Introduction – Why SAP Support Negotiation Is Critical
SAP support fees are one of the largest recurring IT expenses for enterprises. SAP typically charges 19–22% of your on-premise license value per year in maintenance fees.
Over five years, you’ll end up paying more than the original license cost just for support.
SAP positions this as a standard, “fixed” annual charge – but savvy customers know that nothing is truly fixed in a commercial agreement. Negotiation is the only path to rein in these costs and escape SAP’s one-sided support model.
SAP’s support structure (Standard at ~19% and Enterprise at ~22%) guarantees predictable revenue for SAP, but offers little flexibility to customers. The default model assumes you’ll pay 22% of your entire license portfolio every year, with automatic increases for any new licenses you purchase.
On top of that, SAP often tries to add a 3–4% annual uplift (indexation for inflation) on your support fees. And unless you negotiate otherwise, you’re stuck paying maintenance on 100% of your licenses – even those you’re not actively using (SAP’s contracts discourage “partial termination” of support).
For example, if your company has €15 million in SAP licenses, annual Enterprise Support would cost about €3.3 million. After 5 years, you’ve paid roughly €16.5 million in support – exceeding your initial license investment. Clearly, without active management, support fees can balloon beyond the value delivered.
The good news is that global enterprises routinely negotiate better terms. By challenging SAP’s boilerplate fees, organizations have secured discounted rates, multi-year fee freezes, and even the removal of unused licenses from their maintenance base.
The key is to approach SAP support renewals strategically and skeptically. Every aspect – from the support percentage to annual increases to what’s included – is negotiable if you have a plan and leverage.
Understanding SAP Support & Maintenance Models
Before diving into negotiation tactics, it’s important to understand what you’re paying for under SAP’s support offerings:
- Standard Support (~19%): SAP’s basic maintenance tier. It provides core support during business hours (typically 8×5), bug fixes, and security patches. Response times are slower, and major new updates are limited or require additional fees. Standard Support is cheaper but lacks 24/7 coverage and proactive services, making it suited for non-mission-critical systems or smaller budgets.
- Enterprise Support (~22%): The default for most large enterprises. It includes 24/7 support for critical issues, faster response SLAs, and full access to new software releases and enhancement packs. Enterprise Support also offers advanced tools, system optimization services, and ongoing advisory components. You pay a premium for peace of mind and comprehensive coverage. (In many contracts, SAP will only provide Standard Support if you explicitly negotiate it – otherwise, Enterprise is assumed.)
- Product Support for Large Enterprises (PSLE): A custom support contract for SAP’s biggest customers. PSLE is tailored to each client and often comes with “premium” access or dedicated support contacts. In some cases, PSLE can reduce the fee percentage (e.g., around 17% of license value) if you commit to a high annual spend with SAP. However, it may limit certain deliverables compared to Enterprise Support, and it contractually binds you to maintain a specified spend level. PSLE is a negotiation option for large organizations looking to lower the maintenance rate, but it must be weighed against the long-term commitment it requires.
- Extended Maintenance (25–28%): A premium support extension for older products (like legacy SAP ECC or early S/4HANA versions) after standard maintenance periods end. If you stay on an out-of-mainstream version, SAP may charge an extra fee (often pushing total support to ~25–28%) to continue providing fixes and legal updates. This is essentially a “penalty” for not upgrading, and it should be a point of negotiation or a trigger to consider third-party support if upgrades aren’t feasible.
Cost Dynamics: Maintenance fees are calculated on your total license portfolio value (often the list price of all licenses). This means every time you buy new SAP licenses, your support base — and costs — automatically increase.
Additionally, SAP’s standard contracts allow an annual inflation uplift (indexation) on support (commonly ~3% per year). Without negotiation, those uplifts compound your costs over time.
Finally, note that SAP does not allow dropping support on only some licenses by default – you can’t simply cancel maintenance on unused software to save money unless you negotiate an exception or removal.
All these factors make SAP support costs a one-way ratchet up unless you proactively intervene.
Negotiation Windows and Leverage Points
SAP won’t volunteer a discount on support — you need to apply pressure at the right moments. Certain windows offer better leverage to renegotiate support terms:
- Major Contract Renewals: The best time to push for support concessions is when you’re up for a big renewal or making a significant purchase. For example, if you’re renewing a multi-year agreement or considering SAP’s cloud offerings (RISE with SAP, SuccessFactors, Ariba, etc.), use that inflection point. SAP sales reps are eager to lock in new deals and will be more open to bundling a support discount or freeze to secure your commitment.
