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

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

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

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

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

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

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)

Contract negotiation

IT and applications strategy

Business case development

Software vendor evaluation and selection

IT spending and staffing benchmarks