Cutting SAP ECC Maintenance Costs Before 2027: Strategies for Renewals and Third-Party Support
SAP ECC maintenance fees are a significant budget drain for enterprises.
With mainstream support set to end in 2027, companies are exploring ways to reduce SAP ECC maintenance costs through smarter contract renewals and third-party support.
This article provides practical strategies, from negotiating reduced SAP support fees to leveraging independent support providers, to help organizations save money without compromising their SAP operations or future roadmap.
Understanding SAP ECC Maintenance Costs
Annual maintenance for SAP ECC typically costs about 20–22% of your software license value per year. For a large enterprise, this can mean millions of dollars in annual costs.
These fees buy you software updates, patches, and SAP’s technical support. However, many companies don’t fully utilize these services – especially if they have “shelfware” (unused SAP modules or user licenses that still incur fees).
In effect, some organizations pay for software they aren’t even using, which wastes budget. Additionally, SAP has increased maintenance rates in recent years (e.g., a 5% increase in 2024 to account for inflation), resulting in rising ECC support costs.
The good news is that maintenance is not a fixed cost. By understanding what you’re paying for and how it’s calculated, you can find opportunities to reduce the spend.
Verify whether your support fees are based on discounted license prices or the full list price. Identify any licenses or components you no longer need to support.
This due diligence will prepare you to negotiate cost reductions with SAP.
The 2027 Support Deadline Looms
SAP’s mainstream support for ECC 6.0 is scheduled to end on December 31, 2027.
After that, standard support is no longer available. SAP offers extended maintenance through 2030, but it comes with an approximately 2% annual fee increase and provides no new improvements.
Essentially, post-2027, you’d pay even more for the same legacy system.
The 2027 deadline forces a decision point. You must decide whether to migrate off ECC by then or find an alternative way to support it.
If you plan to migrate to S/4HANA or a cloud ERP by 2027, maintaining SAP support until then may be sufficient.
However, if your organization plans to run ECC longer, paying escalating fees for dwindling support becomes increasingly difficult to justify. It’s crucial to explore options now so you’re not left with an overpriced extended support scenario after 2027.
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Optimizing Your SAP Support Renewal
Before your next SAP maintenance renewal, thoroughly review your contract and usage. Several tactics can help cut your ECC support fees:
- Remove Unused Licenses: Identify any SAP modules or user licenses not actively used. You might be paying 22% per year on these idle assets. Negotiate with SAP to drop them from maintenance – removing that shelfware immediately reduces cost.
- Downgrade Support Tier: If you don’t need SAP’s full Enterprise Support, ask about lower-cost tiers. For example, some customers qualify for Product Support for Large Enterprises (PSLE) or Standard Support, which offers lower fees. Switching to a lower tier can trim the maintenance percentage.
- Lock in Multi-Year Rates: Consider committing to a multi-year support term (e.g., through 2027) in exchange for price protections. SAP may freeze your fee or cap annual increases if you commit to supporting your business for a specified period. This provides stability and prevents unexpected price hikes.
- Leverage Future Plans: If you’re eyeing an S/4HANA migration or adopting SAP cloud products soon, use that as leverage. SAP may grant short-term maintenance discounts or credits if it anticipates a significant S/4HANA deal is forthcoming. Use that need for a bridge to push for better terms now.
- Request Payment Relief: In some cases, SAP can defer payments or temporarily suspend maintenance on specific systems to help improve cash flow. This doesn’t reduce total cost, but it can ease budget strain in a given year.
Enter renewal talks with solid data and a clear target (e.g., “we need to cut our annual maintenance spend by 20%”).
Let SAP know you’re considering alternatives, such as third-party support, as that leverage can prompt more flexibility from them.
Third-Party Support: A Viable Alternative
A proven strategy to reduce costs is to switch to third-party support for SAP ECC.
Third-party support means hiring an independent firm (outside of SAP) to provide software support and maintenance.
Leading vendors like Rimini Street and Spinnaker Support typically charge about 50% of the fee that SAP does, instantly cutting your support bill in half.
Some clients even claim total savings approaching 90% when avoiding forced upgrades.
In addition to lower fees, third-party support offers other benefits:
- Extended System Life: A third-party provider will support your current ECC system for 10+ years if needed – well beyond 2027. You won’t face an end-of-support deadline; you decide when to upgrade or retire the system.
- Support for Custom Code: Independent support vendors assist with issues related to your customizations and interfaces, not just standard SAP code. If your ECC is heavily customized, this comprehensive support is a major benefit (SAP’s support typically won’t debug custom code).
- No Forced Upgrades: With a third-party, there are no mandatory version upgrades. The provider delivers critical patches (tax and regulatory updates) for your existing software. You can avoid disruptive upgrades until you are truly ready to move to a new platform.
