back to article SAP snared in revenue trap unless it extends legacy ERP support

In the sizeable global ERP market, SAP's biggest threat is not some other software giant like Oracle. It is its own legacy software supported by other vendors. So daunting is the prospect of switching providers for the largest customers, if SAP sticks to its plan to end legacy system support in 2030, it could lose a huge chunk …

  1. ComicalEngineer Bronze badge

    One of my previous employers (small company) used QuickBooks via a permanent license. We paid for our small accounts (2x part timers) team to be trained to use the software and it worked well for us. Until QB decided to make the new version a subscription only model if we wanted to submit our VAT return digitally as required by HMRC. At this point we looked at the possiblity of the subscription model, but to get what we needed was about £300 per year and the cost of having our accounts team trained on the new version (different interface, new filters, reports and additional functionality). This added another £3,000 to the initial cost. We didn't upgrade and instead chose to pay £30 per year for a package to do our VAT digital uploads via a spreadsheet generated from our version of QB.

    In this case, SAP are obviously having a Windows 8 / Office 365 moment. Pi55 your customers off with a completely different interface and charge a subscription for the software that you've been relatively happy with and familiar with using for years. Waste your clients' time learning a whole new interface and rely on someone else's data centre keeping your accounts safe. Then doubtless the new version will need to be customised (is there any SAP implementation that isn't?) at additional cost and then you can charge extra for that too.

    Winner!

  2. NapTime ForTruth

    What kind of fool...

    ...has a well-established customer base lusting to hand over cubic money for products and services, and instead of sweeping up that wealth with big brooms and gratitude instead demands those customers either use a new, unfamiliar product or leave?

    This reeks of classic corporate foot-shooting, the New Coke edition.

    https://en.m.wikipedia.org/wiki/New_Coke

    1. Richard 12 Silver badge

      Re: What kind of fool...

      Unsatisfied with near-total lock-in due to a high cost of exit, SAP want total lock-in with an infinite cost of exit.

      Quite why SAP think any sane business would accept that is unclear.

    2. JoeCool Silver badge

      Re: What kind of fool...

      perpetual subscription revenue is the new gold standard for business profiteering.

      1. Michael Strorm Silver badge

        Re: What kind of fool...

        Whenever a company wants to "encourage" its users to move to a subscription-based service, MRD applies to the obvious response.

    3. Michael Strorm Silver badge

      Re: What kind of fool...

      > cubic money

      Haven't heard that one before, but it's one of those neatly concise pieces of imagery that instantly conveys what it means.

      Did you make that up or did you get it from somewhere?

  3. UserErrorsAsAlways

    More dancing please

    No wonder no one wants to move to SAP cloud, all the videos I've seen recently are people dancing in front of the SAP logo with promises it works. It must be the same marketing brand as the new Jaguar (which I would not buy).

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