UK SAP users are angry over what they say is an unnegotiated hike in support costs of 30 per cent in real terms, which has been described as “unacceptable.”

Earlier this month SAP wrote to customers outlining a new price structure replacing its standard support, included in all licensing and maintenance contracts, with Enterprise Support.

SAP claims the new service offers better value for money, but customers are wary of a mandatory increase in prices.

Chris Boucher, chief information officer (CIO) at Anglian Water, said the company was still trying to work out what the new offering meant for the utility.

“We are being told: ‘You will get more’, but I’m asking what are we getting? It’s a bolt from the blue at a pressured time and it is unacceptable,” he said.

Andy Hooper, CIO at Thames Water, said: ”The letter gives no reason for the increase so I am forced to conclude that the only motive is for SAP to increase its profitability at the expense of its customers.

The letter makes vague noises about improving customer service but I can’t see how that will happen.”

SAP announced that support prices will increase from 17 per cent to 22 per cent of contract value, immediately applicable to new customers and phased in for existing customers.

The vendor said it has engaged in dialogue with customers who said they needed more support.

“We are confident in the value the offering will provide at the industry standard rate of 22 per cent,” said a spokesman for SAP.

But this is a large increase, said Alan Bowling, chairman of the UK and Ireland SAP Users Group.

“In real terms this is a 29.4 per cent increase in costs over the next four years for existing customers, and it is hard to accept,” he said.

Bowling said small users will have to pay for aspects of support that they do not require under the new offering.

“It’s a good product, but it is a one-size-fits-all solution. Small and medium-sized enterprises may not need all the services offered,” he said.

Price increases of this magnitude will be seen as being totally unjustified, said David Roberts, chief executive of blue-chip user group The Corporate IT Forum.

“SAP seems to be creating its own boom economy and is oblivious to the economic pressures facing all organisations,” he said.