To put it in perspective, here’s how SAP support compares to third-party support:
| Aspect | SAP Enterprise Support (ECC) | Third-Party Support for ECC |
|---|---|---|
| Annual Fee | ~22% of license value (and rising) | ~50% of that cost (often fixed) |
| Support Timeline | Full support through 2027 (option to pay extra through 2030) | Indefinite support as long as needed (no end date) |
| Upgrades | All SAP patches & upgrades until 2027; must move to S/4 for new features | No new SAP versions, but get critical fixes on current version; no forced migration |
| Custom Code | Not covered by standard support (limited help on custom issues) | Included (customizations and interfaces fully supported) |
Many enterprises have saved tens of millions by moving to third-party support. It’s a compelling alternative for those who want to maintain a stable ECC system without incurring SAP’s high fees in the interim.
Key Risks and Considerations
Leaving SAP’s official support has implications for managing.
Key considerations include:
- Loss of New Updates: Once you leave SAP support, you will no longer receive new SAP patches and upgrades. Your ECC system will be frozen at its current version. For most, this is acceptable given ECC’s maturity. Third-party providers will still supply bug fixes and regulatory patches, but you won’t receive new features from SAP.
- Future Upgrade Path: Plan how you will eventually move to S/4HANA or another platform. Being on third-party support now doesn’t prevent a future migration. When you’re ready to upgrade, you’ll license the new SAP solution then. You might miss out on some incentives SAP offers its active customers, but the savings now can help fund the transition later.
- Contract & Compliance: Review your SAP contract for the notice required to cancel support (often a few months before renewal). Missing that window could lock you in for an extra year. Also, ensure you are license compliant (e.g., user counts, indirect usage) before ending SAP support. This minimizes the risk of audits or fees after you switch.
- Provider Selection & Transition: Select a reputable third-party provider with a proven track record in SAP. Talk to references. Coordinate with your IT team to hand over knowledge and open issues to the new support team. A well-planned transition prevents service disruptions.
Recommendations
- Start Early: Begin evaluating SAP ECC support options 12–18 months before 2027 (or your next renewal). Early planning gives you leverage and time to execute changes smoothly.
- Audit Your Usage: Analyze how your organization uses SAP. Find unused licenses, under-utilized modules, and gauge how often you use SAP’s support. Target these areas for cost cuts.
- Open Dialogue with SAP: Discuss your need to reduce maintenance costs with SAP. Ensure they understand you’re serious about alternatives. This can prompt SAP to offer discounts or flexible terms to keep your business.
- Investigate Third-Party Support: Get a proposal from a third-party support provider. Understand their service scope and SLAs. Even if you don’t switch, having this option and its cost savings quantified strengthens your position.
- Check Contract Details: Be meticulous with contract details. If you negotiate a new deal with SAP, ensure that all changes (such as fee reductions) are documented. If you plan to exit, follow the required notice steps exactly to avoid accidental renewals.
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Checklist: 5 Actions to Take
- Assemble a Task Force: Form a team (IT, procurement, finance) to drive SAP maintenance cost reduction. Assign members responsible for license data, SAP negotiations, and third-party research.
- Baseline Current Costs: Gather all SAP license and support info. Calculate your total ECC maintenance spend. Identify quick wins (e.g., shelfware licenses) that could be eliminated.
- Explore Alternatives: In parallel with renewal talks, get information and quotes from third-party support providers. Compare their offerings and savings against SAP’s proposal.
- Make the Decision: Decide whether to renew with SAP under better terms or switch to a third-party support provider. If staying, lock in the concessions in writing. If switching, schedule the cutover at contract end and inform SAP per the agreement.
- Transition and Monitor: If you got a better SAP deal, verify the new terms on your invoices and track the savings. When transitioning to third-party support, manage the handover carefully: inform users of the new support process, transfer any open issues, and closely monitor the service.
FAQ
Q: How much can we save on SAP ECC support?
A: Switching to third-party support typically cuts your SAP maintenance fees by about 50%. Even negotiating with SAP for a better deal (removing shelfware, discounts) can save 10–30%. That often translates into millions of dollars saved annually for a large enterprise.
Q: Is third-party SAP support legal and safe?
A: Yes. You are permitted to have a third-party support your licensed SAP software, and many enterprises have successfully done so. The key is choosing a credible provider with strong security and SAP expertise. A good third-party support firm will keep your system stable and compliant, just at a lower cost and with more flexibility.
Q: What do we give up by leaving SAP support?
A: Primarily, you lose access to new SAP updates and versions. Your software stays at its current version without SAP enhancements. However, you retain the right to use your existing SAP system indefinitely, and the third-party provider will still deliver bug fixes and regulatory updates – just not new features from SAP.
Q: Will third-party support affect our plans to migrate to S/4HANA?
A: Not significantly. You can utilize third-party support for ECC as long as needed, then migrate to S/4HANA when you are ready. You’ll have to license S/4HANA as a new project at that time. You might miss some SAP incentives for customers on active support, but the money you save now can help fund the eventual migration.
Q: Do we risk an SAP audit or penalties if we drop maintenance?
A: SAP can audit license compliance whether or not you’re on maintenance. To mitigate risk, ensure you’re fully compliant with your licenses before you leave. After switching, continue good license management. If you remain compliant, SAP has little reason to pursue penalties.
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