BusinessCompany NewsNetSuite targets SAP customers faced with higher fees

NetSuite targets SAP customers faced with higher fees

New maintenance fee structure for SAP customers opens door for online rival

Online finance technology provider NetSuite is taking advantage of changes to
rival SAP’s fees structure to target its customers.

The company is offering an migration plan to those who may be faced with
higher maintenance charges from SAP’s changes to its cover plans

Under SAP’s new structure one of their more popular software versions, R4.6C
will no longer be covered by normal support charges. Users will now incur
customer specific fees although SAP, at time of going to press, had not given
details as to how much that would be.

SAP’s rivals, NetSuite the online accounting software providers, has created
a “Crossroads Initiative” which will help customers migrate their software
online rather than upgrading or paying higher costs.

“Amazingly, the forced migration of SAP R/3 users merely brings SAP customers
to SAP ERP 6.0, yet another Stone Age, on-premise product” said Zach Nelson,
NetSuite CEO.

A SAP company statement said: “As of January 01, 2010, SAP offers
customer-specific maintenance for SAP 4.6C.”

According to Forrester research these changes will affect approximately 70%
of SAP users who will either have to pay increased cost or upgrade.

The company had a tiered maintenance support system which meant from 1
January 2007 – 31 December 2007 users had an “additional fee” of 2%. From 1
January 2008 – 31 December 2009 users incurred an additional cost of 4%.

The company did specify that enterprise support customers will automatically
receive extended maintenance until 31 December 2010, without any additional
costs.

An upgraded version of SAP V4.7 maintenance fees will increase from 1 April
2009 – 31 March 2010 by 2%; and an increase of 4% from 1 April 2010 to 31 March
2012. All enterprise support customers will not incur higher costs.

Further reading:

NetSuite results show loss and growth

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