SAP announced its 1Q19 performance and its year has definitely gotten off to a positive start. When I think of SAP I tend to remember the Enterprise Resource Planning (ERP) stalwart that dominated the 90s and early 2000s – but my how times have changed. Cloud revenue surpassed $1.5B in the first quarter, while total cloud and software revenue was up 16% from 1Q18 at over $5B. Why am I recounting SAP’s financial success? Because it is a strong indicator that the vast majority of organizations have some shape or form of SAP software in its install base – be it on-premises, hybrid or in the cloud. Enter SoftwareONE’s SAP Advisory Services.
Like most software companies SAP’s licensing and subscription models can be complicated. SAP offers three main licensing models including: perpetual, subscription and pay-as-you-go. The perpetual license model is based on combinations of engines and named users that are scalable, measurable and ideally auditable.
We can advise on four distinct areas with the SAP licensing landscape.
Named User Profiling
This is where licensing costs and risks can spiral if there is not a dedicated onboarding and offboarding process in place for ALL users.
SAP requires that all customers extract and submit audit data annually to SAP however it is key to have someone help manage this process to both better understand the data and know what data needs to be sent.
Typically organizations have implemented or been using SAP for a very long time – and over that time SAP has made changes and updates to its licensing contracts. Some agreements, amendments, appendices and sales orders grant customers special product definitions, rights, terms and metrics. It’s imperative that you understand exactly what you’ve paid for, what you’re using and what your contract states for entire SAP estate.