In addition to the base support services, Enterprise Support offers SAP customers more services, the most notable being a pool of support advisers available 24/7; an enhanced version of the Solution Manager platform; and a new methodology, called Run SAP, for standardizing enterprise services-oriented architecture (SOA) processes.

When SAP made this licensing change, however, there was no formal or public announcement from the German software giant about it. "This probably wasn't one of those things where SAP wanted to make a big deal or make a large announcement about it," Wang says. "Usually when people raise prices, it's not something you want to talk about."

Why SAP Raised Its Fees

SAP's rationale for the move was a result of growing system complexities (with SAP and non-SAP applications) as well as SAP's recognition of its customer needs, says Kendzie. "Customers are asked to reduce the cost of their IT operations while ensuring innovation in parallel," he says. "The standardization of operations is the only way to handle both challenges."

As such, Enterprise Support "offers increased service value considering the technology stacks and integration needs that exist today," Kendzie says. "It also provides mission-critical capabilities that mitigate customer risk." (Kendzie notes that there has been "no decision or communication from SAP to current customers" as to whether they will be forced to move from Basic Support to Enterprise Support.)

In the recent Forrester report, Wang notes that SAP wanted to eliminate multiple support offerings. "SAP cites the growing complexity of IT landscapes and the movement toward enterprise service-oriented architecture environments as key drivers for a more comprehensive, differentiated and streamlined support offering," he writes.

In short, Wang says, SAP's move "reflects their view that software maintenance has gotten a little bit more complex."

The Oracle Factor

Another reason for SAP’s shift had to have been the competitive financial pressures exerted by its chief rival: Oracle. During the last several years, Oracle's operating margins have hovered around 40 percent, and the company’s long-standing goal has been to increase that to 50 percent, mostly by making strategic acquisitions. In its most recent quarterly announcement, Oracle CFO Safra Catz reported that operating margins had increased to 41 percent compared with 39 percent in the quarter the year before.

"Our operating margins are now substantially higher than our competitors," Catz said.

SAP's year-end financial data showed an operating margin of 27 percent last year. And those numbers, Wang says, needed to change. "They want to have some parity or at least get close in achieving those same margins," Wang says.