Introduction – Why SAP Support Fees Matter
SAP’s support and maintenance fees are a major part of long-term ownership costs.
Most customers pay an annual support fee of 22% of their SAP license value, regardless of how much of the software they actually use.
Support isn’t optional for SAP customers – but the level you pay for and how it’s structured absolutely is. Over five years, 22% yearly fees can exceed initial license cost – making support negotiation a top cost-control priority.
CIOs and finance teams must pay close attention to how support fees are calculated and what value they truly get in return, because even a deep license discount can be undermined by high maintenance rates.
Understanding SAP’s support models will help you spot value gaps – and seize opportunities to negotiate better terms on your contracts. For more insights, read our ultimate guide to Negotiating SAP Support & Maintenance: Reducing Costs and Improving Terms.
How SAP Calculates Support Fees
License base vs. maintenance rate: SAP calculates support fees on your software’s official list price, not on any discounted purchase price.
Even if you negotiated 50% off your licenses, maintenance is still charged on 100% of the list value. Support fees are billed annually and automatically increase as you purchase additional licenses (expanding your maintenance base).
Support tiers and rates: The percentage you pay depends on your chosen support tier:
- Standard Support costs about 19% of your license value per year.
- Enterprise Support costs about 22% of the license value per year (the default for most SAP customers).
- Premium Support (PSLE or similar) can range from 25% to 28% (usually reserved for large enterprises or special contracts).
Automatic uplifts: Unless you negotiate otherwise, SAP will apply an annual indexation of around 3–4% on your support fees. This “uplift” is essentially an automatic price increase each year.
For example, a €10 million license base under Enterprise Support (22%) would cost €2.2 million in the first year. With a 3% increase each year, you’d pay over €11 million in support fees over five years, exceeding the original license cost.
What You Get with Each Support Tier
SAP offers two primary support tiers (Standard and Enterprise), plus a premium support model. Each tier provides a different scope of services.
The table below compares the cost and key features of each tier:
Comparison of SAP Support Tiers
| Support Tier | Annual Fee (% of license) | What’s Included (Key Services) |
|---|---|---|
| Standard Support | ~19% | – Core technical fixes & security patches – Access to SAP support portal (knowledge base, updates) – Basic support during business hours (8×5) – Limited access to new innovation content |
| Enterprise Support | ~22% | – 24/7 support for critical issues (SLA-driven) – Faster response times and system monitoring – SAP Solution Manager and advanced optimization tools – Guided services (remote health checks, best practices) – Root cause analysis and advisory from SAP experts |
| Premium (PSLE) | 25–28% (varies) | – Tailored, high-touch support for complex needs – Dedicated SAP support contacts or on-site assistance – Proactive monitoring and custom SLAs – Exclusive access to roadmap sessions and specialized services |
Value comparison: Many customers pay for Enterprise Support but use under 30% of its extra services. In a stable environment, that extra 3% fee often isn’t justified versus Standard Support.
Commercial Implications and Cost Traps
Even after you choose a support tier, there are contractual pitfalls that can drive your SAP maintenance costs higher over time.
Watch out for these common traps:
- Locked Maintenance Base: Once you enroll your licenses in SAP support, it’s very difficult to remove them from the maintenance pool – even if the software goes unused.
- Inflationary Increases: SAP typically indexes (raises) its support fees by 3–4% every year automatically. This increase happens regardless of your system performance or issues resolved, steadily inflating your costs if not contractually capped.
- No Partial Termination: SAP does not allow partial cancellation of support on a subset of licenses. It’s an all-or-nothing commitment – all licenses stay under support, even shelfware.
- Automatic Fee Growth: Any new SAP licenses you purchase immediately expand your maintenance base. That means your annual support bill will automatically grow as your SAP footprint grows, unless you negotiate exceptions.
Checklist: To avoid surprises and control these costs, use this checklist when reviewing your SAP support contracts:
- Confirm the base license values used for your maintenance fee calculations (ensure they align with what you actually use).
- Review contracts for any indexation or uplift clauses (and negotiate a cap or freeze if possible).
- Identify any unused (“shelfware”) licenses still under maintenance and quantify their cost.
- Assess how many of the Enterprise Support features you actually utilize (if usage is low, consider downgrading to Standard).
