Wednesday 26th Oct 2016 - Logistics Manager

SAP users blast price rises

Business software company SAP’s decision to replace its Standard Support with the enhanced Enterprise Support model has come under fire by existing customers who are unhappy at being forced to pay more for additional services they don’t necessarily require.

The Standard Support package is currently included in all licensing and maintenance contracts at a charge of 17 per cent of the contract value. When the Enterprise Support service is introduced this price will automatically rise to 22 per cent for new customers and will be gradually phased in for existing customers, which in real terms equates to a 29.4 per cent increase in cost over the next four years.

As the change is mandatory and the increase in cost is not negotiable many existing customers, particularly small and medium-sized companies, are outraged.

Alan Bowling, chairman UK and Ireland of the SAP Users’ Group, said: “Many of our members may not want or need this extra level of support and therefore are reacting negatively to having a new support product and the associated increase in costs forced upon them.”

He is encouraging any company affected by the changes to “examine the potential value” of the enhanced service and to contact SAP with any feedback they might have.

However, Bowling added: “I’d 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.”