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SAP S/4HANA

Licensing - Basics

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SAP S/4HANA: No Reason to Wait

S/4HANA now has 3 updates

plus the original release

Aug 15

Over 8,300 customers have

chosen S/4HANA (over 2k live)

Aug 22

There are 3 free, personalized tools for the S/4HANA

journey

Aug 1

I don’t know what it means for us

I always wait for the 3rd version

I want to see others go first


S/4HANA Customer Momentum is StrongAs of August, 2018…

31 industries

9,000+ licensed customers

4,200+ deployment projects

Cloud (SaaS), IaaS, on-premise

2,000+ live customers (1st thousand in 2y 7mo, 2nd thousand in 10 mos)

Organizations up to 200,000 users, databases up to 49TB


Start Your S/4HANA Journey TodayFree, personalized tools for IT and the line-of-business

2. Discover Your Destination: SAP Transformation

Navigator

See the S/4HANA roadmap for each component in your current

landscape.

3. Plan Your Move:SAP Readiness

Check

Learn the technical requirements and actions for a system conversion to S/4HANA.

1. Build Your Business Case: S/4HANA Business Scenario

Recommendations

Identify the business processesyou can improve and discover new

business capabilities.


Typical S/4HANA Project Duration

Simple S/4HANA Finance implementations

Typical S/4HANA (full suite) implementations

Complex S/4HANA (full suite) implementations at the largest customers

As short as As long as Average

3 months 11 months 7 months



Customers = 1145

Months to implement SAP S/4HANA

1110 123 >20

Vast majority of SAP S/4HANA customers went live in 10-12 months

Duration of projects is largely determined by customer complexity (degree of change) and implementing partner preferences / tools / methodologies

Comprehensive and flexible software licensing

Software

Comprehensive solutions for all business processes across all industries to run your business better, faster, and simpler

License models

Flexibility to deploy innovative SAP® software in different environments:• On premise• Hosted private cloud• Public cloud

Software available in various models • Perpetual• Subscription• Consumption based

Deployment options

Core tenets of licensing software from SAP

On premise

• Perpetual software use rights• Customer responsible for

hardware, implementation, and ongoing operations

Private cloud

• Perpetual or subscription-based software use rights

• SAP provides hardware, operations services, and optional application management services

• Single-tenant environment

Public cloud

• Subscription-based software use rights

• SAP manages software

• Multitenant software-as-a-service environment

SAP deployment options

*Can also be used with the SAP HANA Enterprise Cloud service in a bring-your-own-license (BYOL) model **Currently used for some SAP products in the business networks area

Software use rights

Maintenance and support

Database

One-time license fee

Annual recurring fee

Perpetual

• Perpetual software use rights• One-time license fee• Annual recurring support fee

• For on-premise scenarios primarily*

Examples: SAP® ERP, SAP S/4HANA®, SAP C/4HANA, and SAP BusinessObjects™

solutions

Software use rights

Application management


Database

Hardware

Annual recurring fee

Subscription

• Term license – typically 3 to 5 years• Annual subscription fee based on

estimated use and includes support

• For cloud solutions primarily

Examples: SAP S/4HANA; SAP C/4HANA; SAP Concur®, SAP Ariba®, and SAP SuccessFactors®

solutions; SAP Cloud Platform; and SAP BusinessObjects solutions

License, use rights

Application management


Database

Hardware

Payment based on actual usage

Consumption

• Term license• No annual commitment; payment based

on actual usage

• Available for select cloud offerings**

Examples: SAP Cloud Platform andSAP Ariba and SAP Fieldglass® solutions

SAP licensing models


Components of a perpetual SAP Software license

SAP S/4HANA®‒branded softwareSoftware license only

License components

Software License Fee entitles

“Classic” SAP® softwareDual license model

Software

Engine

SAP Software the model applies to

Deploy a specified set

of functionality

Access the licensed

Software functionality

(Valid across multiple

Software licenses

Named users Software Engine License

Deploy a specified set of

functionality

Access the licensed

Software functionality

Technology portfolio and SAP S/4HANA solutions

(such as SAP HANA, SAP S/4HANA Enterprise

Management, SAP S/4HANA Finance for cash

management, and so on)

Classic applications

(such as SAP ERP, SAP Transportation

Management, SAP Cash Management,

and so on)

� Gigabytes (memory or database size)

� Revenue

� Cores

� Concurrent sessions

� Spend (volume, freight, or COGS)

� Employees

� Users

� Named users:� Professional

� Worker

� Logistics

� Employee

� Manager self-service

� Employee self-

service

� Engines: � Gigabytes (memory

or database size)

� Revenue

� Cores

� Concurrent sessions

� Spend (volume,

freight, or COGS)

