Thursday, January 14, 2010

SAP Listens to its Customers: Basic Maintenance is Back!

Today SAP announced that they are bringing back Basic Maintenance to its customer base, following quite a bit of customer frustration when it was announced maintenance would be increased in August of 2008... which soon turned into outrage in late 2008 and 2009 following the financial bust.

The main details are as follows:

  • Enterprise Support - 18.36% in 2010, with incremental increases to 2016 where it will reach 22%
  • Basic Support - 18%

Customers have the opportunity to make a change each year (from basic to enterprise support or vice-versa), but if they decide to move down to basic, and then later decide to go to enterprise support, they won't have the benefit of incremental increases and will go immediately to 22%... so customers will have to think carefully about this!

In PAC's opinion, there are still a host of issues with the traditional license/maintenance model itself in the face of SaaS utility billing, but we applaud SAP for listening to their customers (finally!). Some serious damage has already been done to its image with customers, but perhaps this could be a first step in turning the tide... let's hope that bigger and better ideas are to come from SAP in 2010!


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