SAP Price Update

SAP has stated that Standard Support, Enterprise Support, and Product Support for Large Enterprises (PSLE) would be increased beginning January 1, 2023. The annual SAP support cost increase is based on local CPI and is capped at 3.3%.

SAP reserves the right to adjust support prices annually with 90 days’ notice in many SAP client contracts. Since roughly ten years ago, SAP hasn’t hiked its support prices before.

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SAP pricing increase 2023 Update

We want to be clear that the percentage charged for Standard Support, Enterprise Support, or Product Support for Large Enterprises is unaffected by this support increase (PSLE). A maximum 3.3% increase in the support cost will result from this. For instance, if your annual support payment is $1,000,000

Only order forms that have passed their initial term and first renewal period are impacted by this. Until the first renewal term has ended, no new purchases will be subject to the higher CPI rate.

This has no effect on any cloud products or contracts.

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Correct fee 2023

To guarantee that the correct fee is paid for 2023 and that annual budgets are adjusted accordingly,  enterprises must assess their SAP support bills and contracts as a top priority this year.

SAP’s “Adjustment of SAP Support Fees” Statement can be read in full here.

SAP Enterprise Support

But, this also connects with SAP Enterprise support pricing

The List Price for new purchases under SAP Enterprise Support is locked at 22% until 2025.

For existing SAP Enterprise support contracts throughout the initial1 period and first renewal period2, SAP will not increase rates starting in 2019.

1 Standard initial period: the remainder of the current calendar year plus the full calendar year following the initial period

2 First renewal period: the entire calendar year following the initial period (the same example as above; First Renewal period ends December 2023)

SAP Enterprise Support can be accessed here

How can Blackbelt XP help?

SAP clients can benefit from Blackbelt XP’s assistance in understanding their contractual obligations for SAP support, the estimated cost of support fees for the upcoming year, and their options. Please get in touch to discuss how we can support your organization.

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