An Enterprise Advocates Presentation October 22, 2009 Short version of slides Best Practices in  Reducing SAP Ownership Co...
Who Are We? <ul><li>An affiliation of five like-minded and independent advisors that advocate on behalf of enterprise IT b...
Today’s Enterprise Advocates Vinnie Mirchandani Deal Architect R “Ray” Wang Altimeter Group Frank Scavo Strativa/ Computer...
Timeline of Discontent <ul><li>Late 2007/early 2008: SAP starts negotiating around maintenance </li></ul><ul><li>July 2008...
Software a Small Part of SAP TCO: Many “Surround” Costs Need to Be Managed <ul><li>Eight Steps to Reduce SAP TCO: </li></u...
Time to Act is Now <ul><li>95% of support contracts due Dec 31, 2009 </li></ul><ul><li>Economic conditions favor the end-u...
Consulting Services Offered <ul><li>Contract negotiation </li></ul><ul><li>IT and applications strategy </li></ul><ul><li>...
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Enterprise Advocates SAP TCO Webinar Summary

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A short summary of the key points in the October 22nd webinar from Enterprise Advocates

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  • Two points to make on this subject: First, SAP has some great products. SAP didn’t get to be the market leader by having lousy software. At the same time, it’s hard to deny that SAP can be an expensive platform to own and operate. What can customers do about that? Second, although this presentation is specifically about SAP, don’t think we are picking on SAP. The cost-issue with ERP is not unique to SAP. We will also have a seminar on Oracle, and then on other vendors, probably Infor, in the future.
  • Basically, we advise IT buyers on important decisions. This seminar should give you a good idea of our perspective. If you think we can help you as a result, that would be great. We’ll talk more about that at the end.
  • Strativa, Inc. © 2003, Strativa, Inc. Who we are
  • Strativa, Inc. © 2003, Strativa, Inc.
  • Strativa, Inc. © 2003, Strativa, Inc.
  • Strativa, Inc. © 2003, Strativa, Inc. This has been a brief introduction to our thinking on how to reduce ownership costs for SAP. If you like what you’ve heard, maybe we can help you in a more specific way. Here are some of the ways. And for SAP customers, we’re offering a short no-obligation phone consultation with any of us, to discuss your situation in more detail.
  • Enterprise Advocates SAP TCO Webinar Summary

    1. 1. An Enterprise Advocates Presentation October 22, 2009 Short version of slides Best Practices in Reducing SAP Ownership Costs: Now's The Time To Act
    2. 2. Who Are We? <ul><li>An affiliation of five like-minded and independent advisors that advocate on behalf of enterprise IT buyers </li></ul><ul><li>Focus on buyers achieving demonstrable value from IT investments </li></ul>For more information, visit: http://blog.enterpriseadvocates.com
    3. 3. Today’s Enterprise Advocates Vinnie Mirchandani Deal Architect R “Ray” Wang Altimeter Group Frank Scavo Strativa/ Computer Economics Dennis Howlett Irregular Enterprise
    4. 4. Timeline of Discontent <ul><li>Late 2007/early 2008: SAP starts negotiating around maintenance </li></ul><ul><li>July 2008, SAP pulls trigger on price increase </li></ul><ul><li>Confused messaging </li></ul><ul><li>ASUG appears supportive, DSAG, UK+I SUG unhappy </li></ul><ul><li>Early 2009: negotiated “settlement” via SUGEN </li></ul><ul><li>Oct 2009: enforcement of labor index cost increase </li></ul>DH
    5. 5. Software a Small Part of SAP TCO: Many “Surround” Costs Need to Be Managed <ul><li>Eight Steps to Reduce SAP TCO: </li></ul><ul><li>Assess existing contract status </li></ul><ul><li>Consider strategic use of SaaS </li></ul><ul><li>Reduce SAP shelfware </li></ul><ul><li>Aggressively manage SAP systems integration </li></ul><ul><li>Align SAP infrastructure against emerging cloud metrics </li></ul><ul><li>Reevaluate SAP applications management models </li></ul><ul><li>Look at third-party maintenance options </li></ul><ul><li>Rethink SAP upgrades </li></ul>
    6. 6. Time to Act is Now <ul><li>95% of support contracts due Dec 31, 2009 </li></ul><ul><li>Economic conditions favor the end-user </li></ul><ul><li>No new products until 2014 </li></ul><ul><li>Practical advice </li></ul><ul><ul><li>Prepare adequately and don’t take no for an answer </li></ul></ul><ul><ul><li>Escalate early and often to your executive sponsor </li></ul></ul><ul><ul><li>Use SaaS options to build leverage </li></ul></ul><ul><ul><li>Pay for innovations and investment with third party maintenance </li></ul></ul>
    7. 7. Consulting Services Offered <ul><li>Contract negotiation </li></ul><ul><li>IT and applications strategy </li></ul><ul><li>Business case development </li></ul><ul><li>Software vendor evaluation and selection </li></ul><ul><li>IT spending and staffing benchmarks </li></ul>IT User Organizations: Contact us to set up a complimentary no-obligation phone consultation: Email: [email_address] Or call: +1 (949) 442-0114 (Frank Scavo, US) +34 (953) 708-636 (Dennis Howlett, EU)
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