SAP Raises Costs, Slashes Innovation for On-Prem Software

August 9, 2023 Alex Woodie

Companies that run SAP on-prem, including all of its IBM i customers, will be left out in the cold following the German ERP giant’s latest moves, which includes a 5 percent increase in annual on-prem support costs and a pledge from the CEO that all new “innovation” only will be delivered in the cloud.

SAP, like most enterprise software vendors, has been trying to get its customers to move to cloud versions of its ERP software for some time. Moving customers to cloud subscriptions not only smooths out the revenue stream for companies like SAP compared to the sporadic …