Switching to SAP Third-Party Support
Introduction: Why Enterprises Consider Leaving SAP Maintenance
Rising SAP support costs are forcing many enterprises to rethink their support strategy. SAP typically charges around 22% of the software license value every year for standard maintenance.
At the same time, SAP is pushing customers towards S/4HANA and its cloud offerings, creating pressure to upgrade or face limited support on older systems.
These factors have CIOs and CFOs looking for alternatives – and third-party support has emerged as a compelling option, often delivering 50% or more cost reduction in SAP support expenses. Read our overview for SAP Contract Renewal & Optimization Strategies.
Why Switch to SAP Third-Party Support Providers?
Switching to an independent SAP support provider can yield major benefits. Third-party support providers (like Rimini Street or Spinnaker Support) typically charge much lower fees than SAP, instantly cutting maintenance costs roughly in half.
They also let customers keep running stable SAP systems (e.g., ECC 6.0) without any forced upgrades to S/4HANA.
Another advantage is greater flexibility and independence from SAP’s roadmap. By moving to an independent SAP support contract, you free yourself from SAP’s one-size-fits-all support approach.
Third-party providers will even support your customizations and integrations – areas that SAP’s standard support often won’t fully cover.
In short, going with third-party support can deliver immediate SAP support cost reduction while giving you more control over your IT roadmap – a win-win that drives strong ROI for many companies.
Contractual Steps for Leaving SAP Maintenance
Exiting SAP’s maintenance program requires careful timing and attention to your contract. First, check your SAP maintenance renewal date and the required notice period to cancel.
Many SAP support agreements auto-renew annually and demand a written notice of termination 90 days or more before the renewal date. Missing this window could lock you into another year of fees, so mark that deadline clearly.
Next, communicate your intent to SAP within the allowed timeframe. Craft a formal notice letter to terminate support and send it by the specified date (per your contract).
It’s wise to create a timeline leading up to renewal – include internal approval milestones and the notice submission – to ensure you don’t accidentally trigger an auto-renewal.
By handling these steps diligently, you preserve the option to leave SAP maintenance and avoid any unwanted extension of your support term.
Read our SAP RISE Subscription Renewal Strategy: How to Negotiate Savings & Flexibility.
Negotiating with SAP on Exit Strategy
When you announce plans to leave SAP support, be prepared for SAP to respond with counteroffers. They may propose incentives like discounted maintenance fees, promises of extended support for older products, or migration credits to nudge you toward S/4HANA or RISE (SAP’s cloud subscription program).
Use the lure of third-party support savings as leverage – SAP knows you can save 50%+ by going independent so that they might show flexibility on pricing.
Go into these discussions with a strategic mindset. Clearly articulate that you have viable alternatives and seek the best value for your organization.
In some cases, SAP might offer a temporary maintenance fee reduction or even a “maintenance holiday” (a short-term fee waiver) to keep you on board. Evaluate any SAP counteroffer against your IT strategy, and ultimately decide whether it’s enough to stay or if you will switch to an independent SAP support contract.
Evaluating Third-Party Support Vendors
If you choose to leave SAP maintenance, selecting the right third-party vendor is crucial. When evaluating vendors, compare their offerings and service level agreements (SLAs) to ensure they meet your needs.
For example, check if they provide 24/7 support with guaranteed response times, deliver necessary tax and regulatory updates, and support any custom code or customizations you have. A top-tier provider should cover all these areas, essentially replacing SAP’s support with equal or better service.
Also consider the vendor’s experience and guarantees. Ask for client references in your industry to verify their track record with customers who left SAP.
Ensure the provider offers strong indemnification and IP protection – if SAP raises intellectual property concerns, the vendor should defend you. Do thorough due diligence and choose a provider you feel confident will meet your service expectations.
Always look into this before the renewal, SAP Renewal Optimization: Right-Sizing Licenses & Reducing Shelfware.
Risks and Mitigations in Third-Party SAP Support
One risk is the loss of automatic upgrades and patches once you drop SAP maintenance. You will no longer receive new SAP software versions or official patches. If you plan to eventually move to S/4HANA, going a few years without updates means you’ll need to catch up later.
To mitigate this, establish a long-term plan for how and when you’ll handle future upgrades.
Many companies treat third-party support as a bridge strategy – they save on fees for several years and then use those savings to fund a future S/4HANA migration. In the interim, a reputable third-party provider will continue to deliver essential bug fixes and regulatory updates for your system, ensuring its stability.
