SAP extends functional framework of S/4HANA licenses
SAP’s Lists of Prices and Conditions (PKL) have always been impressive. The new version is no exception … but this time it delivers some pleasant surprises regarding the S/4HANA licenses!
What will be changed by a S/4HANA migration?
The current ECC system will only be maintained and further developed by SAP until 2025. So it’s high time to think about migrating to S/4HANA. SAP S/4HANA is not an extension of the original ERP software, but the implementation of a new product. In SAP S/4HANA, transactions are partly cancelled, new ones are added. Modules, such as the Finance Module, are changing, and graphic elements such as Fiori Apps also require authorizations. Sounds expensive and complex? It could be, but it doesn’t have to be. That is why it is so important to inform yourself sufficiently before a migration.
With our license optimization software samQ, you can quickly and easily perform an analysis of the new S/4HANA license types before a migration. Thus you can find out without great risk whether the old license types or the new S/4HANA types are cheaper.
For the majority of our customers, however, the analysis usually ended with the realization that a significant increase in costs is to be expected with a migration. Some changes and enhancements in SAP’s latest List of Prices and Conditions 2019/7 could change this.
How does the improvement in SAP’s new Price and Conditions List come about?
It’s not the first time that SAP made significant improvements to the S/4HANA license types after a first definition: At that time, the S/4HANA Productivity use-license was granted an extended scope of production processes. This has already resulted in a very significant financial improvement. Nevertheless, most changes from the old licenses to the new license types remained affected by a sharp price increase and thus unattractive for the customer.
Now better incentives will finally be offered. It seems as if SAP is acting according to the motto “learning by doing!” when dealing with the new definitions: if the given incentives do not work, they will be improved.
Of course, SAP wants to make the new license types attractive to its customers, and the change also brings certain advantages for the customers themselves. The clarity after the changeover and the new license agreement, which replaces all the others in their entirety, are tempting. But in the end it’s the price that counts and it hasn’t been too convincing so far.
What are the advantages of the new Price and Conditions List?
In order to convince customers, SAP has now improved the current PKL and added some processes to the two license types SAP S/4HANA Functionality use and Productivity use.
Functionality use now includes extended authorizations in the Quality Engineering, Sales and Supply Chain processes. In the Productivity use-License, extensions have been made in the Delivery area. For many customers these points are interesting and could lead to the fact that the new license types finally become attractive for a broad mass.
In any case, we will integrate these changes into our existing samQ templates as quickly as possible and show you what concrete effects they will have on a monetary basis.
So take a look again, it’s worth it!