SAP Licenses – Always a Source of Dispute?

E-3 MAGAZINE 03/2020: OUR GUEST COLUMN 

In recent years, SAP has introduced many new terms into the murky fog of SAP licensing—both in the cloud and in the on-premises sector. Why are so many customers up in arms, and where is this fog beginning to clear?

Some licensing ambiguities are cleared up with S/4HANA, if not sooner. Admittedly, this only happens if you opt for the“S/4HANA only” licensing model, but it’s a start. But what does this “only” mean? In the wake of disagreements between SAP and various database vendors, SAP has had to specifically address the issue of reimbursement for database usage outside the intended standard.

This has specifically raised the issue of“third-party” licenses. SAP has significantly backtracked on this issue in recent months—in part thanks to DSAG. However, if you decide to use only the HANA database and undergo a contract change in the process, this issue becomes virtually obsolete. A legal basis is still difficult to establish, but SAP is happy to set this issue aside for most customers.

Digital Access Licenses

Of course, only almost. The new“Digital Access” licensesremain a major issue.These guidelines for indirect use, which are finally available, are largely thanks to the efforts of DSAG. Now, the definitions of indirect use can be established much more precisely. Currently, 12 transaction data types (e.g., FI posting lines, order lines, purchase order lines, etc.) have been defined, the origin of which—provided they were not created by licensed SAP users—must be covered by Digital Access licensing.

But be careful: here, too, the devil is in the details. For example, current licensing models such as“Sales Order Process”are not compatible with the new “Digital Access” licensing type. In such cases, it is always advisable to schedule a consultation with your SAP partner to ensure you make the right decision.

Another way to simplify licensing is to assign business processes to categories such as“Professional Use” or “Functional Use.”

The previous classification of Professional Users and Limited Users often led to problems during surveys. Now, however, it is clearly defined which business processes can be performed by which users. But here, too, you can only take advantage of this once you have switched contracts.

AND THAT'S EXACTLY WHERE THE DANGER LIES WHEN CHANGING CONTRACTS

This is because switching to the new model means waiving existing license entitlements—and, in some cases, usage agreements for features that are no longer available under the new licensing model. However, many of the younger key account managers at SAP are no longer familiar with these terms—and this is often where disputes between customers and SAP begin. For this reason, it is strongly recommended that you first review the existing contract terms and compare them with the features currently in use.

Issues such as SRM and CRM, in particular, can stand in the way of switching contracts. In such cases, it is always advisable to develop a detailed roadmap for the coming years—and to coordinate license negotiations with the transition to new solutions. As long as you are still operating under old contracts, there is ultimately always room for dialogue on many issues. With SAP, with its partner, and also with DSAG. That way, solutions can always be found without any roadblocks.

Licenses for Cloud Solutions

The cloud remains an even more complex area. Even for SAP partners, it is still difficult to estimate costs in advance based on planned scenarios. This is because the interplay between cloud solutions, the SAP Cloud Platform, and SAP Cloud Integration (connecting ERP to cloud solutions) is what ultimately determines the actual price range. And there are a wide variety of promotions, discounts, and early-bird offers available.

Particular care should be taken whenintegrating third-party scenariosinto the cloud strategy. In this context, it is essential to carefully assess which scenarios involve “digital access” or data storage on the SAP Cloud Platform all the way into the ERP system. Unfortunately, the only option here is to go through SAP or an SAP partner. That’s why it’s not necessarily advisable to look at the price list and let yourself get discouraged.

Define your requirements and approach SAP or its partners with an open mind.

Otto Kitzmüller, Managing Director of INFORMATICS 

E-3 Magazine is dedicated to providing information and educational resources by and for the SAP community.