The largest maker of business-management software, SAP AG, plans to spend approximately $500 million to encourage customers to its Hana data-processing product, and ramp up the competition against Oracle Corp.

$337 million has been budgeted by SAP to provide new clients of its Hana database platform with consulting services and an 18-month refund policy. The Walldorf, Germany-based company is also starting a $155 million venture fund to spur development of applications compatible with Hana.

Vishal Sikka, an SAP board member in charge of technology and innovation, said yesterday “with Hana, we have an opportunity to really transform the database and rethink applications.”