SAP raises support costs as inflation bites

SAP claims this is the first time in nearly ten years it has upped its fees

SAP is increasing its support fees for the first time in nearly a decade as the software vendor points blame at inflation rates.

The vendor said it is adjusting the support fee for existing agreements for SAP Standard Support, SAP Enterprise Support, and SAP Product Support for Large Enterprises, based on the respective local Consumer Price Index (CPI).

Support costs will be raised from 1 January 2023 by a maximum of 3.3 per cent (or the local CPI rate, if lower).

For France, the rate applied will be capped at 2.12 per cent, according to French channel press Distributique.

It added the terms of the agreements allow for an annual adjustment of the support fee after the initial term and first renewal term.

Moreover, SAP clarified the rise does not represent an increase in list prices for SAP support offerings for new purchases of software.

Affected customers and partners will be notified in accordance with the respective locally agreed contractual stipulations, it said.

"This upcoming increase denotes the first time in nearly a decade that SAP has adjusted fees as we have kept support offering prices stable to a large extent for the last ten years, including waiving adjustments throughout the pandemic during 2021 and 2022," SAP said in a statement.

"SAP is engaged in an open dialogue with our customers and user groups to offer the right support offerings for their needs, at predictable commercial conditions.

"Transparency is important for SAP in its relationship with customers, and SAP will always strive to maintain a dialogue around important areas such as support."

SAP blames high inflation

The vendor pointed the finger of blame squarely at the current macroeconomic environment of high inflation rates reflected across regional price indices that is broadly impacting companies around the globe.

SAP admitted it is not exempt from these developments as they are readily impacting its offerings through higher energy and labour costs, as well as increasing expenses for third-party services.