Executive Briefings

'Out of Touch' ERP Vendors Means Third-Party Support Is Here to Stay

In the mid-2000s there was a beginning of public discussions and a surge in market awareness about support and maintenance (S&M) alternatives for users of enterprise applications. Companies in the market for enterprise software S&M services, like nearly every other market in the world, have responded to monopolistic-like pricing and profit margins by seeking choice. Enterprise software licensees now have a choice of annual support providers.

Just like many drivers choose to take their cars to a certified local mechanic, and not the authorized dealer for better value and more responsive service, maintenance and repair, many software licensees are choosing the value and responsiveness of vendor-unaffiliated third-party support providers. These vendors' value proposition is to replace annual support from, say, Oracle and SAP, with a support program that enables Oracle and SAP enterprise resource planning (ERP) licensees to save up to 50 percent on annual support fees and up to 90 percent on total support costs over a decade.

Third-party support clients can remain on their current software release without any required upgrades or migrations for at least 10 years, and thus save their money for major new software investments and innovation.

Just who are the third-party S&M providers?

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Keywords: supply chain management IT, supply chain IT, supply chain systems, supply chain solutions, maintenance contracts for enterprise software

Just like many drivers choose to take their cars to a certified local mechanic, and not the authorized dealer for better value and more responsive service, maintenance and repair, many software licensees are choosing the value and responsiveness of vendor-unaffiliated third-party support providers. These vendors' value proposition is to replace annual support from, say, Oracle and SAP, with a support program that enables Oracle and SAP enterprise resource planning (ERP) licensees to save up to 50 percent on annual support fees and up to 90 percent on total support costs over a decade.

Third-party support clients can remain on their current software release without any required upgrades or migrations for at least 10 years, and thus save their money for major new software investments and innovation.

Just who are the third-party S&M providers?

Read Full Article


Keywords: supply chain management IT, supply chain IT, supply chain systems, supply chain solutions, maintenance contracts for enterprise software