A strategic guide for CIOs and CTOs evaluating the switch from SAP Enterprise Support to independent third-party maintenance. Covers cost savings of 50%+, service quality, risks, ECC vs S/4HANA timing, vendor selection, and transition planning.
SAP customers are under pressure from rising maintenance costs and looming deadlines. SAP Enterprise Support fees typically run at 18-22% of the license value per year, and SAP has recently instituted annual increases (+3.3% in 2023, +5% in 2024) after a decade of flat rates. For a large enterprise with $10 million in SAP licenses, that means paying around $2.2 million annually - a figure that increases each year due to inflation indexing.
Furthermore, SAP ECC is approaching the end of mainstream maintenance in 2027 (extended support available until 2030 for an additional premium), creating a "forced upgrade" timeline for customers to migrate to S/4HANA or face unsupported systems. These factors have CIOs exploring alternatives.
Third-party support providers (also known as independent support) have emerged to maintain SAP systems outside of SAP's support contracts. Companies like Rimini Street and Spinnaker Support promise to keep existing SAP environments running smoothly beyond SAP's support deadlines and at significantly lower cost.
As over half of SAP's ERP clients still run ECC on-premises (with many undecided on S/4HANA), interest in third-party support has grown. The goal is to save money and buy time for an eventual migration - or even avoid an expensive upgrade altogether - without compromising day-to-day ERP operations.
Rising SAP support fees (now increasing 3-5% annually), the approaching ECC 2027 end-of-mainstream-support deadline, the high cost and risk of S/4HANA migration, and the desire to redirect IT budget toward innovation rather than "keeping the lights on." Read: SAP Support and Maintenance Cost Optimisation.
The primary appeal of third-party support is cost reduction. Independent support vendors typically charge 50% or less of SAP's annual maintenance fee. An enterprise paying $2 million per year to SAP could negotiate a third-party contract for around $1 million - a $1 million annual saving. Over 5 years, that's $5M back to the IT budget.
| Support Option | Annual Cost (est.) | 5-Year Cost (est.) | Key Notes |
|---|---|---|---|
| SAP Enterprise Support (22%) | ~$2.2M (plus inflation) | ~$12M (with increases) | Full vendor support, upgrades, patches. 3-5% yearly fee hikes. |
| Third-Party Support | ~$1.1M (50% of SAP fee) | ~$5.5M (often fixed rate) | Significant savings. No access to new SAP versions/patches. |
Beyond lower fees, third-party contracts often lock in rates for 3-5 years with no escalation, providing budget predictability. SAP's own support, by contrast, can increase and typically auto-renews annually. The cost advantage is not just theoretical - many Fortune 500 firms have publicly reported saving tens of millions of dollars over several years by switching.
Freed funds can be reallocated to innovation: CIOs use the savings to fund digital projects, cloud initiatives, analytics efforts, or future ERP migration reserves that drive business value rather than just maintaining the status quo. Read case study: Saving $8M on SAP Support with License Optimisation and Third-Party Maintenance.
Cost aside, third-party support providers differentiate themselves with a more personalised support experience. Enterprises often complain that SAP support is slow and generic. Third-party providers assign dedicated engineers who become familiar with the client's SAP landscape.
Named engineers assigned to your account who learn your specific SAP landscape, customisations, and business processes.
Includes support for custom ABAP code, interfaces, and customisations - areas SAP's standard policy excludes.
Support older versions far beyond SAP's end-of-life dates. Rimini Street pledges ECC support until 2040.
Support SLAs are competitive - some providers offer 24/7 availability and even five-minute response times for critical issues. They also handle regulatory updates (payroll, tax, VAT changes) and proactively share optimisation tips. Companies not buying new SAP licenses are sometimes treated as low priority by SAP, whereas they become high priority for an independent support firm.
Third-party providers fill a gap that often forces companies to hire expensive external consultants when on SAP support. Custom code breaks, integration issues, and legacy version troubleshooting are all covered as standard. Read: Reducing SAP Footprint for ECC: Unused Licenses and Legacy System Retirement.
Switching to third-party support is not without trade-offs and risks. These must be weighed carefully against the substantial savings.
You lose the right to apply new official patches, upgrades, and versions. Your system will be frozen on its current version. For S/4HANA (which evolves quarterly), this means forgoing new features and improvements.
SAP typically requires customers to be in good standing on support for version upgrades or license conversions. Returning may require back-maintenance fees or re-licensing costs. Factor in contractual implications before cancelling.
Third-party support is legal for perpetual licence holders, but due diligence is essential. Engage legal to review your SAP agreement. Ensure any provider follows legal methods for delivering fixes and doesn't distribute SAP's proprietary code.
You cannot log tickets with SAP or escalate to SAP's development teams. You rely entirely on the third party's expertise. Your influence in SAP user groups and customer councils may also diminish.
