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SAP, Oracle and SaaS
SAP has long been the big name when it comes to Enterprise Support programs.
But recently, Oracle's initiatives into this arena have created pricing pressure on SAP.
 As a result, SAP is changing the way it prices its maintenance fees to a single layer.
Companies, both large and small, will experience the same fee structure from SAP.
According to SAP, this single layer fee structure is needed because of pressure on SAP's profit margin from Oracle and non-realized profits from new initiatives such as Business ByDesign.
SAP announced that it will be raising the rate for its maintenance fee each year until it reaches 22% of product licensing fees by 2012.
Could this cause small businesses which utilize SAP and which will experience higher maintenance fees from SAP to transition to open source and Software as a Service (SaaS) solutions?
SaaS solutions are growing in popularity. And for smaller companies which will not be able to afford the 22% pricing structure, Saas solutions may be the best alternative. |
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