SAP Third-Party Support is:
- Alternative Support Option: A service provided by independent vendors, not by SAP directly.
- Cost-Effective: Typically offers significant cost savings compared to SAP’s support.
- Customized Services: Tailored support that often includes custom code and legacy systems.
- Extended Lifecycle Support: Enables continued use of existing SAP versions without forced upgrades.
- Focus on Customer Needs: Often praised for more personalized and responsive customer service.
Key Features of Third-Party Support
1. Support for Older SAP Versions and Custom Configurations
Third-party support providers specialize in maintaining older SAP versions that may no longer receive updates or support from SAP.
- Legacy Support: They ensure older SAP solutions like ECC 6.0 or R/3 remain functional and optimized.
- Custom Configurations: Support tailored to unique business processes and heavily customized SAP systems, which are often overlooked by SAP’s standard support plans.
2. Cost Savings Compared to SAP’s Official Maintenance Plans
Third-party support often comes at a fraction of the cost of SAP’s official maintenance contracts.
- Savings on Licensing: Businesses can save up to 50% on annual support fees.
- Elimination of Unnecessary Upgrades: No forced upgrades to remain within SAP’s support window, reducing unnecessary costs.
3. Personalized and Tailored Services
Third-party providers offer a more customized approach than SAP’s standardized support.
- Dedicated Support Teams: Providers assign experts who understand specific business needs.
- Custom SLAs: Service-level agreements (SLAs) are flexible, ensuring response times and coverage match business requirements.
Example: A manufacturing company with custom SAP configurations can receive specialized troubleshooting that aligns with its production workflows.
4. Coverage of Extended Lifecycles for SAP Products No Longer Supported by SAP
SAP has strict timelines for product lifecycles, but third-party support bridges the gap.
- Extended Support: Keeps systems running beyond SAP’s support expiration.
- No Disruption: Organizations can maintain operational stability without rushing into costly upgrades or migrations.
Example: Businesses using SAP Business Suite can continue receiving support even as SAP pushes for migration to S/4HANA.
Benefits of SAP Third-Party Support
1. Cost Efficiency
Third-party support can reduce annual maintenance costs significantly:
- Lower Fees: Third-party providers often charge half of what SAP does for support contracts.
- Avoiding Upgrade Costs: No need to transition to newer systems just to stay within SAP’s support lifecycle.
2. Customized Solutions
Tailored support for specific environments ensures seamless operations:
- Deep Understanding of Custom Configurations: Third-party providers are adept at handling complex, customized SAP landscapes.
- Proactive Problem Solving: Personalized attention ensures faster resolution of unique issues.
3. Extended Product Lifecycle Support
Third-party support keeps legacy systems operational and compliant:
- Support for Obsolete Systems: Systems no longer supported by SAP remain fully functional.
- Time to Transition: Organizations gain the flexibility to plan migrations at their own pace.
4. Vendor Independence
Businesses achieve freedom from SAP’s roadmap and licensing constraints:
- No Lock-In: Companies can use their SAP systems without pressure to upgrade.
- Flexible Strategies: Allows businesses to explore alternative ERP solutions while maintaining existing operations.
Challenges and Risks
1. Potential Compliance Issues with SAP License Agreements
Switching to third-party support may raise concerns regarding SAP’s licensing policies:
- Audit Risks: SAP could perform license audits to ensure compliance.
- Navigating Terms: Businesses must carefully review their SAP contracts to avoid conflicts.
2. Risk of Losing Access to New SAP Updates and Innovations
Third-party support does not include updates or patches from SAP:
- Limited Innovation: Businesses miss out on new features or technologies introduced by SAP.
- Static Systems: Without updates, systems may become outdated over time.
3. Dependency on Third-Party Provider Expertise
Organizations rely heavily on the expertise of the third-party provider:
- Provider Quality Matters: Choosing a reliable provider is critical to ensure high-quality service.
- Limited Pool of Experts: Some niche customizations may require expertise beyond a provider’s.
4. Managing Security Updates and Patches Independently
Without SAP’s official updates, businesses must rely on third-party solutions for security:
- Potential Vulnerabilities: Outdated systems could be at risk if patches are not applied promptly.
- Custom Security Measures: Providers may need to develop bespoke fixes for vulnerabilities.
By understanding the advantages and challenges of SAP third-party support, businesses can make informed decisions tailored to their operational and financial goals.
When to Consider Third-Party Support
1. Organizations Using Legacy SAP Systems with No Immediate Upgrade Plans
Many businesses rely on older SAP systems like ECC 6.0 or R/3, which may no longer receive official updates or support. Third-party support is ideal for:
- Long-Term Use: Extending the lifecycle of these systems without costly upgrades to newer versions like S/4HANA.
- Operational Stability: Keeping legacy systems running smoothly while delaying transitions to new technologies.
