The New SAP License Model
Digital Business and Digital Transformation have continuously been on the rise since the introduction of the intelligent ERP, SAP S/4HANA. Therefore, SAP recently revamped its existing licensing model with a new SAP license model.
They introduced more transparency for customers to help them consume and use SAP applications optimally and also to reduce the anxiety levels around the issue of SAP indirect access.
The SAP license model majorly classifies itself as Direct Access and Indirect Access.
Direct (Named User / Package / Database) License
This has been the traditional licensing model. However, with the shift from SAP ECC to SAP S/4HANA, there has been an impact on functionality wise purchase of licenses (Packaged License – priced by business metrics). The functionalities which were directly available in SAP ERP system (some post activation) are not completely accessible in SAP S/4HANA. Hence, we now must understand in detail the implications and options of purchasing different SAP licenses required for Business.
KTern’s Impact Analysis and SAP S/4HANA Readiness Assessment give you an understanding of license impact. For eg – SAP S/4HANA leverages MDG-S for supplier distribution. However, MDG-S license is not part of SAP S/4HANA license.
SAP systems data accessed via IoT, 3rd party applications, or other digital access are based on transactions/documents processed by the system itself. SAP identifies nine document types to represent system-generated records of commonly valued business outcomes. These are a part of the license. Therefore, for any other document types, there shall be no additional charge.
SAP License Model Options for existing SAP ERP Customers
According to the new SAP License Model, Document Licenses are required when indirect access triggers the creation of certain sales or invoicing related documents. You can learn more at SAP ERP Pricing for the Digital Age: Addressing Indirect/Digital Access. In addition, you can read up on more information regarding the SAP software licenses at Licensing SAP Software – A Guide for Buyers.
SAP separated License Sales from Audit and Compliance. Therefore, customers can separate their ongoing SAP usage commercials from their new requirements (i.e new software package purchase).
If you need assistance in understanding your licenses and choosing the right set of licenses to optimize your SAP Application Consumption, send me an email at email@example.com or send us a message. We’ll get the assessment completed within a few hours with KTern.