Maintenance costs and performance will drive SAP upgrades in 2008

SAP users are likely to embark on significant upgrades despite fears of a slowing economy and significant costs of new software according to a survey of 175 SAP users from 23 countries.

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SAP users are likely to embark on significant upgrades despite fears of a slowing economy and significant costs of new software according to a survey of 175 SAP users from 23 countries.

"The results of this survey predict a growing number of SAP upgrades next year as companies face increased maintenance costs and seek better application performance for their growing SAP databases," the survey found.

The research was conducted by Gamma Enterprise Technologies, a maker of application data management software for companies using SAP applications.

In all, 37% of the respondents said their organisations plan to upgrade to a new SAP version in 2008, while an additional 17% have upgrade plans for 2009.

Of those respondents who are going forward with an upgrade, 43% claimed the reason was to reduce maintenance costs, which "can consume 80% of SAP operational expenses annually," said the survey. In addition, 58% of respondents said they expected the upgrade would increase application performance benefits.

According to the survey, however, the price tag for an SAP upgrade is considerable: More than 85% of survey respondents reported that their organizations plan to spend up to £12.5m during the SAP upgrade process.

The third-annual survey also noted the size and complexity of users' SAP systems. "Gamma found that the percentage of respondents with databases larger than 500 gigabytes grew from 66% to 82% in this year's survey," according to the data. "The percentage of respondents with databases larger than 2 terabytes has increased from 14% to 24% this year."

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