Indirect options

SAP and the DSAG user association have been working with other user groups such as the Americas' SAP Users' Group (ASUG), in response to a request made in 2017, to clarify the issue of "indirect" use.

Accordingly, there are now several options for switching to the document-based model in a largely "cost-neutral" and unbureaucratic manner. The first option ignores the contract history and provides the necessary documents at no cost.

However, it is also a fact that the customer must purchase a 15 percent increment of new documents to be added, thus licensing some future growth in advance. A second option gives the customer the option to receive a 90 percent discount on the total number of billing-related documents.

So the relaunch of Digital Access no longer seems to trigger a financial super-GAU, but legally and organizationally nothing has been clarified for a long time yet. Lowering prices for an injustice is a risky gamble and precisely not a confidence-building measure.

In a digitized world, value creation is increasingly taking place in processes that are no longer controlled by people. SAP has also had to recognize this and has expanded the license model to include the document-based pricing model.

The goal here was to only price documents, such as orders or invoices, that also add value for the customer. For existing customers, however, the problem is that they could not simply transform their previous licensing of processes into the new world in this way, and the view of "value creation" can also be very different.

The new options related to indirect use are part of SAP's Digital Access Adoption Program (DAAP), which offers customers several ways to move to a licensing and pricing system that recognizes and accounts for existing investments.

"With the Digital Access Adoption Program, we have now achieved an excellent result since we introduced indirect access licensing in April 2018. This has only been possible through close collaboration and fruitful partnership with our user groups. I am sure that our customers will benefit greatly from this successful work"

Christian Klein, Chief Operating Officer and member of the SAP Executive Board, comments and praises himself.

Andreas Oczko, DSAG Board Member for Operations, Service and Support, adds:

"In doing so, SAP has essentially followed the suggestions of the user groups and taken a giant step toward replacing historically grown, highly complex contractual agreements with a simple, transparent model."

For existing customers whose processes or documents are covered by a legacy contract, this may result in more attractive conditions. However, it is important to emphasize that these are only options. Companies do not necessarily have to switch to the document-based model.

"SAP expressly acknowledges that previously compliant licensing may be continued without restriction and without any disadvantages for the customer. In particular, if the previous licensing represents the economically significantly more advantageous variant for the customer. Thus, all existing options continue to coexist on an equal footing."

summarizes Andreas Oczko.