Which trends are of particular importance to SAP customers today? Our expert blog features a series of articles that provide answers to these questions. This article outlines the current challenges presented by license management and explains how companies can manage their SAP licenses more efficiently. This way, you can avoid underlicensing or overlicensing and the associated legal consequences, as well as reduce licensing costs in the long term.
SAP license management has become increasingly complex in recent years. In the past, role- and rights-based licensing models prevailed. This means that if a thousand employees are using the SAP system, the company also needs a thousand licenses. Now, the license matrix is made up of a wide range of parameters. There are several pricing tiers and a digital licensing model that bases fees on the number of transactions made. It is also still possible to license SAP systems on a per-user basis.
It is virtually impossible to handle the increasing complexity with standard tools. License managers who often worked with Excel in the past are now coming up against its limitations. Large companies in particular have to manage thousands of SAP users and use a variety of SAP components – some of them in the cloud and with varying licensing parameters. The solution: T-Systems' experts provide an impartial view of your licensing situation in connection with professional license management software.
When running SAP, it is not only important to pay attention to the technical parameters, but also to ensure transparency when it comes to licenses. T-Systems uses Proof of Value (PoV) to ascertain whether a customer is able to optimize its SAP license management in order to save on license fees. In the process, up to five of the customer's SAP systems are initially examined to check for incorrect licensing. T-Systems experts then check the actual number of SAP users, identify any duplicates, and update authorizations and user roles: Does the employee still work for the company? How often and how intensively do they work with the SAP system? What kind of license is needed – is read-only access sufficient?
T-Systems automates all manual license management activities with the help of "Snow Optimizer for SAP Software" from its partner Snow. The tool's set of rules is adapted to the respective customer's needs. How much customers might be able to save by optimizing their licenses depends on their initial situation. Past projects have shown that, on average, savings of up to 40 percent are possible.
This approach creates several advantages for the license manager: automated processes simplify and accelerate license management. No longer will they have to worry about technical details; now they can view detailed reports and check whether all SAP systems are licensed correctly at a glance.
By identifying and helping to avoid excess licensing, T-Systems experts help the purchasing department to cut costs. This creates room for reallocating parts of the budget: rather than investing in unnecessary licenses, purchasers can now invest in the company's digital and S/4HANA transformation.
So, when is the right time to correct the licensing situation? Ideally, three to six months before the annual negotiations with SAP or with the auditor. An SAP S/4HANA transformation is also a good time to rethink the company's licensing strategy and reorganize licenses. After all, in the course of the transition, many customers will either sign a new contract with SAP or change their licensing model.