SAP S/4HANA Licensing Model SUGEN

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1 SAP S/4HANA Licensing Model SUGEN Dirk Kästner SAP S/4HANA Business Development April 26, 2018 FOR INTERNAL SAP AND PARTNER USE AND SUGEN ONLY

2 Disclaimer This is an overview of SAP s pricing and licensing. This is not a legal document. This document does not supersede existing contracts or software use rights. This document is not an exhaustive summary of all the legal clauses, obligations, and responsibilities that are represented in a software purchase. This document is not guaranteed to be 100% accurate with respect to the base underlying legal documents. In case of a conflict between this document and a legal document such as the software use rights, terms of use, or other legal document, then the legal document will take precedence. Pricing on the slides are examples in a local currency. Always use the applicable local pricing information. 2

3 It s me Dirk Kästner Husband, Father, born to Golf forced to work ;-) Global SAP S/4HANA Business Development, SAP SE dirk.kaestner@sap.com Since Developer (Simulation of R/3, Batch, Monitoring) Quality Manager Lifecycle Management Executive Director to Head of SAP NetWeaver and SAP Research SAP P&I Business Information Officer Global SAP S/4HANA Business Development 3

4 Simplifying database & table structures to prepare for scale SALES FINANCE Header Document Item Document Header Item Totals Indices Sales Order VBAK VBAP VAKPA VAPMA GL, AR, AP BKPF BSEG GLT0 KNC1 KNC3 BSIS BSAS BSIK Delivery LIKP KIPS LIPS VLKPA LKPMA LFC1 LFC3 BSID BSAD BSAK Billing Document VBRK VBRP VRKPA VRPMA New GL FAGLF ACDOCA LEXA* FAGLF LEXT* FAGL BSIS FAGL BSAS Status Info VBUK VBUP CO COBK FAAT_ COEP DOC_IT COSS COSP Conditions PRCD_ Elements KONV (new) VBOX AA ANEK FAAT_ ANEP YODA ANEA ANLC ANLP Document Flow (Simplified) VBFA ML MLHD FAAT_ MLIT PLAN_ VALUES MLCD MCLR BSIM* CKMI1* Aggregates Hybrid: Master Data with Valuated Stock Used for Master Data History only MATERIAL VALUES Valuation in MM or Valuation ML ML Valuation SAP Business Suite Material Document MATERIAL QUANTITIES Aggregates Stock Aggregates MSSA MSSL MSSQ MSSAH History MSTBH MSSQH MBEW MBEWH CKMLCR MLPP CKMLPP CKMLPPWIP MLDOC MATDOC MKPF MATDOC_ EXTRACT MSEG MSTE MSTQ MSTB MSTEH MSTQH EBEW EBEWH CKMLPP MLCR CKMLCR CKMLKEPH MLDOCCCS Inventory Movements Hybrid: Used Master for Master Data with Data Stock only Aggregates MARCH MARDH MKOLH QBEW QBEWH MLHD MLCRF MLCD CKMLMV004 MCHB MARC MARD MSKU MSLBH MCHBH MSKUH OBEW OBEWH MLIT MLKEPH CKLMMV004 MSKA MKOL MSPR MSLB MSKAH MSKAH 4

5 Agenda SAP S/4HANA Suite Overview & Solutions SAP S/4HANA On-Premise Licensing Model Example Net New Customer SAP S/4HANA prerequisites Convert SAP ERP customers towards SAP S/4HANA (Conversion Policies) SAP S/4HANA Cloud 5

6 SAP S/4HANA 1709 S/4HANA Suite Finance Human Resources Sourcing and Procurement Manufacturing Supply Chain Suite** Governance, risk, and compliance Financial services network SAP digital payments add-on SAP Cash Application Core human resources and payroll Talent management Time and attendance management Human capital analytics Supplier collaboration Business network Guided end-user buying External workforce management Responsive manufacturing (ME, MII, QIM, VE) Production operations (MII, QIM) Digital operations for manufacturing Integrated business planning Global batch traceability Extended warehouse management Transportation management Products* Financial planning and analysis Accounting and financial close Treasury management Advanced financial operations Commodity management Governance, risk, and compliance Core accounting Cost management and profitability analysis Basic financial operations Time recording Extended Procurement Operational purchasing Collaborative sourcing and contract management Supplier management Procurement analytics Complex manufacturing Production operations Quality management Manufacturing insights Extended production scheduling and delivery planning Advanced inventory, warehousing, and transportation Basic inventory, warehousing, and transportation Production planning Enterprise Management Order and contract management Service master data and agreement management c Service operations and processes c Service parts management c Maintenance management Project control Product development Product engineering Products* Sales performance management (ICM) Subscription billing and revenue management ( BRIM ) Asset operations and maintenance c Environment, health, and safety Enterprise portfolio and project management c Product lifecycle management Product safety and stewardship Suite** SAP Hybris Sales Cloud SAP digital payments add-on SAP CRM SAP Hybris Service Cloud SAP Hybris Service Engagement Center SAP CRM SAP Hybris Commerce SAP Hybris Marketing Cloud SAP CRM Asset performance and intelligence Digital operations for R&D Sales Service Marketing and Commerce Asset Management R&D / Engineering Industries 6

