Third-party Maintenance Companies are Killing Your Future ERP Innovation

If you are a company with an ERP solution in-place, you are looking at a very bright future. A future where the newest, latest and greatest technologies are coming at you. Your ERP solutions providers are there to support you in your company's growth. These ERP vendors are building software specifically designed to help your company in this new digital age. The old legacy technology is just outdated, and it needs to be refreshed, just like our phones, our bodies, and our minds.

Unfortunately, there are third-party maintenance companies who are taking organizations down a road that will eventually kill innovation within that organization. These so-called “third-party maintenance companies” are telling you and other organizations like you, that status quo is “good enough”. That is not what true innovative technology and business partners should be doing. “Good enough” is socialism. If you want to be a socialist company with zero updates or innovation for the next 15 years, then you're going to be in trouble.

I deal with these horrible “third-party maintenance companies” every day. I listen to their stories on how they help an organization stay on an old antiquated and outdated SAP system. They tell the companies that they will maintain old systems day in and day out for organizations at 90% savings.

Unfortunately, that 90% of savings is a lie a flat out lie.  No third-party maintenance company can provide these kinds of services legally and ethically. I know who these companies are, their executives and their sales team. And they are slick as snake oil. If you really want your company to grow and you think that your firm is cutting-edge, then you need to stay away from these organizations.

Let me give you an example. I personally know of a third-party maintenance company that took over the support for a company running SAP ECC 6. This company is actively looking to grow and innovate its technology footprint. Unfortunately, because they are under contract with the third partner maintenance company that forces them to continue to use outdated technology. The third-party maintenance company lied to the organization. They will not be able to succeed while they are stuck using old ERP solutions. They will have to continue to rely on the third-party maintenance company to try to create custom code to connect everything while paying more costs and losing out by not having access to new innovative technology.

If they would have stayed on a simple upgrade plan from SAP (yes there's a cost to that), instead of believing this third-party maintenance company, they would be able to upgrade their SAP environments around the globe right now. SAP and other software providers have development teams around the globe, upgrading and updating the software every day of the year. To be so naive to think that a software application like SAP, Microsoft or Oracle should not get a license revenue maintenance because of the updates and upgrades that they are providing to an organization is asinine.

Don’t allow your company to fall further and further behind but signing a long term (up to 15 years) contract with a third-party maintenance company. While there will always be a cost to a licensing and maintenance agreement, staying with old legacy technology will cost more at the end of the day.

Don’t let that slick snake oil salesmen sell you.

About the Author - Chris Carter, CEO of Approyo
With almost three decades of extraordinary working experience in the SAP industry, Christopher Carter, CEO at Approyo founded Approyo with the goal of making it easy for customers to embrace SAP HANA. Chris works with businesses around the globe and is known to assist them in their journey to the usage of Big Data in the forms of Hadoop (Cloudera and Hortonwork’s) and SAP HANA. His experience has earned him national recognition by the American SAP Users Group, SAP, Hadoop World, Cloud Expo and more.

Under Chris’s leadership, Approyo has been named to the Inc. 5000 three years in a row (2016 – 2018) and named one the SAP Solution Provider of the Year in 2018 by ACQ5. In 2018, Chris was awarded the Gamechanger of the year by ACQ5, one of the 10 Most Inspiring Business Leaders by Mirror Review and one of the Rising Entrepreneurs of the Year by The Technology Headlines.