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HomeMy WebLinkAboutStaff Report 2605-6393CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, June 15, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     10.Approval of Amendment Number 1 to Purchase Order C26195416 with Carahsoft in the Amount of $375,246 for Additional SAP Business Data Cloud Capacity Units and Related Non-Productive Memory Extension; CEQA Status - Not a Project City Council Staff Report From: City Manager Report Type: CONSENT CALENDAR Lead Department: IT Department Meeting Date: June 15, 2026 Report #:2605-6393 TITLE Approval of Amendment Number 1 to Purchase Order C26195416 with Carahsoft in the Amount of $375,246 for Additional SAP Business Data Cloud Capacity Units and Related Non- Productive Memory Extension; CEQA Status - Not a Project RECOMMENDATION Staff recommends that the City Council approve and authorize the City Manager or designee to execute Amendment No. 1 to Purchase Order C26195416 with Carahsoft for additional SAP Business Data Cloud capacity and related non-productive memory extension in an amount not to exceed $375,246 for the Enterprise Resource Planning Upgrade 2026 Project, Capital Improvement Program Project TE-19000. This amendment results in a revised total purchase order not-to-exceed amount of $7,011,075 over a five-year term. BACKGROUND On September 16, 2025, the Finance Committee reviewed staff’s recommendation to approve Purchase Order C26195416 with Carahsoft, using GSA Blanket Purchase Agreement Contract No. 47QSWA18D008F1, for SAP S/4HANA software and hosting services for a 5-year term in an amount not to exceed $6,640,429, together with a $1,660,000 FY 2026 Technology Fund appropriation for the Enterprise Resource Planning Upgrade 2026 Project (TE-19000). The Finance Committee unanimously recommended City Council approval, acknowledging the importance of remaining on a fully supported platform and acting before the end of September to secure a transformation incentive credit to support City’s migration to SAP Cloud Services2. On September 29, 2025, the City Council approved Purchase Order C26195416 for the 5-year term ending December 31, 2030. City has used SAP as its core ERP system since 2003 to support 1 GSA Contract 47QSWA18D008F: https://www.gsaadvantage.gov/ref_text/47QSWA18D008F/100V5C.3VR800_47QSWA18D008F_47QSWA18D008F 11-24-2024-565316.PDF 2 September 16, 2025 Finance Committee Staff Report: https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=64844&dbid=0&repo=PaloAlto&cr=1 Finance, Human Resources, Payroll, Procurement, Budgeting, and Utilities, and previously upgraded the platform in 2021. Because SAP support for the City’s current ERP platform ends on January 1, 2028, City initiated this modernization effort to transition to SAP S/4HANA and related cloud services5. ANALYSIS Table #1: Cost Summary (December 31, 2025 – December 30, 2030) Year Annual Cost Previously Approved by City Council Annual Cost of Additional SAP Cloud Services From August 1, 2026 Subtotal 1 $1,643,281 $35,314 $1,678,595 2 $1,643,899 $84,983 $1,728,882 3 $1,643,899 $84,983 $1,728,882 4 $1,643,899 $84,983 $1,728,882 5 $1,643,899 $84,983 $1,728,882 5-Yr Total $8,218,878 $375,245 $8,594,124 Cloud Credit/Transformation Incentive $1,583,053 $1,583,053 Total After Cloud Credit $6,635,825 $7,011,070 5 September 29, 2025 City Council Staff Report: https://www.paloalto.gov/files/assets/public/v/1/administrative- services/budget-adjustments-and-monitoring/fy26-budget-adjustments/cmr-2509-5240-aa1-9.29.25.pdf current SAP platform before vendor support ends on January 1, 2028 and to maintain a secure, supported, modern enterprise platform. FISCAL/RESOURCE IMPACT STAKEHOLDER ENGAGEMENT ENVIRONMENTAL REVIEW ATTACHMENTS APPROVED BY: GOVERNMENT - PRICE QUOTATION SAP GOVERNMENT AT CARAHSOFT 11493 SUNSET HILLS ROAD | SUITE 100 | RESTON, VIRGINIA 20190 PHONE (703) 871-8500 | FAX (703) 871-8505 | TOLL FREE (888) 66CARAH WWW.CARAHSOFT.COM | SAP@CARAHSOFT.COM TO:Sherrie Wong Senior Management Analyst City of Palo Alto 250 Hamilton Avenue 2nd Floor Palo Alto, CA 94301 USA EMAIL:sherrie.wong@cityofpaloalto.org PHONE: (650) 617-3152 FROM:Martin Tamula Carahsoft Technology Corp. 11493 Sunset Hills Road Suite 100 Reston, Virginia 20190 EMAIL:Martin.Tamula@carahsoft.com PHONE: (571) 662-4389 TERMS:GSA Schedule No: 47QSWA18D008F Term: August 22, 2018 - August 21, 2028 FTIN: 52-2189693 Shipping Point: FOB Destination Credit Cards: VISA/MasterCard/AMEX Remit To: Same as Above Payment Terms: Net 30 (On Approved Credit) Cage Code: 1P3C5 DUNS No: 088365767 UEI: DT8KJHZXVJH5 Business Size: Other than Small Sales Tax May Apply QUOTE NO:64694612 QUOTE DATE:05/28/2026 QUOTE EXPIRES:06/30/2026 RFQ NO: SHIPPING:ESD TOTAL PRICE:$35,313.56 TOTAL QUOTE:$35,313.56 LINE NO.PART NO.DESCRIPTION -QUOTE PRICE QTY EXTENDED PRICE PRORATED BASE