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Houston staff outline $20.5 million SAP cloud contract, say council approval will be sought
Summary
Houston Information Technology Services presented a council action request to authorize up to $20.5 million in initial spending authority for a multi-year SAP cloud ERP contract; presenters said the contract would move core finance, payroll and HR systems to SAPS/4HANA in the cloud and that no council vote occurred at the committee meeting.
Houston Information Technology Services (HITS) and mayoral staff told the joint Government Operations and Resilience Committee on an unspecified date that the city will seek council authorization for a new SAP public-services contract with $20,500,000 in initial spending authority to move the city—s enterprise resource planning (ERP) systems to the cloud.
HITS Deputy Chief Information Officer Summer Shao and a presenter from the mayor—s office described the contract as a three-year initial term with two optional one-year extensions. They said the agreement would cover cloud licensing and maintenance for S/4HANA (next-generation SAP Cloud ERP), SuccessFactors, Benefitfocus, Fieldglass, Ariba and SAP Analytics Cloud. No vote or formal council action occurred during the committee meeting; presenters framed this as a council action request that will come to the full council later.
Why it matters: HITS staff said SAP currently processes the city—s payroll, vendor payments and hundreds of enterprise functions. Moving the city—s on-premises ECC system to S/4HANA in the cloud is intended to increase…
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