Access and Feeds

Technology: Reprieve on Maintenance Fees

By Dick Weisinger

Both SAP and Oracle have long held firm in maintaining high support fees — money they say they need to not only provide quality support, but also to continue to develop and improve their branded software products.  Oracle is already at a 22 percent maintenance fee level with plans to go to 24.2 percent, and SAP has announced plans to increase maintenance fee levels from 17 percent to 22 percent.

Perhaps it’s the economy, but both Oracle and SAP have decided to offer their customers small breaks, not in the current fee levels, but in the rate of increase.  SAP had announced higher fees — now they say that they will still hike their maintenance rates, but the uplift in fees will happen over a longer period.

Oracle rate hikes have been delayed for one year.  SAP also plans to stagger its price increases over a longer period, finally peaking at 22 percent in 2015.

Alternative pricing models are slowing and having an affect on the way that SAP and Oracle approach their business — Open Source, Software As A Service, and third-party maintenance vendors are all beginning to chip away at the model of traditional software pricing.

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