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SAP support costs to rise in July

07 Feb 2013
SAP building

SAP will increase its Standard support maintenance costs for new customers from the summer.

The firm said the rate of Standard support will increase from 18 to 19 percent from 15 July 2013.

SAP Standard Support delivers customers a baseline level of services to help keep IT systems up and running. The cost of the package is based on the net licensing fees an individual customer pays.

The adjustment will not apply to existing maintenance contracts for SAP Standard Support closed before 15 July. Enterprise Support costs will not be changed and Business One customers will not be affected.

SAP said it was giving customers six months' notice so they can better plan budgets for the upcoming year.

"We encourage customers to take advantage of the opportunity to purchase new licences with SAP Standard Support ahead of this change at the existing 18 percent rate," said an SAP statement.

SAP has previously been inundated with customer complaints, especially from the UK User Group, when it tried to transfer all its Support customers to the more expensive Enterprise Support offering.

These complaints forced SAP to backtrack, instead offering customers a choice of Standard or Enterprise versions of support.

The current hike is unlikely to create as much of a company backlash as the attempted hike in 2008 as it marks only a one percent rise.

SAP UK and Ireland User Group vice chairman Philip Adams said he was pleased customers had been given advanced noticed of the support cost increase.

"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," said Adams.

"Most of our members are now on Enterprise support, with only 12 percent stating they were using Standard Support in 2012."

However Adams said customers are likely to be unhappy by the price increase.

"Although one per cent does not seem significant it amounts to a 12 percent rise in real terms over five years," he said.

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

The rise comes as the firm posts healthy profits, with figures from last summer seeing revenues rise to €4bn on the back of several growing product areas.

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Rosalie Marshall
About

Rosalie Marshall is the special projects editor and chief reporter at V3. Previously she was a reporter for IT Week and channel editor for online television site LocalGov.tv. Rosalie covers government IT, business applications, IT skills, open source technology and social networks.


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