Fri Sep 20 06:15:00 UTC 2024: ## Spanish Gas Distributor Relies on Third-Party Support to Keep Aging SAP System Running

**Madrid, Spain** – Madrileña Red de Gas, a regulated natural gas distributor operating in Madrid, has opted for a unique strategy to manage its aging SAP system: relying on a third-party support provider instead of directly engaging with SAP.

The company, founded in 2010 after being spun off from Nedgia, initially implemented a vanilla version of SAP ECC and IS-U modules, choosing to avoid extensive customization. While this approach allowed for a swift deployment within six months, it has created challenges in the long run as the system requires increasing levels of customization.

CIO Glen Lancastle, who has a long history of working with SAP systems, believes that SAP’s evolving strategies and focus on revenue generation have made it challenging for companies like Madrileña Red de Gas, who do not require the latest versions. He cites SAP’s software audit of Diageo, which resulted in a hefty £54m in licence fees, as an example of how SAP’s approach can be detrimental to customers.

This experience led Madrileña Red de Gas to drop SAP support for several years, opting to manage the system internally. However, when SAP announced the end-of-life for ECC in 2027, the company decided to re-engage with a support provider, but this time, choosing Spinnaker, a third-party provider, as a form of insurance.

Lancastle emphasizes that this approach is intended as a safety net, with the hope of rarely needing to utilize Spinnaker’s services. He believes Spinnaker understands this approach and provides valuable reassurance, particularly as the company assesses its options for replacing the aging system.

The decision to maintain ECC beyond its official support date provides Madrileña Red de Gas with valuable time to explore alternatives without the pressure of an immediate switch. The fact that Spinnaker has other clients in similar situations gives Lancastle confidence in this strategy.

Overall, Madrileña Red de Gas’s experience highlights the challenges faced by companies with aging SAP systems, particularly in navigating SAP’s evolving strategies and managing licensing costs. The company’s decision to rely on a third-party support provider offers a unique approach, providing them with a level of control and flexibility in their IT management.

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