YEAR 1 8019271-1-infinite-611 SAP Business Data Cloud, core capacity (1-Infinite Tier; Block Of 1 Capacity Unit; Minimum of 640 Block; Per Year) SAP Industries, Inc. - 8019271-1-infinite Start Date: 08/01/2026 End Date: 12/30/2026 Reference ID: 3063590188 $4.1335 GSA 6,956 $28,752.63 2 8011727-1-Infinite-611 SAP Cloud, memory extension for non-productive tiers, private edition (1-Infinite Tier; Block Of 256 Gigabyte; Minimum of 1 Block; Per Year) SAP Industries, Inc. - 8011727-1-Infinite Start Date: 08/01/2026 End Date: 12/30/2026 Reference ID: 3063590188 $6,560.93 GSA 1 $6,560.93 PRORATED BASE YEAR SUBTOTAL:$35,313.56 SUBTOTAL:$35,313.56 TOTAL PRICE:$35,313.56 TOTAL QUOTE:$35,313.56 SUGGESTED OPTIONS LINE NO.PART NO.DESCRIPTION -QUOTE PRICE QTY EXTENDED PRICE OPTION YEAR 1 3 8019271-1-infinite-611 SAP Business Data Cloud, core capacity (1-Infinite Tier; Block Of 1 Capacity Unit; Minimum of 640 Block; Per Year) SAP Industries, Inc. - 8019271-1-infinite Start Date: 12/31/2026 End Date: 12/30/2027 Reference ID: 3063590188 $9.9473 GSA 6,956 $69,193.42 CONFIDENTIAL PAGE 1 of 3 QUOTE DATE:05/28/2026 QUOTE NO:64694612 GOVERNMENT - PRICE QUOTATION SAP GOVERNMENT AT CARAHSOFT 11493 SUNSET HILLS ROAD | SUITE 100 | RESTON, VIRGINIA 20190 PHONE (703) 871-8500 | FAX (703) 871-8505 | TOLL FREE (888) 66CARAH WWW.CARAHSOFT.COM | SAP@CARAHSOFT.COM SUGGESTED OPTIONS LINE NO.PART NO.DESCRIPTION -QUOTE PRICE QTY EXTENDED PRICE 4 8011727-1-Infinite-611 SAP Cloud, memory extension for non-productive tiers, private edition (1-Infinite Tier; Block Of 256 Gigabyte; Minimum of 1 Block; Per Year) SAP Industries, Inc. - 8011727-1-Infinite Start Date: 12/31/2026 End Date: 12/30/2027 $15,789.47 GSA 1 $15,789.47 OPTION YEAR 1 SUBTOTAL:$84,982.89 OPTION YEAR 2 5 8019271-1-infinite-611 SAP Business Data Cloud, core capacity (1-Infinite Tier; Block Of 1 Capacity Unit; Minimum of 640 Block; Per Year) SAP Industries, Inc. - 8019271-1-infinite Start Date: 12/31/2027 End Date: 12/30/2028 Reference ID: 3063590188 $9.9473 GSA 6,956 $69,193.42 6 8011727-1-Infinite-611 SAP Cloud, memory extension for non-productive tiers, private edition (1-Infinite Tier; Block Of 256 Gigabyte; Minimum of 1 Block; Per Year) SAP Industries, Inc. - 8011727-1-Infinite Start Date: 12/31/2027 End Date: 12/30/2028 $15,789.47 GSA 1 $15,789.47 OPTION YEAR 2 SUBTOTAL:$84,982.89 OPTION YEAR 3 7 8019271-1-infinite-611 SAP Business Data Cloud, core capacity (1-Infinite Tier; Block Of 1 Capacity Unit; Minimum of 640 Block; Per Year) SAP Industries, Inc. - 8019271-1-infinite Start Date: 12/31/2028 End Date: 12/30/2029 Reference ID: 3063590188 $9.9473 GSA 6,956 $69,193.42 8 8011727-1-Infinite-611 SAP Cloud, memory extension for non-productive tiers, private edition (1-Infinite Tier; Block Of 256 Gigabyte; Minimum of 1 Block; Per Year) SAP Industries, Inc. - 8011727-1-Infinite Start Date: 12/31/2028 End Date: 12/30/2029 $15,789.47 GSA 1 $15,789.47 OPTION YEAR 3 SUBTOTAL:$84,982.89 OPTION YEAR 4 9 8019271-1-infinite-611 SAP Business Data Cloud, core capacity (1-Infinite Tier; Block Of 1 Capacity Unit; Minimum of 640 Block; Per Year) SAP Industries, Inc. - 8019271-1-infinite Start Date: 12/31/2029 End Date: 12/30/2030 Reference ID: 3063590188 $9.9473 GSA 6,956 $69,193.42 10 8011727-1-Infinite-611 SAP Cloud, memory extension for non-productive tiers, private edition (1-Infinite Tier; Block Of 256 Gigabyte; Minimum of 1 Block; Per Year) SAP Industries, Inc. - 8011727-1-Infinite Start Date: 12/31/2029 End Date: 12/30/2030 $15,789.47 GSA 1 $15,789.47 OPTION YEAR 4 SUBTOTAL:$84,982.89 SUGGESTED OPTIONS SUBTOTAL:$339,931.56 CONFIDENTIAL PAGE 2 of 3 QUOTE DATE:05/28/2026 QUOTE NO:64694612 GOVERNMENT - PRICE QUOTATION SAP GOVERNMENT AT CARAHSOFT 11493 SUNSET HILLS ROAD | SUITE 100 | RESTON, VIRGINIA 20190 PHONE (703) 871-8500 | FAX (703) 871-8505 | TOLL FREE (888) 66CARAH WWW.CARAHSOFT.COM | SAP@CARAHSOFT.COM Quote Terms: By issuing a Purchase Order that references Carahsoft Quote Number 64694612 and GSA MAS 8F: 47QSWA18D008F, The City of Palo Alto agrees to be bound by the terms and conditions outlined below. The City of Palo Alto's access to and use of the SAP Cloud Services, and SAP's obligations thereto, are subject to the following, which are collectively referred to as the "Customer Cloud Agreement", and which are given priority in the order listed: 1) Appendix A - Additional Terms 2) Exhibit 1 - End User Selected SAP BW Capacity Services 3) Exhibit 2 - End User Selected SAP MDG Capacity Services 4) SAP Cloud Supplement http://www.sap.com/agreements-cloud-supplement 5) Support Schedule for Cloud Services http://www.sap.com/agreements-cloud-support 6) Service Level Agreement for Cloud Services http://www.sap.com/agreements-cloud-service-level-agreement 7) Data Processing Agreement for Cloud Services https://static.carahsoft.com/concrete/files/5517/0293/2214/SAP_GTC_Cloud_DPA_and_DPA_GSA_Approved_10.3.23.pdf 8) General Terms and Conditions for SAP Cloud Services (for GSA Indirect Sales) https://static.carahsoft.com/concrete/files/5517/0293/2214/SAP_GTC_Cloud_DPA_and_DPA_GSA_Approved_10.3.23.pdf CONFIDENTIAL PAGE 3 of 3 QUOTE DATE:05/28/2026 QUOTE NO:64694612 Appendix A - Additional Terms 1. Subscription Cloud Services 1.1 Application This Section applies only to Subscription Cloud Services as defined below. 