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  • PUBLIC

    SAP S/4HANA

    Licensing - Basics

  • 2PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

    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

  • 3PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

    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

  • 4PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

    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.

  • 5PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

    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

    6 months 14 months 11 months

    10 months 36 months 18 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

    Maintenance and support

    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

    Maintenance and support

    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

  • 9PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

    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

  • 10PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

    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

    HANARun-time or Full Use

    User

    S/4HANA Industry & LoB Solutions

    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

  • 11PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

    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

    S/4HANA Enterprise Management for

    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

    S/4HANA Enterprise Management for

    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/

  • 12PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

    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

  • 13PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

    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?

  • 14PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

    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 Industry & LoB Solutions

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

    AccessRevenue

    Revenue Documents Metric

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

    HANARun-time or Full Use

    User

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

    HANARun-time or Full 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.

    AccessRevenue Revenue Documents

    Commercially Neutral

    Solutions, HANA native

    Solutions

  • 15PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

    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

  • 16PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

    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.