First got here the carrot of decrease prices within the cloud with the bundled Rise with SAP providing. Now right here comes the stick.

SAP stated Thursday it should elevate the price of assist for customers of its on-premises software program for the second 12 months in a row, simply days after saying plans to withhold future improvements in its merchandise from on-prem prospects.

“SAP’s latest improvements and capabilities will solely be delivered in SAP public cloud and SAP personal cloud utilizing RISE with SAP because the enabler,” CEO Christian Klein instructed analysts throughout a convention name to debate the corporate’s Q2 outcomes. “That is how we’ll ship these improvements with velocity, agility, high quality, and effectivity. Our new improvements won’t be obtainable for on-premise or hosted on-premise ERP prospects on hyperscalers.”

Future improvements that on-prem prospects will miss out on embrace new ERP capabilities, sustainability and carbon accounting options, and all the corporate’s new AI improvements, Klein stated.

If that alone wasn’t sufficient to make reluctant CIOs take into consideration shifting to the cloud, SAP has one other argument too: value.

After a decade-long worth freeze, SAP elevated the price of SAP Normal Assist, SAP Enterprise Assist, and SAP Product Assist for Giant Enterprises contracts on January 1, 2023. Costs rose according to prospects’ native shopper worth index (CPI), with a cap of three.3%.