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The magic stairs in the castle SAP

Is SAP financing its new strategy through hidden price increases for existing customers? Some people are reminded of Harry Potter when they try to find their way unscathed up the magical stairs in Hogwarts Castle - but they suddenly and unexpectedly change direction.
Guido Schneider, Aspera
February 1, 2017
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This text has been automatically translated from German to English.

For SAP licenses, as for Hogwarts Castle, only a few still know where they're going. What new surprises can SAP customers expect in the future?

In any case, a trend is discernible that has been expanding since 2014 and is taking on ever more "creative" forms: Existing customers are increasingly confronted with unexpected repeat purchases.

Is there a way over the ever-changing stairs in the castle SAP?

Yes! By taking fate into his own hands and arming himself, the bold SAM manager.

1st staircase: Flat rate for non-SAP DB usage

The flat rate for non-SAP database usage (e.g., from Oracle) was first increased from 11 percent to 15 percent, then to 19 percent, and now to 22 percent.

Accepting such a flat rate may seem like the easiest way at first glance, because then Oracle does not miss the databases running under the SAP applications.

Expert Tip: However, it could be more cost-saving to cancel the database contract with SAP and switch directly to the database provider (e.g. Oracle) - especially if an Oracle full-use license is required anyway (keyword: indirect use).

What at first appears to be more expensive has a decisive advantage, as this must be considered in connection with the inevitable switch to the Hana database.

When migrating from Oracle to Hana, for example, it is thus possible to cancel parts of the Oracle databases. This means that SAP does not have to license both databases (Oracle and Hana) for the entire duration of the migration: And this is more favorable in the long term.

2nd staircase: SAP Named User License

Named user licenses are the largest cost item in many companies. Let's compare them to a wide marble staircase, to which five smaller spiral staircases lead.

If you want to reach the top, you have to make the right decisions early on.

Limited-Professional-User: This staircase has virtually disappeared, as SAP has abolished this discounted license type called "SAP Limited-Professional-User" with PKL 2014/4.

It was left to customers to define what the restriction would be if they wanted to continue to purchase this low-cost license type. For new customers, the discount is no longer offered at all.

Expert Tip: In this case, use your own ladder! Arrange an individual special use with SAP, which is ideally more favorable.

Direct and indirect use: In accordance with SAP's GTCs and PKLs, customers require a right of use to use SAP software.

It is irrelevant whether the SAP software is accessed directly (e.g. via the SAP GUI) or indirectly (e.g. via an interface and third-party software).

In the case of indirect use, it is now up to the SAP customer to determine whether or not the user already has a sufficient named user license.

If this is not the case, the SAP customer can purchase the so-called "SAP Platform User" license for this user. With this license, the user may access and use SAP software via any interfaces, as long as he does not also access the SAP software directly.

Basically, this requirement by SAP is not a new staircase. What is new since 2015 is that SAP now actually demands this license from its customers.

Expert Tip: Determining the required licenses for users who access and use SAP software exclusively via interfaces is complex.

First, it must be determined which interfaces are used to access SAP systems. Then it must be determined whether SAP software use is also present, because SAP can only demand a right of use for this.

Now you need the list of users for the licensable interfaces (add-ons).

This list must now be compared with the users who already have a named user license in the SAP systems.

Finally, the number of required "SAP Platform Users" can be reported to SAP and licenses can be purchased. SAP itself does not offer a solution for managing these licenses.

This can only be realized with an external SAP SAM solution. Due to the daily change in usage (direct or indirect), SAP customers are almost obliged to use such a solution.

Developer User License: Checking the existing SAP developer user license types is currently an important issue for SAP. The development environment must be measured and SAP prohibits the allocation of "developer license types" in production.

If you have not purchased special SAP Developer User Licenses for the modification of software and SAP compares the assigned developer keys from the Service Marketplace with the assigned "Developer Licenses", you may be subject to subsequent licensing in the event of discrepancies.

Expert Tip: Clarify: Who actually develops, i.e. performs modifications or develops add-ons?

Admin employees do not need an SAP Developer User License just because they run the Workbench. Check if there are admins who have a "Developer License" but do not need one.

Technical accounts: A technical account is quickly created as a paid "Dialog" user type, although it should actually be of the "Service", "System" or "Communication" user type.

SAP is now taking a close look at user classification. If a license type has been entered incorrectly for an account of the user type "Dialog", the USMM/LAW calculates exactly the license type that was entered. This can be expensive.

Expert Tip: Be sure to check all technical accounts carefully and reclassify them if necessary (choose the right user type). However, you won't get anywhere here without a magic tool.

SAP test licenses: This is also a popular topic for SAP, because experience shows that companies have many test licenses in production. In the meantime, SAP is paying more attention to this, since this is not allowed according to the current PKL (it used to look different).

If each of these accounts becomes chargeable in production, it can be expensive.

Expert Tip: Analyze whether the test accounts are used at all. This is often not the case.

Create a list of all test accounts - and do it BEFORE the measurement! - and have them confirmed by SAP.

3rd staircase: NetWeaver Foundation for Third Party Applications

"Indirect use" - a magic word for SAP, probably the unword of 2015 for customers. The definition in PKL 2016/2 has added to the confusion.

Hardly anyone still understands what is meant by "direct database access to SAP application data". As a customer, you should definitely reckon with the topic during the next contract negotiation.

Expert Tip: Clarify: Which third-party application accesses which SAP application data via an interface? How many users use this application?

Here, contract analysis and system and usage analysis are essential to determine the maximum financial risk.

The final legal review should evaluate whether or not copyright infringement has occurred.

Each SAP customer is therefore required to determine the license risk for each non-SAP application. A tool such as License Control for SAP from Aspera can make a difference of millions in the analysis.

It could go on and on like this at SAP Castle.

What's next?

One thing is certain: Contract negotiations with SAP are not getting any easier.

The additional payments for existing customers are increasing, although often nothing has changed in their SAP usage.

While customers constantly strive for compliance, SAP consistently pursues ambitious revenue and product strategy goals - therein lies the area of tension.

And so most SAP customers are only at the beginning of their hero's journey and the situation seems hopeless: the opponent too strong, the hero still untrained.

But thanks to preparation and the help of a mentor - a SAM expert and/or lawyer - he can turn the tide.

So not only does he end up ruling his own kingdom again, he also saves money, is an equal negotiating partner and reaps the recognition of his company. All he has to do is decide to do it.

https://e3mag.com/partners/aspera-gmbh/

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Guido Schneider, Aspera

Guido Schneider was an SAP licensing expert at Aspera until June 2020.


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

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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,
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Event date

June 5 and 6, 2024

Regular ticket:

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Venue

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

28 and 29 February 2024

Tickets

Regular ticket
EUR 590 excl. VAT
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.