SAP eases ERP maintenance and support rules for on-prem customers

SAP said it will loosen maintenance and support rules for on-premises ERP deployments in a move that ends a European Commission investigation. The European Commission opened an investigation of SAP's after-market support services for on-premises software in 2025.

The move doesn't impact SAP's cloud platform.

In a statement, SAP said it has updated its policies for on-premises customers with the following:

• Customers can organize their SAP installations and select different levels of support, choose no support or make "other choices outside of SAP support."
• The segmentation gives enterprises the ability to customize their on-premises support.
• SAP is providing the option to terminate unused licenses in "objectively justified cases" including layoffs, bankruptcy, divestitures and implementation failures.
• The company also said it is simplifying how license fees are calculated.

The SAP move is a win for on-premises customers and the ability to segment various SAP installations may enable companies to move some applications to the cloud while milking older software in other areas. Here’s what the EC said:

“SAP’s software is critical to businesses across Europe, and indeed globally. Today’s decision gives customers using SAP’s popular on-premises business management software more freedom to choose maintenance and support services without unfair restrictions that raised their costs and stifled competition. The legally binding commitments secured by the Commission set a benchmark for the industry more broadly and should serve as a warning against practices with similar effects in the cloud markets, where customers are increasingly moving. This decision sends a strong message: dominant firms in digital markets and beyond should not abuse their power to lock in users at the expense of choice and innovation.”

A few thoughts:

• Enterprises will be clear to consider third-party support nearing the end of SAP support.
• This move will enable companies to be more thoughtful in their transition to SAP S/4HANA, which would replace on-prem ERP.
• SAP's commitments will remain in force globally for 10 years. It'll be interesting to see how SAP's on-premises moves hurt its effort to move its customers to S/4HANA.
• On-premises customers get a key win. It's a safe bet that third party support companies like Rimini Street will benefit too.

More:

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• SAP acquires Dremio, Prior Labs as it builds out its data platform plan
• SAP delivers solid Q1, but currency rates, geopolitics weigh

Constellation Research analyst Holger Mueller said the agreement is a big win for SAP customers.

"In a landmark agreement between the EU and SAP, the EU has basically achieved the freedom to choose third party support for on-premises SAP customers. Customers have the freedom to partition their install base into SAP support and third party support and there is no penalty to move back to full SAP support, as needed. The result is likely a spring for the third party support and maintenance industry, with likely a new generation of AI powered services vendors creating a national cottage industry. The agreement is also a feather in the cap for the EU - showing the EU can also use its powers with national, EU based champions like SAP. It will be interesting to see how many on-prem customers will jump ship to third party support. I would not be surprised if a bunch of retiring in-house SAP IT support professionals start firms."