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: Perpetual Subscription 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. Product: - 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. Contract: - 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 email@example.com.