SNOW OPTIMIZER FOR SAP

Transcription

1 SNOW OPTIMIZER FOR SAP THE WORLD LEADER IN SAP LICENSE MANAGEMENT SOLUTIONS Telma Rafael

2 The Annual SAP budget The ever-growing elephant in the IT Budget...

3 About SAP One of the most mission-critical systems Represents staggering investments over the past 20 years, well in excess of $1T Funded and managed separately from the core IT department in most cases Intimidating to get your arms around and drive towards transparency and understanding of the deployment and use Annual costs continue to escalate faster than IT budget!

4 SAP needs growth... SAP as a publicly listed company needs to convince investors that they are far from maturity as a company Cloud, Cloud, Cloud! is the key emphasis Tens of billions of earnings spent to acquire cloud businesses HANA eventually mandated ERP to drive cloud revenue But... The overall software license revenue has declined by 3% this year SAP will miss their revenue and profit targets for the year Real growth is coming from maintenance revenues, surging 9% in Q3 Growth from maintenance dwarfs growth from cloud in nominal terms Getting more money from existing customers is the only way for the story to work over the next few years...

5 How does SAP grow inside a company? Enterprise Maintenance from 17% to 22% SAP annual costs keep on growing Indirect Access Compliance Monitoring Dramatic Increase in Audits and Architectural Reviews Tools for Measurement only, not License Optimization

6 To-date, companies wrote cheques Rather than risk the key relationship with SAP or enter into a political swamp, enterprises simply write bigger cheques In most cases, companies have no idea of their true licensing needs, and SAP does NOT help companies determine that BUT THERE MUST BE A BETTER WAY begin managing SAP like an IT vendor!

7 Key Steps for Managing SAP Be willing to stand up to SAP if not, don t proceed. Think like SAP what are their priorities and how best to leverage those to your advantage. Base your contract negotiations on facts and accurate data that YOU collect continuously. Manage and understand your license base and entitlements. Shift from reactionary to being proactive starting 30 days before your LAW report is due is the wrong way to go. This is too important to wing it. Put your A-team on this - develop or outsource expertise where you are lacking, use advanced software tools to gain advantage.

8 # 1. Are you willing to stand up to SAP?

9 Questions to ask yourself... Are you willing to put in the time, dedicate the resources and request C-level support for this effort? What are the risks involved with the lack of commitment? Are the rewards big enough to justify the effort? MANY FIRMS LACK THE COURAGE AND ENDURANCE TODAY, THAT WILL CHANGE OVER TIME!

10 # 2. Think like SAP

11 Think of Vendor s Priorities always! SAP as a publicly listed company has key goals they need to achieve including: Appearing to be more than just an ERP company. Show rapidly growing adoption of new products like HANA... Keeping Wall Street happy with a cloud story. Drive earnings growth faster than revenue by squeezing more out customers indirect access as an example. Steep discounts of 65-70% on the purchase of premise-based perpetual licenses can be given... But these are effective at creating long-term maintenance annuities based on 22% of the list (non-discounted) price.

12 SAP Licensing Is Like A Cafeteria Open buffet without a cashier! 12

13 # 3. Base negotiations on facts and data

14 Understanding SAP Usage Is Key ENTITLEMENTS: What has been contractually purchased from SAP UTILISATION: What is actually being used and by whom? Snow Optimizer For SAP DEPLOYMENT: What has been deployed by the enterprise? 14

15 Agentless Enterprise Deployment Installs on one SAP system then pulls in data from other SAP systems - users, user licenses, and usage without additional agents required. Snow Optimizer

16 Holistic Collection of Activity Data

17 Collection and Analysis of Details!

18 Gather precise data on users/usage Highly automated and advanced tools can gather all data on users/usage which can determine license compliance and optimisation Clear and concise baseline of all SAP users Detailed usage data by each and every SAP user including the milliseconds of CPU time in each module, each transaction executed, each change revision, each logon... Understand where SAP could plausibly argue that indirect access violations may be occurring and why, and be prepared for such a discussion in advance of the audit process Having substantially MORE data than SAP has from their systems measurement/law report tips the table in YOUR favour!

19 # 4. Shift from Reactive to Proactive

20 Proactive requires forethought Leave yourself 4 months BEFORE a contract renewal or audit if you want to optimise or clean up your SAP licenses Have all of your entitlements/contracts well organised and ready for review Constantly monitor your system usage and potential indirect access violations. Know this BEFORE SAP, not afterwards. Engage in discussion with prospective team partners and vendors, be ready to gear up for battle

21 # 5. Put your A team in this game

22 It takes an all-star team to win Deep domain expertise in SAP licensing, contracting and optimisation is rare and hard to find Evaluate prospective partners that have this expertise to be part of your team Make sure SAP administrative resources are on-board and committed to the effort Don t underestimate the skills and knowledge of the SAP audit team

23 Conclusion SAP has been able to escalate its revenue within enterprises dramatically over the past 10 years A more aggressive SAP is auditing customers more, probing deep into customer architecture and mining for more money from each customer Managing SAP as an IT vendor requires a commitment up and down the organisation Overcoming political obstacles are big, and complex. The savings can be staggering. But commitment and effort is key.

24 QUESTIONS?

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