� Employees

� Users

Pricing Metric examples


S/4HANA OP Application pricing model S/4HANA Enterprise Management is priced for adoption

S/4HANA Enterprise Management[7018652, 7018653, 7018654]

Existing ERP customers

HANARun-time or Full Use

ERP packageFlat fee (includes 5 Prof. named users)

S/4HANA Enterprise Management for ERP customers

[7018538]SAP Named

Users required when accessing S4H EM via the

Flat Fee Per user fee

S/4HANA Industry & LoB Solutions

Existing customers should already have SAP Named Users for their “Classic” Business Suite/ ERP

solutions & can keep using them in S4H EM

Already have this

Net New ERP customers


User


Flat-Fee

S/4HANA Finance for cash management, .

S/4HANA Enterprise Product

Engineering

S/4HANA Vehicle Sales Management

Revenue User

S4H Flat-fee: SAP Named Users are required when accessing S/4H Enterprise Management S/4HANA Enterprise Management priced with a User metric

S/4HANA LoB & Industry Add-ons are priced based on a single, value aligned metric.

S/4H…

Metric

S/4HANA Finance for cash management, .

S/4HANA Enterprise Product Engineering

S/4HANA Vehicle Sales Management

ProductsRevenue User

S/4H…

Metric

NO SAP Named Users required for

S4H EnginesProducts


S/4HANA Enterprise Management for

Professional use7018652

S/4HANA Enterprise Management – use rightsCorresponding Solution Capabilities

All Solution Capabilities offered by the

Software, within the Enterprise Management

license


Functional use7018654 & 7019722

Supply Chain ManagementGood Movement

Inventory Analytics

Returnable Packaging Logistics

Warehouse Management

Shipping

Transportation Management

Available to Promise

ManufacturingMaterial Requirements Planning

External Processing

Production Execution

Subcontracting

Just-in-time Inbound Processing

Kanban

Production Control

Repetitive Manufacturing

Quality Engineering

Quality Improvement

Quality Inspection

Manufacturing Analytics

Asset ManagementMaintenance Planning and Scheduling

Maintenance Execution

Enterprise Information ManagementMaster Data Maintenance


Productivity use7018653

Goods Movement

Warehouse Management

Shipping

Available to Promise

Material Requirements Planning

Production Control

Production Execution

Maintenance Execution

Self-Service Requisitioning

Organizational Management

Time Sheet

R&D and EngineeringProject Financial Control

Project Logistics Control

Production BOM Management

Recipe/Routing Management

Variant Configuration

Inspection Planning

Product Development Foundation

ServiceWarranty Management

Service Request Management

Service Order Management

Service Fulfilment

Service Billing & Settlement

Multi-Channel Customer Engagement

SalesSales Order Management and Processing

Opportunity Management

Sales Lead Management

Activity Management

HROrganizational Management

Time Sheet

Sourcing and ProcurementSelf-Service Requisitioning

Updated: August 30, 2018.

A description of Solution Capabilities listed can be found at https://solutionexplorer.sap.com.Browse by suite, then by S/4HANA >> All Solutions >> Solution capabilities

https://solutionexplorer.sap.com/


SAP S/4HANA Enterprise Management

Item overview

SAP S/4HANA

Pricing Highlights

Channel• All channels

Exceptions to pricing guidelines

SAP S/4HANA Enterprise Management for ERP customers [7018538]€9000 one-time flat-fee per customer, discountableUSR=Y, SAV=N, HSAV = YPre-requisite: ERP_Package Usage rights extended to “compatibility pack” SAP Named Users are required when accessing S/4H

EM

SAP S/4HANA Enterprise Management

• Metric is Users. 3 material codes differentiated by usage:• [7018652] SAP S/4HANA Enterprise Management for Professional use• [7018653] SAP S/4HANA Enterprise Management for Productivity use• [7018654] SAP S/4HANA Enterprise Management for Functional use.

USR=N, SAV=N, HSAV = Y Usage rights extended to “compatibility pack” Includes EPH7 / ECC6, defined scope Usage rights to ERP are included


Developer Access for on premise S/4HANA

Rights to ABAP

Based Extensions

Rights to Screen Changes to Fiori UI

Rights to all other Cloud based extensions

Access to development tools provided with the licensed S4HANA Enterprise Management Software for the purpose of making ABAP enhancements and/or any add-ons to any S4HANA Package

Type Description

Make changes to Fiori screens(Web IDE) including new fields and layout

Broad based extensions created in the cloud and integrated into the OnPremise solutions

Monetization

Material Code 7018682 SAP S4HANA development access gives access to any development across the S4H portfolio

[optional & additional] Must acquire 8003103 SAP Cloud Platform Web IDE if making changes to Fiori screens

[optional & additional] SAP Cloud Platform licenses are required. Work with your SCP Expert

KEY MESSAGE

What rights does the SAP Developer access provide? What needs to be licensed separately and additionally?