2. Businesses Looking to Cut Operational Costs
SAP’s official maintenance contracts can be expensive, often consuming a significant portion of IT budgets. Third-party support offers:
- Lower Annual Fees: Savings of up to 50% compared to SAP’s official support plans.
- Elimination of Upgrade Pressures: Avoiding the costs of migrating to newer SAP versions.
3. Companies Transitioning Away from SAP or Evaluating ERP Alternatives
Organizations planning to move to different ERP solutions benefit from third-party support during the transition:
- Bridge Solution: Ensures continued support for SAP systems until the new ERP is implemented.
- Independent Support: Provides flexibility without being tied to SAP’s roadmap or deadlines.
4. Users Heavily Relying on Customized SAP Solutions
Highly customized SAP environments often struggle to receive adequate support under SAP’s standard maintenance contracts:
- Avoiding Reimplementation Costs: Businesses can maintain tailored configurations without rearchitecting them to fit SAP’s updated versions.
- Tailored Solutions: Third-party providers excel in managing and supporting customized systems.
Popular Providers of SAP Third-Party Support
1. Overview of Leading Third-Party Support Vendors
Several companies specialize in providing third-party support for SAP systems, including:
- Rimini Street: A global leader offering cost-effective SAP support focusing on personalized service.
- Spinnaker Support: Known for its tailored solutions and expertise in SAP systems.
- Support Revolution: Offers cost savings and a customer-centric approach for businesses of all sizes.
- Symmetry: Combines SAP support with managed services and cloud hosting capabilities.
2. Comparative Analysis of Features and Services Offered
| Vendor | Key Features | Best For |
|---|---|---|
| Rimini Street | Personalized support, 24/7 global availability, no forced upgrades. | Cost-conscious enterprises. |
| Spinnaker Support | Customized support, expertise in hybrid SAP environments, proactive security. | Complex SAP setups and transitions. |
| Support Revolution | Competitive pricing, tailored SLAs, and transparent licensing advice. | Small to medium-sized businesses. |
| Symmetry | Combines SAP support with infrastructure and cloud management. | Businesses seeking integrated services. |
3. Selection Criteria for Choosing a Third-Party Provider
When selecting a provider, consider the following:
- Expertise in Your SAP Version: Ensure the provider has experience with your specific SAP system, whether it’s ECC, S/4HANA, or a heavily customized environment.
- Response Times and SLAs: Look for clear service-level agreements that align with your operational needs.
- Security and Compliance: Verify their approach to managing security updates and maintaining compliance.
- References and Reviews: Evaluate client testimonials and case studies for insights into the provider’s reliability.
Cost Comparison: SAP Official Support vs. Third-Party Support
1. Breakdown of Cost Differences
Third-party support is often significantly cheaper than SAP’s official maintenance plans:
- SAP Official Support Typically costs 22% of the original license fees annually, with additional upgrades or extended maintenance fees.
- Third-Party Support: Offers 40–50% savings, with no added costs for unused updates or mandatory migrations.
2. Real-world examples of Cost Savings Through Third-Party Support
- Example 1: A manufacturing company reduced its annual SAP support costs by 45% by switching to Rimini Street while maintaining full operational efficiency.
- Example 2: An energy company using SAP R/3 avoided a $1M upgrade cost by opting for third-party support to extend the system’s lifecycle.
3. Additional Costs to Consider When Opting for Third-Party Support
While third-party support reduces direct maintenance costs, businesses should be aware of potential additional expenses:
- Licensing Compliance Risks: Ensure alignment with SAP licensing terms to avoid penalties during audits.
- Integration and Security Costs: Some security patches or integrations may require custom solutions.
- Internal Expertise: Businesses may need to invest in internal teams to supplement the third-party provider’s support in specific areas.
Businesses can decide if third-party support aligns with their financial and operational goals by carefully evaluating costs and benefits.
FAQs
Q: How does third-party SAP support differ from traditional SAP support?
A: Third-party support typically offers more personalized service and can be more cost-effective. It focuses on maintaining current systems rather than pushing for upgrades and often supports custom code and older versions of SAP.
Q: Can third-party support handle legal and compliance issues?
A: Reputable third-party support providers stay updated on regulatory changes and ensure compliance. However, it’s essential to verify this capability with your chosen provider.
Q: Is third-party support suitable for all types of SAP products?
A: Most third-party providers offer extensive coverage for various SAP products, but confirming that they can support your specific SAP applications and versions is crucial.
Q: What happens if I need to upgrade my SAP system?
A: Third-party providers typically don’t offer upgrade services. If an upgrade is necessary, you may need to transition back to SAP support or use another service for the upgrade process.
Q: Can I switch back to SAP support after using a third-party provider?
A: Yes, you can generally return to SAP support if needed. However, it’s advisable to understand any contractual obligations or transition requirements involved in switching back.
