Can You Negotiate SAP Maintenance Fees? Yes – Here’s How

Can You Negotiate SAP Maintenance Fees? Yes – Here’s How

SAP’s maintenance fees are notoriously high – typically around 22% of the software license cost per year. These support fees often rank among the highest in the industry, putting a heavy recurring burden on IT budgets.

In fact, at a ~22% annual rate, after about five years, you’ve paid the equivalent of your original license cost just in support fees.

It’s no wonder CIOs, CFOs, procurement teams, and IT asset managers frequently ask: Can we negotiate these SAP support fees and secure a better deal? The answer is yes – you can negotiate SAP support fees to reduce SAP maintenance costs, though SAP will resist giving discounts unless you come prepared.

However, armed with the right approach and leverage, you can push back and achieve real savings on SAP support. Read our guide, SAP Maintenance & Support Cost Management: Strategies to Reduce Ongoing SAP Costs.

This article serves as a practical roadmap for negotiating an SAP maintenance discount. We’ll walk through proven tactics to chip away at those hefty support bills.

From leveraging new SAP purchases for maintenance relief, to cutting unused licenses (“shelfware”), to using third-party support quotes as leverage, and more – you’ll learn concrete strategies to lower your annual SAP maintenance spend without compromising your business.

Read on for a step-by-step guide to reducing SAP maintenance fees through smart negotiation.

Leverage New SAP Purchases for Maintenance Relief

One of the best opportunities to negotiate better maintenance terms comes when you’re about to buy more from SAP.

Whenever you expand your SAP footprint – whether by purchasing additional licenses or migrating to a major new product like S/4HANA – you gain leverage to request maintenance fee relief on your existing systems.

The reason is simple: SAP is eager to secure new sales, so they may be more flexible on support costs if it helps close a bigger deal.

Customers can ask for a few types of concessions tied to new purchases. For example, you might negotiate a maintenance holiday on certain legacy systems, meaning SAP allows you to pause maintenance payments on older software for a year or two while you implement the new solution.

Another option is a temporary maintenance discount on your existing license base – for instance, getting your support fee reduced from 22% to a lower rate for a set period. SAP may also offer bundled deals, where you receive complimentary maintenance for 1–2 years on the new licenses (or even across your entire SAP environment) as part of the purchase.

These kinds of offers can significantly offset costs during expensive transition periods. Imagine not paying maintenance on your old ERP while rolling out S/4HANA – that’s immediate savings when you need them most.

Or getting one or two years of free support on a big new cloud subscription, easing the upfront financial impact. The key is to bake maintenance relief into the negotiations whenever you make a substantial new investment in SAP.

Table – Maintenance Discounts via New Purchases:

Checklist – Before Buying New Licenses:

• Legacy systems and licenses mapped out (to identify where a maintenance holiday could apply)?
• Future SAP roadmap confirmed (e.g. S/4HANA migration timeline, new modules needed)?
• Specific maintenance relief targets set (years of free support or % discount to aim for)?

License Reduction and Termination Tactics

Another way to trim the maintenance bill is by reducing the number of licenses on support. SAP calculates maintenance fees based on your total licensed software portfolio – so if you have unused licenses (“shelfware”) that you’re still paying 22% on each year, you’re burning money. Negotiating the termination of unused licenses can shrink your maintenance base and lower costs permanently.

In practice, SAP doesn’t make this easy. Typically, you can only remove licenses from your support contract at certain times (like at renewal or with a significant contract change), and you often have to completely give up those licenses (meaning you can’t use the software anymore).

However, if your business has gone through changes – say a divestiture, a downsizing, or a shift to a different system – it may be clearly justified that you no longer need some of those SAP licenses.

In such cases, bringing this evidence to SAP and requesting a support reduction is feasible, especially if you balance the request with some new investment or upgrade commitment.

SAP will resist losing recurring revenue, so be prepared for pushback and a longer negotiation cycle, but it is possible if you demonstrate that the status quo is unreasonable.

Pros & Risks of License Reductions:

• Pros: Reduces your ongoing maintenance fees by removing inactive licenses, ensuring you only pay for what you actually use.
• Risks: Requires SAP’s agreement (they may only allow it with conditions or at renewal); might need offsetting purchases or an upgrade commitment; negotiation can become protracted.

