SAP will offer existing users a reprieve on the controversial software maintenance increase it plans to introduce at the end of the year.
SAP has announced a software support contract called Enterprise Support, which replaces its existing support, where SAP takes overall responsibility for the main software components in a user's implementation, including any non-SAP products. Additionally, Enterprise Support will provide 24 hour support and includes extended support on older products. This is charged yearly at 22% of the initial cost of the customer's SAP licence.
Users have expressed their anger that the company was offering users no choice, and they were being forced to pay more, even if they did not require the extra facilities offered in Enterprise Support.
In an interview with Computer Weekly this morning, UK managing director Steve Rogers said, "We will provide our existing customers with a four-year migration plan to move from the current 17% rate to 22%."
He said, "We understand customers need to account for the increase."
From the end of 2008, users of SAP will see their maintenance fee increase initially by 8% to 18.4%. There will be a further increase of 8% in 2010, 2011 and 2012, to bring the rate up to the full 22% fee. Through each increase, SAP plans to add in additional services from the full Enterprise Support agreement.
Rogers defended the 22% increase, saying that it was lower than the industry average of 25% per annum for support.