SAP Licensing Fundamentals

Indirect SAP Licensing

There are many ways to license SAP, including through indirect usage. In this article, we will explore some of these options. We will also cover how licensing works and how you can maximize the value of your SAP investment. SAP licensing agreements and models are complex and vary, but we’ll cover the basics to get you started. Moreover, we’ll cover SAP licensing for Hana. In the end, you’ll know what to expect in terms of license models and agreements.

SAP license models

SAP’s license models are not static; each one is unique, and there are many differences between them. The traditional model, for example, relies on named users, while the new model uses user metrics, such as how many users are actively working with the licensed system. To make a choice, consider the nuances of the new models. You will find that both models have their own specific strengths and weaknesses, and negotiation strategies will differ as well.

While the classification process sounds simple enough, it can create gray areas. For instance, a user performing 1,000 operations in a corporate phone directory doesn’t need a Professional license. An employee performing the same task may be classified as Limited Professional, while a Professional would be able to view reports. But, if the user is merely viewing data and performing other functions, an Employee License would be sufficient. In some cases, the license levels may be assigned according to the number of employees, or the number of users within different groups.

An additional type of licensing model is the indirect digital access pricing model, which is based on business outcomes. This licensing model uses the same approach to calculate the cost of digital core usage but allows businesses to select the method of licensing that is most suitable. For example, the SAP license model can be adjusted to incorporate third-party applications. This enables the creation of sales orders, purchase orders, and service requests from various external sources. Lastly, it can be used to assess how the license model can work for companies.

SAP licensing agreements

If you’re in the process of procuring an SAP license, there are several considerations to keep in mind. First, don’t make the mistake of thinking that the SAP license gives you ownership of the software. In reality, it gives you a limited license to use the software in certain ways. In SAP’s terms, “use” means activating processing capabilities, loading information, accessing information, and displaying data. These definitions offer little guidance as to what constitutes proper use of the software. Secondly, SAP’s licensing policies are based on a concept called “Named User” licensing, which allows only a single individual to use the software. This is called indirect access, and it is a form of account control.

It’s essential that enterprise owners understand the SAP contract, but it’s not enough. To ensure compliance, companies must make sure they’re understanding the terms of their contracts, setting up an appropriate system, and monitoring for problems. Internal departments often tend to pass the buck when it comes to indirect usage of SAP. Furthermore, companies often run into problems because they don’t understand their SAP environments or how third-party applications affect SAP. To avoid this, it’s important to educate internal departments on how to use SAP correctly.

When it comes to indirect access, it’s vital to review contracts frequently to ensure that the rights of your team are covered and that you’re not paying for the software that you’re not using. Indirect access is a significant area of concern for many organizations, and SAP licensing agreements are no exception. For example, the recent court decision involving Diageo in the UK has led many teams to examine their contracts. Even if the company doesn’t have an audit of its SAP licenses, they’ll still need to use software license management tools to ensure that they’re keeping to the terms of their contracts.

SAP indirect usage

There are many reasons to license SAP ERP, but the most important reason is to prevent rogue actors from accessing your ERP infrastructure. For security and liability reasons, you must license indirect usage in order to use SAP ERP. Moreover, indirect usage must not create transactions or update your ERP. Listed below are some ways you can license indirect usage of SAP ERP. This way, you can enjoy all the benefits of SAP ERP without the risk of rogue actors infiltrating your ERP infrastructure.

Indirect access to SAP is dependent on the contract you have with SAP. Each negotiated contract contains different stipulations and fees. However, indirect access is usually not charged when a named-user performs a specific activity that involves the SAP system. Therefore, it is important to understand the specific terms of your contract. For example, some data interactions are exempt from indirect access fees. But if your business has multiple connected systems, indirect access can be a great option.