7 SAP S/4HANA: Complete, Consistent Choice SAP S/4HANA s code line, simplified data model, and modern user experience are consistent for both cloud and on premise. Designed for in-memory, SAP S/4HANA brings new business capability while simplifying the IT landscape. SAP S/4HANA Considerations for selecting the right SAP S/4HANA solution: Business functionality Regulatory, industry, and regional requirements Individualization options IT Strategy Innovation cycles Adoption/upgrade efforts TCO Commercial models Cloud On Premise One Code Line 7

8 The right solution for each customer situation Cloud ERP SAP S/4HANA Cloud SaaS solution Configurable standardized processes and best practices for finance, procurement, HR, and sales In-depth support for professional services and component manufacturing; more industries on road map Extensibility with PaaS Public cloud infrastructure Quarterly release cycle Lowest TCO Fastest time to value Subscription licensing SAP S/4HANA Cloud, private editions Private cloud All private editions run on SAP HANA Enterprise Cloud Customizable packages and bundles All industries supported Extensibility with PaaS SAP-managed services on private cloud infrastructure (SAP, AWS, Microsoft Azure, or Google Cloud Platform) Annual release cycle, speed of adoption depending on configuration Low deployment/maintenance/upgrade efforts vs on-premise ERP Subscription licensing SAP S/4HANA On-premise capabilities managed by customers On-premise functional scope All industries supported Customize, modify, and extend Customer infrastructure or IaaS Annual release cycle, speed of adoption depending on configuration and custom modifications Best-in-class deployment/upgrade efforts for on-premise ERP Perpetual licensing 8

9 SAP S/4HANA Pricing On-Premise

10 S/4HANA on prem License Model for Existing and Net New Customers S/4HANA 2016 onward Existing ERP customers Net New ERP customers S/4HANA Industry & LoB Solutions S/4HANA Industry & LoB Solutions Cash Mgmt. Central Finance Cash Mgmt. Central Finance Revenue Revenue Metric Metric Revenue Revenue Metric Metric S/4HANA Enterprise Management for ERP customers [ ] Flat-Fee Named Users Named Users Per user fee Per user fee S/4HANA Enterprise Management [ , , ] ERP package Flat fee (includes 5 Prof. named users) User Already have this HANA Run-time or Full Use Already have and can keep using HANA Run-time or Full Use 10

11 SAP S/4HANA, developer access SAP S/4HANA On-Premise Enterprise Management License and Metric Metric depending on solution Cash Management Portfolio & Project Management Revenue User Further Details: Solution Explorer Feature Scope Description SAP S/4HANA Enterprise Management for Professional use This license allows performing all role required operations, including management and system administration tasks. Metric User SAP S/4HANA Enterprise Management for Functional use Project Financial Controls; Project logistics Control; Basic subcontracting; Basic External Processing; Product Development Foundation; Production BOM Management; Recipe / Routing Management; Inspection Planning, Quality Engineering and Quality Improvement; Kanban, JIT Outbound and Inbound Processing; Repetitive Manufacturing; Maintenance Planning and Scheduling Master Data Maintenance; SAP S/4HANA Enterprise Management for Productivity Use Production Control; Basic Production Execution; Material Requirement Planning; Basic Order Promising / Available to Promise; Goods Issue; Good receipt; Basic Shipping; Basic Warehouse Management; Maintenance Execution; Self-Service Requisitioning; Time Sheet 11

12 SAP S/4HANA, developer access This material code is for new S/4HANA customers licensing SAP S/4HANA Enterprise Management to allow developers to make ABAP based enhancements / modifications to any SAP S/4HANA application. Note: There is NO obligation to license S/4H Developer Access as part of any S/4H deal unless it is needed by the customer who is indeed going to make ABAP based modifications and extensions Existing SAP ERP customers who upgrade to S/4 HANA using SAP S/4HANA Enterprise Management for ERP Customers [ ] can continue to use or license the classic material code SAP Developer User 12

