UK&I User Group responds to SAP's latest indirect access licensing guidance

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This is an excerpt from Computer World's article following the recent pressure on SAP with regards to indirect access.

The UK and Ireland SAP user group has responded to SAP's latest guidance on the thorny issue of indirect licensing, saying that it's not what members would have wanted but does offer improved transparency on the issue for customers.

Since the indirect access issue exploded in 2017, when UK drinks giant Diageo was ordered to pay £54,503,578 in licensing fees after its sales staff were running Salesforce applications on top of SAP data, the German software vendor has been scrambling to ease customer concerns around the issue, eventually leading to an entirely new ERP pricing model revealed in April 2018.

"This new model is designed to address every conceivable indirect access scenario for the digital age. It was designed to provide customers the business certainty and predictability on their license commitment," a blog post from Christian Klein and Hala Zeine at the time read.

This new pricing model hinges on nine document types that "represent system records of the most valued business outcomes from the ERP system", such as an order-to-cash process, which creates a sales document, or a plan-to-produce process generating a manufacturing document.

Customers and user groups responded to the new model in a generally positive fashion, but highlighted concerns around transparency and predictability.

"We've been outlining your concerns to SAP for a number of years now. It responded last year by launching the digital access licencing model – we were broadly supportive as we could see the benefits for new customers. However, we also noted that it didn’t address the fears of many of our members," Philip Adams, director of the UK and Ireland SAP User Group summarised in a blog post this week.

Now, one year on, the vendor has announced the Digital Access Adoption Program (DAAP) and the Digital Access Conversion Program. This involves customers engaging with SAP's global license audit and compliance team to identify an estimate of the number of documents created by their current use of SAP applications.

There are also a couple of financial incentives included. One is to license 100 percent of their estimated documents and get a 90 percent discount on digital access, while another is to license for 115 percent of the estimate and "the license fee charged for this transaction is only for such licensed growth," the vendor outlined in a PowerPoint presentation.

Read the full article via Computer World

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