Spoilt for choice
Conversion processes to S/4HANA require planning. Not only the choice of operating model or the implementation of the migration are essential, but also the choice of the appropriate license strategy. A choice with underestimated consequences. We have compiled the best tips for a smooth conversion for you.
The SAP systems of our existing customers are operated under the existing license and maintenance contracts. The rights of use are unlimited in time, but maintenance for the widely used ERP system ECC has already been announced for the end of 2027. This will result in a technical migration to the "Digital Core" of S/4HANA and the database. In contrast to previous versions, SAP S/4HANA only has four user types for named user licenses: Developer, Professional, Functional and Productivity Use. Although this standardization simplifies licensing, it leaves less scope for individual design. The decision basis for the choice of license model is the question of the best cost-benefit ratio. Until the end of April 2023, it was possible to choose between Product Conversion and Contract Conversion.
Instead of Product Conversion, on-premise customers now only have Contract Conversion. However, this offers the additional opportunity to say goodbye to potential well-shelfware within the license landscape.
Klaus Augner, Head of Sales INFORMATICS
Product Conversion....
In the course of a product conversion, the previous license model was retained. Existing special agreements remained largely untouched. This meant that existing SAP customers who used the previous "S/4HANA Enterprise Management for ERP Customers" could also use their licenses for S/4HANA. After the cut-off date of 01.05.2023, only the contract conversion will remain, except for those customers who have already opted for the "9000-euro license".
....versus Contract Conversion
With contract conversion, the license value is increased by at least 10% with an additional license value or the customer is credited 90% of the existing license value. In any case, contract conversion offers the advantage that SAP users can clean up their license landscape (shelfware), i.e. draw a line under the previous contract history. Those who are planning to invest in SAP products anyway usually choose contract conversion. Critical points here are the answers to the questions: Which S/4HANA products are relevant for future processes? Which old user types will be reassigned? How many documents will be created in the course of indirect use and need to be taken into account in the S/4HANA model with Digital Access?
Tips for licensing: If you have already carried out the product conversion - the significantly lower-risk option - only the contract conversion is still available on-premise as a possible switch scenario to S/4HANA. The alternative is the S/4HANA Cloud as a public or private version, which is being strongly promoted by SAP. If you have any questions about licensing, we are of course always available to ensure that you are always "well advised".
Klaus Augner, Head of Sales, will be happy to answer any questions you may have.
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