The SAP UK & Ireland User Group has welcomed SAP's decision
to provide benchmarking and key performance indicators (KPIs) for
its maintenance.
SAP and the SAP User Group Executive Network (Sugen), a global
federation of 12 user groups, have a agreed
a set of KPIs which govern the ERP company's maintenance
contract.
Speaking to Computer Weekly, Alan Bowling, chairman of the SAP
UK & Ireland User Group, said, "This is what we have been
asking for. SAP's decision reflects the influence of user
groups."
Significantly, the agreement between SAP and the user groups
means that SAP will only be able to increase its software
maintenance fees if it meets the KPIs agreed with the user groups.
Bowling said, "We are linking real delivery of value to SAP's price
increase."
Previously SAP wanted to increase its software maintenance fee
from 17% to 22% during 2009. This price increase was later extended
by five years. Bowlings said the agreement with the user group
means the increase is now spread over seven years. Users will pay a
maximum of 0.6% extra per year on maintenance, if SAP meets its
KPIs.
SAP and the user group's represented by Sugen will conduct
benchmarking to measure the improvements made to the
maintenance.
The KPIs cover four business continuity, business process
improvement, protection of investment and total cost of operations.
Bowling said SAP will be required to reduce the number of emergency
software changes it issues.
Bowling called on the software industry to follow SAP's lead by
providing KPIs for value on maintenance contracts.