Examples of the Business Case Behind Switching to Third-Party SAP Support

The technical case for switching from SAP-provided support to third-party support is well documented. Breaking away from the software vendor’s self-support model to a concierge-style of support has many benefits. But, since the business case typically outranks a technical case, it is always great to find a single solution that addresses both.

Examples of Our Current Clients’ Business Cases

1. A global leader in design software and services is in the midst of a business transition to shift from selling perpetual licenses to SaaS subscriptions. Such a shift exchanges high upfront license payments for the higher valuation recurring revenue model. However, there are some challenges to overcome. Switching to a SaaS selling model presents a temporary cash crunch and causes delays in revenue recognition. Our client needed to find ways to lower costs in order to minimize disruptions to cash flow and revenue recognition. They decided to make the switch to Spinnaker Support and immediately saved in excess of 60% on SAP support fees – monies that were redirected to support the business case. This client will save nearly $4 million during the course of their multi-year agreement with Spinnaker Support.

2. A leading provider of commercial high-resolution earth observation and advanced geospatial solutions is striving to be the indispensable source of information about our changing planet by 2020. To meet this challenge, they are executing a “Five Point” strategy to position themselves for stronger growth and continued shareholder value creation. By switching to our SAP support, this client was free to drive stronger cash flow, return more capital to shareholders, and invest more in R&D to launch leading edge platforms and services at a faster pace. Our client is highly satisfied with the much-improved service and can redirect $millions over the next few years year to better support the business strategy.

3. The largest water and water recycling company in England and Wales is challenged to deliver safe, clean, and reliable water while ensuring fees remain affordable. They must remain a sustainable business that delivers great service while always protecting the environment. The geographic area they serve has grown in population by about 20x in the last decade – so finding better ways to serve more people is an ongoing challenge. This client implemented cost control measures where savings could be redirected to support their most strategic programs. Replacing high-cost, low-value SAP-provided support with Spinnaker Support is contributing nearly £2 million every year towards this client’s business objectives.

4. A multi-billion dollar Tokyo Japan-based leader in test and measurement wanted to better offset business fluctuations that are inherent in the semiconductor industry and to widen their global leadership position. They decided to take actions to improve their cost structure to generate more stable profits and to increase their R&D investment. Spinnaker Support provided an ideal solution to tie the client’s business challenge with their technical issue – which was paying too much for a decreasing level of support. By making the switch, this client will save over $4 million in 5 years.

Spinnaker Support delivers an increasingly popular solution to address client business challenges/strategies while simultaneously solving a very real technical problem. Contact us before your SAP support contract auto-renews on September 30th.

2018-11-05T13:06:47+00:00

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