SAP To Raise Support Prices In 2023 Due To Inflation

SAP is set to increase support costs for some existing agreements by a maximum of 3.3 percent starting next year.

SAP will increase support prices for existing agreements by a maximum of 3.3 percent next year, adding to the growing list of large IT companies raising prices due to high inflation rates.

Effective Jan. 1, 2023, SAP confirmed it will increase the annual support fee for SAP support agreements by a maximum of 3.3 percent.

Specifically, the Germany-based company will increase the support fee for existing agreements for SAP Standard Support, SAP Enterprise Support and SAP Product Support for Large Enterprise, according to a report by The Register.

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These SAP support services help customers secure their existing IT investments, optimize operations and leverage the latest innovations as well as training and collaboration with SAP experts.

The increase in support fees will not impact list prices for SAP offerings on new software purchases.

Big Tech Companies Increasing Costs Due To Inflation

SAP’s cost increase for support fees comes just a few months after Oracle raised its own support prices on some services by upward of 8 percent in the U.S. due to inflation.

In July, Intel told its customers to expect price increases across its product line—including chipsets, microprocessors and other products—by as much as 20 percent.

“Intel indicated it would increase pricing in certain segments of its business due to inflationary pressures,” Intel told CRN in July. “The company has begun to inform customers of these changes.”

Xerox also recently said the company will be increasing prices for its products and services due to inflationary pressure.

“Inflationary pressure is expected to continue in the near term, but we will offset a large portion of inflation-related cost growth with price increases for our products and services,” said Xavier Heiss, Xerox’s CFO and executive vice president, during the company’s quarterly earnings call in July. “The effects of our price increases will compound over time, particularly for our contractual business where price increases are elected at specific times throughout the year or upon contract renewal.”

Inflation Hits PC Market

In a new report by IT market research firm IDC, the company said PC and tablet shipments will suffer in the second half of 2022 and into 2023, in part, due to increased inflationary costs.

IDC expects global shipments of traditional PCs to decline nearly 13 percent annually in 2022 to 205 million units.

Tablet shipments are expected to drop 6.8 percent annually in 2022 to 159 million units.