Another consideration is the relationship with SAP post-exit. SAP cannot block you from using third-party support, but you may lose some perks.
For instance, you won’t have SAP’s help on new integration issues or questions about indirect access licensing. SAP may also be less cooperative during audits or future negotiations once you leave.
The best mitigation is to have a clear SAP support exit strategy and thorough documentation. Before leaving, download all relevant patches and documentation, and ensure you fully understand your license entitlements and compliance obligations.
With a well-documented plan and a reliable third-party partner, you can navigate these challenges. Most companies find that the cost savings and quality support from independent providers outweigh the downsides.
SAP Support Renewal vs Third-Party vs RISE – Pros and Cons
For organizations weighing SAP maintenance renewal alternatives, there are three main options to consider.
The table below compares continuing with SAP’s standard support, switching to a third-party support provider, and moving to RISE with SAP (an S/4HANA cloud subscription service):
| Option | Pros | Cons |
|---|---|---|
| Continue SAP Maintenance | – Official SAP support with access to new patches – Full vendor backing for any issues | – High annual cost (~22% of license value) – Pressure to move to S/4HANA on SAP’s timeline |
| Third-Party Support | – Much lower fees (around 50% savings vs SAP) – Supports older versions indefinitely (no forced upgrades) | – No access to new SAP features or patches – No direct SAP backing (requires trust in vendor) |
| RISE with SAP (Cloud) | – S/4HANA cloud infrastructure & hosting included – All-in-one subscription (licenses, infrastructure, support) | – Requires migration to S/4HANA (major project) – Ongoing subscription can be as costly as traditional support |
Checklist: How to Negotiate Third-Party Support & Exit SAP Maintenance
- Review your SAP maintenance renewal date and notice period. Identify when your support contract renews and how far in advance you must give notice to cancel (often 90 days or more).
- Run an internal SAP license audit for unused licenses. Inventory your SAP users and modules to spot any shelfware. Optimizing licensing now reduces costs and strengthens your position before you exit.
- Build a clear SAP support exit strategy. Decide your path after leaving SAP maintenance: continue on-premises without SAP support, move to a cloud solution (like RISE with SAP), or switch to a third-party support provider.
- Collect proposals from third-party support providers. Contact leading SAP third-party support providers (e.g. Rimini Street, Spinnaker Support) for quotes. These proposals quantify potential savings and outline their services, helping you compare options.
- Engage SAP early and communicate your intent. Start a dialogue with your SAP account team well before renewal. Let them know you’re exploring alternatives. Be prepared for SAP to make counteroffers – use those offers to your advantage during negotiations.
- Negotiate for the best deal possible. Leverage your alternatives to seek major concessions from SAP. For example, push for a maintenance fee reduction, request a maintenance holiday (temporary fee suspension), or secure credits toward future purchases (like S/4HANA licenses) if you consider staying with SAP.
- Secure legal protections in any third-party contract. If you move to independent support, have your legal team review the contract. Ensure it includes IP indemnification (the provider defends you if SAP challenges the arrangement) and clear SLAs for response times and issue resolution. A solid contract will protect your rights as you leave SAP support.
If all negotiations fail, Plan B for SAP Renewals: Alternatives If Negotiations Fall Through.
FAQ: Third-Party SAP Support & Leaving Maintenance
Q: How much can we save by switching to third-party SAP support?
A: Typically about 50% less in annual fees compared to SAP’s standard maintenance.
Q: Do we lose access to SAP updates after leaving maintenance?
A: Yes. You stop receiving new SAP upgrades and patches, but you can keep running your licensed software indefinitely on the versions you have.
Q: Can SAP block us from using third-party support?
A: No. SAP can’t prevent you from choosing independent support, though they might try to discourage it. Please ensure you provide proper notice to avoid auto-renewal.
Q: Who are the leading SAP third-party support providers?
A: Rimini Street and Spinnaker Support are two of the most recognized global third-party SAP support providers.
Q: Can we return to SAP support later if needed?
A: Yes, but SAP may require back-maintenance fees or a new contract. Negotiate any return terms before leaving.
Q: What’s the main risk with third-party support?
A: The biggest risk is losing automatic SAP updates. You’ll need a plan to get new features or migrate to S/4HANA since updates won’t come automatically.
Q: When should we start planning an SAP support exit?
A: Ideally, start at least 12 months before renewal so you have time to evaluate options and negotiate.
Read about our SAP Contract Negotiation Service
