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Finance committee forwards $6.6 million SAP licensing purchase order to council; upgrade needed before current system end‑of‑life
Summary
The Finance Committee recommended that the City Council approve a five‑year purchase order for SAP S/4HANA licensing and hosting not to exceed $6.6 million, citing the need to replace a system that SAP will deem end‑of‑life in December 2027.
The Palo Alto Finance Committee on Sept. 16 voted unanimously to recommend that the City Council approve a purchase order, using a GSA blanket purchase agreement through Carahsoft, to procure SAP S/4HANA licensing and related subscriptions for a five‑year term not to exceed $6,600,000.
Darren Nomoto, Director of Information Technology, said the city’s current SAP enterprise resource planning environment has been designated end‑of‑life by SAP as of December 2027 and that moving to SAP S/4HANA is necessary to maintain vendor support, security patches and compliance updates. "SAP has deemed our current version end of life as of December 2027," Nomoto said.
Nomoto and team members explained the purchase order covers the SaaS/licensing and hosting portion; implementation services (consulting and project implementation) will be requested in a separate…
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