Walldorf, 10.04.2018 - SAP has announced changes in sales, auditing and compliance and it has introduced a new pricing model. The Deutschsprachige SAP-Anwendergruppe e. V. (DSAG – German-speaking SAP user group) kicked off the initial process that led to these developments at the 2017 annual congress in Bremen and is still part of the ongoing discussions around the subject of indirect use. DSAG was able to contribute to the formulation of the new licensing model by providing important stimulus based on a range of different customer scenarios and constructive suggestions.

Following the realignment of sales, licensing audits and compliance, some of DSAG’s important requests have been implemented. “The things that we have discussed with SAP for a long time, which we have specifically requested to be implemented since the DSAG annual congress in fall last year are now being put into practice by SAP,” notes Andreas Oczko, deputy chairman of DSAG and board member responsible for Operations/Service & Support.

Moving away from the previous user-based licensing models for indirect access to ERP applications, the new SAP licensing model is based on value creation, which is achieved by creating and initiating certain transactions and documents in the SAP ERP system. “With this innovative model, SAP has taken a major step towards winning back the trust of its customers, which has recently taken a hit,” continues Andreas Oczko.

Interesting for new customers, essential for existing customers

Of course, first of all, the new pricing model needs to prove it works in practice. However, it is a good first step towards creating a solution for licensing and indirect use that works for everyone. Further steps and adjustments need to follow. While it is interesting for new customers, the new model must demonstrate that it can be also implemented in a way that makes financial sense for existing customers as well. It’s worth noting that the new approach only addresses the licenses for indirect use and not the licensing model as a whole. What’s important in this context from DSAG’s perspective is that, if necessary, SAP is open to having conversations with individual customers to quickly find fair and viable solutions for indirect use which are in line with existing agreements and any previous arrangements. “These agreements need to be legally binding, sustainable for both sides, make financial sense and conclude the discussions around this subject. The choice between ‘keeping everything as it is’ and the new licensing model won’t be sufficient in every instance,” adds Andreas Oczko.

Indirect use has improved significantly

Indirect use has also become more clearly defined. Existing definitions have improved significantly and some scenarios and issues such as reading SAP data in third-party systems or entering core data from third-party systems, which were raised by DSAG, have been taken on board. And these discussions will continue in the months to come.

Internet of Things needs flexible pay-per-use model

With regards to the pricing model announced for the Internet of Things, DSAG aims to find a solution that fulfils existing requirements as well as future needs. “We’ve taken another step along the path to digital transformation. However, we must make it our goal to develop a living, breathing pricing model based on a pay-per use approach,” states Andreas Oczko. DSAG will continue to discuss this and other subjects in upcoming discussions with SAP on behalf of its members.

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