13 Example Net New Customer

14 The S/4HANA On-Premise Licensing Model Example / Customer Requirement Customer Employees Required Solution Capabilities 100 Employees Shopping Cart / Time Sheet 15 Employees Inspection Planning & Quality Engineering 15 Employees Product Development 15 Employees Cross Logistic 15 Employees Finance, Accounting 5 Employees Cash Management 14

15 The S/4HANA On-Premise Licensing Model Example / Licensing Solution Capabilities License # Shopping Cart / Time Sheet S4H EM Productivity Use 100 Inspection Planning & QE S4H EM Functional Use 15 Product Development S4H EM Functional Use 15 Cross Logistic S4H EM Professional Use 15 Finance, Accounting S4H EM Professional Use 15 Cash Management S4H Finance for Cash Management? Cash Mgmt Central Finance SAP S/4HANA Enterprise Management for Professional Use SAP S/4HANA Enterprise Management for Functional Use SAP S/4HANA Enterprise Management for Productivity Use 15

16 The S/4HANA On-Premise Licensing Model Example / Price List for SAP S/4HANA Finance for cash management 16

17 The S/4HANA On-Premise Licensing Model Example / Licensing Solution Capabilities License # Shopping Cart / Time Sheet S4H EM Productivity Use 100 Inspection Planning & QE S4H EM Functional Use 15 Product Development S4H EM Functional Use 15 Cross Logistic S4H EM Professional Use 15 Finance, Accounting S4H EM Professional Use 15 8 S/4HANA Enterprise Management Professional Use required. OK! Cash Management S4H Finance for Cash Management? 17

18 The S/4HANA On-Premise Licensing Model Example / Price Calculation Solution Capabilities License # Shopping Cart / Time Sheet S4H EM Productivity Use 100 Inspection Planning & QE S4H EM Functional Use 15 Product Development S4H EM Functional Use 15 Cross Logistic S4H EM Professional Use 15 Finance, Accounting S4H EM Professional Use 15 Cash Management S4H Finance for Cash Management? 100 x 300 = x = x = Customer Revenue: Units: Blocks of Units required Material: SAP S/4HANA Finance for Cash Management, up to 10 units Price: per unit 5 x =

19 The S/4HANA On-Premise Licensing Model Example / HCM Manager Self Service Customer Request Until End of Q Since Q Employees MSS, ESS MSS, ESS Professional Use MSS, ESS Professional Use SAP ERP HCM ( ) DISCLAIMER SAP ERP HCM ( ) is only available on exceptional cases! SAP strategy is the cloud solution SuccessFactors SAP S/4HANA Enterprise Management for Professional use SAP S/4HANA Enterprise Management for Functional use SAP S/4HANA Enterprise Management for Productivity Use SAP S/4HANA Enterprise Management for Professional use HCM SAP S/4HANA Enterprise Management for for Functional use Functional use SAP S/4HANA Enterprise Management for Productivity Use x 1000 = x 1000 =

20 The S/4HANA On-Premise Licensing Model Example / BOM Solution Capabilities License Metric Units Price p.u. List Price Shopping Cart / Time Sheet S4H EM Productivity Use User Inspection Planning & QE S4H EM Functional Use User Product Development S4H EM Functional Use User Cross Logistic S4H EM Professional Use User Finance, Accounting S4H EM Professional Use User SAP S/4HANA Enterprise Management for Productivity Use Cash Management S4H Finance for Cash Management Revenue Manager Self Service SAP ERP HCM ( ) User SUM HANA Database HANA Runtime 15% SUM

21 The S/4HANA On-Premise Licensing Model Example / Use Rights Empl. Solution Capabilities License Cash Mgmt Central Finance 100 Shopping Cart / Time Sheet S4H EM Productivity Use 15 Inspection Planning & QE S4H EM Functional Use 15 Product Development S4H EM Functional Use SAP S/4HANA Enterprise Management for Professional Use SAP S/4HANA Enterprise Management for Functional Use 15 Cross Logistic S4H EM Professional Use 15 Finance, Accounting S4H EM Professional Use 5 Cash Management S4H Finance for Cash Management 1000 Manager Self Service SAP ERP HCM ( ) SAP ERP HCM SAP S/4HANA Enterprise Management for Productivity Use 21