1.2 Specific Definitions 1.2.1 “Subscription Cloud Services” means all Cloud Services subscribed to under this Carahsoft Quote, except for CPEA Cloud Services, Cloud Platform Voucher, BTPEA Cloud Services and AI Units, if any. 1.2.2 “Excess Use” means any use of a Subscription Cloud Service that exceeds the Usage Metrics and Usage Metric Limitation/Volume stated in this Carahsoft Quote. 1.3. Excess Use In case of Excess Use, Customer shall execute an additional Carahsoft Quote to document subscriptions for such additional Usage Metric, Usage Metric Limitation/Volume. Customer shall pay for Excess Use based on Carahsoft’s prices effective on the date the Excess Use began. Fees for Excess Use accrue from the date the Excess Use began. 1.4 Fee Changes 1.4.1 Carahsoft may increase fees for the Cloud Services at the beginning of each Renewal Term. This increase will not exceed 3.3%. Not raising fees is not a waiver of Carahsoft’s right to do so. 2. Cloud Credit 2.1 Provided Carahsoft is not in default on any payments to SAP relating to the End User, SAP grants Carahsoft for the benefit of the End User a credit in the amount set out in Carahsoft Quote under “Customer Credit” subject to the following conditions: 2.2 Carahsoft may apply the credit, for the benefit of the End User, to satisfy payment obligations for the fees invoiced by the Expiration Date of the Carahsoft Quote. 2.3 Customer must apply the credit before the Expiration Date (identified in Carahsoft Quote); 2.4 if the credit is not fully applied before the Expiration Date, no refund or other remuneration will be provided; 2.5 if the fees exceed the amount of the credit, Customer will pay the excess fees in accordance with the payment terms of the respective Carahsoft Quote; 2.6 The credit cannot be applied towards the purchase of development services, development support services, attach services, SAP learning nor can it be used to off-set any travel expenses; 2.7 SAP reserves the right to reject the Carahsoft Quote, if the Carahsoft has not provided the End User acknowledgement letter duly signed. 2.8 Carahsoft must extend this credit to End User in full and at no charge, SAP may have the right to Audit Partner to verify. Customer Credit Credit Title Expiration Date Amount in USD Credit this Order Form - CCCL 07/31/2028 58,470.12 3. Additional Terms The Agreement is subject to the following modifications: 3.1 Product Development Schedule The Product Development Schedule published at http://sap.com/agreements-cloud-product-development-schedule is incorporated into and becomes an integral part of the Carahsoft Quote. 3.2 Publicity SAP may include Customer's name and subscribed Cloud Services in SAP customer lists and earnings communications. 3.3 Additional Terms for SAP Business Data Cloud, core capacity 3.3.1 Management of End User Capacity Service Selection and SAP Provisioning and Delivery End User’s selection of specific Capacity Services from those available with the SAP Business Data Cloud, core capacity Cloud Service (as set forth in the SAP Business Data Cloud Supplement) and SAP’s provisioning and delivery thereof (all subject to the Usage Metric Limitation and Subscription Term for the SAP Business Data Cloud, core capacity Cloud Service) will be documented and managed using: (a) for Capacity Services (other than SAP BW Capacity Services and SAP MDG Capacity Services), the customer portal found at https://me.sap.com/home (inclusive of any successor site(s) made available by SAP, “SAP for Me”) will be used; (b) for SAP BW Capacity Services, “Exhibit 1, End User Selected SAP BW Capacity Services”, which is incorporated herein and made a part hereof as “Exhibit 1” to the Carahsoft Quote; and (c) for SAP MDG Capacity Services, “Exhibit 2, End User Selected SAP MDG Capacity Services”, which is incorporated herein and made a part hereof as “Exhibit 2” to the Carahsoft Quote. For purposes of clarity, if End User does not select any SAP BW Capacity Services and/or SAP MDG Capacity Services as of the effective date of the Carahsoft Quote: (i) only a “shell” (i.e., blank other than header detail) Exhibit 1 and/or Exhibit 2 (as applicable) will be included as of the effective date of this Carahsoft Quote; (ii) should End User subsequently (i.e., during the Subscription Term) desire any SAP BW Capacity Services and/or SAP MDG Capacity Services, Customer will notify SAP of the same and the parties will work in good faith to complete the Exhibit 1 and/or Exhibit 2 shell(s) (as applicable) and contractually implement the same; and (iii) no SAP BW Capacity Services or SAP MDG Capacity Services will be provisioned or delivered until the requirements in (ii) are complete. 