What This Article Covers
- What SAP Said About SAP’s Integrated Suite Offers a Lower TCO
- The Truth About SAP’s Integrated Suite and a Lower TCO?
What SAP Said About SAP’s Integrated Suite Offers a Lower TCO
What is now mostly forgotten, one of the ways that SAP marketed its ERP system was that it would be the last system that a customer would need to purchase. Presented beginning back in the 1980s, the concept was that for companies that had mostly custom developed their own systems could lower their maintenance and integration overhead by using a “single system,” which would be the ERP system. This would allow a company to use a “single system” which would lead to great simplification of the IT landscape with associated cost savings.
All of this was stated by SAP as well as their consulting partners as a pathway to lower TCO.
The Truth About SAP’s Integrated Suite and a Lower TCO?
As covered in the article The Fallacy of the Benefits of the Integrated Suite, SAP and their partners offered deceptions in multiple directions to customers.
- While R/3 – ERP was integrated in that all the modules sat on the same database, the new products introduced by SAP (BW, APO, etc..) were not any more integrated into many cases than best of breed applications that were connected to SAP.
- Legacy systems often did not go away, therefore SAP ERP still had to be integrated to these systems.
- SAP proved very expensive to integrate to, being one of the only applications in the market that could not connect directly tables, but instead forced companies to go through antiquated things called IDOCs.
- Integration is not a primary driver of TCO. SAP and their consulting partners pushed to overestimate the cost of integration for no other reason than it helped push more money to SAP and their consulting partners.
Conclusion and Calculation
SAP receives a 0% accuracy rating for SAP’s integrated suite lowering TCO.
Link to the Parent Article
This is one of many research articles on a specific topic, that support a larger research calculation. For the overview of the research calculation for all of the SAP topics that were part of the study, see the following primary research A Study into SAP’s Accuracy.
The issues related to the inaccurate information communicated about integrated suites was also addressed in the book The Real Story Behind ERP: Separating Fact from Fiction.