The guide provides common sense advice and simple steps to manage the software contract minefield by:
The full Licencing Guide is available for our members to download, and is full of useful tips and tricks to best negotiate your SAP License. We have provided an excerpt from our SAP Licencing Guide as a taster of what to expect.
You may also find our Security and Compliance Research Report of interest.
As General Data Protection Regulation (GDPR) fills the news headlines, compliance has become a growing concern for many organisations. In April 2017 we completed a survey and captured responses from 102 SAP user organisations within UK & Ireland regarding the security and compliance of their current SAP landscape.
Owners of SAP software often face a love-hate relationship. In fact, most organisations
began their SAP journey in the last century with ambitious plans to achieve ultimate
efficiency and improve visibility. Leaders signed large contracts resulting in significant cost
per seat discounts. Chief financial officers (CFOs) happily met their reporting and regulatory
requirements. Organisations took control of their financial systems. Some benefited from
other non-financial areas of automation such as manufacturing and human resources.
However, many systems implemented before Y-2K failed to complete the ambitious,
blueprinted and full end-to-end deployments. Overbought licenses resulted in a massive
and expensive shelfware reality. Implementation projects often surpassed license costs by
300 percent to 400 percent. Staffing and training often exceeded planned budgets. Soaring
costs of upgrades and maintenance reduced efficiency gains.
Most organisations turned over an average of four chief information officers (CIOs) since
their first SAP purchase. After more than a decade of stabilising systems, upgrading to the
latest platforms and dealing with complex customisations and integrations, organisations
emerged tired. Organisations continued to ratchet down the cost of enterprise automation
through outsourcing, third party maintenance, deferred upgrades and cloud deployments.
Meanwhile, the advent of five pillars of digital business - mobile, social, cloud, Big Data/
analytics and video - have changed the technology landscape. Transactional systems or
systems of record are now commoditised technologies. Line of business executives seek
engagement systems that deliver innovation and agility. Constellation’s own surveys show
that IT budgets are down 5 percent to 10 percent per year. Line of business organisations
have increased technology spending from 18 percent to 25 percent. The result: line of
business leaders increasingly call the shots on business technology strategy.
The traditional supporters of SAP remain within the IT departments while the line of business
leaders make investments outside of core enterprise software. Line of business purchases
of cloud computing, consumerisation of IT and a push for more agile response create an
environment where the cost of SAP and ERP legacy systems is under intense scrutiny.
Organisations are cost conscious. CFOs closely watch their SAP investments. Technology
leaders are cautious. Line of business leaders seek rapid change and innovation.
Consequently, organisations not only must reduce their cost of SAP ownership, but also
must find ways to fund innovation. SAP users are now pursuing new strategies to
renegotiate existing contracts to meet their future business strategies. Unfortunately, quite
a few SAP users have faced resistance from the SAP sales teams who have traditionally
refused to assist their clients unless they seek to make new purchases of the latest SAP
products. The purpose of this report is to provide context and insight into what has worked
for other clients and what should be appropriate in the customer-vendor relationship.
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