SAP users reject higher maintenance fees (surprised?)

SAP is holding customers hostage instead of providing additional value.

In July, SAP instituted a new policy that forced users into paying a higher support cost with no clearly defined additional value for the higher cost.

ZDNet's Dennis Howlett interviewed Alan Bowling, chairman SAP user group UK and Ray Wang, VP at Forrester research about the price hikes and what they really mean for users.

The short version: SAP users in the UK and Ireland will not accept the next round of price rises for support unless the company has "clearly delivered improved total cost of ownership" for the businesses that use its software.

Software licensing is coming under more pressure in the difficult economy and support and maintenance fees are clearly important. SAP needs to realize that every piece of software is replaceable--switching costs may be high, but being held ransom is far worse.

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Software
About the author

Dave Rosenberg has more than 15 years of technology and marketing experience that spans from Bell Labs to startup IPOs to open-source and cloud software companies. He is CEO and founder of Nodeable, co-founder of MuleSoft, and managing director for Hardy Way. He is an adviser to DataStax, IT Database, and Puppet Labs. Disclosure. You can contact Dave via e-mail at softwareinterrupted@gmail.com.

 

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