SAP price rise fails to win User Group disapproval

SAP raises standard support prices for new contracts from 18% to 19% on July 15. SAP UK & Ireland User Group signals reluctant acceptance

SAP is raising its standard support prices for new contracts from 18% to 19%, from 15 July.

Frank Scavo, principal consultant at Strativa, disclosed the news on his blogging site, the Enterprise System Spectator, citing an SAP email sent to the company’s partners on 4 February.

Scavo said, on his site: “Several years ago, SAP customers fought back SAP's attempts to impose a maintenance fee increase by forcing all customers to move from standard support (at 18%) to enterprise support (at 22%). After a great deal of public outcry, SAP backed down. 

"Now SAP appears to be trying to impose a smaller price increase, with no apparent improvement in service, in hopes customers will not notice."

However, the UK and Ireland SAP User Group has taken a more relaxed view.

Philip Adams, vice-chairman of the group said: “It’s great that SAP has given customers advanced notice on this. The news has been expected and is in line with the escalator that SAP put in place when they agreed to keep standard support in place back in 2010.

“Most of our members are now on enterprise support, with only 12% stating they were using standard support in 2012.

“Clearly no customer likes price rises and although 1% does not seem significant, it amounts to an 11.8% rise in real terms over five years. In reality, this is probably in line with RPI increases.

“For those that are using standard support and are looking to make further investments in SAP, our advice is to do this before 15 July to avoid the price increase.

“From the user group’s perspective, we are pleased that SAP listened to us regarding maintenance a few years ago and continues to offer choice to customers, but obviously price rises are never welcome," Adams said.

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