How to Get the Perfect S/4HANA Licensing Deal
In case you were unable to catch our webinar, ‘How to Get a Perfect S/4HANA Licensing Deal’, we took some notes for you. Click here to watch the webinar.
- SAP will discontinue mainstream maintenance at the end of 2025 for SAP Business Suite 7 core application releases.
- This means that customers must migrate to S/4HANA.
- It could take months to years to migrate so planning is crucial.
What are some major differences between S/4HANA and legacy licensing?
- S/4HANA is “KPI-based licensing” (engine licensing only). Legacy is named user and engine-based licensing.
- S/4HANA provides 3 licensing options:
– Consumption (SAP cloud services)
- There are also differences in price:
How to convert to S/4HANA?
- There are 2 ways to convert – product conversion and contract conversion.
– Can only convert into products with a valid conversion path.
– Requires line-item mapping.
– 100% of classic product maintenance base is carried forward.
– Customer may be entitled to 100% credit up to net payable of new S4 product.
– Customer can reconfigure their landscape – re-allocate shelfware and apply credit to new, unrelated software licenses.
– Conversion credit equal to the lesser of 100% of prior maintenance base or 90% of new net payable.
How to best prepare for conversion?
- The first step when preparing to convert to S/4HANA is to ask yourself a few questions:
– What SAP licenses do I own today?
– How many SAP licenses do I need today?
– Can I optimize my current license consumption?
– Will my license needs change over time and if so, how?
- Cleaning up your SAP environment is crucial before converting:
– Measure your SAP systems to identify relevant SAP user accounts.
– Deactivate inactive user accounts and check on suspicious service user accounts.
– Identify and review authorization roles including authorization objects.
– Optimize authorization roles and derive appropriate license types.
– Consolidate user accounts for SAP named users and derive license demand.
What are some tips when it comes to negotiating the deal?
- Make sure that “your house is in order” (clean up – see above).
- Know your current and future license demand and your shelf-ware.
- Fight for high discounts and lock them for future purchases as long as possible.
- Try to keep legacy use rights where needed.
- Agree on a system measurement pause as long as possible.
- Consider commitment rather than selective purchase.
We can help.
Anglepoint can help as you convert to S/4HANA:
- S/4HANA Licensing Roadmap (1-4 weeks).
- Digital Access Risk Analysis (4-8 weeks).
- Named User Baseline (4-8 weeks).
- Authorization Role Optimization (12+ weeks).
If you have any additional questions, you can schedule a time to meet with one of our experts or contact us at firstname.lastname@example.org.