Are you SAP-py now?! ERP giant overhauls pricing model following indirect access drama

SAP has changed its pricing model following mass confusion among customers and fears of litigation over indirect access. As part of the overhaul, the German ERP giant today promised users greater transparency – as well as pledging a "clear separation" between licence sales and audit departments – in a bid to convince customers …

[alain williams]

Is SAP trying to become Oracle ?

It is moving in the same direction.

[Anonymous Coward]

Bastards

One of my customers was recently audited. They were told not to worry because SAP wouldn't take more than they could afford to pay. A bit like being mugged, but left with the bus fare home.

[a_yank_lurker]

Re: Bastards

So SAP is demanding to see their financials to determine how much to shake them down for?

[Grikath]

Re: Bastards

yes. It has always been thus...

SAP has always had the business model Micro$oft wanted, and only got access to with Win10 model. And not only M$... *every* SaaS model is essentially what SAP perpetrates on humanity.

[Anonymous Coward]

>> SAP is demanding to see their financials to determine

Pretty much. They already had the last published accounts. Then they forced them to make the purchase through a specified finance company who decide how much the customer can loan.

All the time with the implied threat that the 'real' cost of the licences is millions, so best be grateful.

[Anonymous Coward]

"a bid to convince customers it isn't using audits as a sales tactic..."

Pull the other one. It's got bells on.

[steamnut]

Is it really any better?

I don' t use SAP but have clients that do. They are generally nervous of missives or visits from SAP. Worse still, a lot of them wish they has not adopted SAP in the first place. Often SAP it is so embedded in their business that that cannot see any way out of it. Bet I guess that was SAP's intention in the first place.

I just read the pdf of the new licence "deal" and I fail to see where the transparency is coming from. it looks complicated and very convoluted. Maybe that is the idea....

This new SAAS world seems to be based on the bait and switch model, and is only interested in your monthly payment. And, the small print still basically says that you don't own anything and, if the software doesn't work, then tough.

What other industry would put up with this sort of contract?

[Rob 54]

Why the hate?

Perhaps I am being naive here, but this genuinely seems to be moving the correct direction.

My thoughts -

1) Is SAP too expensive at list price = god yes, who could ever actually afford to pay list?

2) If you get caught short will you have to pay out at list = it depends (sales negotiation begins, lawsuit if things get really bad, but who really wants to go legal?)

3) Are SAP trying to do 'the right thing' - yes

4) Are things still too complicated - yes

In my dealing as a SAP customer (both direct customer and via a reseller) the common problem is a lack of clarity. Much like with the software itself SAP have 'baggage' to consider when adjusting their pricing/licensing models

To find clear definitions and an answer other than 'it depends' is often a problem

At the end of the day I want to pay what I believe is a fair price for SAP and I have no intention of deliberately cheating them on license fees

Sure the numbers can be scary, but if you set out with honest intent then I do not see why an open conversation with SAP should be avoided.

We will need to wait a couple of months for the operations on the ground to catch up with the SAP PR machine however

[Aitor 1]

Re: Why the hate?

I am afraid you ara naive.

The convoluted pricing is a way for them to charge you at will. It is intentional, and they are not alone there.

They are not trying to do the right thing.. they are trying not to lose more customers..