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Cost explosion for existing customers

SAP has failed to live up to its own claims: With the increase in cloud subscription and currently with the 3.3 percent increase in the annual maintenance fee, SAP is giving the lie to its own statements.
Peter M. Färbinger, E3 Magazine
September 15, 2022
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This text has been automatically translated from German to English.

For years, the SAP community was supposed to consider the benefits of digital transformation: more agility, more transparency, more cost truth, better use of resources and thus lower costs. The path to the cloud was sold as a win-win situation. Now the statements made in the past no longer seem to apply. The SAP community is experiencing a paradigm shift: IT does not make everything simpler and cheaper, but more complex and more expensive. Should the announced price increases really come to pass, many existing SAP customers will ask themselves whether going back to their own data center - no more cloud subscriptions - and taking some areas out of maintenance - no more maintenance fees - would not be the better exit strategy.

The promises of the past that the cloud and modern software would also bring cost benefits have thus been reneged on by SAP. It appears to be a justified expectation that SAP should very well compensate for higher personnel and energy costs through better organization and more efficient IT. The use of SAP software should be a benefit, not a burden, for an existing customer. With intelligence and organization, SAP should be able to reduce fees, not increase them - this is where things go wrong.

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Peter M. Färbinger, E3 Magazine

Peter M. Färbinger, Publisher and Editor-in-Chief E3 Magazine DE, US and ES (e3mag.com), B4Bmedia.net AG, Freilassing (DE), E-Mail: pmf@b4bmedia.net and Tel. +49(0)8654/77130-21


1 comment

  • Volker Schnittler

    Dass IT die Effizienz von Geschäftsprozessen verbessern soll ist wichtig festzustellen. Wenn demgegenüber Preiserhöhungen für das bereitstellen der IT eingefordert werden, sollte man erwarten dürfen, dass der Nutzen der Softwarelösungen höher ist als der Unterschied zwischen altem und neuen Preis für die Nutzung der betreffenden Dienste. Diese Nutzensteigerung ist jedoch nicht erkennbar und damit bleibt der Eindruck, dass lock in Mechanismen für die Übervorteilung der Kunden genutzt werden.

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