real-time news and commentary for investors
Tuesday, Nov 20
2012, 12:38 PM
Is competition forcing SAP to lower its maintenance contract pricing? Cowen's Peter Goldmacher...
Is competition forcing SAP to lower its maintenance contract pricing? Cowen's Peter Goldmacher reports SAP has been offering big discounts for the high-margin contracts to clients looking to cut IT spending and "evaluating lower cost alternatives." Cloud vendors have long pitched the ability to avoid giant maintenance contracts as a selling point for their software. Their apps have already taken a decent chunk of the CRM and HR software markets, and (in some areas) are beginning to make inroads in SAP's core ERP software market.