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SAP and SAP User Group Executive Network (SUGEN) Announce SAP(R) Enterprise Support Milestones

Posted on: Wednesday, 29 April 2009, 00:30 CDT

SUGEN and SAP Agree Upon KPIs, Announce New Benchmark Program

WALLDORF, Germany, April 29 /PRNewswire-FirstCall/ -- SAP AG (NYSE: SAP) and the SAP User Group Executive Network (SUGEN), a global federation of 12 key SAP user groups, today announced an agreement on a defined list of key performance indicators that will be used to measure the success of SAP(R) Enterprise Support services. Also announced was the rollout of a joint benchmarking program that will use key performance indicators to define and measure how SAP customers derive value from SAP Enterprise Support. In this joint benchmarking effort, the key performance indicators will be measured and tracked among a representative selection of customers. As a further demonstration of its commitment to customers, SAP has modified the 2008 pricing program for SAP Enterprise Support as it applies to support contracts migrated to SAP Enterprise Support. This decision coincides with its recently announced seven-year maintenance lifecycle (see "SAP Enhances Value of SAP Customer Relationships").

(Logo: http://www.newscom.com/cgi-bin/prnh/20050310/SFTH009LOGO-a)

"We are convinced that SAP Enterprise Support delivers unparalleled value to all customers and, as a demonstration of our commitment, we will provide tangible reductions in their operational costs on a defined schedule," said Leo Apotheker, co-CEO, SAP AG. "SAP is now the role model for the evolution of software support offering an industry game-changing standard for transparency, accountability and the clear measurement of value. We remain strongly committed to helping our customers both protect their investments and closely manage costs."

A joint SAP-SUGEN task force formed in November 2008 (see "SAP and the SAP User Group Executive Network (SUGEN) Liaise to Quantify Value of New SAP Support Offering") has established the SUGEN Key Performance Indicator Index (SUGEN KPI Index), which will measure and verify the ongoing value of SAP Enterprise Support. This effort will help customers by providing a transparent mechanism to link their support investment to the value delivered. SAP has agreed to postpone the subsequent price increase schedule until the targeted improvements measured by the SUGEN KPI Index are met. Successful delivery on KPIs is expected to demonstrate tangible cumulative cost savings for customers. This value delivery is targeted to be fully realized within the four-year time frame of the benchmarking program.

"SUGEN and SAP have formed a strong partnership based on a common goal of ensuring that current and future SAP customers fully realize the value of SAP Enterprise Support," said Mike Stoko, SUGEN chairman. "The SUGEN organization represents a global community of customers, and it is on their behalf that we form joint task forces with SAP to work on strategic issues such as SAP Enterprise Support. SUGEN is excited about today's announcement - our collaborative efforts are resulting in the first program of its kind for the IT industry, providing transparent, measurable ways for customers to truly see how valuable SAP Enterprise Support is for their organizations."

The SUGEN KPI Index aggregates key performance indicators from four major categories representing key customer business value-drivers, which were defined after joint discussions with customers. The four major categories for the SUGEN KPI Index are:

• Business Continuity
• Business Process Improvement
• Protection of Investment
• Total Cost of Operations

Benchmark Study Process Announced

The key performance indicators within the SUGEN KPI Index will be measured as part of a formal benchmarking program that will provide customers with a baseline against which to appraise and compare the value delivered by SAP Enterprise Support. In order to achieve consistency in the measurements over time, SUGEN and SAP will select a core representative customer group that will deploy capabilities of SAP Enterprise Support and track their results. Quality assurance on the benchmark program and its results will be validated by an independent third party. The program has the full and unanimous support of all SUGEN members and the SAP Executive Board.

"In collaboration with SAP, we achieved an important milestone by setting up this long-term benchmark program and tying the added value to further price increases," said DSAG board member and SUGEN SAP Enterprise Support lead Andreas Oczko. "With this effort, companies will gain insight into the SAP Enterprise Support value that SAP promises its customers."

Modifications to the 2008 SAP Enterprise Support Pricing Program

In consideration of the current economic climate and discussions with SUGEN on SAP Enterprise Support, SAP is extending by three years the four-step price increase program announced in July 2008 (see "SAP Enterprise Support Offering Rolled Out to All Customers") for customers that were migrated to SAP Enterprise Support at that time. Originally scheduled to run until 2012, the program will now conclude in 2015, coinciding with the recently introduced 7-2 maintenance strategy. Starting in 2010, the price of SAP Enterprise Support for existing customers will continue to increase based on individual contract terms but will not be higher than a yearly fixed upper cap. This translates to an increase average of no more than 3.1 percent per year from 2010 onwards. The price of SAP Enterprise Support will be capped at 22 percent through 2015. With this adjustment, SAP demonstrates a clear commitment and responsiveness to its customers and the challenging global economic conditions they must navigate today.

Industry Analyst Comment on Announcement

"SAP's goal to provide a rating of application support via key performance indicators is innovative and challenging," said Peter Wesche, research director, Gartner. "The extensive benchmarking phase and mapping of key performance indicators to business value will allow customers to fully understand the benefits of a comprehensive support program."

About SUGEN

Established in 2007, SUGEN is a federation of twelve user groups designed to facilitate open, honest dialogue between members and SAP and drive the market towards excellence, innovation, and success. By working together, SUGEN members will be able to provide consolidated strategic influence priorities and work with SAP to resolve them, provide an effective and efficient method for communication among user groups and SAP, and share best practices between user groups and SAP for the mutual benefit of all.

