Quietly and unnoticed, the product SAP S/4HANA Enterprise Management for ERP customers (#7018538) is disappearing from the price list of Q2/2023 – and those who don't possess the 9,000 euro flat rate by July 16 will miss out on the opportunity of choice.
This product was necessary to initiate the S/4HANA transformation with the existing license inventory without utilizing the offerings of the new license types in the S/4HANA world.
With this variant, it was previously possible to continue using the majority of one's license inventory, but returning shelfware was not possible. Optionally, customers can still acquire the flat rate SAP S/4HANA Enterprise Management for ERP customers (#7018538) until July 16, 2023, which doesn't need to be immediately utilized.
All previous license inventories can be returned, and a completely new purchase can be made. However, the license value must increase by at least 10%. This variant works for both on-premise and cloud.
This is a "complete package" offered by SAP for the move to the cloud.
SAP licensing rests on three pillars: product selection, deployment options, and license models. This guide explains how they shape your SAP contract – and how understanding them helps you determine your effective license position, avoid unnecessary software spending, eliminate shelfware, and stay compliant.
The last two options can be mixed, while in the case of Product Conversion, a cloud variant would have been possible only additionally.
One can have a positive or negative view on the elimination of Product Conversion, but it is a fact that this transformation will no longer be feasible or will require arduous negotiations.
SAP has initiated its cloud offensive and, by eliminating this migration option, has also removed one of the two on-premise variants without replacement. SAP's goal is to bring more customers into the cloud offerings through this approach.
On the other hand, this can present an opportunity for customers to delve deeper into the current situation and future scenarios.
The search for shelfware and improperly allocated licenses can turn into a real gold mine.
With our software for automated license optimization, samQ, we typically identify overlicensing in approximately 60% of companies. With a Contract Conversion, the unnecessarily spent costs can be reactivated and utilized for urgently needed products for digital transformation.
Well, Product Conversion is now gone, which was rarely lucrative anyway and only maintained the status quo with a benevolent surcharge from SAP. Now it is up to the customers or companies to keep costs as low as possible or even save money in the coming years through a clever strategy.
That's exactly our focus. With our tools, samQ for license optimization and visoryQ – Business Case Builder for SAP contract strategies, we have excellent capabilities to transparently present the corresponding paths (short-medium-long-term, TCO, OPEX, CAPEX, etc.) and provide the necessary negotiation foundations.
We are also happy to support negotiations with our globally experienced SAP license and contract specialists, if desired.
We will show you where the nuggets are hidden and how to uncover them.
