ERP maintenance costs

In July AMR Research reported that SAP had raised the maintenance fees of its enterprise suite to 22% of net licence value – in other words, SAP customers now pay the full cost of their software every five years. In a way that is great for competitors like SYSPRO who are charging 10-12 percent points less.

A recent blog on the IT Project Failures site says that the big ERP vendors are doing this because the complexity of their systems and their implementation puts the vendors in a position to abuse their customers.

If that attitude is correct then it disturbs me, as it reminds me of the phenomenon of the tragedy of the commons – by abusing their resources (customers) now those vendors risk destroying their own eco-system later.

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3 thoughts on “ERP maintenance costs

  1. Pingback: More on ERP maintenance costs « The Manticore blog

  2. Pingback: Recent Links Tagged With "erp" - JabberTags

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