Indirect access to SAP can occur when a third-party system uses your data. For example, a third-party logistics provider could access your SAP ERP system by using its customer master data. Indirect access can lead to unexpected SAP indirect usage licensing fees. Luckily, there are ways to defend against unexpected indirect access licensing fees. JNC has successfully defended clients from unexpected SAP indirect usage licensing fees. To learn more about indirect access to SAP, contact us today.

SAP Hana licensing

When you decide to use SAP HANA, you must acquire the appropriate license key. The license keys can be purchased from SAP or from the SAP marketplace. There are two types of license keys: the temporary and the permanent. A temporary license key provides the user with full access to the system database, and it lasts for 90 days. This license option is particularly useful for first-time users who are not familiar with the software’s capabilities or who want to test the system before purchasing a permanent license.

When implementing the S/4 Hana platform, customers should pay special attention to the number of NULs. In some cases, the same NUL is required for two users. Similarly, some of the NULs may be invalid or worthless when migrating to another system environment. SAP also offers various tools to assist customers in planning and implementing their SAP Hana licensing. It is advisable to seek SAP’s advice as early as possible if you’re not certain of the number of users for your system.

The runtime version of the HANA database is cheaper than the full-use Enterprise version. It is also important to note that a perpetual license allows the customer to switch between both versions. This allows the customer to choose the best option depending on the size of their business. In addition, a perpetual license allows the customer to change deployment environments, convert, and upgrade multiple times – and it also preserves the value of the runtime version. However, small companies rarely opt for the full-use version because the price of it is far higher than that of the runtime version.

SAP negotiations

Negotiating with SAP is a complex and sometimes frustrating process. However, if you plan your strategy properly, you can secure a fair agreement that governs your relationship with SAP. You should consider the following tips when negotiating with SAP. Below are some tips to follow to make your negotiations go as smoothly as possible:

First, determine your current SAP licensing policies. SAP typically charges by the number of users or software engines. In order to avoid overbuying, perform license/subscription optimization to identify unused licenses and subscriptions. Then, determine which customers are under licensed or are at risk of being found out of compliance. This information can form the basis for your next SAP contract negotiation. As with any contract, understanding and analyzing all contract clauses is crucial to a successful negotiation.

A good example is the Diageo case. In the case of Diageo, the SAP licensing agreement was based on the number of Named Users. Named Users are those individuals who are authorized to access software, either directly or indirectly, according to an agreement schedule. SAP argued that Diageo owed SAP PS54 million in additional license fees. However, the total value of Diageo’s investment in SAP products is between PS50 and PS61 million.

The Forrester report recommends that buyers assess strategy and risks and negotiate a deal that meets their longer-term goals. However, these recommendations do not address the technical details of the license agreement. The key to a successful SAP licensing negotiation is understanding your needs and objectives. The report describes the key dynamics that drive the negotiations between SAP and buyers. SAP licensing negotiations are complex and stressful. In addition, they can make or break your business. For more information, read the Forrester report on SAP licensing negotiations.

SAP software audits

There are some key points to keep in mind when conducting SAP software audits. First, be sure to set a controlled time frame. Rushing the process can lead to costly mistakes. Second, make sure your team conducts a thorough system clean-up before providing any data to SAP. If possible, do it quarterly. This will ensure that the information provided to SAP is accurate. Lastly, document everything that was analyzed during the audit.

SAP audits start with security. Proper segregation of duties and access are critical. When SAP was first acquired, it had few security features and was nearly devoid of any security measures. Therefore, companies must outline processes and create a system security policy from the ground up. A proper profile design prevents superuser access and redundant user IDs. In addition, data integrity must be protected from tampering. SAP software audits also focus on data integrity.

After determining whether SAP software audits are necessary for compliance, customers should self-assess their compliance risk before engaging an SAP auditor. They should analyze usage of users, engines, and digital access. By proactively identifying these risks and exposures, customers can budget for them during strategic purchase events, when customer leverage is at its highest. In addition, it’s vital to assess the value of each of the different SAP software solutions.