SAP has given CIOs another reason to consider moving to the cloud: rising support costs for on-premises software.\n\nThe company will raise the cost of its SAP Standard Support, SAP Enterprise Support, and SAP Product Support for Large Enterprises contracts for existing customers from January 1, 2023. Prices will rise in line with customers\u2019 local consumer price index (CPI), with the increases capped at 3.3%. The changes will come into effect when customers renew their annual support contracts for the second time, affecting those who signed up before January 1, 2021.\n\nThe ERP vendor laid out its plans in a document entitled \u201cAdjustment of SAP Support Fees,\u201d which it finalized at the end of August.\n\nSAP blamed the change on the higher costs of energy, labor, and third-party services, which are affecting the company just as many other businesses. It said it had kept the price of its support offerings broadly stable for almost a decade, even waiving adjustments during the pandemic.\n\nThe price increases only relate to support contracts for existing on-premises software, and the list price for support for new purchases of on-premises software will not increase, SAP spokesman Martin Gwisdalla told CIO.com in an email, meaning that users of SAPs cloud software and services will not be affected by these particular increases.\n\nHowever, SAP\u2019s cloud users may not be sheltered from the increases, as the company is also considering ratcheting up the price of its cloud software by 3.3% every year, CEO Christian Klein told German newspaper Handelsblatt in late July.\n\nThe German-speaking SAP Users Group, DSAG, is unimpressed with the company\u2019s plans: \u201cIt is trying to establish mechanisms here that increase the costs for cloud services far above inflation,\u201d Thomas Henzler, DSAG board member for licenses, service, and support, told CIO.com.\u201d This is absolutely unacceptable and also incomprehensible.\u201d With the service price rise and the threatened increase in cloud prices, SAP\u2019s oldest on-premises customers could find themselves in a bind. SAP has been touting its cloud services as a way to keep licensing, maintenance and hosting costs under control, particularly with its \u201cRise with SAP\u201d all-in-one offering, and has longstanding plans to move users of its previous software generation, ERP 6.0 and Business Suite 7, to a higher-paying support tier after standard support ends in 2027.