Cloud License Design

SAP customers face multiple challenges transitioning to cloud-based licensing, including—but not limited to—cost management, licensing complexity, compliance, service levels, data processing, and integration.

Addressing these challenges requires careful planning and a clear understanding of the licensing terms to ensure a smooth and cost-effective transition to the cloud.

Xactitud can clarify how to transition your SAP on-premises software licences to SAP cloud subscriptions.

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Why does Cloud Licence Design matter?

SAP's focus on transitioning customers to the Cloud forms part of a broader market trend towards Software-as-a-Service (SaaS) and cloud ERP systems.

SAP's extensive portfolio of cloud offerings and commercial constructs, such as the Cloud Extension Policy and RISE with SAP, aims to ensure a seamless and efficient migration process.

Migrating to the Cloud represents a mixed bag of risks and opportunities for SAP customers. From a licensing perspective, swapping out unused software for a right-sized bill of materials must be weighed against the complexities of converting perpetual licences to subscription-based cloud licences. SAP customers must meticulously plan their migration path to balance upfront migration and licensing costs against intended future benefits.

Challenges

Cost Management

Understand the TCO in the long term to forecast fluctuating payments based on usage or CPI increases, additional services, and any required upgrades.

Product Mapping

Identifying cloud equivalents to on-premises licenses is a complex task. Often, there is no 1:1 equivalent, and evolving business requirements will also impact the selection.

Usage Metrics

SAP’s cloud licence models frequently have different metrics from on-premises software, so accurately forecasting requirements requires a detailed assessment.

Complex Paperwork

EULA + Software Use Rights + Order Form versus GTC + Order Form + SLAs + DPA + SDG + Supplemental T&Cs (for each product) = COMPLEXITY!

Keen to get the show on the road? Drop Xactitud a call today.

Xactitud can meticulously design a licence roadmap that precisely aligns with your business goals and requirements.

Find Out How

Perform licence utilisation assessment of on-premises licences to ensure only products in use are mapped (i.e. shelfware is excluded).
Evaluate upcoming organisational changes impacting licensing requirements, such as increased headcount, M&A activities, or transformational rollouts.
Assess "As-Is" versus "To-Be" enterprise architecture to define SAP's future role in the technology roadmap.
Leverage knowledge of the above requirements to make informed decisions about optimal price tiers, cost-effective alternatives, and subscription vs. consumption models.
Gauge inclusion of SAP applications to offset digital access exposure through financial modelling of various scenarios.
Simulate licensing scenarios for both public and private cloud licensing models to allow for cost and functionality comparison all potential scenarios with SAP's Cloud Extension Policy and licence conversion paths.
Exhaustively review all related paperwork to build a consolidated view of each product's functionality parameters, use rights, and thresholds.
Deliver strategic support throughout the negotiation to attain a "win-win" transaction for both sides.

Benefits

TCO Visibility

Get an itemised view of all cloud subscription costs over a 3, 5, or 10-year period, spanning licence subscription, implementation and upgrade costs.

Optimum Utilisation

Minimise the risk of unused or over-subscribed Cloud Services with proper utilisation forecasting and ensure adequate licenses are procured and and when required.

Future Proofing

Diminish the likelihood of unforeseen integration, compatibility, and user adoption risks with detailed cloud licence design and proactive stakeholder engagement.

Licensing Risk Control

Implement your roadmap knowing that you have mitigated licensing risks, having thoroughly evaluated your organisation's cloud licensing requirements.

Sharon’s commitment to delivering a first-class product is only matched by her desire to provide an extraordinary customer experience. Xactitud has sparked an energy and customer awareness which is without parallel in our industry. Our customers consistently look to her for innovation and support, which she never fails to provide.

Partner

I would highly recommend this business; their service is extremely efficient and has resulted in clean outcomes for multiple SAP license audits. They have a strong commitment to customer satisfaction and success; I was impressed by their commitment to going the extra mile and ensuring every query no matter how small was answered with detail every time. Communication with them is always clear and transparent, helping us understand and navigate SAP licensing and its complexity, they are also flexible and adaptable which is essential to our changing business needs.

Customer, Entertainment Sector

We’ve outsourced licensing advisory projects to Xactitud for several years and counting now. During this time, our clients have been very happy with the services provided and almost always, there are multiple upsells. Xactitud delivers a high level of customer satisfaction to our customers who in turn inform us how delighted they are with both the quality of the service and the commercial successes negotiated.

Partner

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Customer, Energy Sector

Keen to get the show on the road? Give Xactitud a call today.