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Secrets of SAP S/4HANA Licensing

Assess your current environment and contract to build a strategy for the inevitable move to S/4HANA.

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Your Challenge

  • With the relatively slow uptake of the S/4HANA platform, the pressure is immense for SAP to maintain revenue growth.
  • SAP’s definitions and licensing rules are complex and vague, making it extremely difficult to purchase with confidence while remaining compliant.
  • Aggressive audit tactics may be used to speed up the move to HANA.

Our Advice

Critical Insight

  • Mapping SAP products to HANA can be highly complex, leading to overspending and an inability to reduce future spend.
  • The deployment model chosen will directly impact commercial pathways forward.
  • Beware of digital (indirect) access licensing and compliance concerns.
  • Without having a holistic negotiation strategy, it is easy to hit a common obstacle and land into SAP’s playbook, requiring further spend.

Impact and Result

  • Build a business case to evaluate S/4HANA.
  • Understand the S/4HANA roadmap and map current functionality to ensure compatibility.
  • Understand negotiating pricing and commercial terms.
  • Learn the “SAP way” of conducting business, which includes a best-in-class sales structure, unique contracts, and license use policies combined with a hyper-aggressive compliance function.

Research & Tools

Start here – read the Executive Brief

Read our concise Executive Brief to find out why you should explore the secrets of SAP S/4HANA licensing, review Info-Tech’s methodology, and understand the four ways we can support you in completing this project.

1. Establish requirements

Determining SAP’s fit within your organization is critical. Start off by building a business case to assess overarching drivers and justification for change, any net new business benefits and long-term sustainability. Oftentimes the ROI is negative, but the investment sets the stage for long-term growth.

2. Evaluate licensing options

Your deployment model is more important than you think. Selecting a deployment model will dictate your licensing options followed by your contractual pathways forward.

3. Negotiation and license management

Know what’s in the contract. Each customer agreement is different and there may be existing terms that are beneficial. Depending on how much is spent, anything can be up for negation.

Talk to an Analyst

Our analyst calls are focused on helping our members use the research we produce, and our experts will guide you to successful project completion.

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You can start as early as tomorrow morning. Our analysts will explain the process in your first call.

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Each call will focus on explaining the material and helping you to plan your project, interpret and analyze the results of each project step, and setting the direction for your next project step.

Search Code: 95608
Published: December 7, 2020
Last Revised: December 7, 2020

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