SAP puts price increase on hold

SAP has promised to hold off on a planned increase in the price of its support contracts, deferring a final decision until the New Year.

The company had planned to move customers to SAP Enterprise Support, a move that could see costs rise by up to 22 percent. The move sparked outrage among SAP customers, and the company has said it is responding by investigating the issue further.

"SAP plans to provide the outcomes of the task force the beginning of 2010," the company said in a statement.

"Until then, a decision on pricing for Enterprise Support has therefore been postponed."

SAP maintains that it has held its costs down for long enough and needs the price increases to maintain profitability.

Initial consultations on deciding key performance indicators (KPIs) for the service contracts have not gone well. Days ago two user group members resigned from the exercise but the company has said it is optimistic at striking the correct balance.