With the increasing complexity and yet difficult migration of SAP applications to the cloud, such a statement confuses the already highly challenged SAP license manager. So, the answer to the question whether a license management and optimization tool is still necessary is: Yes, definitely!
The fact is the complexity of licensing. SAP systems are known for having a complex and multi-layered license structure. There are different license types, such as user licenses or engines, packages and line-of-business (LoB) products for specific applications.
Allocating and managing these licenses can be a challenge, especially when companies use multiple SAP applications and modules. A license management and optimization tool can help keep track of licenses, monitor their usage, and minimize potential compliance risks.
Named user licenses only have to be licensed for the use of the Digital Core. Users who work exclusively in the line-of-business applications can use the free user type "S/4 Hana Technical SAP Engine User (HF)". It is then sufficient that the respective Engine is licensed.
Since January 2022, there has been a user for read-only access in S/4. The most favorable user type in the S/4 price list contains, in addition to the classic self-service functions, rudimentary rights in Supply Chain Management, Asset Management and Manufacturing and, since January 2022, also general read rights and rights for releases in the Digital Core.
Check whether you can restrict the permissions for users on engines. In most cases, an inexpensive Productivity Use license is sufficient for the remaining accesses to the Digital Core. If necessary, small changes in the work processes can save a lot of money if only a few User Core functions have to be used. Check, especially before switching to S/4, how many Professional licenses you really need, taking into account that read accesses and releases are included in the cheaper licenses. Our experience shows that up to 35 percent of Professional licenses are no longer needed.
Cost savings: A license management and optimization tool enables companies to use their SAP licenses more efficiently, thereby saving costs. For example, the tool can help identify unused or underused licenses and reallocate these resources to other users or systems.
Compliance and audit readiness: SAP conducts regular license audits to ensure that companies comply with agreed license terms. A solution can help companies prepare for such audits and ensure that they meet SAP's requirements.
Transparency: A license management and optimization tool provides companies with better governance and transparency over their SAP licensing. It enables centralized management and monitoring of licenses and ensures that all users have the right permissions.
Operational efficiency: SAM tools automate aspects of license management and reduce manual effort and errors. They streamline processes such as software provisioning, license tracking, entitlement reconciliation, and reporting.
Although SAP in the cloud offers many benefits, the need for a license management and optimization tool remains. The complexity of SAP licensing, the potential for cost savings, risk mitigation, compliance requirements, flexibility in the cloud, and improved governance are all reasons why companies should continue to rely on such a tool. By using a license management and optimization tool, companies can use their SAP licenses more efficiently, reduce costs and minimize compliance risks.