Global SAP License Management Governance and Opportunity. Peter Wesche

Transcription

1 Global SAP License Management Governance and Opportunity Peter Wesche

2 Surprise, surprise! cost Globalization TCO Expected project ROI additional software That s why SAP loves Globalization! time Seite 2

3 Agenda Why to Think About Licensing When Globalizing SAP? Commonly Found Issues That Can Ruin the Budget Planning Ahead and Grabbing the Inventory Best Practice in Negotiations to Avoid Over-Investing Page 3

4 Company presentation Doctor-License GbR newly founded 2012 Focused on International SAP and Oracle licensing engagements Based on 25 Years experience inside and outside the vendors Independent and outcome-oriented services Collaboration with License12.com and other SAM services Page 4

5 Agenda Why to Think About Licensing When Globalizing SAP? Commonly Found Issues That Can Ruin the Budget Planning Ahead and Grabbing the Inventory Best Practice in Negotiations to Avoid Over-Investing Page 5

6 Driving License Needs Consolidation and Simplification is the goal, but spread and complication often the result Localized environments may have many redundancies, but have a good housekeeping Putting different cultures to the planning board induces a competition of the best, but not the least costly approach Consolidation requires compromises that is burrying local ambitions by the software vendor and might mean downside except for the CFO! SAP will not be your friend to reduce software recurring fees! Local buyers not likely to disclose unresolved gap or financial issues Page 6

7 Superior numbers SAP s sales reps outperform you in numbers and influence SAP has a strategy, you must build one with respect to wise spend Working in increments by discovery gives away leverage You need to build the full investment plan at the earliest! The required data: Compound license inventory: Deployment now and expected: Exchanges and configuration options: Schedule dependencies: What you are entitled to What you need What you can trade How to protect leverage? Most of it not easy to grasp! Page 7

8 The Challenge Co-manage the paradigm Reserve funding for ITAM Optimize the resources License Inventory Value for Money Legal Structure Temporary Restrictions Compliance Investment Squeeze Out Benchmark & Leverage Recurring Fees Virtualization Impact Invite Competition SAMAM Action Model Page 8

9 Agenda Why to Think About Licensing When Globalizing SAP? Commonly Found Issues That Can Ruin the Budget Planning Ahead and Grabbing the Inventory Best Practice in Negotiations to Avoid Overinvesting Page 9

10 How about your SAM Maturity? Reality, 2011: Plan: KPMG, 2008 Gartner ITAM Conference, 2011 Seite 10

11 Schema of Pain Multiple agreements can have conflicting terms Procurement contracts may be distributed, not analyzed License distribution may not be controlled via CMDB Local habits may be tightened during globalization User categories can be vague and subject to change Initial business case may have ommited the licensing risk Project requirements may be in the hands of the vendor No skilled resources to fix the SAM dilemmas internally Seite 11

12 Example I Successful CP Manufacturer acquires US-based competitor Both have distinct SAP implementations Europeans started in 2003 with BusinessSuite licenses US acquisition started in 2006 with Application licenses US operates on MS SQL Server, Europeans on Oracle US had negotiated three light user types going forward US has seperate BI solution SAP offers replacement with high buy-out benefit US subsidiary: migration of thousands of queries! SAP offers all new software only with 22% Enterprise Support Corporate wants to increase collaboration with open standards Seite 12

13 Example II European Retailer to replace local country solutions Low-pay staff needs connection, but cheap User category price for temporary associates and quick turn-over Logistics template works for one, but needs ramp-up for many D/C systems differ and cannot be replaced in a big bang Phased deployment to align with ramp-up maintenance Outlets to be connected via proven 3rd party store-backend Named user concept needs to be more flexible MDM needs to interface to external EAN-database at reasonable price SAP standard metrics counts seem to be unreasonable Seite 13

14 Agenda Why to Think About Licensing When Globalizing SAP? Commonly Found Issues That Can Ruin the Budget Planning Ahead and Grabbing the Inventory Best Practice in Negotiations to Avoid Overinvesting Page 14

15 Follow tight SAM Roadmap 1. Identify participating entities and their complete license estate 2. Analyze all associated contracts to detect terms & conditions 3. Validate distributed use or establish where absent 4. Let all sub-projects claim their requirement to staff 5. Build gap and unused license estate to build masterplan 6. Identify lack of utilization that can be claimed 7. Invite SAP to a joint planning session that sets expectations with respect to license spend 8. Only sanction sub-projects that align with expectations and create alternative solutions and schedules for all unresolved elements Seite 15

16 Speed Performance Call-in all existing manifests by deadline and sanction Use third party services to scan all contracts Send out assumptions-of-compliance to speed SAP s resolution Ask for hands-on SAP management sponsorship for HQ (and the region) Create early awareness with sub-project leads to assume responsibility for achieving their contribution to the masterplan Seite 16

17 How SAM tools may help Use inhouse-tools when deployed, do not start with them! Use web-based services when you need fast results Harmonize the tools after globalization or you slow down! Avoid tools that create new cost of ownership Perform the reality check: If I discontinue the tool, can I still reapen some of the benefits? Classify your potential SAM partners: SAP Global License Measurement SAM Tool Vendors Outsourcers SAM Consultancies Web-based SAM services Seite 17

18 Keep Scope flexible Within the masterplan, identify the must-haves Build more than one deployment scenario Best and Worst Case Different Schedules, to be defined as-you-go Associated funding flexibility Provide targeted incentive to your implementation partner Marketing support Good pay for independence and beneficial suggestions Scorekeeper to detect SAP s own agenda Change course for better cost, anytime! Seite 18

19 Agenda Why to Think About Licensing When Globalizing SAP? Commonly Found Issues That Can Ruin the Budget Planning Ahead and Grabbing the Inventory Best Practice in Negotiations to Avoid Overinvesting Page 19

20 Leverage is key! As you cannot play much on time, create and identify the pain points for your negotiation counterpart Keep all communication to the commander and the chief negotiatior Even C-level should keep discipline Subsidiaries must obey a strict information embargo outside the negotiator on all project-related decisions Make sure you set expectations and keep them low Ask SAP for their opinion and take all sales-drive out Ask all subsidiaries for their requirement and expectation and use it towards SAP Do not communicate results internally until you can prove them Build ambitious win-win goals for SAP and support the implementation (good investment) Discuss risk with SAP and let them know what is bad investment Plan and rehearse the bad guy Page 20

21 Benchmark the best-offer Invest in market-research to ensure you get a good offer Do not only evaluate the net amount or discount, but keep certain longterm benefits, such as exchange rights and maintenance-cap Use better-offer information discretely to move step-by-step Consider professional negotiators to drive discussions Do not under-estimate the Gorilla-attitude and avoid loss of face Seite 21 License12.com

22 Utilize flexible scope Best results are achieved if both parties have the option to say no Reduce scope when discussions come to a halt, resume when there is new benefits on the table ( toggle mode ) Continue to assess alternative (in-house, web-based, cloud) solutions Re-schedule and cause forecast-slip if vendor is not flexible Pre-identified drop-projects Stretch of legacy as a threat Claiming outside cause to allow SAP to re-consider Have five-year perspectives at hand to show SAP when ROI becomes uncertain, to cut endless debates Seite 22

23 Recommendations Gather full information of license contracts before globalization Centralize all activities of purchase, communications and controls Identify all contractual entitlements and ensure sustaining Check the user and license categories old and going forward Build license requirements and negotiate all surplus before lock-in Work off alternative scenarios to remain flexible during negotiations In-source benchmarking capacities before committing Page 23

24 Your Turn: Questions? Peter Wesche Doctor-License GbR Page 24