Feeds

SAP defends forced price hike against user anger

'If you don't want it now, you will later'

The Power of One Brief: Top reasons to choose HP BladeSystem

SAP today rejected claims by British customers that its new support pricing scheme will unfairly slap small and medium-sized businesses with extra costs for services they won't use.

The UK SAP users group released a statement on Friday urging the German software giant to rethink a compulsory hike in support costs from 17 per cent to 22 per cent of contract value. Over the next four years all customers will be shunted from Standard support to the Enterprise package, which includes cover for non-SAP software.

Company spokesman Bill Wohl denied the enforced changes are aimed at swelling SAP coffers. "Our motivation here is not the bottom line," he said. "They [user groups] have their perspective, and customers never want to pay more."

There may be a few tea>>>keyboard support call outs as a result of that denial. The real terms costs increase will be about 30 per cent, and analysts have estimated that the migration will be worth €1bn annually to SAP by the time it is complete in 2012.

Alan Bowling, chairman of the UK SAP users group, said on Friday: "Many of our members may not want or need this extra level of support."

Wohl argued that the existing support package is outdated, and that smaller outfits whose IT systems do not yet require the higher-specced offering will grow into it. "What we're bringing to customers is what they've been telling us they want," he said. "We don't think the standard support package has kept pace with today's IT environments."

SAP said that its own contact with customers over the price increases had been "quite positive", but that it had made some minor changes in response to criticisms. Complaints from German customers led to the timetable being relaxed to allow outfits running legacy systems to catch up. Further tweaks are possible, Wohl said.

Conceding that the move is bound to upset some customers, he challenged the gripers to examine the competition. "The increased value justifies the additional expense... when you make comparisons between SAP and Oracle and SAP and Microsoft, our offering has significantly more value."

That's fighting talk. ®

The Essential Guide to IT Transformation

More from The Register

next story
Secure microkernel that uses maths to be 'bug free' goes open source
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
KDE releases ice-cream coloured Plasma 5 just in time for summer
Melty but refreshing - popular rival to Mint's Cinnamon's still a work in progress
NO MORE ALL CAPS and other pleasures of Visual Studio 14
Unpicking a packed preview that breaks down ASP.NET
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
Put down that Oracle database patch: It could cost $23,000 per CPU
On-by-default INMEMORY tech a boon for developers ... as long as they can afford it
Another day, another Firefox: Version 31 is upon us ALREADY
Web devs, Mozilla really wants you to like this one
Google shows off new Chrome OS look
Athena springs full-grown from Chromium project's head
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.