SAP S/4HANA product or contract conversion

§ Intended for piece-meal 1:1 conversions to S/4HANA over time

§ Can only convert into products with a valid conversion path

§ Requires line-item mapping – use the S/4HANA conversion grid to find the corresponding Classic & S/4HANA products

§ 100% of classic product maintenance base is carried forward

§ Customer is entitled to 100% credit up to net payable of new S/4 product. Note: 100% credit is approved during 2018

§ First step towards a possible future contract conversion

§ Intended for full contract “wholesale” conversions

§ Customer can reconfigure their landscape (“Milkshake concept”: re-allocate shelf ware and apply credit to new, unrelated Software licenses)

§ 100% of current customer maintenance base is carried forward*

§ Conversion credit equal to the lesser of 100% of prior maintenance base or 90% of new net payable

Product Conversion Contract Conversion

How do customers make the commercial move to S/4 HANA?Customers can achieve the commercial migration in two ways, a) via product-level conversions or via b) a single contract conversion.

Question:

*Some exceptions may apply such as 3rd party DB or HANA Enterprise


S/4HANA Real Estate S/4HANA Financial Asset Mgmt.

S/4HANA Dig. Access

Revenue

…

Revenue Documents Metric

S/4HANA Enterprise Management[7018652, 7018653, 7018654]


User

S/4HANA Industry & LoB Solutions & Ent. Mgmt. Use


ERP packageFlat fee (includes 5 Prof. named users)

S/4HANA Enterprise Management for ERP customers 7018538

Flat-FeeSAP Named

Users required when

accessing S4H EM via the Flat

Fee

S/4HANA Real Estate S/4HANA Financial Asset Mgmt.

S/4HANA Dig. Access

Revenue Revenue DocumentsCommercially

Neutral Solutions,

HANA native Solutions


S/4HANA Contract Conversion – Example (Financial services DE)

Classic S/4HANA

ContractConversion

User SAP ERP Professional UserSAP ERP Limited Professional User

SAP ERP Developer User

LoB & Industry Solutions SAP Incentive&Commission Mgt.f.InsuranceSAP Coll. + Disburs. f. Ins (1 Mio GWB)mySAP FI Real Estate Mgmt - Resid.UsemySAP FI Real Estate Mgmt - Comm.UseFS Statutory Reporting GermanySAP Investment Mgmt. for InsuranceSAP Investment Controlling for Insurance

Compatibility Pack SAP Payroll ProcessingSAP ERP Employee User / SAP ERP ESS User

Commercially neutral

Other - Credited SAP NW Records Management

No Credit Classic Database

HANA (New)

7018652 S/4 Ent. Mgmt. Professional use7018653 S/4 Ent. Mgmt. Productivity use7018654 S/4 Enterprise Mgmt. for Functional use7018682 SAP S/4HANA, Developer access7019025 SAP S/4HANA ICM for Ins., 2001-30007019019 SAP S/4HANA Coll & Disurs, 2001-30007018838 SAP Real Estate for S4 ,retail,ind pr7018838 SAP Real Estate for S4 ,retail,ind pr7019035 SAP S/4HANA Financial Asset Mgmt7019035 SAP S/4HANA Financial Asset Mgmt7019035 SAP S/4HANA Financial Asset Mgmt7018703 SAP Access Control for SAP S/4HANA7018640 SAP S/4HANA Fin, cash mgmt (11-50)7017373 SAP Payroll Processing7019298 SAP ERP HCM component7016865 SAP Landscape Transformat. Replic Server7018996 SAP Landscape Management7018995 SAP Information Lifecycle Management7017727 SAP Bus Plan&Cons ver. f SAP NW, prof ed7019212 SAP Enable Now, author option7019213 SAP Enable Now, consumption option

7018920 SAP HANA, RT Applic&BW-inst base,parti


Step-by-step approach

31 2 4CheckApplicability Collection Build S/4HANA BOM

Validation/agreement

• Make your decision when to migrate now, latest migration to S/4HANA until end of 2025

• Solutions with a path / roadmap to S/4HANA world

• Collect today‘s BOM with products, material codes, net values, quantity

• Ask SAP if current licensed scope is not clear or fuzzy

• Add additional needs, e.g. HANA, add. solutions

• Identify unused software (unused material, users not needed with S/4HANA) – only relevant for Contract Conversion!

• Map corresponding S/4HANA product related to classic product, useConversion Grid and/or Material History

• Add native HANA Apps

• Validation / confirmation of BOM structure/quantity, terms & conditions

Thank you.