When to Challenge or Reassess Support Levels
Paying top-tier support fees doesn’t always make sense. Regularly evaluate if your support level matches your current needs, especially in the following situations:
- Low Usage: You open a few SAP support incidents and rarely leverage SAP’s advisory or optimization services. If you’re not using the extras you pay for, consider a lower tier.
- Stable Systems: Your SAP environment is running smoothly with no major upgrades or new integrations planned. Less change means fewer crises – you might not need 24/7 expert attention.
- Cost Pressure: Your annual SAP maintenance bill has grown to a significant portion of your IT budget – a clear sign to rethink your support level.
- Upcoming Cloud Move: You plan to migrate to SAP Cloud or RISE in the near future. This gives you leverage to re-tier support now since your on-premise footprint may shrink.
Negotiation Tip: Don’t be afraid to ask SAP for a downgrade to Standard Support or a “blended” support rate across your licenses. When renewing or adding licenses, use that timing to request a unified maintenance rate (e.g., 20%) instead of paying full Enterprise on everything.
How to cut SAP support costs, Reducing SAP Maintenance Costs: Cutting Support Spend, Even with Shelfware.
Negotiation and Optimization Levers
When engaging SAP about support costs, come prepared with specific asks.
Here are some proven tactics to negotiate and optimize maintenance fees:
- Blended Rate Discount: Propose an average support rate (e.g., 20%) across all licenses, instead of paying 22% on some and 19% on others.
- Support Fee Freeze: Negotiate a freeze on annual maintenance uplifts for the next 2–3 years (no automatic 3–4% increases). This locks your support costs for a period.
- Tier Reassessment: Move non-critical systems to Standard Support instead of Enterprise. Mixing tiers (Enterprise for critical systems, Standard for less critical) can cut costs with minimal risk.
- Shelf License Audit: Audit your SAP licenses to find unused or underutilized modules. Push SAP to remove those from your maintenance base or to provide equivalent cost credits.
- Credit Offsets: If you plan to invest in SAP’s cloud or RISE, ask for support fee credits or offsets as part of the deal.
Example Clause: “Customer and SAP agree that maintenance fees shall remain fixed at the current base rate for the initial 36-month period.”
Enterprise vs Standard: Which Is Right for You?
Align your support tier with your actual business needs – not every system warrants the highest level of support. Use these guidelines:
Choose Enterprise Support if:
- You need 24/7, SLA-based support for mission-critical SAP systems.
- Your SAP landscape is highly complex or heavily customized, requiring SAP’s direct expertise.
- You rely on SAP’s proactive tools and advisory services (Solution Manager, health checks, etc.).
Choose Standard Support if:
- Your systems are stable and rarely changed, with no upgrades on the horizon.
- You have strong in-house SAP expertise to handle most issues internally.
- Cutting costs is a top priority, and you can manage without SAP’s extra guidance.
Best Practice: Mix and match support levels. For example, keep Enterprise Support for core production systems, and use Standard Support for non-critical or legacy systems. This way, you only pay premium fees where necessary.
Internal Governance: How to Track and Justify Support Spend
Managing SAP support costs requires ongoing oversight – treat these fees as an investment and track their returns.
Establish internal practices to monitor usage and value:
- Maintain a support cost ledger by system or module to know what each part of your SAP landscape pays in maintenance fees.
- Track support usage metrics (e.g., number of tickets logged, patches applied) to measure the value you get from SAP support.
- Conduct an annual support review before each renewal to confirm the right support level and find optimization opportunities.
- Include support costs and KPIs in your IT dashboards. This helps justify the spend and spot value gaps.
Checklist: Audit your SAP support spend with these steps:
- Gather all SAP support invoices and note year-over-year spending trends.
- Compare the maintenance spend to actual usage (e.g., number of support tickets or hours logged).
- Document any Enterprise Support ROI – which premium support services did you use, and what benefits came from them?
- Check your contract for indexation clauses and note any upcoming fee increases or restrictions.
5 SAP Support Fee Insights to Remember
- SAP support fees are based on the full list license price – not on usage or the discounted price you paid.
- Enterprise Support’s extra ~3% fee often delivers little additional value. Be sure you truly use its premium services.
- SAP support contracts auto-renew with annual fee increases by default (around 3–4% yearly). Negotiate caps or freezes to control this.
- Mixing Enterprise and Standard support tiers across systems can reduce your overall maintenance costs.
- Downgrading your support level or negotiating a blended rate is possible – but only if you negotiate it proactively.
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