25 Jul 2008
SAP users are not happy with changes to the software supplier's support services, according to the SAP Users Group.
Last week SAP announced to its customers that standard support, currently included in all licensing and maintenance contracts, would be replaced by enterprise support.
The moves mean support costs will increase from 17 per cent of contract value to 22 per cent.
"The mandatory nature of this change, along with the increase in cost, has received hugely negative feedback from our membership to date," said Alan Bowling, chairman of the UK & Ireland SAP Users Group.
The group claims that in real terms this is a 29.4 per cent increase in costs over the next four years for existing SAP customers.
"Many of our members may not want or need this extra level of support and therefore are reacting negatively to having a new support product and the associated increase in costs forced upon them," said Bowling.
The user group has raised its concerns with SAP management and is awaiting a response.
Maybe SAP users should multi-source their software requirements, This would put them in a more powerful position with SAP and other suppliers, rather than SAP being able to dictate to their customers.
The precedent for this view is the motor car industry which in the 1970s found the car manufacturers changing from single sourcing of components to multi-sourcing following disastrous labour strikes. It was cheaper for the trade unions in paying support monies to the striking workers by stopping supplies from the smaller component companies reaching the final assembly lines.
Posted by: Lawrence Knowles 30 Jul 2008
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