KPMG SAP Licensing

SAP Software LicensingTalkbook

KPMG Technology Advisory – IT GRC—

January, 2017

2

Document Classification: KPMG Public

©2017 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Content• Section 1: Drivers, challenges, and how we can help

• Section 2: Our SAP Licensing Optimization approach

• Section 3: Basic SAP Licensing Rules

• Section 4: Why KPMG

Section 1Drivers, Challenges & how we can help

4



Drivers, challenges, and how we can help SAP licensing challengesEnterprises often struggle with their SAP licensing fee. In general, there is often noclarity on the logic behind the applied fees for licenses and yearly maintenance fees.Consequently, a priori analysis for license cost optimization become hard or evenimpossible.

Main driversDrivers for optimizing the SAP license costs can vary. Upcoming law, internal IT Audit orERP projects and SAP license agreement renewal are amongst the most commondrivers we see at our clients.

How can we help?KPMG services are aimed at helping clients with determining if they have the rightlicense types applied. We also advise our clients on changes in deployment or SAPlicense agreement that can have a positive influence on the overall cost.Furthermore, we provide insight on the possibilities to reduce costs through theidentification of unused licenses. Finally, we assist our clients with the leveraging ofgood practice Segregation of Duties (SoD) principles to optimize their licensemanagement.

Section 2Our approach

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Our SAP licensing optimization approachOur approach:KPMG’s SAP licensing optimization approach consists of three main phases. During the Initiation phase, we discuss the scope of theanalysis and the related deliverables with the required stakeholders. Furthermore, we perform the download of the required SAPsecurity tables per instance. For the analysis phase, both manual and automated queries are used to identify potential optimization ofthe SAP accounts. Furthermore, during this phase we use specific tooling to perform transactional user analysis based on statisticalinformation (STAD) to determine the optimal license type per user.

Initiation Account Analysis Reporting

Initiation:• Discuss scope with

stakeholders• Determine

deliverables• Perform Security

Download

Account Analysis:The output of this analysis consists of listing and assisting in the deactivation and cleanup of:• Obsolete accounts• Duplicate accounts• Generic accounts• Users without license

type

Reporting:Our reporting provides clear instructionson the identified quick wins and otheropportunities for optimization. Ourreporting is aimed at helping clients with(i) avoiding unnecessary increases inlicense fees, (ii) preparing strongnegotiation levers for the contractrenewal, (iii) leveraging controls in placeover user access management and SoDto streamline related licenses.

License Type Analysis (optional)

License Type Analysis:Analysis of licenses needed asper SAP standard license rulesbased on transactional usage.The output of the analysisconsists of listing the users forwhich the license type is notaligned with the transactionaluse. (note that this part of theanalysis is an optional add-on,dependent on your requirements)

Section 3Basic SAP Licensing rules

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Package Licenses

SAP Business Suite licensing rules (1/4)Both User and Package licenses are mandatory

User LicensesThere are four main categories for different levels ofuse. Prices listed here are SAP standard and canbe negotiated down to - 80%.Annual Maintenance & Support fees alwaysamount to 22% of the standard prices, regardlessof the discount obtained on the initial licenses.

Package licensesPackage licenses allow to install SAPfunctionalities. The License metrics are based oninstances or business metrics (goods sold, numberof records, etc.)

My

SAP

ERP

My

SAP

SCM

My

SAP

SRM

My

SAP

FIN

My

SAP

PLM

My

SAP

HR

My

SAP

CR

M

User Licenses *

Limited Prof.

1.600€

(mobile 800€)

Professional

3.800€

Developer

>= 5.700€

Func

tions

/ Pr

ice

Employee

400€

(read only)

(*) Note that prices listed are ‘estimates’ based on our experience in SAP Licensing projects.

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SAP Business Suite licensing rules (2/4)The four types of user licenses:

• Developer: Developer users have access to a variety ofbasis transactions defined in the contract signed with SAP.

• Professional: Professional licenses are considered as thestandard user licenses. Unless defined otherwise in thecontract signed with SAP.

• Limited Professional: Limited Professional users arerestricted to a specific range of transactions which isdefined in the contract signed with SAP.

• Employee: Employee licenses are for users with limiteduse, by definition read only.