3.3.2. Regarding SAP BW Capacity Services and SAP MDG Capacity Services Provisioning and availability of SAP BW Capacity Services and SAP MDG Capacity Services may be delayed beyond the Product Start Date for SAP Business Data Cloud, core capacity. Applicable product start dates for SAP BW Capacity Services and SAP MDG Capacity Services, if any, will be as set forth in the applicable Exhibit(s). 3.3.3. Regarding SAP Databricks Capacity Services (all of which are non-SAP developed cloud services) 3.3.3.1. Special Terms Applicable to SAP Databricks Capacity Services Notwithstanding anything in the Agreement to the contrary, the following special terms apply to all SAP Databricks Capacity Services in the SAP Business Data Cloud Supplement (excluding the SAP4ME administrative and support services): 3.3.3.1.1. End User has the option to consume SAP Databricks Capacity Services, provided that End User first accepts a separate agreement with Databricks (“Databricks Agreement”), which is provided for acceptance during provisioning of the SAP Databricks Capacity Services. A reference copy of the Databricks Agreement is available for preview at https://www.databricks.com/legal/sap-databricks-tos. End User has no entitlement to and cannot use the SAP Databricks Capacity Services if it does not enter into a Databricks Agreement. 3.3.3.1.2. SAP is not a party to the Databricks Agreement and has no control over the Databricks Agreement. 3.3.3.1.3 The following subject matter is governed exclusively by the Databricks Agreement: (a) all data protection obligations applicable to processing of Personal Data by or within SAP Databricks Capacity Services; and (b) all administrative, physical, and technical safeguards to protect the security and confidentiality of SAP Databricks Capacity Services and the Databricks Customer Data. “Databricks Customer Data” means any Customer Data processed by or within SAP Databricks Capacity Services. 3.3.3.1.4. For clarity, the DPA and SAP Product Development Schedule in the Agreement with Carahsoft do not apply to SAP Databricks Capacity Services. 3.3.3.1.5. Carahsoft is not a processor or subprocessor of any Personal Data by or within SAP Databricks Capacity Services, and Carahsoft is not responsible for any processing of Personal Data by Databricks, or for Databricks complying with any data protection or privacy laws applicable to Personal Data. 3.3.3.1.6. The Security Measures of the SAP Cloud Services apply to SAP Cloud Services independently processing Customer Data outside of SAP Databricks Capacity Services, and do not apply to SAP Databricks Capacity Services. Carahsoft is not responsible for providing or maintaining any security or technical and organizational measures of any kind for SAP Databricks Capacity Services or Databricks Customer Data in SAP Databricks Capacity Services. The security and data protection commitments for SAP Databricks Capacity Services and Databricks Customer Data are made solely between End User and Databricks pursuant to the Databricks Agreement. References to SAP Cloud Services in this section do not include SAP Databricks Capacity Services. 3.3.3.1.7. All responsibility, liability, any regulatory requirements, and allocation of risk for Databricks Customer Data in SAP Databricks Capacity Services are exclusively between End User and Databricks pursuant to the Databricks Agreement, and Carahsoft has no responsibility or liability for damages of any kind relating to Databricks Customer Data in SAP Databricks Capacity Services except to the extent caused by Carahsoft. 3.3.3.1.8. Electing to use SAP Databricks Capacity Services is an option for customers with a subscription for the SAP Business Data Cloud, core capacity Cloud Service; Customer does not have any right of refund on the basis that End User has elected not to enter into the Databricks Agreement to use SAP Databricks Capacity Services. 3.3.3.1.9. If Databricks notifies SAP that it is terminating the Databricks Agreement due to a material uncured breach by End User, End User’s subscription to all SAP Databricks Capacity Services will automatically terminate upon the termination effective date of the Databricks Agreement and Databricks will de-activate End User’s access to all SAP Databricks Capacity Services. End User will not be entitled to a refund or reduction of the Capacity Units as a result of an SAP Databricks Capacity Services termination, but End User may instead allocate the remaining balance of the Capacity Units to consume other eligible non-SAP Databricks Capacity Services as set forth in the SAP Business Data Cloud Supplemental Terms. 