Enterprise Advocates SAP TCO Webinar Summary

An Enterprise Advocates Presentation October 22, 2009 Short version of slides Best Practices in Reducing SAP Ownership Costs: Now's The Time To Act

Who Are We?
An affiliation of five like-minded and independent advisors that advocate on behalf of enterprise IT buyers
Focus on buyers achieving demonstrable value from IT investments
For more information, visit: http://blog.enterpriseadvocates.com

Today’s Enterprise Advocates Vinnie Mirchandani Deal Architect R “Ray” Wang Altimeter Group Frank Scavo Strativa/ Computer Economics Dennis Howlett Irregular Enterprise

Timeline of Discontent
Late 2007/early 2008: SAP starts negotiating around maintenance
July 2008, SAP pulls trigger on price increase
Confused messaging
ASUG appears supportive, DSAG, UK+I SUG unhappy
Early 2009: negotiated “settlement” via SUGEN
Oct 2009: enforcement of labor index cost increase
DH

Software a Small Part of SAP TCO: Many “Surround” Costs Need to Be Managed
Eight Steps to Reduce SAP TCO:
Assess existing contract status
Consider strategic use of SaaS
Reduce SAP shelfware
Aggressively manage SAP systems integration
Align SAP infrastructure against emerging cloud metrics
Reevaluate SAP applications management models
Look at third-party maintenance options
Rethink SAP upgrades

Time to Act is Now
95% of support contracts due Dec 31, 2009
Economic conditions favor the end-user
No new products until 2014
Practical advice
Prepare adequately and don’t take no for an answer
Escalate early and often to your executive sponsor
Use SaaS options to build leverage
Pay for innovations and investment with third party maintenance

Consulting Services Offered
Contract negotiation
IT and applications strategy
Business case development
Software vendor evaluation and selection
IT spending and staffing benchmarks
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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Enterprise Advocates SAP TCO Webinar Summary

by Dennis Howlett on Oct 22, 2009

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Enterprise Advocates SAP TCO Webinar Summary — Presentation Transcript