Survey Data Shows How Third-Party Maintenance Options Provide Customer Leverage

In the first quarter of 2013, Constellation surveyed 184 organizations with maintenance contracts from Oracle or SAP; the purpose was to see what impact third-party maintenance has on contracts from the original software vendors. In the 184 organizations, 149 respondents actively negotiated software license contracts and recognized the availability of 3PM options. Based on the survey results and hands-on experience in assisting clients with contract negotiations, Constellation believes third- party maintenance plays a key role in providing pricing leverage and options in overall apps and contract negotiations strategy. While not a statistically significant sample size, these market leader and fast follower respondents, who secured a proposal from a third- party maintenance provider when evaluating all maintenance options, on average received a 13.7 percent discount on maintenance if they chose to renew with the software vendor. Respondents who chose to switch to a third-party support provider saved up to 50 percent off Oracle’s and SAP’s list prices for maintenance fees.

Purpose & Intent: 

Constellation Research recently conducted a survey to identify the impact of third-party maintenance (3PM) providers on maintenance contract negotiations for Oracle and SAP customers. 

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