German multinational software company SAP announced

 

German multinational software company SAP announced earlier this year that it would apply a 3.3% price increase on cloud services , a move that has sparked complaints from customers.

A survey by DSAG, the SAP user group with members in Germany, Austria, and Switzerland, has found that nearly 50% of its customers are dissatisfied or very dissatisfied with the company's cloud pricing strategy.

  • SAP's price increases went into effect this January  and applied to the company's annual support fee by a maximum of 3.3%.
  • Inflation was cited as the main factor driving the price hikes.
  • The German software giant defended its decision to raise prices, noting that it had avoided raising prices for over a decade, even throughout the COVID-19 pandemic.
  • At the DSAG keynote at the 2023 Technology Days, the interest group cautioned SAP against raising its prices, stating that "a recurring annual increase in prices makes it more difficult for companies to move to the cloud."

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