SAP is to close its controversial subsidiary TomorrowNow by the end of October. In the meantime customers will be helped move to new support providers, including arch-rival Oracle.

TomorrowNow provides cut-price software support for users of enterprise applications such as PeopleSoft, JD Edwards, and Siebel applications. It was acquired by SAP in February 2005, with a view to tempting away customers Oracle gained from its acquisitions.

But the acquisition turned sour, when Oracle accused TomorrowNow of " corporate theft on a grand scale". Oracle claimed TomorrowNow staff had stolen masses software and technical support materials, and launched legal proceedings against SAP, seeking significant damages.

SAP subsequently culled most of the senior management at the support provider and put the unit up for sale. But the impending court case seems to have deterred buyers.

Now SAP has said it will close the unit, helping customers to transfer support arrangements to alternative providers, including Oracle.

“Our goal is to assist our customers in transitioning to a new support provider, including Oracle, without a disruption to their support during the wind-down process,” said Mark White, TomorrowNow executive chairman.