License-optimized Migration to SAP S/4HANA

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SAP is currently running an advertising campaign in the customer environment to encourage participation in the Digital Access Adoption Program (DAAP). This is to encourage companies to migrate to or introduce the new “Digital Access” model in the indirect SAP use sector by April 2020. SAP customers have been reluctant to accept the offer so far. Despite the offer of guaranteed discounts of up to 90 percent. One reason for this is undoubtedly the inaccurate data. Since one can only estimate the consumption in terms of indirect usage levels. Ultimately, it is all about determining the exact documents that require a license. This is because these form the basis for being able to leverage discounts with strategic precision. An additional benefit for those who participate in the DAAP is that they get the guarantee not having to pay for backend maintenance in 2020.

Migration to SAP S/4HANA is another hot topic at the moment. However, there is great uncertainty as to whether a change can be made without incurring costs. And what new types of license companies will need in this regard. Modern software tools that automatically optimize licenses allow companies to eliminate any uncertainty relating to SAP licenses and migrations. This ensures maximum security during audits and may even save several million euros in costs.

Identification and optimization of user licenses

The migration to SAP S/4HANA is currently an issue for every major company. But nobody wants to waste money senselessly at the “new beginning” because the migration process is already expensive enough. However, it is interesting that companies can return all licensed products and purchase new ones with this money. As a result, over-licensing can be solved by selling the superfluous, expensive licenses. In turn, companies can then use the funds that are freed up directly for the SAP S/4HANA products they need.

From a financial point of view, the optimization of user licenses should be high on the list of priorities. This is because this is an area where companies can leave high sums of money due to a lack of transparency. For this reason, the question of whether the new license types are purchased correctly when migrating to SAP S/4HANA is also a crucial one. Basically, an optimized license landscape, whether with or without SAP S/4HANA, is essential. This is because even with expensive but incorrectly distributed licenses, you do not necessarily have to be compliant. In the worst case, companies may still end up with expensive back payments.

Legally compliant licensing landscapes

The ideal solution is to present a legally compliant licensing landscape that is permanent and not simply implemented. Just before the assessment is due. For example, SAP is carrying out an increasing number of unannounced audits. This puts companies under a great deal of pressure as a result since they are solely responsible for providing all users with the right license. The solution to this is regularly over-licensing the staff, creating unnecessary costs. With software support, license landscapes can be verified reliably. And compliance violations along with over-licensing can be eliminated as soon as they emerge. This ensures legally compliant licensing at all times.

The software is quick and easy to implement:

  • Installation takes around 2–3 hours
  • Setting up customer-specific adaptations takes around 2–3 hours
  • Set up any potential company-specific special rules
  • Check all optimization results for validity
  • Productive switching to automatic control mode with permanent write-back of the optimization results to the connected systems

Insufficient licensing is the rule in hospitals is

The licensing issue generally affects every industry and country around the world. However, some industries are particularly vulnerable to unfriendly audits. For example, clinics are often under-licensed. Clinics usually use the “” license, but in almost any cases beyond the scope. These types of unauthorized users one can easily determin in hospitals with the right software tool. As a result, customers can protect themselves from additional payments, which are often in the millions.

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1 thought on “License-optimized Migration to SAP S/4HANA”

  • Torsten Boch says:

    The question is not that simple. I don’t know, for example, whether the credits in a contract conversion are also applicable to cloud products such as Success Factors or similar.
    Basically, when moving to S/4HANA, if you choose a contract conversion, you can return all previous license values and go shopping for new ones. Excluded from this is the HANA DB itself.
    I would think if I’m coming out of an old contract and want to move to the cloud right away, that has to apply here as well. Even more so, since certain services are no longer offered on-premise by SAP.