Software firms scale back hike in support fees

Financial software giants Oracle and SAP have backtracked on a planned 25% increase in maintenance fees for customers.

SAP and Oracle announced last year that mandatory maintenance and support charges would increase from 17% to 22% of their licence fees. But after a backlash the hikes have been scaled back. SAP will make changes gradually over seven years while Oracle has delayed its increases for 12 months.

Both have said customers would have to pay more because service would be improved and expanded.

‘Customers haven’t asked for the extra support but they have to pay a 25% increase for it,’ said one commentator. Jairo Rojas, president of Business Applications Software Developers Association, said: ‘My advice to software companies is don’t think your customers don’t have any other option but to stay. There are options out there’.

An SAP spokeswoman said it was monitoring the effectiveness of the extra support.

Jurgen Rottler, Oracle executive vice president global customer services, said Oracle’s announcements show ‘continued commitment to provide the highest level of support to customers in these difficult economic times’.