SAP will end maintenance service for its clients in the sanctioned country at the end of the year, the company revealed
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German business software giant SAP will terminate maintenance contracts with customers in Russia at the end of the year as the firm takes its next step in a delayed exit from the country, Kommersant business daily reported on Tuesday, citing a company letter.
“All maintenance contracts will expire at the end of 2023” and will not be renewed, a spokesperson for SAP confirmed.
The firm joined American tech companies Oracle and Microsoft in announcing plans to leave the Russian market early last year following the outbreak of hostilities in Ukraine. In June 2022, SAP said it would restructure its offices and move employees to CIS countries such as Armenia, Kazakhstan, and Georgia.
One of the world’s largest developers of industrial IT software, SAP stopped all sales in Russia and was actively shutting down cloud operations in the country. However, support was still available to Russian customers with valid contracts.
According to media reports, the company continued maintenance for its clients who were not subject to Western sanctions because a premature end would have resulted in contractual penalties for the firm.
READ MORE: Countries can benefit by refusing to sanction Russia – Bank of Canada
The withdrawal also extends to Belarus, which the West has also sanctioned for supporting Russia, the company said.
SAP, Oracle, and Microsoft were Russia’s leading suppliers of software solutions for automating company activities. The information systems of most large Russian commercial and state firms are built around their products.
As of the beginning of 2022, SAP was Russia’s largest supplier of industrial software, with a market share worth 60%. Financial accounts showed that its revenue totaled 35.8 billion rubles ($366 million) in 2020.
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