User licenses based installed packages:

User licenses vary depending on the SAP Business Suitecomponents installed on the NetWeaver Web ApplicationServer (Web AS)

SAP ECC or separate solution: For the SAP Enterprise CoreComponent or a separate solution, standard prices for userlicenses will start as of €2.550 (for e.g. ECC) up to €6.000 (fore.g. SAP CRM).

mySAP ERP: For my SAP ERP, standard prices for aprofessional user range from 3.000€ up to 3.500€.My SAP ERP consists of the full NetWeaver stack (EP, XI,BW, KM, etc.), HCM Financials.

mySAP Business Suite: For the full my SAP Business Suite,the standard price for a professional user consists of 3.800€


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SAP ECC orseparate solution

CRM,SRMPLMSCM

mySAP ERP mySAPBusiness Suite

Standard Price for Professional User: >= 2.550€for ECC and up to 6.000 for

CRM

Standard Price for Professional User: 3.000€ - 3.500€

Standard Price for Professional User: 3.800€

Full NetWeaver: EP, XI, BW, KM, …

NetWeaver: Web Application Server (Web AS)

Just ECC Enterprise or CRM ...

HCM, Financials


SAP Business Suite licensing rules (3/4)

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SAP Business Suite licensing rules (4/4)Underlying Database LicensingThree options are available to license the database underlying the SAPsystem:• SAP third-party database: Customers can license a third-party

database directly from SAP. The drawback is that its use is limited toSAP software. In this case, a “runtime” license will be applied.

• Third-party DB provider: Alternatively, customers can contract witha third-party database provider such as Microsoft, OracleCorporation, or IBM. In this case, an “interface” contract with SAP isapplicable.

• License a SAP database: SAP databases consist of SAP HANA,SAP Sybase Adaptive Server Enterprise (SAP Sybase ASE), or SAPMaxDB. For each database, a specific database license is applied.

Indirect AccessNamed User licenses are due for all individuals who have access to SAP,be it through a user account or through any intermediary technologylayer.Indirect accesses can be licensed under SAP Netweaver Gateway userlicenses. Standard price per user: 900 EUR. Netweaver Admin &Developer licenses may also be necessary.

License Fee vs Maintenance FeeFor SAP licenses, discounts up to 80% can be negotiated withSAP. However, annual Maintenance & Support fees, alwaysamount to 22% of the standard price, regardless of thediscount obtained on the initial licenses.Maintenance fees can only increase over the years. Therefore,it is important to secure in the contract the possibility toreallocate maintenance fees from one user license type toanother.

Annual License verificationSAP requests their customers to run a report on all SAPinstances on a yearly basis (LAW – License AnalysisWorkbench).The LAW report is used by SAP to determine what theamounts of users accessing the system are, and to calculate atrue-up license fee which will be taken into account forsubsequent maintenance fees.

Section 4Why KPMG?

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Why KPMG?A flexible team with the right experience

A well-organized team with the right knowledge, expertise andexperience is critical for the achievement of your objectives. We will bringour most qualified people with in-depth knowledge and experience inSAP user analysis, (re-) designing business rule sets, SAPauthorizations, related governance models, as well as business processrisk & controls management.

A structured approach with the right vision

We have a clear vision and approach when it comes to SAP Licensingoptimization. Our proven approach focuses on your needs and goesbeyond the achievement of pure a technical analysis. We have extendednational and international experience in assisting clients in SAP projects.In the Benelux region we have supported multiple organizations in theoptimization of SAP licensing, the implementation of SAP security ingeneral and Business Rule Sets and SAP authorizations in specific. Theexperience gained and lessons learned during these projects havecontinuously been integrated in our approach and will be applied duringyour project.

A proven toolkit to accelerate your redesign

Our approach not only includes a method to SAP Licensingoptimization, it is amended with a toolkit containing tangibletools & templates that are ready to use throughout the project,that significantly accelerate the redesign and ensure qualitydocumentation is readily available. We are continuouslyinnovating and improving our SAP Security accelerator toolkitto ensure that we are always able to support theimplementation of the latest version of SAP to our clients.

An offer which shows our eagerness to investment ina long-term relationship

We are eager to start a mutually valued professionalrelationship with you. It is our ambition to assist you in asuccessful SAP licensing optimization which can lead to along-term business partner relationship.


©2017 KPMG Belgium, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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