SAP lets users move from on-premises licenses to cloud

German software giant SAP has changed its licensing terms, allowing enterprise customers to switch from existing on-premises licenses to cloud agreements.

The change, first reported by ASUG news, lets SAP customers put the money from maintenance payments on software that's no longer used towards cloud software instead.

However, subscriptions for cloud software have to total more than what the customer is currently paying for maintenance and support for on-premise licenses.

It's unlikely to be cheaper for customers to move from on-premises licensing to the cloud.

The deal applies to the company's software but also to that of SAP-owned Ariba and SuccessFactors. While each customer will be dealt with on a case by case basis, there are no restrictions on how many can switch from on-premises software licenses to cloud ones.

Customers can also opt to move to the cloud at their own pace and requirements, dropping on-premises licenses according to need.

Unlike rival Oracle which publishes price lists for its service offerings, SAP does not reveal its charges upfront, preferring instead to tailor costs to each individual customer.

User group surveys last year in the UK and Ireland showed that the majority of SAP's customers wanted price lists published, but also that the company's licensing was too complicated.