- Portfolio Rationalization Projects: If your company is consolidating systems or identifying unused SAP modules, leverage that. When you can demonstrate that parts of your SAP portfolio are redundant or unused, you have a case to reduce the maintenance scope. SAP may resist dropping anything from support, but showing a clear plan to decommission certain software gives you negotiation fodder (e.g., “We refuse to keep paying for these modules we’re retiring”).
- Pre-Cloud Migration: Planning to migrate some SAP workloads to the cloud or to alternative systems? This creates leverage. If SAP knows you might move away from on-prem licenses, they havean incentive to sweeten the maintenance terms on whatever remains to keep you as a customer. Use an upcoming cloud transition (even a phased one) to negotiate better support rates or terms on the on-prem licenses you’ll continue to use.
- Post-Merger or Divestiture: Corporate changes like mergers, acquisitions, or divestitures often require realigning your SAP licenses. This is a tricky time for SAP (licenses may need transfer or splitting), and you can use it to your advantage. During these discussions, put support fees on the table – for instance, if a divested business won’t use certain SAP systems, push to remove those from maintenance. Or if a merger increases your volume, push for a better bulk support rate given your larger spend.
Checklist: Before you approach SAP for any support fee negotiation, do your homework:
- Review all current SAP contracts and document your maintenance base (which products and license volumes are incurring support fees).
- Validate actual usage of each SAP product. Identify which systems or modules are truly in use and which are shelfware.
- Check your support renewal calendar and any scheduled uplifts. Know when your next renewal date is and whether a price increase is slated.
- Quantify potential savings scenarios – for example, how much would you save by switching from Enterprise to Standard Support (22% → 19%)? Or by removing unused licenses?
- Prepare a formal business case outlining why you need a reduction or change. Include data on usage, cost comparisons, and the impact on your IT budget. Having a solid internal justification strengthens your stance when you begin talks with SAP.
Starting negotiations well ahead of renewal (6–12 months in advance) is key. If you present SAP with a clear case and lead time, you’re more likely to get traction on reducing fees or improving terms.
Tactics to Reduce SAP Support Fees
Once you’ve identified your leverage and timing, it’s time to employ specific tactics to drive down your SAP maintenance costs.
Consider using several of these strategies in combination:
- Negotiate a Portfolio-Wide Discount: If you’re adding new licenses or subscribing to additional SAP products, insist on a blended support rate across your entire install base. For example, if you’re currently paying 22%, push SAP to drop the overall rate to 20% (or lower) as a condition of the new sale. SAP often frames the 22% as standard, but large enterprises have successfully negotiated global support discounts by leveraging new investments or multi-year commitments.
- Request a Multi-Year Fee Freeze: One of the most valuable concessions is to freeze maintenance fees for a set period. Negotiate that your support percentage (and overall fee) will remain flat for 2–3 years, with no inflation uplifts during that time. This provides immediate budget relief and cost predictability. If SAP won’t cut the rate, they may agree to hold it steady. Make sure to get this in writing as part of your renewal. Example Clause: “SAP shall maintain current maintenance rates for 36 months. No inflationary or index-based uplift shall apply during this term.”
- Drop Shelf Licenses from Support: Push to remove unused licenses or modules from your maintenance base. Normally, SAP’s policy is “all or nothing” – you pay support on everything you own. But if you can demonstrate certain licenses are completely unused (perhaps replaced by another system or no longer needed after downsizing), build a case to drop them. Present it as a business realignment (e.g., “We have decommissioned these systems, so continuing to pay support serves no purpose”). Even if SAP resists, they might agree to a compromise, such as crediting their value toward new purchases or allowing a one-time support reduction. Every €1 of software you remove from the maintenance base immediately saves about €0.22 per year in fees.
- Convert to Standard Support: Not every SAP environment needs the bells and whistles of Enterprise Support. If your organization isn’t fully utilizing the 24/7 support or the extra tools that Enterprise provides, consider downgrading to Standard Support at the next renewal. That 3% difference (22% → 19%) is a significant saving on a large license pool. This move needs careful analysis – ensure you can live with slightly slower response times and fewer proactive services. But many non-critical or stable SAP systems can run fine on Standard Support, and SAP won’t offer this option unless you ask for it.
- Use Competitive Pressure (Third-Party Quotes): Even if you intend to stay with SAP for support, obtaining a quote from a third-party support provider can be a game-changer. Firms like Rimini Street, Spinnaker Support, and others often offer 50% off SAP’s support fee for equivalent coverage on your existing software. Presenting SAP with a credible third-party quote creates leverage – it signals that you have an alternative and are willing to consider it. SAP, not wanting to lose the maintenance revenue, may respond with a better deal (such as an extra discount or added services at no charge) to convince you to stay. In any case, it strengthens your negotiation stance to remind SAP that their competition can undercut them on support.