Checklist – License Reduction Readiness:

• All software quantified (do you know which licenses and how much they cost in maintenance)?
• Evidence of a structural business change to justify dropping licenses (mergers, divestments, reduced headcount)?
• Internal consensus reached on which licenses are non-essential and can be terminated (so you present a united front to SAP)?

Read about SAP support costs, Why SAP Maintenance Costs 22% – What You Get and Don’t Get

Benchmarking & Escalation

Sometimes, internal cost-cutting measures aren’t enough – you need external leverage. This is where benchmarking your support costs and considering third-party support options becomes crucial. Start by getting quotes from independent SAP support providers (third-party maintenance firms).

These companies often charge about 50% of SAP’s standard support fee for comparable coverage. For example, if you’re paying $1 million a year to SAP, a third-party might offer similar support for around $500,000.

Knowing this “market price” gives you a benchmark to judge SAP’s offer – and a credible threat that you could leave SAP support to save money.

Even just having a credible third-party quote in hand can change SAP’s stance. If SAP realizes you might actually switch to an alternative provider that cuts maintenance costs in half, they have a strong incentive to negotiate.

The mere possibility of losing your business may prompt SAP to propose concessions, such as a temporary discount or a special deal, to persuade you to stay. The key is ensuring that SAP believes your alternative is genuine.

That means getting leadership buy-in internally so that moving off SAP support is a viable option on the table.

Another powerful tactic is escalating the discussion to higher levels of SAP’s management. If your account team or sales rep insists that maintenance fees are “non-negotiable,” it may be time for your executives to speak with SAP’s higher-ups.

High-level escalation (for example, your CIO speaking with SAP’s regional VP) can unlock exceptions that regular representatives cannot authorize.

You might secure a maintenance rate below the standard 22%, or a cap on annual fee increases (say no more than 1–2% per year instead of the typical ~3%).

Other special terms or one-time credits could also be on the table. Going over your rep’s head can introduce some friction and extend the timeline, but for a large renewal, it can be worthwhile.

Table – Benchmarking vs Escalation Outcomes:

Checklist – Benchmarking Prep:

• Third-party support quotes obtained (do you have a viable alternative ready)?
• Current maintenance spend benchmarked (do you know how your costs compare to industry or peers)?
• Escalation plan defined (which executives to involve, and when to escalate if negotiations stall)?

Enterprise Agreement Structures

Large organizations often negotiate Enterprise License Agreements (ELAs) or multi-year, bundled deals with SAP. In these comprehensive contracts, licenses and maintenance (and sometimes cloud subscriptions) are rolled into one large package.

The appealing aspect is that SAP may embed maintenance discounts or fee caps within the bundle to secure a long-term commitment. Essentially, instead of haggling over the 22% each year, you agree to a multi-year commitment, and SAP gives you a break on support costs as part of the total deal value.

The benefit of such enterprise agreements is the predictability and simplicity. You receive a consolidated bill, a locked-in maintenance rate for several years, and potentially a lower overall cost than if you negotiated each component separately.

This makes budgeting easier and ensures there are no surprise hikes beyond what’s in the contract. If you’re planning to stay with SAP for the long haul and continue expanding, an ELA can be a way to negotiate better support value in a holistic deal.

However, there are risks to be aware of. Bundling everything together can reduce transparency – you might not know exactly how much discount you truly received on maintenance versus licenses, since they are all lumped together.

It also limits flexibility: you’re committing to a large, long-term deal, which means if your needs change or you want to drop a product, it’s harder to adjust when everything is tied up in a bundle.

Essentially, you’re trading some flexibility for cost certainty and (hopefully) an embedded discount. Ensure the math works in your favor by comparing what you’d pay with and without the bundle.

Pros & Risks of Bundled Maintenance (Multi-Year Deals):

• Pros: Predictable support costs over multiple years; simplified billing and contract management; potential hidden discounts on maintenance baked into the overall price.
• Risks: Lack of transparency on true savings (no line-item breakdown); long-term lock-in reduces flexibility if needs change; you must commit to the full deal even if circumstances shift.

