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SAP: The chargeable maintenance base is dropping rapidly!

August 3, 2023

by

Peter Rattey

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SAPS/4HANA

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RISEwithSAP

SAP turns on the turbo! The news just hit like a bomb: SAP has just announced that, with immediate effect, only 80% of the old maintenance base can be returned during contract conversion to S/4HANA transformation. But it gets even tougher: the chargeable amount drops by a further 10% per year. This means that in 2024 it will only be 70%, then 60% in 2025, and so on.

SAP is obviously unhappy with the speed of the transformation, and the cloud share is also developing sluggishly.

How do we deal with these new realities? Every day, companies are losing money and are pressured to move forward with transformation. Many companies haven't even started the transformation yet or are still in the starting blocks.

That's where our visoryQ comes in - the business case builder that quickly and efficiently determines the most cost-effective strategy for companies' licensing landscape.

WHITE PAPER – enhance your knowledge!

S/4HANA Migration - Blessing or Curse?

Understand key SAP S/4HANA licensing risks

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It would be disastrous if companies simply opt for "RISE with SAP" now, under time pressure, without considering the framework and timeline. Despite the reduction in the chargeable maintenance base, it may still make sense to start the transformation later. With visoryQ and our licensing experts, we can analyze and evaluate all possible scenarios and find the most sensible and cost-effective path.

We have already done this for companies in recent years, but now the variable "time as a cost driver" is added and the speed at which decisions have to be made is increasing rapidly. Our visoryQ can take exactly this new variable into account, as tool-supported strategy formation is always faster, more transparent and more accurate than a manual conversion with estimated license values.

So don't hesitate - the news isn't pleasant, but we can still help you move into the future in a cost-saving way, whether to the cloud or on-premise. We'll find the right path for you.

ABOUT THE AUTHOR

Peter Rattey

Peter Rattey is the founder of VOQUZ Labs. He invented samQ and is still intensively involved in samQ's further development. Peter is one of our most experienced advisors.

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