SAP deadlines and VMware squeeze IT budgets, CIO.com reported. A survey put vendor-pushed upgrades at about 28% of big firms' software budgets.
That is nearly $12.9 million a year per firm on average, according to the survey, which Origina commissioned.
Origina sells independent software maintenance. The money goes on upgrades, migrations and licence changes the vendors pushed.
95% of the IT leaders polled said they had paid in the past three years for an upgrade they believed would cut performance. The survey covered US and UK firms with more than $1 billion in revenue or over 10,000 staff.
SAP's published schedule ends mainstream maintenance for SAP Business Suite 7 core applications at the end of 2027. Optional extended maintenance runs to 2030. The CIO.com article names SAP deadlines and VMware as examples of the squeeze. The survey does not say how much of the 28% is SAP's.
Our reading for CFOs: the renewal is where a vendor's timetable turns into a budget line. Origina's CEO advises shorter contracts: "Negotiate your exit, and negotiate more frequently."
Sources
Our file on SAP
- 24 Oct
SAP now lets AI agents sort sales leads and handle service cases. Only select customers can switch them on so far.
- 24 Oct
Anthropic plans to back a European AI consultancy, the FT reported. Its engineers would sit inside clients, where SAP consultants bill days.
- 23 Oct
SAP puts about 80% of its product-development resources into AI, Handelsblatt reported. The paper says it has brought little revenue so far.
- 22 Oct
SAP's user group chief says AI costs are stacked on prices that are not falling. He doubts that can last.
- 22 Oct
SAP topped €10 billion in quarterly sales for the first time. Its finance chief called the next quarter critical.
Every story here is open to read. The ERP LEADERS brief goes one step further.
The day in enterprise software, in one email: the stories that matter, the failures with their figures, one case taken apart. Read a sample or sign up for the brief.
Welcome back. · Issue 01
