SAP Solution: Indirect use

The prices for licensing indirect use have changed significantly over the past five years. In addition to price adjustments, the change in the licensing model has had a significant influence on this.

SAP made a declaration of love at the beginning of this year. With the "Embrace" program, it wants to embrace hyperscalers. Obviously also share the revenue, right?

After more than 25 years of SAP ERP/ECC, it's time to say thank you. SAP's success is also the success of the SAP community. The ERP provider has done many things right. No reason not to ask a question in the future.

Using the correct number and type of SAP licenses is complicated. Indirect or digital use in particular gives IT managers sleepless nights.

One way of getting customers to move to the ERP cloud is Indirect or Digital Access. SAP threatens customers with sky-high licensing fees—unless they migrate to the cloud.

The new SAP licensing policy around indirect use is also causing trouble in purchasing. Those who do not want to switch to S/4, but replace the classic SAP SRM with an external solution, are confronted with rising, often uncontrollable costs.

SAP CEO Bill McDermott and CFO Luka Mucic now have to unpack their golden parachute for the second time in SAP's history after 2015.

With regard to indirect use, Voice e. V. is trying to bring about a concession for all existing customers throughout Europe by means of an antitrust complaint. The DSAG association is in discussion with SAP on behalf of its members in order to bring about rules and a better position in the DACH region. But everything will be different in 2019!

SAP's "indirect use" licensing construct is causing major problems for more and more existing customers and partners and is blocking digital transformation indefinitely.

Naturally, the Cultural Revolution ended in disaster, causing endless suffering and hatred and millions of deaths. One may have learned, even if one did not become more liberal and sovereign - but what remained: the prudence and discipline to plan and the holistic implementation of a decided plan.

In a press release dated October 2, Voice, the German Federal Association of IT Users, commented on the licensing situation in the SAP community. The topic of "indirect" use and interoperability is a particular concern for technicians and lawyers.

Although SAP presented a licensing model for indirect use in April, it will be some time before all ambiguities are resolved and user companies have real clarity. An exclusive interview on the hot topic of licensing and "indirect" use with DSAG board member Andreas Oczko.