Siemens Says Enough to SAP Support

It seems that Siemens, one of SAP’s largest customers, has said enough to bloated maintenance and licensing costs and is pushing back in an effort for to get more favorable support of their enterprise software packages.

I’ve heard rumors that Siemens has been paying upwards of $50 million a year in support charges for approximately 160,000 users. Whether that number is accurate remains to be seen, but regardless of the exact amount, responses such as these seem to be an indication that customers feel they have all their technology eggs in one basket. Nor has SAP been the only one. Oracle says it’s planning to reach a 50% net margin, based largely on 22% license costs.

In today’s economic times, I expect this will be a continuing story. In addition, I can only imagine how long strategies such as these will last before businesses worldwide start ditching some of the older, well known legacy vendors in favor of more control and flexibility.

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