SAP Fioneer: Bold Creativity

At the end of 2019, the SAP Executive Board decides on a project to spin off products, IP rights and technology for financial service providers from the group. It hoped for more independence and dynamism, a "speedboat" that the tanker SAP wanted to launch - according to ex-CFO Luka Mucic. Banks and insurance companies subject to financial supervision can now only purchase the Financial Services Industry Solution products from Fioneer. But 21 months after the spin-off from SAP, the anger of the forcibly affected customers is great.

For existing SAP customers, there are unexpected and expensive changes in the already unpopular topic of indirect use: Fioneer products are regarded by SAP itself as third-party products. Licensing cannot be done via Digital Access, for accesses by Fioneer users there must be additional SAP Named User licenses, although in the S/4 licensing model the LOB and industry solutions are actually based on value-based metrics and do not require user licensing!

The interpretation of the metrics by Fioneer sometimes no longer corresponds to the previous interpretation by SAP, to the disadvantage of the customers. Customers have therefore been persuaded by Fioneer salespeople to undertake expensive relicensing with harsh and repressive appearances. The measurement itself is still carried out by SAP.

Fioneer customers who have not yet agreed on the license conversion to S/4 can no longer arrange this via SAP. Cases with high additional costs have become known - especially when the sales staff of SAP and Fioneer are not pulling in the same direction.

The business of SAP Fioneer developed "clearly above the expectations of the investors," said Fioneer CEO Dirk Kruse last year in an interview with Handelsblatt. He did not mention that the profits were also generated by the practices described. Many customers see this as highly unfair, also because they can hardly defend themselves against it. Is this the "Courageous Creativity" from the Fioneer company slogan?

Professor Hasso Plattner has since sold his foundation's 37 percent stake because public criticism of possible conflicts of interest became too great. Perhaps he, the great patron, philanthropist and founder, no longer wants to be associated with such practices. What can SAP Fioneer customers do - besides remaining vigilant and actively dealing with these issues? Exchange and consultation with the DSAG topic group "License Model in Banks and Insurance Companies" - exchange among themselves and, if necessary, support from lawyers versed in these issues as well as advice from reputable and experienced SAP and Fioneer license consultants.