SAP puts price increase on hold

Proposals caused outrage among users

SAP has said it is to hold off on increasing the price of its support contracts and will make a final decision in the New Year.

The company had planned to move customers to SAP Enterprise Support, a move that could see costs rise by up to 22 per cent. The move sparked outrage among SAP customers and the company has said it is responding by investigating the issue further.

"SAP plans to provide the outcomes of the task force at the beginning of 2010," the company said in a statement.

"Until then, a decision on pricing for Enterprise Support has therefore been postponed."

SAP maintains that it has held its costs down for long enough and needs the price increases to maintain profitability.

However, the unrest from the customer base has caused the delay, and the company has said it will consult with user groups and key customers before making a decision in the first quarter of 2010.

However, initial consultations on deciding key performance indicators (KPIs) for the service contracts have not gone well. Days ago two user group members resigned from the exercise but the company has said it is optimistic that it will strike the correct balance.