
Unhappy with rising costs
By Tim Ferguson
Published: 25 July 2008 16:57 GMT
The UK and Ireland SAP User Group has expressed dissatisfaction with the changes SAP has made to its software support programme.
The German software giant announced on 16 July that it plans to move all customers onto its Enterprise Support programme by 1 January 2009, discontinuing the less comprehensive Standard Support.
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But Enterprise Support will represent a cost rise for users as it will increase support costs from 17 per cent of the software contract value to 22 per cent.
Alan Bowling, UK and Ireland SAP User Group chairman, said the fact this change is mandatory for existing customers and comes at a higher cost means it has received a "hugely negative feedback from our membership".
He said the change "is proving to be a particularly difficult area to accept".
He suggested many Group members do not want or need this level of support and so are "reacting negatively to having a new support product and the associated increase in costs forced upon them".
In addition, the Group is sceptical about whether Enterprise Support is suitable for small and medium sized businesses.
Bowling advised SAP to reconsider the mandatory price rise so companies not requiring the extra elements within Enterprise Support do not have to pay for them.
He is also encouraging organisations to examine the impact of the changes on their business and give feedback to SAP.
An SAP spokesperson said the new support programme is offered at the "industry-standard rate of 22 per cent" and the company is "confident in the value the offering will provide to customers".
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