How SAP and Oracle Stripped the Value from 22% Support
… customers, who had yet to upgrade, on what Oracle calls “sustaining support.” At each tier, the level of service declines but the price does not.
The capital cycle for ERP is 15-25 years. NOBODY immediately upgrades to a new release. It takes time to get a business ready for a significant implementation or upgrade, and some companies like to wait until the riskiest bugs are worked out. Other companies don’t see the ROI in the massive costs associated with these upgrades.
ERP vendors reduce or eliminate support coverage on prior releases to force upgrades and customers pay the