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SAP faces user wrath over price hikes

SAP faces user wrath over price hikes

Series of user group webinars will discuss the changes

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SAP could feel the full force of user frustration over its recently announced price rises for support services during a series of webinars organised by a major US user group to discuss the implications of the new charges.

With user groups in the UK and US expressing concern about the price rises, the Americas' SAP Users' Group (ASUG) this week held the first in a series of Web seminars on SAP's enterprise-level support service,

The event provided an overview of the enterprise support offering, focusing on how it can aid "innovation and protection of investment in SAP," according to ASUG.

The next webinar is scheduled for 24 September and will discuss enterprise support features such as continuous quality checks and around-the-clock root cause analysis. Additional sessions are scheduled for 16 October and 12 November.

SAP's proposed enterprise support offering will replace the standard and premium support options.

Customers at those support levels will start seeing some enterprise support benefits now but no price increases until 1 January SAP will phase in the additional costs gradually until 2012, eventually reaching the enterprise support level of 22 percent of maintenance base, compared to 17 percent for standard support.

SAP has contended that customer environments are becoming increasingly complex, and the service's additional benefits could provide efficiencies and cost savings.

An SAP spokesman said the web sessions had been planned before users voiced scepticism over the enterprise support offering's value.

One industry observer said the Webcasts represent a natural progression of the debate over SAP's move.

discuss the implications of the new charges. The webinar, the first in a series, provided an overview of the enterprise support offering, focusing on how it can aid "innovation and protection of investment in SAP," according to ASUG.

The next one is scheduled for 24 September and will discuss enterprise support features such as continuous quality checks and around-the-clock root cause analysis. Additional sessions are scheduled for 16 October and 12 November.

SAP's proposed enterprise support offering will replace the standard and premium support options.

Customers at those support levels will start seeing some enterprise support benefits now but no price increases until 1 January SAP will phase in the additional costs gradually until 2012, eventually reaching the enterprise support level of 22 percent of maintenance base, compared to 17 percent for standard support.

SAP has contended that customer environments are becoming increasingly complex, and the service's additional benefits could provide efficiencies and cost savings.

An SAP spokesman said the web sessions had been planned before users voiced scepticism over the enterprise support offering's value.

One industry observer said the Webcasts represent a natural progression of the debate over SAP's move.

"There's definitely a broad consensus among our clients that there may need to be some concessions on SAP's piece, but it's also important to understand what value they may receive. That's a fair discussion," said Forrester Research analyst Ray Wang.

Marc Songini, an analyst with Nucleus Research, said he has heard mixed reactions from users toward enterprise support: "Some are definitely not enthused about a forced march and not thrilled about the level of service they're already getting. The flip side is some customers don't mind this hike because they're going to get every penny out of it."

Meanwhile, SAP customers are weighing the prospect of third-party support from providers such as Rimini Street, which is preparing to launch such a service next year.

"There's definitely a broad consensus among our clients that there may need to be some concessions on SAP's piece, but it's also important to understand what value they may receive. That's a fair discussion," said Forrester Research analyst Ray Wang.

Marc Songini, an analyst with Nucleus Research, said he has heard mixed reactions from users toward enterprise support: "Some are definitely not enthused about a forced march and not thrilled about the level of service they're already getting. The flip side is some customers don't mind this hike because they're going to get every penny out of it."

Meanwhile, SAP customers are weighing the prospect of third-party support from providers such as Rimini Street, which is preparing to launch such a service next year.

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