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Author's profile photo Tammy Powlas

S/4HANA Licensing Overview Webcast Summary #SAP User Group

This was a very informative SAP User Group webinar from last month

Figure 1: Source: SAP
This was a SAP user group session, an overview of S/4HANA licensing
I’m focusing on on-premise

Figure 2: Source: SAP
The agenda is show above

On Premise Licensing Model:

Figure 3: Source: SAP
Shows 4 dimensions of on premise licensing

Top left: need user licenses to access “digital core”

Bottom left: optional industry and LoB solutions for dedicated solutions; close to 100+ solutions

Top right – digital access, relevant for all scenarios where data is transferred via indirect use, sensors or robots into S/4HANA, and business processes triggered

Bottom right – HANA databases – 2 flavors – full use and run time

Presentation focuses on left side

Figure 4: Source: SAP
Another view on licensing model
Specific to existing ECC/ERP customers, who have named user licenses
Bottom to top
S/4HANA customers need a HANA database
Next is core solution scope, digital core, enterprise management
Designed license model to use ECC named user licenses – with an S/4HANA flat fee license

Digital access – robotic, user not logging on, but license needed
LoB and industry solutions – these have a business related metric – revenue, # of items, or can be users, etc.

No named user requirement needed for S/4HANA engine or LoB solution

Difference between enterprise management and extended scope

Figure 5: Source: SAP
Guiding principle – no surcharge on like for like

Figure 6: Source: SAP
Scope of enterprise management
9 Lines of business
Capabilities available

Figure 7: Source: SAP
Capability description for S/4HANA enterprise management that details the scope

Figure 8: Source: SAP
3rd level of detail, for more advanced
Feature scope description

Building a Bridge to the new world – compatibility packs

Figure 9: Source: SAP
Announcements since Fall of last year
4 horizontal bars, maintenance license
Use right – perpetual license, doesn’t expire – separate from maintenance
Support terms

Top bar – maintenance of EHP6-8 through 2027; lower ehp’s go out of maintenance earlier than that (see product availability matrix aka PAM)

After that – extended maintenance for business suite through end of 2030; or customer specific maintenance agreement

Mainstream maintenance for S/4HANA through end of 2040; to make it clear S/4HANA is next generation, like going from R/3 to Business Suite

Use right – a use right – you have it or you don’t.
Start with compatibility packs – giving timely use right – allowing S/4HANA on premise customers to use classic solutions on S/4HANA instance only until end of 2025 – date not moved

Bottom bar – for example, PPDS, APO, when customers set migration to S/4HANA, seeing that migration takes years; replacing APO is down the line.
License conversion – trading classic license for S/4HANA; use right to classic version is tied to classic license
Grant use right to classic version of software without a time limit

Figure 10: Source: SAP
Use right restricted until 2025; see SAP Note
Customer has licensed S/4HANA and classic solution (core and extra license solution)

Figure 11: Source: SAP
See the matrix
Added an item ID
Not adding anything to compatibility matrix

Figure 12: Source: SAP
Compatibility – not parallel, must be on S/4HANA instance

Figure 13: Source: SAP
Right remains classic license

Figure 14: Source: SAP
On stack – compatibility pack is used on the system

Figure 15: Source: SAP

End of 2025 use right is a “hard stop”
SAP is investing more into this topic; by end of 2023, provide information about recommended go-to solution

Figure 16: Source: SAP
Link to blog
Added new documents a few weeks ago to the SAP Note
Excel sheet is attached to the SAP note about way forward solution
See more content by October this year

Figure 17: Source: SAP
Status on the spreadsheet

“SAP never promised functional parity between ECC and S/4HANA”
“This is a chance to clean house”
Some functionality will disappear; SAP is in discussion with partners to take this up

Figure 18: Source: SAP
Excel structure sheet; forward looking information

Compatibility packs are a subset of the simplification list

Questions or feedback, open a customer message on the component listed – put prefix COM scope

Skipping S/4HANA Cloud Licensing model; not my area of expertise

Subset of Q&A

Q: How measure user licenses?
A: User measurement is done by use rights, authorizations of the user, and see the user may only access LoB or industry or access the digital core
Authorization objects are key, used by license auditing

Q: Web IDE?
A: Web IDE requires a cloud license (SCP)

Link to slide/presentation:

Link to the webcast:

It was an informative webcast; a call to action is to look at the SAP Compatibility note

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      Author's profile photo Nic Teunckens
      Nic Teunckens

      Thank you for another timely update, Tammy Powlas ...

      Some clarification on the Compatibility Packs (what they are and what they are not) is very useful.

      Best regards

      Nic T.

      Author's profile photo Tammy Powlas
      Tammy Powlas
      Blog Post Author

      Hi Nic - thank you for commenting.

      I agree; I thought I understood these but clearly I did not fully understand them until after the webinar.