22 SAP S/4HANA Prerequisites

23 ERP License S/4HANA Enterprise Management License Engine License Engine License SAP S/4HANA: No surcharge on like for like functionality Principle of ONE drives us to deliver only ONE solution for ONE business problem Even if ERP capabilities are realized in a solution that comes with its own license, we do not charge in case solely the functional scope is used, that is described as part of the S/4HANA Enterprise Management ERP LoB & Industry solutions Enh. Credit Mgmnt EWM GTS Enh. Credit Mgt S/4HANA LoB & Industry solutions EWM GTS All Details are described in the feature scope description of S/4HANA Basic Credit Mgmnt WM SD-FT (intrastat) Basic Credit Mgt WM Intrastat Measurement will be done via Authorization objects ERP Core SAP S/4HANA Enterprise Management ERP Licensing S/4HANA Licensing 23

24 S/4HANA contract to be signed by customer Contract for S/4HANA clarifies two elements: S/4HANA is a new product with a different scope than the SAP Business Suite To avoid S/4HANA falling under the 3rd party DB OEM contracts SAP has with other DB vendors, customer has to confirm that data between any SAP SW on 3rd party DBs and S/4HANA is only exchanged on Application level APIs (exception: one time data migration) SAP SW (ERP, CRM, ) 3 rd party runtime DB Application-level APIs Data replication is not permitted S/4 SAP HANA Runtime 24

25 SAP S/4HANA: Commercial Separation from the ERP World Only SAP S/4HANA solutions are allowed to run on an SAP S/4HANA installation SAP S/4HANA is a new product, not the legal successor of SAP ERP/SAP Business Suite Limitation in our Software Use Rights (SUR) to separate the commercial worlds: ERP LoB & Industry solutions ERP Core ERP Licensing S/4HANA LoB & Industry solutions SAP S/4HANA Enterprise Management S/4HANA Licensing ERP LoB & Industry X solutions SAP S/4HANA Enterprise Management ERP Core X functionality SAP S/4HANA Enterprise Management Why allow the use of Compatibility Packs on SAP S/4HANA? Allow sufficient time for redesign of business processes under S/4HANA Make transition easier for installed base customers unless explicitly permitted via Compatibility Packs 25

26 S/4HANA Compatibility Packs Classical ERP Scope + LoB and Industry solutions S/4HANA On- Premise Scope Compatibility Scope SAP grants a timely restricted (1) use right for specific classic SAP solution functionality (2) to S/4HANA customers, at no extra cost (3) (1)restricted until the end of 2025 (2)whitelist: compatibility packs as documented in note and in the Software Use Rights (SUR) (3)condition: customer has licensed SAP S/4HANA and the classic solution Compatibility Packs are only required for solutions which are installed on the SAP S/4HANA instance not for side-by-side installations. SAP aims to replace these classic solutions by the end of 2025 with a genuine S/4HANA solution. Named user licenses are not required for solutions that are in the CP Matrix. 26

27 S/4HANA On Premise License Model for Existing and Net New Customers S/4HANA 2016 onward Existing ERP customers Net New ERP customers S/4HANA Industry & LoB Solutions S/4HANA Industry & LoB Solutions Cash Mgmt. Central Finance Cash Mgmt. Central Finance Revenue Revenue Metric Metric Revenue Revenue Metric Metric S/4HANA Enterprise Management for ERP customers [ ] Flat-Fee Named Users Named Users Per user fee Per user fee S/4HANA Enterprise Management [ , , ] ERP package Flat fee (includes 5 Prof. named users) User Already have this HANA Run-time or Full Use Already have and can keep using HANA Run-time or Full Use 27

28 S4/HANA Product Conversion

29 SAP S/4HANA Enterprise Management for existing ERP Customers Existing ERP customers SAP S/4HANA Industry & LoB Solutions Cash Mgmt. Central Finance Real Estate Revenue Revenue Rental Units Metric Starting Point: Existing classic engines 1:1 Path forward (convert what you have!) New S/4 HANA License Model S/4HANA Enterprise Management for ERP customers [ ] Flat-Fee Named Named Users Users Per Per user user fee fee Keep the Contract! Already have this ERP package Flat fee (includes 5 Prof. named users) HANA Run-time or Full Use Already have and keep using classic License Model 29

30 S/4HANA On Premise: Conversion Policy S/4HANA Conversion Policy provides a conversion path for classic Engines to S/4HANA Engines: 100% conversion credit in 2018, tbd for 2019ff Once converted, the customer can run the classical engine as well in a separate installation until Dec 31, The Conversion Grid documents the approved conversion path by listing classical materials which have equivalent SAP S/4HANA materials. Maintenance Base carries forward at 100%, it may never be reduce There are no partial conversions, conversions are always 100% Classical engine S4 engine SAP Named Users No conversion for SAP Named Users Named Users for Retail, Banking, Healthcare/Clinical and Industry Named Users convert when the engines convert. SAP Named User: Replacement of existing maintenance payments with new purchase possible via Extension Policy. 30