Common Pitfalls & SAP Countertactics
Negotiating with SAP can feel like navigating a minefield of “gotchas.”
Be prepared for common pitfalls and how to counter SAP’s typical tactics:
- Pitfall: Assuming the 22% support fee is non-negotiable (because SAP tells you it’s standard policy). Fix: Treat that 22% as a starting point, not a fixed law. Many customers pay less. Come armed with benchmarks from peers or industry data to challenge the rate. Make it clear you know other enterprises have secured better deals.
- Pitfall: SAP only offers maintenance concessions in exchange for new license purchases (e.g., “We’ll give you 20% support if you buy €1M in additional licenses”). Fix: Separate the discussions. Negotiate your support renewal independently of new sales. If you do have new initiatives, consider negotiating the support terms first. You can also negotiate a support discount on the existing estate by itself – don’t let SAP force you into buying more just to get a break on maintenance.
- Pitfall: Paying for unused licenses year after year because “that’s just the way it is.” Fix: Shine a light on shelfware. Conduct regular internal audits to identify what’s not in use, and present this to SAP. While contracts discourage dropping licenses, exceptions can be made for retired software. Propose a license retirement or swap – for instance, terminate support on obsolete modules in exchange for perhaps purchasing some newer licenses you actually need (or simply for a smaller support fee). The key is to never accept paying full price for nothing – SAP may relent if you provide a logical business case.
- Pitfall: Overlooking the automatic indexation (inflation increase) in the fine print of your contract. SAP often slips in a clause that allows, say, a 3% yearly increase on support fees. Fix: Confront this head-on during negotiations. Propose contract language to cap the annual uplift at a low rate or eliminate it for a certain period. If SAP insists on tying to CPI, negotiate a reasonable cap (e.g., “not to exceed 2% in any year”). Ata minimum, ensure no increase occurs without explicit, mutual agreement so you’re not caught by surprise.
- Pitfall: Starting negotiations too late and losing all leverage as the renewal deadline looms. SAP’s team might stall discussions until the last minute, when you’re under pressure to sign and avoid support lapse. Fix: Begin the engagement 6–9 months before your renewal date. By initiating early, you control the timeline. If SAP tries to delay, escalate to management and remind them you need time for internal approvals. Be willing to escalate or involve executive sponsors on your side to keep the negotiation on track. An early start ensures you’re not forced into a corner at year-end.
SAP may employ counter-tactics like saying “no other customer gets this treatment” or “the policy cannot change.” Don’t accept such statements at face value.
Remain firm that your business requirements dictate these changes – and that you’re prepared to explore alternatives if SAP is inflexible.
Third-Party Support: A Strategic Cost Alternative
Given SAP’s rigidity on support terms, some companies turn to third-party support providers as a way to drastically cut costs. Vendors like Rimini Street, Spinnaker Support, and Origina specialize in supporting SAP software independently of SAP.
This route isn’t for everyone, but it can be a powerful bargaining chip and a viable solution for certain scenarios.
Pros of Third-Party Support:
- Significant Cost Savings: Third-party providers typically charge 50% (or less) of SAP’s maintenance fee. That means immediate budget relief – e.g., paying ~11% of license value instead of 22%. For multi-million euro SAP environments, the annual savings can be enormous.
- No Mandatory Upgrades: These providers will support your current SAP version as long as you need. You won’t be pressured into costly upgrades just to stay “in support.” This is attractive for businesses running stable systems (like ECC 6.0) that work fine without new features.
- Extended Life for Legacy Systems: If you’re using an older SAP product that SAP plans to discontinue mainstream support for, a third party can often provide support well beyond SAP’s timeline. This can buy you years of additional use without paying SAP’s high extended maintenance fees.
- Flexible & Personalized Service: Third-party support models tend to be more flexible. Many provide dedicated support engineers, custom SLA arrangements, and support for custom code or integrations that SAP might not cover. You may get a more tailored, responsive service experience compared to SAP’s standard ticketing system.
Cons of Third-Party Support:
- No Access to New SAP Updates: When you leave SAP’s official support, you also lose the right to apply new SAP patches, upgrades, and enhancements. Your system is essentially frozen at its current software version (though third parties do provide their own bug fixes and tax/regulatory updates). If keeping up with SAP’s latest innovations is important, this is a trade-off.
- Potential Relationship Strain with SAP: Choosing a third-party support provider can create tension with SAP. SAP may become less willing to offer favorable deals in the future or could use license audits and compliance checks to apply pressure. It’s a consideration if you have ongoing projects with SAP.