Current members include ASUG (North America), ASUG Brazil, ASUG Mexico, AUSAPE (Spain), DSAG (Germany, Austria, Switzerland), JSUG (Japan), SAPSA (Sweden), SAUG (Australia), SAP UK & Ireland User Group, SUG-MENA (Middle-East, North Africa), USF (France), and VNSG (Netherlands).

About SAP(R) Enterprise Support

SAP(R) Enterprise Support services support the entire lifecycle of SAP applications, including services for custom code, from implementation to day-to-day operations. By proactively identifying risks and providing faster time to resolution, it helps minimize system downtime. Customers can gain increased visibility into the IT operations of their organizations and across their businesses for more informed decision-making. Standardizing support process further identifies areas for operational efficiencies. With SAP Enterprise Support, customers have a standardized approach to managing the systems environment, which supports faster problem resolution, less configuration and testing investment and, ultimately, can deliver better returns on software investments

Next Major Event: SAPPHIRE(R) 2009 Orlando

More than 10,000 customers, partners and industry experts are convening at SAPPHIRE(R) 2009 to discover how SAP and its thriving partner ecosystem are delivering IT solutions that help today's best-run businesses achieve clarity in every area of their operations. SAP's premier educational and networking event, SAPPHIRE is the one occasion each year where senior executives, business managers and decision-makers can come together to explore how innovative business solutions foster long-term, profitable growth. SAPPHIRE 2009 will be held in Orlando, Florida, May 11-14. For more information, please visit www.sap.com/sapphire. Join the conversation via Twitter at #sapphire09.

In addition to SAPPHIRE 2009, SAP is also hosting SAP(R) World Tour 2009, a series of local events in more than 70 cities through Europe, the Middle East, Asia and Latin America. For more information, visit the SAP World Tour event page on sap.com.

About SAP

SAP is the world's leading provider of business software(*), offering applications and services that enable companies of all sizes and in more than 25 industries to become best-run businesses. With more than 86,000 customers in over 120 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE, under the symbol "SAP." For more information, visit www.sap.com.

(*) SAP defines business software as comprising enterprise resource planning and related applications.

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

Copyright (C) 2009 SAP AG. All rights reserved.

SAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serve informational purposes only. National product specifications may vary.

For customers interested in learning more about SAP products: Global Customer Center: +49 180 534-34-24 United States Only: 1 (800) 872-1SAP (1-800-872-1727) For more information, press only: Saswato Das, +1 (212) 653-9571, saswato.das@sap.com, EDT Guenter Gaugler +49 6227 7-65416, guenter.gaugler@sap.com, CET SAP Press Office, +49 (6227) 7-46315, CET; +1 (610) 661-3200, EDT; press@sap.com SUGEN Chairperson Mike Stoko (ASUG) Bob Dirkes Techimage 401 N Michigan Avenue Chicago, Il 60611 Tel: 847-279-0022, Ext. 237 SUGEN Vice-Chairperson Otto Schell (DSAG) Angelika Jung DSAG Altrottstr. 34 A 69190 Walldorf Germany Tel: 0049 (0) 6227/358 09 69 Presse@Dsag.De SUGEN Vice-Chairperson Per Hogberg (SAPSA) Tel: +46 70 51 38 208 Per.Hogberg@C-Business.Se For Country-Specific User Group Media Inquiries: Australia (SAUG) Kim Salter Kim.Salter@Sap.Com +61 41 9696 857 Brazil (ASUG Brazil) Right Support Ltda Rua Apeninos, 912, 17o. Andar, Sao Paulo / Brazil 041104-020 Tel: 55. 11. 5083-8422 Orlando@Rscorp.Com.Br France (USF) Agence Interpresse Au 01 55 48 05 10 Norbert Spiteri / Nspiteri@Interpresse.Fr Isabelle Guillou / Iguillou@Interpresse.Fr Germany (DSAG) Angelika Jung DSAG Altrottstr. 34 A 69190 Walldorf Germany Tel: 0049 (0) 6227/358 09 69 Presse@Dsag.De Japan (JSUG) Tel: 03-3588-0485 E-Mail: info@jsug.org 107-0052 FSK Akasaka BLDG 2F, 4-3-15 Akasaka, Minato-ku Tokyo, Japan Mexico (ASUG Mexico) Jorge Aguilar Asug@Asug.Com.Mx Middle East, North Africa (SUG-MENA) Salem Angari P.O. Box 10084 Saudi Aramco, Dhahran, Saudi Arabia 31311 Salem.Angari@Sugmena.Com Netherlands Bea Logtenberg +31-622-932002 Bea.Logtenberg@Vnsg.Nl Spain Miguel Fernandez Cejas Secretaria@Ausape.Es Sweden SAPSA, Per Hogberg Per.hogberg@c-business.se +46 70 51 38 208 UK-Ireland (Sap UK/Ireland User Group) Spark Communications 23-25 Eastcastle Street London W1w 8de Tel: 0044207436 0420 United States/Canada (ASUG) Bob Dirkes Techimage 401 N Michigan Avenue Chicago, Il 60611 Tel: 847-279-0022, Ext. 237

SOURCE SAP AG

Source: PR Newswire

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