How to Get the Perfect S/4HANA Licensing Deal

How to Get the Perfect S/4HANA Licensing Deal

Jul 8, 2019 | Software License Management |

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.


Why S/4HANA

  • 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 info@anglepoint.com.
       

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