New SAP customers face price hike

Enterprise replaces cheaper support offerings

SAP has assured existing enterprise customers that they will not face a price hike following a restructure of its support model.

The new model could be implemented as soon as next month after which all new contracts could cost up to 5 percent more.

Maintenance and support costs are the surreptitious money spinners of software contracts

Gartner

Support costs will be lifted from 17 percent to 22 percent of the software license cost, according to Forrester

SAP users contacted by Computerworld were unaware of the imminent changes which affect new customers only.

Grant Bayle, IT director at sports clothing manufacturer Skins, said it will maintain its basic support model despite the changes.

"Charging22 percent is getting steep for the support and maintenance we need," Bayle said.

"You don't tend to switch vendors at the drop of a hat once you're on a big platform."

Skins uses BusinessOne 2005 and SAP reseller Evolution Software Services for support and maintenance which has updated the platform twice since it was installed mid last year.

Anne Kremer, group business technology manager at apparel distributor True Alliance, said would need additional IT skills if it moved onto the new model.

"We use the standard support model and use external consultants to pick up any extra support we need that isn't included," Kremer said.

"Over the years you adjust to the kind of support delivery, and you develop relationships with external consultants for non-product faults.

The million-dollar question, according to Kremer, is whether the enterprise contract will justify the price increase.

"It's possible the higher price could match the additional services, but we'll have to wait and see," she said.

True Alliance uses SAP Enterprise 4.7 with IS retail.

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