- Loss of SAP Support Tools: You’ll likely lose access to SAP’s support portal, official documentation updates, and some proprietary support tools. Your internal teams and the third-party provider must handle everything without SAP’s direct involvement. This requires confidence in the third party’s capabilities.
- Rejoining SAP Later Can Be Costly: If you decide after a few years to return to SAP support (for example, to upgrade to a new SAP product), SAP might charge back-maintenance fees or require license repurchases for the gap period. This can erode the savings you gained, so you need a long-term plan if you go third-party.
Best Fit: Third-party support makes the most sense for stable, mature SAP environments where major changes are not planned in the near term.
For example, if you’re running SAP ECC with no immediate plans to move to S/4HANA, third-party support can be a bridge that saves money year over year.
On the other hand, if you know you’ll need to adopt new SAP cloud products or upgrades soon, staying with SAP (and negotiating the cost down) might be safer despite the expense.
Negotiation Leverage Tip: Even if you ultimately stick with SAP’s support, having a third-party option on the table is a powerful negotiation lever. Don’t hesitate to (subtly) let SAP know that you’re evaluating independent support providers due to cost concerns.
The mere possibility can spur SAP to offer concessions – they’d rather retain you as a customer at a discount than lose you entirely. Leverage the competition to make SAP compete for your support business.
Maintenance Uplift & Inflation Cap Negotiation
A frequent pain point in SAP contracts is the annual maintenance uplift – SAP’s practice of raising support fees by 3–5% per year, citing inflation or other cost factors.
Over a long-term contract, these uplifts significantly increase your spend. Luckily, customers can and do negotiate these terms.
Focus on the following when addressing maintenance increases:
- Cap the Annual Uplift: Negotiate a firm cap on any yearly maintenance fee increase, or eliminate it outright for the term of your agreement. For instance, propose language that limits uplifts to a maximum of 2% per year (or some years with 0% increase). This prevents nasty surprises in your budget and forces SAP to abide by a predictable cost structure.
- Secure Freeze Periods: It’s often possible to get a freeze for the first few years of a renewal. Aim for no increase in maintenance fees for at least 24–36 months. A multi-year freeze can sometimes be obtained, especially if you’re signing a longer contract or making a significant purchase at the same time. It never hurts to ask – even a one-year freeze saves money.
- Require Mutual Agreement on Increases: Remove any clauses that allow SAP to unilaterally impose increases. Instead, stipulate that any future maintenance fee adjustments must be mutually agreed in writing. This gives you veto power over unwelcome hikes and forces a renegotiation discussion rather than an automatic pass-through.
- Link Increases to Service Improvements: If SAP insists on an increase at some point, negotiate that it must come with tangible service improvements. For example, you could agree to a small uplift only if SAP provides additional support benefits – maybe extra support hours, a dedicated support advisor, or inclusion of a premium service like MaxAttention Lite. The idea is to avoid paying more for the same service level.
Example Clause: “Maintenance fee adjustments shall not exceed 2% annually and only apply upon mutual written agreement.” – This kind of clause in your contract locks down both the rate and the process, ensuring you won’t get hit by automatic indexation beyond what you explicitly accept.
Portfolio Optimization & Partial Termination Strategy
One of the trickiest areas in SAP support negotiations is dealing with partial termination – dropping support for unused portions of your license portfolio.
SAP’s standard stance is that you cannot partially terminate support; they want you to pay for everything as long as you own the license. However, with a strong approach, it’s possible to trim the fat from your maintenance bill.
How to Approach It:
- Document Decommissioned Systems: Start by clearly documenting any SAP systems, modules, or user licenses that you have retired or plan to retire. If a particular SAP product is no longer used in operations, note when and why it was decommissioned. This forms the factual basis for your request.
- Submit a Formal Removal Request: Write to your SAP account management, explicitly requesting to remove certain licenses from maintenance coverage. Include the business rationale – e.g., “Product X is no longer in use as of last year due to a system replacement, therefore we seek to terminate support for those licenses.” Providing a written record is important to kick off the process.
- Offer an Offset or Transition: SAP will be wary of setting a precedent of dropping support fees. To make it easier for them to agree, consider offering something in return. Perhaps you are planning to purchase some SAP cloud services or new licenses in the future – mention that aligning support costs with actual usage will free up budget for those investments. You might also suggest a license exchange or credit: unused on-prem licenses could be swapped for cloud credits or other products, effectively keeping your spend with SAP while cutting waste.
