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SAP Maintenance Fees to spike

by on20 March 2008


Analysts warn

Earlier this year SAP AG offered a single maintenance offering for its new users that analysts claim could lead to “significant” price hikes for its current Basic Support plan. Last month SAP AG launched its new Enterprise Support program for new users of SAP, Business Objects and third-party software, since these users will no longer be able to purchase SAP’s Basic Support options.

The new Enterprise Support program carries an annual fee of 22% of the customer's yearly license fees, which is the same price as the current SAP Premium Support program. The Basic Support program is priced at 17% of annual license fees. This new program will be rolled out in SAP’s Q2 this year.

Research analyst firm Forrester Research, Inc. warned that new customers forced into the SAP Enterprise Support program will overpay for services which at the same time are underutilized. Analysts are also warning that existing SAP software clients will also be faced with increased prices for their existing Basic Support contracts to the Enterprise Support level. Forrester also recommended that SAP users lock in their current Basic Support prices now with some tough negotiating tactics.

Last modified on 20 March 2008
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