For the first time in nearly a decade SAP will be increasing annual support fees
SAP have announced an increase in Standard Support, Enterprise Support and Product Support for Large Enterprises (PSLE) which takes effect 01 January 2023. This increase in annual SAP support fees is based on local CPI to a maximum of 3.3%.
In many SAP customer contracts, SAP reserve the right to increase support fees annually with 90 days notice. This is the first time that SAP have increased their support fees for almost 10 years.
We would like to clarify that this support increase does not affect the percentage that is charged for Standard Support, Enterprise Support or Product Support for Large Enterprises (PSLE). This is an increase of the support fee by a maximum of 3.3%. For example, if you pay 1,000,000 in annual support fees, you will now be paying 1,033,000.
Please note these key takeaway points:
- This only affects order forms that have passed the initial term and first renewal term
- Any new purchases will not be charged the additional CPI rate until the first renewal term has passed
- This does not affect any cloud products or contracts
It is critical that organizations review their SAP support invoices and contracts as a priority this year to ensure the correct fee is paid for 2023 and annual budgets are adjusted accordingly. ITAA can help SAP customers to understand their contractual clauses related to SAP support, how much support fees will cost next year and the options available to them. To discuss how we can help your organization please contact us.
You can read in full SAP’s “Adjustment of SAP Support Fees” Statement for further information.