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License transformation

The topic of SAP licenses knows many construction sites: Interpretation of PKL, indirect usage, application of survey tools, Cloud Full User Equivalent, history of license purchases and release statuses.
E-3 Magazine
Ayhan Aslan, KPMG
August 5, 2021
Interview: Inconsistent data simply costs money
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This text has been automatically translated from German to English.

In an exclusive interview, E-3 Magazine spoke with Ayhan Aslan, senior manager in CIO Advisory and License Management at auditing firm KPMG, about the challenges facing SAP legacy customers.

No other SAP topic is associated with as many emotions as license management. Here, the CFO and CIO are pitted against SAP together, because the aim is to protect their own company from damage in the long term.

E-3: Where do you see the most urgent need for action from the perspective of an existing SAP customer?

Ayhan Aslan: SAP customers currently face many challenges and need to take action in SAP license management. First, companies are dealing more than ever with the digital transformation and the profitable introduction of new technologies. The complexity is not only evident in the practical implementation, but also with regard to technical, contractual, and commercial risks that have an impact along various dimensions.

SAP offers existing customers different models for converting their existing contracts and licenses to new technologies. The important thing here is to be able to translate your business requirements into a suitable contract. The basis for this is good preparation of the technical survey with regard to current usage and architecture, current and future requirements, transparency with regard to contract and license rights, and license inventory.

The time window for coordination with SAP is favorable due to the current offers and willingness to negotiate. The outlook and sustainability of the new Rise with SAP offer and the associated issues in the course of the digital transformation remain exciting. 

E-3: What does this mean for the existing SAP customer in preparation for a license measurement and audit?

Aslan: In principle, comprehensive preparation of a survey or an audit is crucial for the subsequent result - starting with scope definition, drawing up the contract and license hierarchy, and deriving the resulting rights of use. Subsequently, the survey can be implemented in accordance with the licensing regulations.

E-3: The risk of underlicensing is factually always present if the existing SAP customer does not order new software or move to the SAP cloud, right?

Aslan: Correct, under certain conditions there is always a potential risk for SAP customers of underlicensing the software used. This includes, above all, the fact that topics of surveying or audit preparation are often regarded as ad hoc tasks in companies.

Moreover, the path in the cloud is not risk-free either. With cloud applications, it is often wrongly assumed that the risk of mislicensing no longer exists or is only present to a limited extent. In fact, however, the customer still bears the responsibility for ensuring compliance of any software use in the cloud.

E-3: What mistakes do existing SAP customers make time and again, and how can they be avoided?

Aslan: From an organizational point of view, as mentioned, the main lack is the planning and implementation of a holistic SAM governance model for continuous implementation and improvement of surveying processes to generate added value. Implementing such a model would often lead to proactively eliminating other sources of error.

From a technical perspective, it is often details in the measurement of systems that lead to deviating results. These include the import of current Notes, the missing check of LAW and USMM files with regard to user statistics and transaction analysis, multiple logins, high workloads, logon times, unused accounts, duplicates and potentials for indirect use and digital access.

The classification of a developer or professional user for internal employees and/or external consultants presents companies with a difficult question. Many of these issues can be resolved through organizational and procedural measures in on/off boarding in user management or through good authorization management.

E-3: With these threatening scenarios, how specifically can you help an existing SAP customer?

Aslan: KPMG offers a SAM Professional Service that covers the complete range of tasks from the initial vision and roadmap, through demand and cost planning, measurements and license strategy, to SAP negotiations. The option of concluding a license and IoT guarantee in addition to the Professional Service is unique worldwide.

This is offered exclusively by KPMG in cooperation with Munich Re and covers both internal and external risks in the event of an audit, irrespective of the manufacturer. In the event of a loss, KPMG assumes all the costs incurred, including all subsequent and penalty payments.

This enables companies to focus on their core competencies with complete cost and planning security. KPMG has been active in license management for more than 20 years, both from an auditor's and a consultant's perspective, and always guarantees up-to-dateness for all common software manufacturers. 

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Ayhan Aslan, KPMG

Ayhan Aslan is Senior Manager CIO Advisory/License Management at KPMG.


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Working on the SAP basis is crucial for successful S/4 conversion. 

This gives the Competence Center strategic importance for existing SAP customers. Regardless of the S/4 Hana operating model, topics such as Automation, Monitoring, Security, Application Lifecycle Management and Data Management the basis for S/4 operations.

For the second time, E3 magazine is organizing a summit for the SAP community in Salzburg to provide comprehensive information on all aspects of S/4 Hana groundwork. All information about the event can be found here:

SAP Competence Center Summit 2024

Venue

Event Room, FourSide Hotel Salzburg,
At the exhibition center 2,
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Event date

June 5 and 6, 2024

Regular ticket:

€ 590 excl. VAT

Venue

Event Room, Hotel Hilton Heidelberg,
Kurfürstenanlage 1,
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Event date

28 and 29 February 2024

Tickets

Regular ticket
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The organizer is the E3 magazine of the publishing house B4Bmedia.net AG. The presentations will be accompanied by an exhibition of selected SAP partners. The ticket price includes the attendance of all lectures of the Steampunk and BTP Summit 2024, the visit of the exhibition area, the participation in the evening event as well as the catering during the official program. The lecture program and the list of exhibitors and sponsors (SAP partners) will be published on this website in due time.