On April the 10th SAP announced its new SAP licensing practices, rules of engagement for usage and compliance, and pricing model for the Digital Age. This reflects the impact Digital Business is having on ERP usage. With the integration of AI, Machine Learning, BOTS and IoT devices into many business processes,  transactions are now being completed without human touch. This growth in  “indirect access” has led SAP to work with its user groups, customers, and industry analysts to lay the foundation for the new outcome-based pricing model.

So how do organizations get ahead of the Robots and prepare for a Digital Access Pricing Model? Of course, you can just call up your SAP Account Executive and ask for a License audit and find out what the new pricing will look like. Alternatively, you can begin by understanding how the model works then collect the relevant data so you can analyze the impacts. Fortunately, this new model is based on transactional (documents) data and is intended to be transparent. This also aligns with the business value as the transactions are linked to business processes. Being consumption based also provides the ability for IT to transparently allocate costs according to business usage.

Collecting the SAP Licensing Data

SAP Solution Manager Business Process Monitoring (BPMON) and Analytics is the central tool to monitor the business processes in your SAP landscape. Solution Manager can automatically collect the process information from the managed systems and make it available in Dashboards with KPI’s and trend analysis. By defining the Throughput KPI’s in line with the above document types and capturing the number of indirect documents created we can use this data to calculate the total number of indirect records. These KPI’s can also be linked to the end-to-end business processes.

By utilizing BPMON to collect the relevant data organizations can begin to evaluate the impact of the new pricing model. This will also provide the framework for aligning Licensing costs with business usage and help avoid Licensing Cost surprises by proactively identifying if the Robots malfunction. 

Also, See ASUG’s SAP Licensing center to get a full overview and analysis of the impacts of this new pricing model.

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