Source URL: https://www.theregister.com/2025/05/22/sap_sapphire_costs/
Source: The Register
Title: SAP users grapple with 50% premium for industry-standard service levels
Feedly Summary: Vendor’s AI-infused pitch at Sapphire marred by backlash over support costs
News that SAP users face a 30-50 percent premium to get some cloud products – including core ERP – to industry-standard service levels threatens to overshadow the German vendor’s annual conference as new pricing models, performance, and partner arrangements dominate the conversation.…
AI Summary and Description: Yes
Summary: The text discusses backlash against SAP’s recent pricing models for cloud products during its annual conference, Sapphire. The overhead costs associated with AI integrations are particularly highlighted, raising concerns among users regarding affordability and access to industry-standard service levels.
Detailed Description: The content revolves around SAP’s annual conference, Sapphire, where the company unveiled its AI-infused offerings. However, the announcement is overshadowed by significant backlash from SAP users concerning the increased costs associated with accessing these AI-enhanced cloud products.
Key points include:
– **Increased Costs**: Users are facing a 30-50% premium for certain cloud products, notably the core ERP systems, to meet what is considered industry-standard service levels.
– **User Concerns**: The backlash indicates dissatisfaction among users who may feel the added costs associated with AI integrations will limit access and affordability of essential services.
– **Impact on SAP’s Presentation**: The controversy surrounding pricing may divert attention from other innovations or announcements made during the conference, affecting the overall perception of the company’s advancements in AI and cloud technology.
– **Market Implications**: Such pricing strategies could influence SAP’s competitive standing in the cloud marketplace, particularly among companies striving to balance advanced technology integration with cost-efficiency.
This situation emphasizes the importance for security and compliance professionals to not only be aware of the technological advancements being made by vendors like SAP but also the accompanying financial implications which could affect budget allocations for security implementations and overall IT strategy. Understanding the cost structures and service level requirements is critical for effective risk management and compliance adherence in cloud environments.