Business software major SAP will increase its prices from the turn of the year due to high inflation, the Handelsblatt business daily reported, citing a letter from the company to customers.
Germany-based SAP will charge up to 3.3 percent more for maintenance of software installations, according to the report.
SAP in July announced that it lowered its 2022 adjusted profit outlook to between 7.6 billion and 7.9 billion euros, from a range of 7.8 billion to 8.25 billion euros. SAP, however, affirmed its revenue outlook.
SAP, which makes software for managing business processes, has been moving to subscription-based cloud services from software licences with up-front fees.
“Our transition to the cloud is ahead of schedule and we have exceeded topline expectations, with cloud revenue becoming SAP’s largest revenue stream,” Christian Klein said earlier.
SAP’s quarterly revenue rose to 7.52 billion euros. SAP’s cloud revenue rose 34 percent to 3.06 billion euros ($3.12 billion) in the quarter. The current cloud backlog, which measures incoming business, was up 34 percent at 10.40 billion euros.