SAP Reveals New Licensing Details – Users Still Confused, Concerned

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

“Financial options still need to be described in a much clearer way, with realistic and concrete examples of how each would play out in the real world” say user groups.

SAP has updated its licensing terms, after the April 2018 release of a new sales, audit and pricing model dubbed “Indirect Access” was roundly criticised for being opaque, confusing and likely to result in increased charges for users.

The new “Digital Access Adoption Program” (DAAP) released this week is the result of a year’s engagement with user groups. SAP said it has made a raft of “radical” changes to last year’s model, based on “candid” conversations with customers.

Users had complained that 2018’s terms made it entirely unclear how they would determine their SAP licensing demand, how SAP was going to measure compliance, and even how much Digital Access would cost, in the absence of a price list.

The “Indirect Access” licensing shift aims to help SAP monetise third-party application interactions with SAP software. It comes after SAP sued Diageo in 2017 for enabling SAP’s ERP system to be accessed via Salesforce software, with the courts ruling that Diageo should pay SAP £54,503,578 worth of damages. The case was settled out of court.

SAP Licensing: “We’ve Made Radical Changes”

“SAP decided to make radical changes to its previous digital access licensing policies. As a result, we developed an outcome-based pricing model that differentiates between direct human access and indirect digital access,” [e.g. engagement with SAP software by third-party applications] the company said.

Pledging a user-friendly approach, the company added in a blog: “The days are over in which customers believed, fairly or not, that any discussion of indirect access, could lead to a confrontation with SAP and the assessment of financial penalties for inadequate licensing.”

“In fact, SAP expects that for many customers a conversion to the new licensing program will largely come at little to no net-new costs and will ensure that no customer will be penalized for violating license rules.”

Read full article via CBR

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