Demand for third-party enterprise software support is exploding as converging factors drive hundreds of companies — ranging from Fortune 500 and mid-market businesses to public sector organizations — to
leave vendor support for a better support value. Many more software licensees are just starting to explore the factors behind the increasingly popular decision to switch to third-party support.

Provocative headlines from recent articles and analyst reports tell part of the story. “Have Oracle and SAP Hit Tipping Point with 22% Fees?”1 “Oracle Fees for Maintenance and Support Under Fire.”2 “ERP Maintenance Dissatisfaction: Is It Short-Term Economic Grumpiness or a Flawed Business Model?”3 Clearly, IT and Finance executives are reacting to rising annual maintenance fees that are taking an increasing bite out of tight IT budgets. Software vendors, however, continue to grow margins to record levels yet, at
the same time, typically spend less than 10% of annual support fees on support.

Surveys and analyst research further reflect the concerns of software licensees. In a research report on enterprise software trends, leading industry analyst firm Forrester Research found that more than 70% of surveyed CIOs are planning to rethink their enterprise software maintenance strategies.5 In another survey of 600 decision makers at North American enterprises, Forrester reported that the top IT priority of those sur-
veyed is to reduce software costs in any way possible.6 The initiative was rated higher in priority than upgrading security, integrating applications, and adopting Software-as-a-Service.