Five mistakes that can cost you your budget

The first mistake concerns reactive negotiation just before the measurement. Starting negotiations just before the measurement date is extremely unfavorable. Basically, you then have your back to the wall, because your account manager also knows that time is now pressing for you. In order to negotiate on an equal footing, you need sufficient time and well-founded information on the types of licenses you really need.

Approach SAP yourself in good time, proactively and with concrete license requests. If you are not satisfied with the offers, you do not have to accept them, but still have enough time to look elsewhere. The account manager also knows this and may present you with an improved offer on his own initiative.

Do not just buy, check!

The second mistake is an unreflective move to S/4 Hana. The switch to S/4 not only offers companies a more future-oriented way of working, but also the opportunity to take a new approach to licensing. This is because the introduction can take place as a product conversion or contract conversion. With the first variant, the existing contract remains in place as far as possible. In the case of contract conversion, however, the SAP licensing contract can be rolled out from scratch. In this way, capital that has been invested over many years in licenses that are too expensive can be freed up again. To do this, however, you need to know what you really need.

Using SAP's mapping tables as a guide, or even letting SAP estimate your needs, is not a good way to go: This way, you only roughly approximate your actual needs and may buy too many or the wrong licenses. Therefore, an analysis of the actual user activities makes sense. In addition, you should first run an S/4 test simulation before buying. This allows you to adjust the licenses before you sign the contract.

The third error concerns the unchecked subsequent purchase of licenses. Regularly check the existing licenses based on actual user activity. This is the only way to ensure that you buy what you really need. Basically, only estimates are possible manually. But if you have the activities determined technically, you will get an exact result of which licenses each user really needs and can then choose the most cost-effective one. In this way, you cover your needs, avoid overlicensing and save costs.

Nor should digital access be put on the back burner. For years now, SAP has been preparing the comprehensive pricing of digital access, i.e., access to SAP from external systems, and has also demanded this in the meantime. If not yet contractually regulated, third-party access must now be paid for securely. To avoid being surprised by expensive bills, it makes sense to clarify your own digital access situation in advance. On the one hand, this prevents a rude awakening, and on the other hand, you can proactively find the right path with SAP. Those who take care now can be rewarded with a generous concession from SAP.

Those who have not yet settled the issue of digital access should take advantage of the Digital Access Adaptation Program (DAAP) if possible, so as not to make the fifth mistake and leave the program unused. The program runs until the end of 2021, and SAP is luring customers with special conditions if they switch to the new document-based licensing model now. For example, the required documents can be obtained at a 90 percent discount as part of the DAAP. In addition, SAP will also waive back maintenance. However, it is important to know how many documents are to be expected each year. To clarify this, a precise analysis is necessary.