"We've been asking vendors for value. We're happy to have a conversation about your upgrade pathway... about new things you're doing. But show us value. Don't just give me a price list. Don't just present me with a new licensing module that somehow spikes my cost by 20x. We're not anti-big vendors - especially of ERP systems - but we do need to see the value."
"SAP's preferred route is for customers to upgrade from ECC to S/4HANA and at the same time move to the cloud, under a bundled of cloud and partner deal it calls RISE with SAP. The main product package supporting it is SAP Cloud ERP Private, the licensing model for which is concerning users. Users cannot take customizations with them; instead they must move with a "clean core" and add any bespoke features using SAP's Business Technology Platform."
"Kingfisher - which operates 2,000 European retail stores including UK brands Screwfix and B&Q - rejected that approach. Rather than follow SAP's upgrade strategy, which includes a shift to subscription licenses, the retailer chose an alternative path that it claims delivers the innovation SAP promised without the hefty price tag. Mainstream vendor support for ECC 6.0 - the legacy SAP platform on which Kingfisher relies - ends in a little over two years."
SAP requires customers seeking innovation such as AI to upgrade to its latest ERP platform and to follow prescribed cloud migration plans, including RISE with SAP and SAP Cloud ERP Private licensing. Kingfisher rejected that upgrade, retained its ECC 6.0 instance, migrated it to Google Cloud Platform, and contracted Rimini Street for support covering extensive customizations. Mainstream vendor support for ECC 6.0 ends in a little over two years, with extended support available to end of 2030 at a 2 percent premium. Kingfisher demanded demonstrable vendor value and resisted licensing changes that would sharply increase costs.
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