SAP co-CEO: We're working to fix software licensing, pricing complexity

24.10.2012

Even as SAP moves toward the "solution-oriented" approach, customers will still be able to buy everything it sells in stand-alone form, he said.

Snabe's remarks are of interest for a number of reasons, but also don't address the full spectrum of customer concerns, said Jon Reed, an who closely tracks SAP.

The total price of software includes consulting services and support, not just license fees, Reed noted. "What that tells me is he's feeling pressure from customers about not just the software, but the services piece."

If SAP moves more heavily into "solutions" such as Snabe discussed, it will potentially take business away from its consulting partners, who should pay attention, Reed added.

Meanwhile, although SAP has gotten better over time offering public pricing for its midmarket and small-business offerings, "they really seem attached to not publishing price lists for large enterprises," Reed said. That's because SAP wants to preserve all its leverage for negotiation during such deals, rather than be tied to a public price, he said.