3.3.3.1.10. Without limiting the foregoing, no term in the Databricks Agreement will be deemed to modify the Agreement or any other agreement between Customer and Carahsoft, unless otherwise expressly agreed in writing by Carahsoft. 4. Export Restrictions Further information on SAP's Export Control and Sanctions Compliance can be found at: https://www.sap.com/about/agreements/export-statements.html. Service Level Agreement for Cloud Services enGLOBAL.v.8-2023 Page 1 of 1 SERVICE LEVEL AGREEMENT FOR CLOUD SERVICES 1. DEFINITIONS 1.1. “Credit” means 2% of the Monthly Subscription Fees for the affected subscription-based Cloud Service or the monthly Cloud Credits (as defined in the Order Form) consumed for the affected consumption-based Cloud Service, for each 1% below the System Availability SLA, not to exceed 100% of the fees paid or Cloud Credit consumed by the Customer for the relevant Month for the affected Cloud Service. 1.2. “Downtime” means the Total Minutes in the Month during which the production version of the Cloud Service is not available, except for Excluded Downtimes. 1.3. “Excluded Downtime” means the Total Minutes in the Month attributable to a Maintenance Window; or any Major Upgrade Window for which the Customer has been notified at least 5 business days in advance; or unavailability caused by factors outside of SAP’s reasonable control, such as unpredictable and unforeseeable events that could not have been avoided even if reasonable care had been exercised. 1.4. “Maintenance Window” means the weekly maintenance windows for the Cloud Service identified on https://support.sap.com/maintenance-windows. SAP may update the Maintenance Window from time to time in accordance with the Agreement. 1.5. “Major Upgrade Window” means the extended upgrade maintenance windows for the Cloud Service identified on https://support.sap.com/maintenance-windows. SAP may update the Major Upgrade Window from time to time in accordance with the Agreement. 1.6. “Month” means a calendar month. 1.7. “Monthly Subscription Fees” means the monthly (or 1/12 of the annual fee) subscription fees paid for the applicable Cloud Service which did not meet the System Availability SLA. 1.8. “System Availability Percentage” is calculated and defined as follows: � Total Minutes in the Month−Excluded Downtime − Downtime Total Minutes in the Month−Excluded Downtime �∗100 1.9. “System Availability SLA” means a 99.7% System Availability Percentage during each Month for the production version of the Cloud Service. 1.10. “Total Minutes in the Month” are measured 24 hours at 7 days per week during a Month. 1.11. “UTC” means Coordinated Universal Time standard is the start time for the applicable Maintenance Window and Major Upgrade Window. 2. SYSTEM AVAILABILITY SLA AND CREDITS 2.1. Credit If SAP fails to meet the System Availability SLA for a particular Month, Customer may claim a Credit, which Customer may apply to a future invoice for the Cloud Service that did not meet the System Availability SLA (subject to Sections 2.1.1 and 2.1.2 below). 2.1.1. Claims for a Credit must be made in good faith and through a documented submission of a support case within 30 business days after the end of the relevant Month in which SAP did not meet the System Availability SLA for the Cloud Service. 2.1.2. Customers who have not subscribed to the Cloud Service directly from SAP must claim the Credit from their applicable SAP partner. 2.2. System Availability Report SAP will provide Customer with a monthly report describing the System Availability Percentage for the Cloud Service either by email following a request to Customer’s assigned SAP account manager; through the Cloud Service; or through an online portal made available to Customer, if and when such online portal is available. 3. CHANGES TO WINDOWS 3.1. SAP shall provide Customer 1 month’s advance notice before changing its Maintenance and Major Upgrade Windows (unless such change is a reduction in the duration of the applicable Maintenance or Major Upgrade Windows). If Customer wishes to be notified of changes to Maintenance Windows and Major Upgrade Windows via email, it must subscribe to receive notifications at https://support.sap.com/maintenance-windows. Support Schedule for Cloud Services enGLOBAL.v.07-2025 Page 1 of 6 SUPPORT SCHEDULE FOR CLOUD SERVICES This Support Schedule is part of the Agreement for Cloud Services between SAP and Customer. 1. DEFINITIONS 1.1. "Go-Live" marks the point in time from when, after set-up of the Cloud Services for Customer, the Cloud Services can be used by Customer for processing real data in live operation mode and for running Customer's internal business operations in accordance with its agreement for such Cloud Services. 1.2. "Local Business Hours" means 8 a.m. (08:00) to 6 p.m. (18:00) Monday to Friday excluding local holidays, in accordance with local time zone applicable to the Customer's address. 