SAP Maintenance Fees Rise: Impact and Costs

SAP is increasing the maintenance fees

By Avendata

SAP Maintenance Fees Rise: Impact and Costs
As reported by Handelsblatt on August 8, 2023, SAP maintenance is expected to become more expensive. Updates for software installations will cost SAP customers more in the future. This is likely not the last price increase, as CEO Klein is following a certain strategy.
The price hike is expected to have a significant impact: In the previous year, the company generated a revenue of 11.9 billion euros from maintenance, with a gross margin of 88 percent in the software and support sector. The increase will add several hundred million euros to this, practically without additional expenses.
https://www.handelsblatt.com/technik/it-internet/softwarekonzern-sap-wartung-wird-teurer-weitere-preiserhoehungen-geplant/29283578.html
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Here is an example of estimated annual costs for operating a medium-sized SAP system:

Maintenance and Support Costs: It is assumed that the annual maintenance and support costs for the SAP system are approximately €25,000.
Operating Costs: The annual operating costs for hosting, energy consumption, backup, database management, etc., are estimated at around €15,000.
Training: Every year, new employees are trained or existing employees are brought up to date. The estimated annual training costs could be around €10,000.
Updates and Expansions: For regular software updates and potential expansions, approximately €20,000 per year could be budgeted.

Support and External Service Providers: Additional support from external consultants or service providers could cost around €15,000 annually.

This results in the following calculation of estimated annual costs for operating an SAP system: €25,000 + €15,000 + €10,000 + €20,000 + €15,000 = €85,000 per year. Please note that this is just an example. The actual annual costs can vary based on the specific needs and circumstances of the company. It is important to regularly review and adjust the costs to ensure that the SAP system is operated efficiently and cost-effectively.

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FAQ

Handelsblatt reported that SAP maintenance costs are set to rise, with software installation updates becoming pricier in the future.

The company generated 11.9 billion euros in maintenance revenue in the previous year, and the increase is expected to add hundreds of millions without additional expenses.

Certainly. For instance, annual operating costs, including maintenance, training, updates, and external support, could total around €85,000. Actual costs vary based on individual company needs.