31 Conversion Grid 1. Classic Engine Corresponding S/4 Engine 2. Native HANA Applications 3. Compatibility Packs 4. Commercially Neutral 31

32 S4/HANA Contract Conversion

33 S/4HANA On Premise License Model for Existing and Net New Customers How do existing ERP customers move to this model? S/4HANA Industry & LoB Solutions Cash Mgmt. Central Finance Revenue Revenue Metric Metric Starting Point: Target Environment Pure S/4HANA contract (no NUL anymore) Simplify and improve landscape / installation S/4HANA Enterprise Management [ , , ] 100% credit for prior purchases to be applied to the new BOM, but total credit limited to 90% of new BOM User HANA Run-time or Full Use 33

34 S/4HANA Credit Application Summary 34

35 What can be deployed on an S/4HANA installation? Software Solutions Database, S/4HANA, S/4 Engines Native HANA, Compatibility Pack (CP) Commercially Neutral: SW which is not S4H, Native HANA, CP Challenges Commercially Neutral Required Named User Licenses Not required on S/4 anymore Third Party Database Business as usual (maintenance payments during transition phase) Compatibility S/4 Engine Native HANA Pack S/4HANA Enterprise Management Commercially Neutral Commercially Neutral ERP Commercially Neutral ERP HANA Database Third Party Database 35

36 SAP S/4HANA Conversion Program: product or contract conversion Question: Q: 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. Both are now generally available. Product 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 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 *Some exceptions may apply such as 3 rd party DB or HANA Enterprise 36

37 SAP S/4HANA Cloud

38 SAP S/4HANA Cloud public Use available with tiered pricing Memory Extension per Gigabyte Advanced Use Authorized to use all capabilities of the solution without constraints. Core Use Authorized to use most capabilities of the solution, except, select advanced applications or cross-lob capabilities, Finance, Maintenance, Operations, and IT management functions that are reserved for Advanced use only. Self-Serve Use Authorized to use highly restricted self service capabilities and lightweight data entry and workflow capabilities. Material Pricelist item Metric Currency infinite SAP S/4HANA Cloud for advanced use User EUR SAP S/4HANA Cloud for core use User EUR SAP S/4HANA Cloud for self-serve use User EUR SAP S/4HANA Cloud in-memory extension GB EUR 100 The capabilities of each of these use packages are described in the S/4HANA Cloud feature specification document found at Cloud Supplemental terms Pricing and Software Use Rights definitions are for illustrative purposes please refer to the local pricing documents 38

39 SAP S/4HANA Cloud, private option Currently only available for Cloud Choice Program (CCP). Not for reselling via Value Added Reseller (VAR) model. SAP S/4HANA Enterprise Management Cloud, private option Each Full Use Equivalent (FUE) corresponds to a number of individuals authorized to access specified functions of the Cloud Service. Customer may allocate each Full Use Equivalent User to any one of the Use types, and may change the allocation at any time. 1 FUE User = 0.5 SAP S/4HANA Developer Access 1 FUE User = 1 SAP S/4HANA Enterprise Management Professional Use 1 FUE User = 5 SAP S/4HANA Enterprise Management Functional Use 1 FUE User = 50 SAP S/4HANA Enterprise Management Productivity Use Pricing and Software Use Rights definitions are for illustrative purposes please refer to the local pricing documents 39

40 Key Takeaways SAP S/4HANA is a new product! S/4HANA live customers S/4HANA is ready, no reason to stay on ECC SAP S/4HANA Pricing and Licensing SAP S/4HANA Cloud SAP S/4HANA Cloud, private Option SAP S/4HANA On Premise Strategy SAP S/4HANA and ONLY the SAP S/4HANA version of any engine. There is only one exception: The engine is part of the Compatibility Pack. Existing customer can benefit from SAP Conversion Policies! Product Conversion offers a 100% credit Contract Conversion cleans customers landscape and contract 40

41 Thank you. Dirk Kästner SAP S/4HANA Business Development SAP SE

42 2018 SAP SE or an SAP affiliate company. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, and they should not be relied upon in making purchasing decisions. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names mentioned are the trademarks of their respective companies. See for additional trademark information and notices.

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