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How much will SAP cost?

by Dennis Howlett on November 27, 2008

Everyone I know thinks of SAP as BIG, expensive, slow, cumbersome but ultimately a safe bet. The company burnishes its solid, Germanic image, focusing on its engineering prowess and attention to detail. All of these are good things but for many SAP has created an image that makes them perceptually hard to do business. There’s no doubt that SAP knows how to play hardball but what is it doing to get people more interested in its products?

Recently it opened up its ByDesign microsite where you can configure a broad set of application requirements and get a costing there and then. I’m on record saying that I like what they’re doing. The other day, I saw they have partnered with Seidor in the UK to provide a configurator for Business All-in-One, one of its mid-market offerings. I tried it out, setting up a 100 person business with 80 users for a service organization. The results are per the snapshot below:

As you configure your way through, there is plenty of help to show you what each module represents.

The ’suggested’ price is £251K, which doesn’t sound bad. Of course it misses out on the the maintenance element that has to be factored in, there’s no direct mention of database and the services element is pure guesswork. But it’s a start and a way of helping you understand the components and their costs for an implementation. You also have to factor in that the suggested solutions are broad brush, vanilla style offerings that don’t take into consideration any customizations or industry specific requirements you might need. Even so, it’s a start and to be welcomed for the effort in price transparency.

The part that’s most impressive though is that unlike the ByDesign microsite, you don’t have to go through a sign up process. You are left with enough to get you going but also enough to tempt you into picking up the phone to Seidor. SAP? I hope you’re listening. Seidor’s approach is better.

Oh – and if you think the price and components need negotiating? I know just the man to help you there. ;)

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  • Thomas Burkhardt
    Thanks for this article and your interest in the SAP Solution Configurator

    @Dennis Howlett / Zemanta
    1) The database fee is included in the license calculation. But since this purpose of the configurator is to give an early price ESTIMATE, the estimation error at any time is greater than the database amount of X%. Therefore it makes no sense to publish the database fee as a line item.
    2) The maintenance cost is not displayed since the configurator estimates the INVESTMENT into an SAP Business All-in-One solution, not the follow-on cost. Maintenance is 22% of the license price per annum. The follow-on service cost varies from customer to customer, typically starting at 5% per annum of the initial service cost.
    3) Trust me, your feeling that "services element is pure guesswork" is not correct. There is a mathematical model behind the configurator. It is built on "SAP Best Practices" and encorporates a lot of experience out of many SAP SME Projects, mainly in Switzerland. If you want to learn more about that, just drop me a mail.

    Cheers
    Thomas Burkhardt - Inventor of the SAP Solution Configurator

    For an inteview with me on the configurator's background visit:
    http://fsn.co.uk/webinar/landing_pages/sap_busi...
  • ... SAP is not only listening, the Solution Configurator for SAP Business All-in-One is already available in more than 40 countries. Under www.sapconfigurator.com you can configure your individual SAP solution depending on your industry, your company size and the selected scenarios. For other countries please access your local SAP web site. Under Solutions for Small and Medium Size Companies you will find the configurator in the SAP Business All-in-One section.
  • I just wanted to say thankyou for this feedback .
    As you know there was a bit of work went into this and its good to see that we have areas to improve and that overall its considered a good step forward .
    Thanks again
    Ciaran
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