Several of the Enterprise Irregulars are going to the SAP event around A1S later this week in New York. I am in E. Europe and disappointed cannot be with them. In our conversations over the past week, though, the EIs do not really know what to expect. SAP has promised detailed briefings over the past year and then only showcased dribbles about A1S at Sapphire and other events.
Clearly, I am interested in how this will change SAP TCO at its customers. As I have written before SaaS economics are almost 1/10th of on premise TCO. Can SAP come close?
Related to SAP economics, I was forwarded this Forrester analysis on SAP pricing and licensing. But what Forrester covers just scratches the surface of SAP TCO. There is little on vertical engine pricing, which I have seen in many customers to be X times SAP core ERP pricing. Nothing on SAP's classroom training costs which can add up to a princely sum if your team has to fly every which place given its fragmented nature and delivery schedule. Nothing on SAP end user and documentation license through its partner, RWD. SAP Upgrade fees for moving to the 2005 or 6 version. SAP consulting fees. SAP partner costs - hosting, systems integration, upgrades etc. And on and on.
I suspect my EI colleagues may get a glimpse on how A1S will better control TCO around core SAP modules. But there is so much more that makes up SAP TCO. And even around A1S, not really sure what SAP is ready to discuss.
But at least a good time will be had in Manhattan while I travel across East Europe. One consolation: my beer will be better -)
