26. September 2013

License Transparency Opens SAP Piggybank

License12 shows SAP users best options for cost reduction
Support fee simulation gives insight to savings

SAP calls them ‚Extension Policies‘, in fact it means a true solution to a long-time problem: the reduction of unused licenses with the associated support fees. With two announcements in July and August, SAP introduces new allowances for all customers to return obsolete licenses in three versions: Cloud Extensions, On-Premise Extensions and Other Requests. While the first two address the general exchange of licenses during new acquisitions (cloud or on-premise), which does not reduce the recurring fees, the third option is a blockbuster: For the first time, SAP users can de-commission surplus licenses with their respective support fees, if certain rules are followed. These are, who would have guessed, over-complicated again: Retiring licenses without a counter-investment triggers a complicated re-calculations of all historic transactions, segregated by 3 license groups. The remaining license support base is then valued by using only schedule discounts, by transaction size. This method brings the true saving in many cases down to zero, if you had negotiated great prices, and may turn the promise into nil. But time is of the essence: Customers need to communicate their request 90 days before the year end, making it almost impossible to execute the allowance before the deadline in 2013.

What does it mean for you?

Users of License12 have consolidated all their SAP licenses in their ContractSafe, including all discounts rendered. They then run an internal LAW report to get the true usage and to identify unused licenses. They are the result of a comp view with the License12 license inventory. Users now evaluate the true amount of long-term shelf ware. They then apply the template-based License12 support fee simulation that shows the financial impact based on SAP’s rules. The easy and quick conversion of contracts in License12 allows the execution without further ado.
The bulk exchange volume is expected in fall 2014 when License12 contract conversion will prove its scalability.

For more information, see Blog.

(Source: istockphoto)


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