SAP changes database commission scheme

April 12, 2005

In case you didn't know: German business software vendor SAP AG sells other vendors' database products -- in addition to its own software that runs on top. And over the years, its salespeople have made some pretty fat commissions from selling these products.

That's now history.

"In the past, there were incentives for our salespeople to sell high-priced databases," said SAP company spokesman Markus Berner. "The more expensive the database, the higher the commission."

That meant that not only salespeople but also suppliers of the more expensive database products, such as Oracle Corp., benefitted from this compensation scheme, but customers didn't, according to Berner.

"We changed our database sales commission to a flat fee-based scheme late last year in the U.S. and are now implementing this policy in Europe," he said.

To read the whole story, visit http://www.itworld.com/App/650/050412sapcommission/.