Pricing Model SAP

First feedback from user groups and their members

Rob van der Marck | 21.08.2018  15.21 CET | Licentiemodel

SUGEN has been instrumental in the discussion of Indirect Access with SAP since 2016. On the 10th of April 2018, SAP announced the new license model for what is now called Digital Access. The session in Walldorf was not meant to explain the new model, because this has been done extensively in various ways since the announcement.

During  the SUGEN meeting on the 8th of May, it was the first time we had the opportunity to discuss the topic again with Sonya Swann, Global Head of Pricing and Commercialization at SAP. The purpose of the session was to discuss the first feedback from user groups and their members.

In summary, this feedback is as follows:

1. The new license model in itself is clear, transparent and predictable. This is in the first place the case for new customers.

2. SAP confirms that “do nothing” (i.e. stick to the old license model) is a perfectly fine option; SUGEN will then monitor the ecosystems in order to raise to SAP any behavior that could be seen as a potential pressure in order to have customers adopting the new license model when not justified by value creation and solid business cases.

3. The following topics are the one SUGEN wants to continue collaboration with SAP:

• SAP confirms that if an existing ERP customer is appropriately licensed, no additional charges will be requested; still SUGEN considers that customers could not be sufficiently able to understand on their own, if they are properly licensed or not. This point must be then more worked out. SAP is working on tools and services for customers to have a better understanding how and what customers have licensed.

•  SUGEN and SAP will continue working on EDI, as there are still open questions.

• SUGEN is still targeting a greater flexibility in SAP contracts and will continue the discussion with SAP on that.

• SUGEN and SAP will continue working together in order to give evidence to the cost neutrality of the new model, in respect of the confidentiality of the contracts and agreements between SAP and customers.

• The measurement tooling is very important for customers in their decision to convert or not. SUGEN would like to have a better understanding about the specifications to learn how it will help our members getting better insight into their licensing.

4. SUGEN wants to start a global survey to get broader feedback from their members about the new license model.

SUGEN has spoken again with Sonya Swann (pricing) and Matthias Medert (license management) at SAPPHIRE to continue the dialogue on behalf of SUGEN members.

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