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SAP forces customers into support upgrade

SAP is raising support pricing. Customers have no choice but to comply.

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Dave Rosenberg Co-founder, MuleSource
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.
Dave Rosenberg

SAP has announced that it plans to transition all customers to its new Enterprise Support offering starting January 1st, 2009. There's nothing like being stuck on a giant system like SAP with no choice but to pay whatever ransom they ask for.

This reminds me of the time that Hoboken, NJ parking garage didn't want to pay for a 20% license increase and all the cars got trapped.

According to the press release, SAP will incrementally raise support costs up to 22% by 2012: "For example, subject to specific contractual limitations, a typical customer paying 17 percent of maintenance base for SAP Standard Support in 2008 will pay a rate of 18.3 percent of maintenance base for SAP Enterprise Support in 2009."

While this feels like sneaky attempt to raise prices (see previous post on Oracle) at least they are not raising license fees. There is value in support, though the increased cost doesn't exactly explain what you get for the additional cash.

Via Irregular Enterprise (ZDNet)