SAP backs down on Enterprise Support
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Higher support rate will no longer be mandatory as application maker bows to customer pressure
Enterprise software vendor SAP has announced that a controversial support package, more expensive than the current standard support rate, will no longer be mandatory for all customers as had originally been planned.
Instead, the company will offer a tiered support model, effectively allowing customers to keep their existing support contracts.
The announcement follows a protracted dispute between SAP and its customers. The Enterprise Support plan was originally slated to cost 22% of license fees annually, at a time when the standard support rate was just 17% of license fees. SAP was forced to delay the introduction of mandatory Enterprise Support by vocal opposition from user groups – detailed in the December 2009 issue of Information Age.
Now the company says the option of standard support will still be available, albeit at an increased rate of 18%. New customers will be offered Enteprise Support at the 22% rate, while the price for Enterprise Support for existing customers will rise gradually until reaching 22% in 2016.
"We welcome this news from SAP and are delighted that it is offering greater choice to its customers and our members,” said Alan Bowling, chairman of the SAP UK & Ireland User Group, in a statement. “This move shows that SAP is listening to user groups, and therefore its customers, taking on board our feedback and making changes to meet the needs of all SAP users.”
Meanwhile, SAP also revealed that its revenue continued to fall during its most recent financial quarter; down 9% to €3.2 billion.