- Tie it to Business Changes: Emphasize if the license reductions are tied to larger business events (mergers, divestitures, or technology changes). For instance, if a division using SAP was sold off, it’s a logical necessity to drop those users from support. Or if you replaced an SAP module with a third-party solution, explain that continuing to pay SAP maintenance is indefensible. By framing it as an inevitable consequence of business decisions, you make your case stronger.
Negotiation Tip:
When discussing partial termination, avoid using aggressive terms like “cancel support” or “terminate licenses.” Such phrasing can raise red flags. Instead, position your request as a “support realignment” or “maintenance base adjustment” due to changed circumstances.
This softer language focuses on aligning support with usage, which is a reasonable ask. The goal is to get SAP to collaborate on a solution (like a phased removal or a one-time adjustment) without feeling that their entire model is threatened.
In many cases, SAP may agree to some reduction (or at least not charge for certain licenses in the future) if you handle the conversation strategically and show that you’re approaching it as a partnership issue.
Building a Support Renewal Playbook
To consistently achieve better outcomes, treat SAP support renewals as a project that you plan and execute methodically.
Here’s a timeline and checklist to guide your renewal process:
Six-Month Renewal Plan:
- 6–9 Months Before Renewal: Conduct a thorough internal audit of your SAP usage and licenses. Identify any shelfware (unused licenses/modules) and note any changes in your business that could affect SAP usage. Begin researching market benchmarks and, if desired, engage with third-party support providers for preliminary quotes. Early fact-finding will shape your strategy.
- 6 Months Before: Develop your negotiation strategy and business case. By this point, gather executive support internally for pursuing a reduction or change in terms. Also, informally reach out to your SAP account team to signal your intent to discuss the renewal – this lets them know you won’t simply rubber-stamp another year at standard terms.
- 4 Months Before: Draft a detailed proposal or list of asks. This could include a lower support rate, removal of certain licenses, an uplift cap, etc., based on all the tactics discussed above. Make sure you have backing data (usage stats, cost analysis, third-party comparisons) for each ask. Internally, align on your “walk-away” points and what concessions you’re willing to make.
- 3 Months Before: Begin formal negotiations with SAP. Present your requirements and rationale in writing and in meetings. At 3 months out, you still have enough time for back-and-forth. Be firm on critical points like cost reduction, and use this phase to understand SAP’s position and any counteroffers. If SAP is open to it, this is a good time to involve higher-level executives on both sides to push through important terms.
- 1 Month Before: Escalate if necessary. If SAP is dragging its feet or offering only token discounts, elevate the discussion. This might mean involving your CFO or CIO to call SAP’s sales leadership. At one month out, you should be nearing final terms – make it clear you are prepared with contingency plans (such as third-party support or delaying purchase orders) if acceptable terms aren’t met. By applying a bit of last-minute pressure, you can often get SAP to concede on smaller points that they previously resisted.
Throughout the renewal process, maintain a unified front within your company. SAP sales reps might attempt end-runs, such as pitching new products to your business units, to distract from the support negotiation. Ensure all communication filters back to your negotiation team so SAP gets a single, cohesive message.
Governance Checklist:
- Maintain a centralized “maintenance ledger” – a document or system tracking all SAP licenses you own, their maintenance status, costs, and renewal dates. This prevents anything from falling through the cracks and becoming an unexpected cost.
- Regularly track support costs per license or system. Understand where your maintenance money is going (by product, module, etc.) and watch for trends. If one area’s cost is spiking (perhaps due to an uplift or new licenses), you can act before it balloons.
- Require executive sign-off on all SAP support renewals or extensions. Given the financial scale, treat maintenance agreements with the same rigor as new software investments. A CFO or similar leader should review the terms to ensure that negotiated concessions are included and that you’re not auto-renewing on boilerplate terms.
By institutionalizing this playbook, you avoid the trap of last-minute, frantic renewals. Instead, each SAP support renewal becomes a well-planned negotiation, where you set the agenda early and drive toward your cost and service objectives.
Related articles
- Understanding SAP Support Fees: Enterprise vs Standard Support Explained
- Reducing SAP Maintenance Costs: Cutting Support Spend, Even with Shelfware
- Third-Party SAP Support: Cost Savings, Risks, and When It Makes Sense
- SAP Support Renewal Checklist: How to Prepare, Negotiate, and Save Before You Renew
- Negotiating SAP Support Renewals: How to Reduce Fees, Delay Uplifts, and Regain Leverage
5 SAP Support Negotiation Tactics to Remember
- Treat 22% as negotiable — not policy.
- Cap or freeze uplifts for multiple years.
- Leverage third-party quotes to pressure SAP.
- Remove unused modules from the maintenance base.
- Start renewal planning at least six months.
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