Third-Party SAP Support vs SAP Support: Is the 50% Savings Worth It?
For organizations running SAP software, the annual maintenance fee is one of the largest ongoing IT expenses. SAP typically charges around 22% of the software’s license value per year for support.
Over five years, that means you might pay the equivalent of your entire license cost again just to stay supported. It’s no wonder CIOs and CFOs are looking for ways to rein in this spending. Read our guide, SAP Maintenance & Support Cost Management: Strategies to Reduce Ongoing SAP Costs.
Enter third-party SAP support providers. Independent firms like Rimini Street and Spinnaker Support promise to cut these fees roughly in half while extending coverage to areas SAP might not cover.
These providers tout about 50% savings on annual support bills, which can translate to millions of dollars saved over several years for large enterprises.
They also claim to support older SAP releases indefinitely and even assist with custom code issues—services not included in SAP’s standard support.
The key question for IT leaders is whether those savings are worth the trade-offs. Switching to third-party support means relinquishing direct updates and upgrade entitlements from SAP, which may strain your relationship with SAP.
Is cutting your support bill in half worth sacrificing some future SAP innovations and the comfort of SAP’s official ecosystem? In this article, we compare SAP’s support model head-to-head with independent support options.
We examine cost savings, service differences, risks, best-fit scenarios, and how third-party support can be leveraged in SAP contract negotiations.
Cost Savings Potential
The most immediate draw of third-party SAP support is the dramatic reduction in annual maintenance fees. SAP’s standard support costs about 22% of your software license value per year, whereas independent providers charge roughly half that (~11%).
For example, on a $10 million license base, SAP support costs approximately $2.2 million per year, compared to $1.1 million with a third-party provider – freeing over $1 million annually for other needs.
Over a multi-year period, these savings compound quickly. In five years, the total outlay would be approximately $11 million with SAP’s support, versus $5.5 million with third-party support on the $10 million baseline. Scale that to a larger SAP estate, and the savings can reach into tens of millions of dollars.
Beyond the maintenance fees, third-party support helps avoid the cost of frequent upgrades. SAP often sets end-of-support deadlines that pressure customers to migrate to newer versions (e.g., requiring S/4HANA by 2027 for full support).
Such upgrades often demand multi-million-dollar projects. By contrast, independent support allows you to stay on stable SAP releases indefinitely without forced upgrades or expensive extended maintenance fees. Some organizations have reduced their total SAP ownership costs by up to 90% over a decade by skipping those upgrades and paying the lower support fees.
Naturally, the biggest savings are realized in SAP environments that are stable and not in immediate need of new functionality.
If your current SAP system is meeting business needs, you can extend its life at minimal cost with third-party support. For a steady-state SAP shop, the financial case for third-party support is very compelling.
Table – Cost Comparison Over 5 Years:
| Support Model | Annual Support Cost (per $10M license base) | 5-Year Total Cost | Additional Savings Potential |
|---|---|---|---|
| SAP Support (22%) | $2.2 M | $11.0 M | None |
| Third-Party (11%) | $1.1 M | $5.5 M | Avoided upgrade project costs |
Checklist – Cost Savings Evaluation:
- Is the current annual SAP maintenance spend documented?
- Five-year TCO projected for both SAP and third-party options?
- Upgrade project costs identified and factored into your analysis?
How to Negotiate SAP Maintenance Fees: Can You Negotiate SAP Maintenance Fees? Yes – Here’s How.
Service Differences: SAP vs Third-Party Support
When comparing SAP support vs third-party support, the coverage and flexibility of each model differ significantly. SAP’s vendor-provided support includes regular bug fixes, security patches, and the right to implement new software versions or upgrades.
It also comes with defined service-level agreements (SLAs) for support response times (e.g., rapid attention to critical issues). Crucially, staying on SAP support means you have access to SAP’s latest innovations (new features and regulatory updates) as they become available.
SAP support has clear limits. It only covers the standard, unmodified software. Issues caused by customizations or third-party add-ons aren’t covered – you’d need separate help to resolve those.
