Thursday, July 17, 2008

SAP, Oracle Boost Software Prices - WSJ.com

Oligopoly pricing?...

Two of the biggest makers of business software have raised prices, a sign that consolidation in the industry may be easing the competition over prices that has been a hallmark of the last decade.

SAP AG said Wednesday that it has raised prices for the ongoing support and customer-service fees, known as maintenance, that are part of large software purchases. The move comes one month after rival Oracle Corp. raised list prices for its software.

[...]

SAP, based in Walldorf, Germany, charges many customers an annual maintenance fee equal to 17% of the upfront price of the software. Starting Jan. 1, that fee will be raised to 22% and phased in over four years, the company said. In exchange, customers get enhanced service, including around-the-clock support and help to identify and fix problems with systems from other tech companies that interact with SAP software, a company spokesman said.

SAP, Oracle Boost Software Prices - WSJ.com

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