SAP will try hard to retain your support dollars. Internal stakeholders may have concerns about "unsupported systems." Prepare a solid business case with peer company references to reassure stakeholders.
The downsides primarily involve losing access to SAP's updates and official support. For companies relying on cutting-edge S/4HANA capabilities and cloud integrations, third-party support could slow innovation. But for many running mature SAP environments, these trade-offs are manageable compared to the cost savings.
Your decision may hinge on where you stand in the SAP product lifecycle.
Organisations still on ECC 6.0 are the primary candidates for third-party support. ECC is a stable, proven platform that SAP is phasing out. If you're not ready to move to S/4HANA by 2027, third-party support can extend the life of ECC well into the 2030s. Rimini Street has pledged ECC support until 2040 - well beyond SAP's scheduled end of support. CIOs can buy an extra decade of usage, avoiding costly migration or extended SAP support fees (+2% premium for 2028-2030).
If you've already migrated to S/4HANA, the value proposition is different. S/4HANA is SAP's future-facing ERP with regular updates and support promised through at least 2040. Most enterprises on S/4HANA want to stay current on upgrades - something only SAP support enables. However, if you're on an older S/4 release and don't plan to continuously upgrade, or run a hybrid landscape where core ERP is stable, independent support could maintain your S/4 at lower cost while you innovate via side systems.
Third-party support can be a tactical move to delay or avoid a major migration. Some enterprises use it as a "bridge" - moving ECC to third-party support for 3-5 years, investing savings into front-end innovation or cloud projects, then revisiting an ERP upgrade later. Others pursue a "surround strategy" (cloud apps, RPA, AI around the edges of ECC) to meet business needs without moving to S/4 at all.
Do you view S/4HANA as an essential next step for innovation, or can your business continue to thrive on a well-supported legacy system augmented by new tech? Ensure third-party support aligns with your 5-10 year IT roadmap - whether that includes S/4HANA down the line or an entirely different direction.
Switching to third-party support requires careful planning and execution.
SAP support agreements auto-renew annually (often on January 1) and typically require 90 days' notice before the end of the term to cancel. For many, that means by September 30. Mark your calendar and involve procurement early. Missing the window locks you into another year of fees. Review your entitlements and consider terminating unused "shelfware" licenses to avoid unnecessary support costs.
The market is dominated by a few established players. Rimini Street (operating since 2005) is the largest, supporting thousands of SAP and Oracle customers globally. Spinnaker Support is another well-known firm. Evaluate on experience, client references (preferably in your industry), global coverage, and service offerings. Issue an RFP or have detailed discussions with multiple vendors.
Ensure the scope encompasses all critical systems and modules. Schedule the cutover the day after your SAP contract expires. Download and archive any final SAP support notes or patches while still under SAP support - apply any last critical patches just before support ends. Work out how the provider will interface with your team (ticketing system, named contacts) and develop an internal communication plan.
You retain a perpetual right to use the software after ending maintenance, but you won't get new licenses or upgrades. If there's a chance you might re-engage with SAP in the future, discuss reinstatement processes and costs with your SAP account representative beforehand. You can still purchase other SAP products separately (e.g., new SAP cloud services) while having legacy systems on independent support.
Need expert guidance on evaluating third-party SAP support options?
SAP Advisory Services →If your organisation plans to stay on SAP ECC for several more years or is delaying S/4HANA, third-party support is a strategic fit. If you need the latest SAP innovations annually, sticking with SAP support may be safer.
Calculate the 3-5 year ROI. Tally savings on support fees and avoided upgrades. Weigh against transition effort and potential rejoining fees. A solid financial case will secure executive buy-in.
Check your SAP contract for renewal and notice terms. Ensure you have perpetual licences. Engage legal counsel to confirm you can switch without breaching any terms.
Notify SAP of support termination at least 90 days before the end of your maintenance period. Coordinate with the start date of your third-party contract for a seamless handover.
Vet thoroughly. Look for proven track record in SAP support, global 24/7 coverage, and expertise in your SAP products (ECC, S/4, industry solutions). Speak to reference clients.
Require support for custom code, integration issues, and regulatory updates. Clarify SLAs (response and resolution times) and additional services (advisory, technical account management).
Before discontinuing SAP support, download any final patches and knowledge articles. Train your internal help desk on new processes and communicate to all stakeholders.
Without SAP's patches, coordinate with your third-party provider on security vulnerability fixes. They often develop their own fixes or mitigation steps. Ensure this is contractually included.
Maintain dialogue with SAP about future needs. You may buy new licences or cloud services while on third-party support for core systems. A professional relationship eases any future interactions.
Treat third-party support as one element of your strategy. Monitor provider performance and business impact. Reevaluate after 2-3 years to determine whether to continue, expand, or consider alternatives.
Our SAP licensing specialists help enterprises evaluate, negotiate, and transition to third-party support - or leverage the option to negotiate better terms with SAP directly.