Additionally, SAP’s support for any given product version is time-bound. Once a version reaches its end-of-maintenance date, SAP expects you to upgrade to a supported release (or pay for costly extended support) to continue receiving updates.
In contrast, third-party SAP support is more flexible in terms of what it will support.
These vendors will assist with your custom code issues and system integrations as part of their standard service. They also support older SAP releases for as long as you need, with no fixed end-of-support dates or forced upgrade requirements.
Even if you’re running a 15-year-old SAP system that SAP itself no longer updates, a third-party provider will keep it running with bug fixes and necessary tax/regulatory patches to maintain compliance. Keep in mind that while third-party providers will maintain your system’s operation and support, they do not deliver new SAP features or version upgrades.
Key Differences at a Glance:
- Long-term legacy support: Third-party vendors support legacy SAP versions indefinitely, whereas SAP imposes end-of-support deadlines that eventually require an upgrade.
- Upgrades and new features: SAP support includes the option to upgrade to new versions as part of maintenance, while third-party support maintains your existing version without introducing new SAP features.
- Customization coverage: Independent support will troubleshoot and resolve issues with customizations or custom code at no additional charge, whereas SAP’s standard support only covers problems in unmodified SAP code.
Checklist – Service Comparison Readiness:
- Have you identified all legacy SAP systems and their support end dates?
- How extensive is your SAP custom code footprint, and is it well-documented for support purposes?
- What critical SLA requirements (response times, resolution times) must your support provider meet?
Risks of Third-Party SAP Support
Switching to independent support for SAP comes with certain risks:
No direct SAP updates:
You will no longer receive SAP’s patches and updates. Third-party providers will supply their own fixes (often timed with SAP’s schedules) to keep your system up to date, but you’re relying on an outside vendor for critical patches.
Strained SAP relationship:
Leaving SAP support can strain your relationship. Your SAP account team might become less attentive once they lose your maintenance business, and any future deals or projects with SAP could become more challenging.
Mitigate this by communicating your IT roadmap and trying to part on good terms – for example, let SAP know if you intend to return when you move to S/4HANA.
Legal pushback:
SAP strongly discourages third-party support, and some customers have even received formal warnings from SAP regarding contract or intellectual property issues.
You still have the right to support your licensed software – just ensure your bases are covered by having legal review of both your SAP license terms and the third-party contract, so you’re confident nothing violates your agreements.
Complex return path:
Rejoining SAP’s support later can be costly and complicated. SAP may require you to pay backdated maintenance fees or purchase new licenses, and your system may need to be upgraded to a current version before it is accepted under support again.
To prepare, discuss potential re-entry terms with SAP before you leave, and consider timing the length of your third-party support contract to align with any future SAP upgrade plans, making the transition back smoother.
Table – Risks and Mitigation Strategies:
| Risk or Challenge | Mitigation Strategy |
|---|---|
| No direct SAP updates | Third-party delivers patches & fixes (aim for same-day updates) |
| Strained SAP relationship | Be transparent with SAP about plans; preserve goodwill |
| Legal pushback | Make sure contracts affirm your rights; consult legal |
| Returning to SAP later | Understand re-entry costs upfront; align timing for easier return |
Checklist – Risk Review:
- Have you considered how leaving SAP support will impact your relationship or plans with SAP?
- Has your legal team vetted the independent support contract for compliance with your SAP license?
- Do you have a plan for returning to SAP support if needed in the future, and have you discussed the terms with SAP?
Best Use Cases for Third-Party Support
Third-party support is most effective for organizations with stable SAP environments and no immediate plans to upgrade their SAP systems. If you intend to run your current SAP system for several more years without modification, an independent support provider can maintain it while significantly reducing your maintenance costs.
Companies under pressure to cut IT spending and willing to forego new SAP features temporarily are prime candidates. They save on support costs for their existing software and can wait on SAP’s latest enhancements.
Organizations with heavily customized SAP solutions also tend to benefit. Third-party vendors will support your custom code and modifications as part of the standard contract (which SAP’s standard support doesn’t cover).
