SAP has triggered a backlash over increasing the cost of
software support for its customers by nearly 30%. The UK &
Ireland SAP Users Group condemned the change in the business
software company's maintenance contracts.
Alan Bowling, chairman of the
group, said: "The increase in
cost has received hugely negative feedback from our membership to
date."
All SAP customers will be
transferred to the company's recently released, more expensive
service, "enterprise support", from 2009. SAP announced the
move on
July
16.
This offering replaces "standard" and "premium support"
currently included in SAP licensing and maintenance contracts. A
customer currently paying 17% of licence fees through standard
support in 2008 will pay a rate of 18.3% for enterprise support in
2009. The fees will then gradually rise to 22% in 2012.
Bowling said: "The enterprise support product includes
additional support activities not currently included in the
standard support product, and based on case studies appears to
offer great value potential, but is yet to be fully proven.
"Included in the announcement, however, is an indication that
pricing will increase from 17% of contract value to 22% of contract
value, immediately applicable to new customers and introduced in a
phased way for existing customers."
"In real terms, this is a 29.4% increase in costs over the next
four years for existing SAP customers, and is proving to be a
particularly difficult area to accept."
"The enterprise support product looks good, and for
organisations needing the extra level of support that it offers it
will no doubt provide value."
"However, many of our members may not want or need this extra
level of support and therefore are reacting negatively to having a
new support product and the associated increase in costs forced
upon them.
"In addition, along with the
German speaking
user group, we are sceptical that the enterprise support
offering is sized appropriately, and we remain concerned on its
suitability for many small and medium-sized enterprises."
No one from SAP was available for comment in time for
publication, but the German-based company described enterprise
support, at the time of its announcement earlier this month, as
"the next generation of support offerings".
It said: "With SAP enterprise support, customers are provided an
unrivalled comprehensive support offering at a cost that is below
the average of maintenance fees found elsewhere."