1.3. "SAP's Customer Support Website" means SAP's customer facing support website (see: https://support.sap.com unless a different support website is listed in the Agreement or https://support.sap.com/contactus). In selected Cloud Services, support can also be accessed via the application itself. 2. SCOPE OF SUPPORT AND SUCCESS OFFERINGS 2.1. General 2.1.1. SAP offers the following: a) SAP Enterprise Support, cloud editions: Foundational engagement support as part of the Cloud Service with focus on customer interaction and case resolution. b) SAP Preferred Success: An add-on to SAP Enterprise Support, cloud editions that includes strategic guidance, solution-specific best practices and success programs to help drive consumption and value realization. c) SAP Enterprise Support, cloud editions is included in the subscription fees for the Cloud Services stated in the Order Form unless alternative support terms are agreed. SAP Preferred Success may be purchased for eligible Cloud Services for an additional fee, as an add-on to SAP Enterprise Support, cloud editions. SAP Preferred Success is not available, and not provided, for any third-party cloud services purchased through SAP. 2.1.2. Beginning on the effective date of Customer's agreement for Cloud Services, Customer may contact SAP's support organization as the primary point of contact for support services. 2.1.3. Customer Interaction Center languages: SAP provides initial telephone contact for Customer Contacts through the SAP one support phone number "CALL-1-SAP" (see CALL-1-SAP page: https://support.sap.com/contactus) or via other solution specific hotlines in the following languages: English (24x7) and, depending on local office hours and availability, in German, French, Italian, Spanish, Polish, Russian (during European office hours); Japanese, Chinese, Korean, Baha sa (during Asia/Pacific office hours); Portuguese and Spanish (during Latin America office hours). Issues which lead to a support case which is processed by specialized technical or third party support engineers worldwide are handled in English only. 2.2. Mission Critical Support Feature SAP Enterprise Support, cloud editions SAP Preferred Success 24x7 mission critical support for P1 and P2 cases (English only) Global case handling by SAP for issues related to support, including Service Level Agreements for Initial Response, Ongoing Communications and Corrective Action Targets (as set forth in Section 3 below). 24x7 prioritized case handling and enhanced Initial Response and Corrective Action Targets (as set forth in Section 3 below). Non-mission critical support for P3 and P4 cases (English only) Available during Local Business Hours(as set forth in Section 3 below). Enhanced Initial Response Targets (as set forth in Section 3 below). Support Schedule for Cloud Services enGLOBAL.v.07-2025 Page 2 of 6 Feature SAP Enterprise Support, cloud editions SAP Preferred Success 24x7 Customer interaction center Support center that customers may contact for general support related inquiries through the contact channels described in Section 2.1.3. Delivered as part of SAP Enterprise Support, cloud editions. Global support backbone SAP's knowledge database and extranet where SAP makes available content and services to customers and partners of SAP only. This includes SAP's Customer Support Website. End-to-end supportability Support for cases that occur in integrated business scenarios consisting of SAP Cloud Services or both SAP Cloud Services and SAP Software with a valid SAP support agreement. 2.3. Learning and Empowerment Feature SAP Enterprise Support, cloud editions SAP Preferred Success Remote SAP support content and services Remote support content and services (e.g., Meet-the-Expert sessions) in various formats which may include live and recorded webinars, tutorials, best practices, self-paced learning materials and workshop-style interactive remote sessions. Content and session schedules are stated on SAP's Customer Support Website in the SAP Enterprise Support Academy section. Scheduling, availability and delivery methodology is at SAP's discretion. Access to demo systems, live sessions with instructors, examinations and certifications specific to the Cloud Service for up to 5 Customer Contacts. SAP Preferred Success exclusive learning content related to the Cloud Service in various formats which may include live and recorded webinars, best practices, and workshop-style interactive remote sessions. Scheduling, availability and delivery methodology is at SAP's discretion. Release update information Generally available documented summaries, webinars and videos provided by SAP to inform and instruct customers on new product release changes. Self-service through web and community. Release guidance specific to the Cloud Service. 