re: SAP Plugs Profit Hole With Support Price Hike
In general, 22% per year for support is not unreasonable and is still below the industry average. While Oracle and SAP may charge 22% of net, Microsoft and IBM charge 24 to 25%. In the side by side analysis we do for BI platform vendors, some are higher and are based on list. BUT the big problem here is that SAP support ranks in the bottom tier according to our survey results, so it's hard to justify an increase without also providing a good level of support. Support for ECC may be different. Innovation, both in ECC and BI, are funded by maintenance dollars and that too is a mixed bag. In BI, the newest products like Hana and Visual Intelligence cost customers extra.