Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Enterprise Advocates SAP TCO Webinar Summary


Published on

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

Published in: Technology
  • Be the first to comment

  • Be the first to like this

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:
  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)