SAP is not spared from inflation, which has a direct impact on its offerings, the publisher tells its customers. As of January 1, 2023, it will therefore adjust the royalty amounts for its existing support contracts according to the applicable local index.

Inflation is also affecting software publishers, especially SAP, the world's heavyweight in business applications. To cope with this, the German vendor will "adjust" its support costs from January 1, 2023. "The current macroeconomic environment is subject to high inflation rates, which are reflected in regional price indexes," the European software company said in a statement sent to LMI by its French subsidiary. "SAP is not spared from this increase, which has a direct impact on its offerings, due to rising energy, labour and third-party service costs."

In this context, the vendor has decided to adjust the software maintenance fee amounts "according to the applicable local index (CPI)" for the existing contracts: SAP Standard Support, SAP Enterprise Support and SAP Product Support for Large Enterprises, it explains. Specifically, the fees will be adjusted "by a maximum of 3.3% (or the local CPI rate, if lower), effective January 1, 2023. For France, the rate applied will therefore be a maximum of 2.12%," SAP said in its release. This adjustment will be applied to the amount of royalties payable (*). The provider emphasizes that it had not revised its fees in nearly ten years, "including during the pandemic period in 2021 and 2022.

Within SUGEN (SAP user group executive network), a network that brings together 23 SAP user group communities on 6 continents, we are obviously following this issue closely. Six countries are below the 3.3% index: Germany, Austria, China, France, Japan and Switzerland, said Gianmaria Perancin, president of SUGEN. Many customers are unhappy with the receipt of a "very standard circular letter" informing them that the maximum rate of 3.3% will be applied unless the applicable local index is lower. They would have preferred SAP to take the time to personalize the communication for the six countries affected by a lower CPI.

The issue of group contracts signed by certain companies also raises questions. For example, what rate will be applied to the subsidiaries of a French client that are located in a country affected by the 3.3%? "If the global maintenance of the contract is paid by France, we understand that the contractual clauses apply, they will only pay 2.12% more. This may be different if each subsidiary pays its share directly to SAP or in cases where the payment goes through a foreign country subject to the 3.3% increase (for example the United States or Great Britain), says Perancin.

The USF will hold its annual convention in Lyon on October 5 and 6. The adjustment of the fees implemented by SAP on its software support should be commented on during the usual press briefing.