SAP Overhauls On-Premise Support and Licensing Policies Following EU Investigation

SAP has revamped its on-premise maintenance and support model, introducing a range of changes designed to provide customers with more control and flexibility. These updates, developed in collaboration with the European Commission and customer advocacy groups, address long-standing concerns about rigid contracts and opaque pricing.

Under the new policies, customers can now tailor support levels across their SAP installations, more easily terminate or reallocate unused licenses, and access simplified contract terms, including single-metric pricing. SAP has also reduced the barriers for organizations to re-engage with its support ecosystem, lowering costs and administrative hurdles.

The European Commission launched a formal investigation into SAP's after-market support services for on-premises software in September 2025, citing concerns that SAP's practices restricted competition. The Commission has accepted SAP's commitments, making them globally binding for ten years.

This strategic shift by SAP is seen as a response to intensifying vendor switching risks and a market increasingly driven by buyer empowerment. Analysts suggest that by prioritizing flexibility and transparency, SAP aims to strengthen customer loyalty and maintain its competitive edge in the evolving enterprise software landscape.

While these changes specifically target on-premise ERP maintenance and support, SAP notes that the added clarity and flexibility will also assist customers in their modernization efforts toward AI-enabled enterprises.