On-site ERP vendors might be a tad nervous when they hear about the results of a controversial survey conducted by ‘R’Ray Wang, CEO of Constellation Research. Dennis sat down with Ray in New Orleans to talk about the third party maintenance, and how some customers have used third party options as a tactic to reduce maintenance costs during contract negotiations.
Ray reports that, of the 149 survey respondents who’ve used a third-party proposal during maintenance contract negotiations, 13.7% saw a decrease in their maintenance bill. This number came from SAP and Oracle shops, as these are the ERP vendors that currently have third-party maintenance options.
While those surveyed represent a fraction of the tens of thousands of SAP and Oracle customers, Ray points out that those 149 surveyed are primarily market leaders and fast followers. Which indicates that more might follow their lead, especially outfits that don’t yet know about third-party options.
The guys wrap it up by covering three important points for making a move to third-party maintenance solutions. All in all, Dennis and Ray agree that the survey results indicate that SAP and Oracle customers should consider third party maintenance as they weigh their maintenance options – particularly during contract negotiations.
:42 149 customers surveyed weigh in on the effectiveness of third-party maintenance
:58 13.7% reported a decrease in their maintenance bill
1:48 While few in number, survey respondents are market leaders and fast followers
2:25 Others might join the crowd; few even know about third-party maintenance options
2:58 Ray’s three points of advice for those considering third-party maintenance