Fearless SAP License Audits
Fearless SAP License Audits
License compliance and cost reduction through continuous optimization of SAP licenses
Each and every year, SAP gives notice about license audits. Reliable information about the license inventory in a company is then painstakingly obtained — costing both the efforts of personnel and enormous amounts of time. In companies with a small number of SAP systems and users, information about the user group can still be collected by using Excel spreadsheets or off the top of your head. For a company with hundreds of users, however, this is no longer an option. Within complex SAP
landscapes, a precise overview of the current license inventory is missing. To make matters worse, SAP software licensing is obscurely designed and not very user-friendly.
However, introducing professional license management is worthwhile for companies and other organizations. After all, each investment in SAP licenses ultimately and inevitably leads to maintenance fees. This is why avoiding unnecessary license purchases is crucial.
But how can SAP licenses be effectively managed to realize savings on software? To answer this question, we have put together this white paper to provide you with information about SAP and the licensing process. We will cover challenges in license management and causes of excessive licensing costs. Based on these we will disclose and describe requirements for an effective solution towards license optimization.
Interested to learn more?
Watch here a 5-minute video to understand how we can help you.
- Basics of SAP Software Licensing
- Types of Licenses, Engines, and Further Expenses
- Indirect Access
- Pricing Models
- System Measurement
- SAP Guidelines
- Under- and Over-Licensing
- Causes of Over-Licensing
- System Measurement ≠ License Optimization
- Effective License Management
- Optimization of Named User Licenses
- Tracking of Engine and Package Consumption
- SAP License Management with samQ
have a look into our other Whitepapers
Basics of SAP Software Licensing
Types of Licenses, Engines, and Further Expenses
In order to save costs, we have to understand what is creating them in the first place. In addition to named user licenses, SAP customers pay for engine-use, industry-specific solutions, standard packages (such as contract figures, utilized payrolls, etc.) or even special packages with payment plans predetermined by SAP.
Named User Licenses
Named user licenses make up a solid 75-90% of the total costs stipulated in SAP contracts. Each user must have and use a named-user license. With that said, there are several different categories that both starkly differ in their scope of authorization and provide the user with various functions. Figure 1 provides an overview of the most common license types and their scope of authorization.
Generally speaking, the more features, the more expensive the license will be. The Developer and the Professional licenses are the most expensive licensing categories. If a user is not assigned a specific license, then they will be assigned a Professional license (one of the most expensive categories) by default during a licensing audit.
The Limited Professional User license is a special case in certain aspects. In the past, the amount of these licenses a company was able to purchase was based on to the number of Professional licenses they possessed. A common ratio was 85 per cent of Professional to 15 per cent of Limited Professional licenses. If a contract did not contain a ratio clause, then a 50/50 ratio applied. Clients, who used to have this license type in their portfolio, had to define the functional scope of this user type until the end of January 2017 in order secure a right to re-purchase.
However, since SAP now offers many new license types, which cover very far-reaching functionalities and are cheaper than Limited Professional licenses, it hardly pays off to re-purchase. This license is no longer available for new customers.
Engine and Package Licenses
Companies must acquire an engine or package license for many SAP applications. These must be purchased in addition to named user licenses. The cost of license consumption is based on parameters that can be defined differently depending on the engine or package. This may, for example, be the number of employees, orders, or contracts.