Save content
Have you found this content useful? Use the button above to save it to your profile.
AIA

SAP angers customers with support price increase

by
11th Aug 2008
Save content
Have you found this content useful? Use the button above to save it to your profile.

SAP customers are up in arms about the software giant's decision to scrap its existing support offerings with a more expensive version. Stuart Launchlan of MyCustomer.com reports.

Last month SAP announced that it will replace its standard support service with a new "enhanced" enterprise support model. But one of the changes that it will include is an increase in the maintenance charge from 17% to 22% of the total contract value.

Existing customers will move to enterprise support in phases, which critics argue will equate to a 29.4% rise cost over the next four years in real terms.

SAP co-CEO Henning Kagermann said the new support service had "experienced positive market adoption" with more than 350 taking up the option.

But existing customers were not so enthusiastic. SAP UK and Ireland user group chairman Alan Bowling complained, "The mandatory nature of this change, along with the increase in cost, has received hugely negative feedback from our membership to date."

The quality of the new support service looked good, and would provide value for organisations that needed the extra level of support, he said, but the 29.4% cost increase was proving "particularly difficult" for customers to accept. "Many of our members may not want or need this extra level of support," Bowling added.

Bowling called for action over the changes. "I would encourage all organisations impacted by these changes to examine the potential value of the offering and to contact SAP to provide their feedback on this price increase," Bowling said. "I would also encourage SAP to reconsider this mandatory price rise so that organisations not requiring the extra level of support provided in Enterprise Support do not have to pay for features they do not require."

AMR analyst Bruce Richardson said the row was entirely understandable, but that customers knew it was coming

While existing customers moaned about SAP investing in new vertical markets and products such as the online Business ByDesign ERP suite, Bruce Richardson predicited the row would blow over.

But he added, "I wonder whether SAP's move will encourage other perpetual licence vendors to move to 22%. My suspicion is yes." This will not be news that software users struggling with the credit crunch will want to hear.

A fuller version of this article is available from our sister site, MyCustomer.com
Tags:

Replies (1)

Please login or register to join the discussion.

avatar
By lukemellard
14th Aug 2008 16:14

Sick of SAP?
Find out why people are reverting to Sage for large ERP solutions.

Email your details to [email protected] to find out how to cut costs not functionality.

Thanks (0)