Checklist – Before Entering ELA Negotiations:

• 3–5 year SAP roadmap forecasted (are you confident in your SAP needs for the next few years)?
• Cost models compared (standalone annual contracts vs bundled deal – which yields better value over time)?
• Contract transparency requirements defined (do you need clarity on maintenance vs license costs, and have you articulated that to SAP)?

Read more about third-party Third-Party SAP Support vs SAP Support: Is the 50% Savings Worth It?.

Avoiding Premium Support Upsell Traps

When discussing maintenance, SAP may suggest an “upgrade” to a higher tier of support – offerings like SAP Enterprise Support Platinum, MaxAttention, or other premium programs.

Be very cautious here: these premium tiers can dramatically increase your support costs (often adding 10–15% to the standard fee) without providing equivalent value. Only in very special situations do these make sense.

For the vast majority of companies, standard SAP support (~22% of license cost) is sufficient to keep systems running with patches and help-desk services.

Premium packages are designed for exceptional cases – for example, an ultra-critical SAP environment where even a single minute of downtime is unacceptable, or a complex global rollout that requires SAP experts to be on call.

If that doesn’t describe your situation, it’s wise to decline the upsell and stick with the standard support model. Focus on negotiating and optimizing within the standard support framework before considering any premium add-on.

If you truly do have a case for higher support, try to limit its scope and duration. Perhaps engage a premium support level only during a go-live period or for one particularly critical system, rather than upgrading your entire support contract indefinitely.

Also, be sure you understand the cost implications – that extra 10–15% for premium support could wipe out any maintenance savings you’ve negotiated elsewhere.

Always weigh the actual business benefits of the premium tier against its steep cost, and ensure it aligns with a clear need before committing.

Table – Standard vs Premium Support Comparison:

Checklist – Premium Support Evaluation:

• Mission-critical systems identified (do any systems truly require premium 24/7 attention)?
• Clear business justification (have you quantified the risk vs reward of premium support)?
• Budget available and approved (can you afford the significant cost increase for the premium tier)?

5 Actionable Next Steps

Negotiating down SAP maintenance fees is a challenging but attainable goal. It requires preparation, timing, and a willingness to challenge the status quo.

As you plan your strategy, keep these five actionable next steps in mind to start making progress:

1. Audit Your License Landscape: Conduct a thorough audit of your SAP licenses and usage. Identify all unused or underutilized licenses – this is your “shelfware.” By pinpointing which licenses aren’t needed and removing or trading them in, you immediately eliminate their 22% annual support cost – ensuring your maintenance base is as lean as possible before you negotiate.
2. Time New Purchases Strategically: Align any planned SAP investments with your maintenance negotiations to ensure optimal utilization. If you anticipate buying new SAP modules or moving to S/4HANA, use that timing to your advantage. Engage SAP when they’re most eager (for example, quarter-end or year-end) and tie your purchase to maintenance concessions – such as a year of free support or a discounted rate – as part of the deal.
3. Gather Third-Party Support Quotes: Even if you plan to stay with SAP support, get a quote from a third-party provider. This provides a concrete figure for potential savings (typically around 50% less) and a bargaining chip. When SAP knows you have a viable alternative lined up, you gain leverage to negotiate a better rate or terms. (Just make sure your leadership is aware of and supports this approach.)
4. Design Enterprise Deals with Care: If you’re considering a multi-year enterprise agreement, model it out carefully. Compare the costs and benefits of bundling versus staying on annual contracts. Ensure any bundled maintenance discount is worth the commitment, and insist on clarity in the contract. A well-structured deal can save money, but a poorly understood one can lock you in – so go in with eyes wide open and a clear 5-year SAP roadmap.
5. Challenge Unnecessary Upsells: Scrutinize any premium support offers to ensure they are necessary. Don’t pay for “Platinum” or MaxAttention-level support unless it’s truly justified – standard support is expensive enough, so optimize what you have first. Only agree to a premium tier if a clear, critical business need demands it, and even then, consider limiting it to essential systems or a defined timeframe.

By following these steps and the strategies outlined above, you can push back against SAP’s high maintenance fees and negotiate a more palatable support arrangement.

Remember, persistence is key – SAP may initially refuse, but with the right leverage and a clear plan, even “non-negotiable” maintenance fees can become negotiable.

Read about our SAP Contract Negotiation Service.

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