Additionally, if you have a large amount of unused SAP licenses (“shelfware”) that continue to incur maintenance fees, switching to independent support can help eliminate this waste.
However, third-party support is not advisable if you’re on the verge of adopting SAP’s next-generation products or if you require constant access to the newest SAP innovations.
A company planning to migrate to S/4HANA in the next year or two — or one that needs every SAP update as soon as it’s released — would be better off staying with SAP’s support to preserve upgrade rights and access to new features.
Best Fit Criteria:
- Long-term stable usage: You plan to run your current SAP system for many years without major upgrades.
- Underused licenses: You have many SAP licenses or modules that aren’t actively used (paying maintenance on shelfware).
- Cost-driven strategy: Leadership is pushing for significant IT cost savings, even if it means slowing down the introduction of new features.
Checklist – Fit Assessment:
- Is your next SAP upgrade or migration (to S/4HANA, etc.) not planned for several years?
- Are your business leaders more focused on cost savings than on getting new SAP features right away?
- Is your IT team prepared to work with an external support provider instead of SAP for day-to-day support?
Negotiation Implications with SAP
The possibility of switching to third-party support can be a powerful bargaining chip in SAP contract negotiations. Even if you never actually leave SAP’s support, showing that you have a real alternative puts pressure on SAP to offer concessions.
SAP knows it could lose your maintenance revenue, so it may become more flexible on pricing and terms to entice you to stay.
Many customers have used a third-party support quote to negotiate lower fees or better terms from SAP.
For example, SAP might offer a temporary maintenance discount, cap future fee increases, or even bundle special incentives (like credits toward an S/4HANA migration) to persuade you to stay. In short, introducing a credible third-party option creates a competitive dynamic that motivates SAP to sweeten the deal.
To make this strategy work, credibility is key. SAP must believe you are genuinely prepared to switch if they don’t improve your deal.
Ensure your executive team is aligned and willing to follow through. It helps to obtain a formal proposal from a third-party support provider and share the high-level savings figures with SAP as evidence. If needed, escalate the conversation to senior SAP executives.
Negotiation Leverage Tips:
- Show the numbers: Present a third-party support quote or savings estimate to bolster your case.
- Escalate if needed: Involve SAP senior management if your initial requests for relief are denied.
- Highlight the exit option: Make it clear (politely) that you’re considering leaving SAP support if they can’t meet your needs.
Checklist – Negotiation Prep:
- Do you have third-party support proposals or quotes ready to use as leverage?
- Is top management in your company willing to actually switch if SAP won’t budge on costs?
- Have you planned your negotiation approach and talking points, including how to present the third-party option to SAP?
Read more about maximizing SAP support, Getting the Most Out of SAP Support: Tips to Optimize Service
Next Steps
For CIOs, CFOs, and IT leaders considering third-party support, here are five concrete steps to take next:
- Calculate your five-year total cost of ownership (TCO) under SAP’s support versus using a third-party provider. Ensure that you include annual maintenance fees, any projected SAP fee increases, and the avoided upgrade project costs in each scenario.
- Identify which SAP systems or components are strong candidates for independent support – typically stable, legacy environments with no near-term upgrades planned. Take note of any heavily customized systems or large numbers of unused (“shelfware”) licenses, as these factors can strengthen the case for third-party support.
- Request formal proposals from one or more independent support vendors to benchmark costs and services. Seeing the exact support offerings and cost savings in writing will help you evaluate the value and give you hard numbers to compare against SAP’s fees.
- Assess the legal and operational implications of switching. Have your legal team review any third-party contracts for compliance with your SAP agreements, and outline how day-to-day support processes might change (for example, how you will receive patches and whom your users will call for help).
- Leverage the third-party option in your discussions with SAP. Use the proposals or quotes you’ve gathered as leverage in your next maintenance renewal negotiation – often the mere presence of a viable alternative can prompt SAP to offer discounts or fee caps to keep your business.
Read about our SAP Contract Negotiation Service.
