Spinnaker Support be able to furnish your on-premises system, but we’ll keep it operating in peak condition for as long as you want — and we’ll do it all for a minimum of 60% of SAP’s support costs.
As industry experts with an average of 20 years of experience, we’re on your side and can help. To get a better idea of the situation, read CIO.com’s article, “SAP raises on-prem support costs again to drive cloud adoption,” and always feel free to contact Spinnaker Support with any questions.