Can a Consulting Company Represent a Customer in SAP License Optimization?

What This Article Covers

  • Using Consulting Companies that are SAP Partners
  • The Problems With Using PwC and Deloitte

Introduction

Several consulting companies that are SAP partners specialize in license optimization. When these consulting companies perform a license optimization project they will engage with a SAM vendor. These consulting companies have some people trained on the SAM vendors applications. However, there are several problems with using companies like PwC or Deloitte to do this work.

  • Rate Level: PwC and Deloitte have very high rates.
  • Lengthening Out the Project and the Billing: PwC and Deloitte bill far more hours than would a SAM vendor to do work that is actually not at the same quality of the SAM vendor’s consulting.
  • Conflict of Interest: PwC and Deloitte and other similar companies will often complete the project, but then seek to be relied upon for supporting the negotiation with SAP. However, companies like PwC and Deloitte are SAP partners. They receive enormous amounts of business from having SAP consulting practices. They are bobbleheads to SAP and will repeat anything that SAP says, regardless of its accuracy, because it is profit maximizing fro them to do so. This is covered in the article How to Best Understand the Bobblehead Consulting Partners. They recommend SAP to customers, only under the arrangement that they will perform almost all of the consulting on the project. Therefore, PwC and Deloitte and any other consulting company that is an SAP partner value its relationship with SAP very highly. This means that PwC and Deloitte are not actually able to even release information about SAP without clearing it through SAP. It means that PwC and Deloitte and any other consulting company that is an SAP partner has a conflict of interest when supporting a negotiation with SAP.

Conclusion

Some SAM vendors tend to just sell the tool, while others also provide consulting. For those SAM vendors that rely on outside consulting for implementation, it is important that the consultant that the customer chooses not have the types of conflict of interests that companies like PwC and Deloitte obviously do.

References

 

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