2.4. Collaboration Feature SAP Enterprise Support, cloud editions SAP Preferred Success SAP support advisory services Access to experts who help customers with support-related requests and advise on the appropriate SAP Enterprise Support content and services for their needs. Delivered as part of SAP Enterprise Support, cloud editions. Support Schedule for Cloud Services enGLOBAL.v.07-2025 Page 3 of 6 Support via chat Available during business hours in English language for non-Mission Critical Support issues, where available for the Cloud Service. Feature SAP Enterprise Support, cloud editions SAP Preferred Success Support via web and platform for social business collaboration Access to SAP's Customer Support Website, including social media-based empowerment and collaboration, with peers and SAP experts. Access to exclusive SAP Preferred Success collaboration platform. Support and success reporting SAP Enterprise Support reporting: A report or dashboard analyzing and documenting the status of support services and achievements hereunder. Reports, dashboards, or other reporting components and capabilities regarding the overall engagement, full customer lifecycle, and productive use of the solution, including relevant feature adoption, technical and product usage and status of support services and achievements hereunder, specific to the Cloud Service. Preferred Success resources and guidance Access to success resources to provide guidance on onboarding, product adoption and usage, best practices and operational excellence. This may include a customer success partner as the primary contact for ongoing success management, success planning, technical guidance and mentorship, and support case oversight throughout the Customer lifecycle. Assignment of a customer success partner is at SAP's discretion. Regular checkpoint Periodic review of Cloud Service, success plan, critical issues, reporting and best practices. May include in-person delivery, at SAP's discretion. Success Plan A success plan outlines steps towards achieving key business milestones and objectives throughout the customer lifecycle. Focus topics include challenges, consumption, adoption and cycle planning. 2.5. Innovation and Value Realization Feature SAP Enterprise Support, cloud editions SAP Preferred Success Proactive checks proposed by SAP Support services, providing recommendations for the specific customer situation. Such services are delivered remotely upon Customer request. Expert-led checks, providing recommendations based on SAP best practices or recommended configuration(s). Product roadmaps Self-service through web. Delivered as part of SAP Enterprise Support, cloud editions. Support Schedule for Cloud Services enGLOBAL.v.07-2025 Page 4 of 6 Refresh of test instance Self-service or request through web for initiating the refresh as offered and required by respective solution. Delivered as part of SAP Enterprise Support, cloud editions. 2.6. Application Lifecycle Management Feature SAP Enterprise Support, cloud editions SAP Preferred Success Application lifecycle management ("ALM") Software or online services for application lifecycle management made available by SAP. Feature scope and availability details are set forth on SAP's Customer Support Website (see: https://support.sap.com/en/alm) and usage rights (see: https://support.sap.com/en/alm/usage-rights). Delivered as part of SAP Enterprise Support, cloud editions. 3. CUSTOMER RESPONSE LEVELS 3.1. SAP responds to submitted support cases as described in the table below. Priority Definition Response Level P1 Very High A case should be categorized with the priority "very high" if the problem has very serious consequences for normal business processes or IT processes related to core business processes. Urgent work cannot be performed. This is generally caused by the following circumstances: a) a productive service is completely down; b) the imminent system Go-Live or upgrade of a production system cannot be completed; c) the customer's core business processes are seriously affected A workaround is not available for each circumstance. The case requires immediate processing because the malfunction may cause serious losses. Initial Response: Within 1 hour of case submission. Ongoing Communication: Unless otherwise communicated by SAP, once every hour. Corrective Action Target: SAP to provide for cases either a resolution; or workaround; or action plan within 4 hours. P2 High  A case should be categorized with the priority "high" if normal business processes are seriously affected. Necessary tasks cannot be performed. This is caused by incorrect or inoperable functions in the SAP service that are required immediately. The case is to be processed as quickly as possible because a continuing malfunction can seriously disrupt the entire productive business