Search Results for: sap-analysis

Executive Summary

SAP and Oracle have large support margins that they hide from customers.
This support margin is the secret to understanding the revenue model of these two vendors.

Introduction
The SAP and Oracle revenue models are highly based on support. SAP and Oracle have remarkably similar support strategies and revenue models. First, they both charge 22%+ per year for support and receive more than ½ of their revenues and the majority of their profits from support. Both companies have roughly a 90% margin on their support. Both companies have removed value from their support and made the overall support …

Executive Summary

SAP and Oracle have engaged in a concerted effort to strip out value from the base support level.
This means that the actual support cost for SAP and Oracle have dramatically increased.

Video Introduction: How SAP and Oracle Stripped the Value from 22% Support
https://youtu.be/isf4qI9uzXw
Text Introduction (Skip if You Watched the Video)
When SAP and Oracle sell their software, they sell the software with base support. This base support has increased throughout the years to rest at 22% of the license cost. This 22% is due every year, and it is proposed that this …

Executive Summary

SAP support is rarely discussed, but the reality of SAP support is far different from what is promised by SAP and their consulting partners.
What are the massive hidden costs imposed by using SAP support?

Paying 22%+ for SAP support, and do you still have employees feeling like this?
Video Introduction: How to Understand The Real Story with SAP Support
https://youtu.be/XbJ3xOmSoLk
Text Introduction (Skip if You Watched the Video)
Our work in SAP support comes from our overall research foundation in SAP. This leads us to the inescapable conclusion that canceling SAP support for the …

Executive Summary

CIO magazine proposes something that is never stated, that SAP’s support costs should be declining, not increasing.
How accurate is this CIO article?

Introduction
In the article Why SAP’s ERP Maintenance Prices Should Be Going Down — Not Up in CIO, some interesting points were brought up about the cost of SAP’s support. In this article, we will review the accuracy of this CIO article.
Our References for This Article
If you want to see our references for this article and other related Brightwork articles, see this link.
Notice of Lack of Financial Bias: We have …

Executive Summary

SAP has a specific strategy for flip-flopping on support.
This strategy is to move customers down the desired pathway.

Introduction
This article will expose one of the primary ways that SAP pushes its customers to move to new products.
Our References for This Article
If you want to see our references for this article and other related Brightwork articles, see this link.
Notice of Lack of Financial Bias: We have no financial ties to SAP or any other entity mentioned in this article.

This is published by a research entity, not some lowbrow entity that is part …

Executive Summary

SAP and Oracle have tremendous profit margins on their support. However, how do their support margins compare to international drug cartels? Find out in this article.

Text Introduction
SAP and Oracle have virtually an identical support model, with an identical profit margin on their support. You will learn about the approximate margin of SAP and Oracle versus Pablo Escobar. Some SAP and Oracle consultants have found parts of this article offensive — but the offensive part is that Brightwork published on the profit margins of SAP and Oracle, not that SAP or Oracle charge customers and provide such little …