Gartner has reported that SAP customers opting for private cloud have seen price increases of 10 percent or more on renewal proposals if they fail to negotiate a renewal price cap in the original deal.
SAP ramped up efforts to move customers to its latest software in the cloud on a subscription model nearly five years ago and has shifted its sales teams' incentives to encourage sales of SAP Cloud ERP Private subscriptions, but a recent paper from the global IT researchers shows the move has not been without commercial challenges.
Meanwhile, SAP's on-prem customers can still negotiate discounts, although this is becoming more challenging. Gartner said it expects SAP's on-premises customers to face annual support price increases for the foreseeable future as the ERP vendor tries to persuad