flow. Initial Response: Within 4 hours of case submission for SAP Enterprise Support, cloud edition customers and within 2 hours of case submission for SAP Preferred Success customers. Ongoing Communication: Unless otherwise communicated by SAP, once every 6 hours. Corrective Action Target: SAP to provide for cases either a resolution; or workaround; or action plan within 3 business days for SAP Preferred Success customers only. P3 Medium A case should be categorized with the priority "medium" if normal business processes are Initial Response: Within 1 business day of case submission for SAP Enterprise Support, cloud edition customers, and within 4 business hours of case Support Schedule for Cloud Services enGLOBAL.v.07-2025 Page 5 of 6 Priority Definition Response Level affected. The problem is caused by incorrect or inoperable functions in the SAP service. being received for SAP Preferred Success customers. Ongoing Communication: Unless otherwise communicated by SAP, once every 3 business days for non-defect Issues and 10 business days for product defect issues. A non-defect issue is a reported support case that does not involve a defect in the applicable Cloud Service and does not require engineering, development or operations personnel to resolve. P4 Low A case should be categorized with the priority "low" if the problem has little or no effect on normal business processes. The problem is caused by incorrect or inoperable functions in the SAP service that are not required daily or are rarely used. Initial Response: Within 2 business days of case submission for SAP Enterprise Support, cloud editions customers and within 1 business day of case submission for SAP Preferred Success customers. Ongoing Communication: Unless otherwise communicated by SAP, once every week. 3.2. The following types of cases are excluded from customer response levels as described above: a) cases regarding a release, version or functionalities of Cloud Services developed specially for Customer (including those developed by SAP Custom Development or by SAP subsidiaries or individual content services); b) the root cause behind the case is not a malfunction but missing functionality (development request); c) the case is a consulting or how-to request. 4. CUSTOMER RESPONSIBILITIES 4.1. Customer Contact 4.1.1. Customer shall designate at least 2 and up to 5 qualified English-speaking contact persons per Cloud Service (each a "Customer Contact"). Customer Contacts include designated support contact, authorized support contact, key user, application administrator or system administrators whose roles within specific Cloud Services are authorized to contact or access the Customer Interaction Center, SAP Support Advisory Services and Mission Critical Support services. 4.1.2. The Customer Contact is responsible for managing all business -related tasks of the Cloud Service related to Customer's business, such as: a) support end users and manage their cases. This includes searching for known solutions in available documentation and liaising with SAP in the event of new problems; b) manage background jobs and the distribution of business tasks across users (if available); c) manage and monitor connections to Customer's third-party systems (if available); d) support the adoption of the Cloud Service. 4.2. Contact Details Customer will provide contact details (in particular, e -mail address and telephone number) by which the Customer Contact or the authorized representative of the Customer Contact can be contacted at any time. SAP will use these contact details of the Customer Contact or the authorized representative of the Customer Contact and the contact details of any other senders of support cases in accordance with the SAP For Me privacy statement (https://me.sap.com/assets/legal/privacy.html) or the Built-In Support privacy statement (https://help.sap.com/docs/built-in-support/privacy-statement) if support cases are submitted via Built-In Support. Customer will update its Customer Contacts for a Cloud Service through SAP's Customer Support Website. Only authorized Customer Contacts may contact SAP's support organization. Support Schedule for Cloud Services enGLOBAL.v.07-2025 Page 6 of 6 4.3. Cooperation Customer Contact shall reasonably cooperate with SAP to resolve support cases, and will have adequate technical expertise and knowledge of its configuration of the Cloud Services to provide relevant information to enable SAP to reproduce, troubleshoot and resolve the experienced error. 5. UPDATES SAP may update the Support Schedule as long as it maintains a comparable or better level of support. SAP will publish the updated version of the Support Schedule on My Trust Center. Customer may subscribe to receive automated notification of any updates vi a My Trust Center accessible at https://support.sap.com/en/my-support/trust-center.html.