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
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
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
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
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 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 https://blogs.sap.com/2020/04/15/the-future-of-compatibility-packs-in-sap-s-4hana/
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
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: https://assets.dm.ux.sap.com/webinars/sap-user-groups-k4u/pdfs/licensingwebinar.pdf
Link to the webcast: https://sapvideoa35699dc5.hana.ondemand.com/?entry_id=1_vlbpylzo
It was an informative webcast; a call to action is to look at the SAP Compatibility note
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.
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.