SAP delays decision on enterprise support price hike

SAP has postponed a decision on whether or not to go ahead with plans to raise prices for enterprise support for 2010.

SAP has postponed a decision on whether or not to go ahead with plans to raise prices for enterprise support for 2010.

SAP customers expected the supplier to make a decision in December following talks between SAP and the SAP User Group Executive Network (Sugen), which represents 12 user groups around the world.

But the enterprise software supplier said it has appointed a task force to get more feedback from end-user organisations and user groups before making a final pricing decision.

SAP said it "takes the concerns of its customers seriously and also recognises the ongoing pressures bearing down on IT budgets in the current economic environment" .

SAP reached an agreement with Sugen in April that it would raise prices only if it could show it had delivered business benefits to its customers by meeting a set of key performance indicators (KPIs). It said a benchmarking exercise had shown that KPIs gave "clear value" to participating customers in 2009.

"We've always said the benchmarking programme linking price to value, although ground breaking, was going to be a difficult process, especially in the time frames involved this year," said Alan Bowling, chairman of the SAP UK and Ireland User Group.

He said the user group is happy to see that SAP is increasing its collaboration with customers. SAP and Sugen will meet to discuss prices and other issues in the US in the second week of December.

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