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

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Page 1: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

FOR INTERNAL SAP AND PARTNER USE AND SUGEN ONLY

Dirk Kästner

SAP S/4HANA Business Development

April 26, 2018

SAP S/4HANA Licensing ModelSUGEN

Page 2: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

2FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

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.

Page 3: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

3FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Dirk Kästner

Husband, Father, …born to Golf – forced to work ;-)

Global SAP S/4HANA Business Development, SAP SE

[email protected]

• Since 1999 @SAP

• 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

It‘s me

Page 4: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

4FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Document

MATERIAL VALUES

VBAK

LIKP

PRCD_

Elements

(new)

VBFA

(Simplified)

VBAP

KIPS

VBRPVBRK

BKPF BSEG

ACDOCA

FAAT_

DOC_IT

FAAT_

YODA

FAAT_

PLAN_

VALUES

MARD

MATDOCMATDOC_

EXTRACT

MCHB

MSKA

MARC

MKOL MSPR

MSKU

MSLB

Used for Master Data only

MLDOC

MLDOCCCS

MBEW

EBEW

QBEW

OBEW

ML

Valuation

Used for

Master

Data only

CKMLKEPH

CKMLPPWIP

SALES FINANCE

Document

Header Item

MATERIAL QUANTITIES

Material Document

IndicesTotals

MATERIAL VALUES

Valuation in MM or Valuation ML

Aggregates

Hybrid: Master Data

with Valuated Stock

MBEW

EBEW

QBEW

OBEW

MBEWH

EBEWH

QBEWH

OBEWH

MLPP

MLCR

MLCRF

MLKEPH

CKMLCR

CKMLPP

MLHD

MLIT

History

MARD

MKPF MSEG

MCHB

MSKA

MSSA

MSTE

MARC

MKOL

MSSL

MSTQ

MSPR

MSSQ

MSTB

MSKU

MSLB

MSSAH

MSTEH

MARCH

MSLBH

MSKAH

MSTBH

MSTQH

MARDH

MCHBH

MSKAH

MSSQH

MKOLH

MSKUH

Aggregates

Stock Aggregates History

Inventory Movements Hybrid: Master Data with Stock Aggregates

SAP Business Suite

GL, AR, AP

New GL

CO

AA

ML

Sales Order

Delivery

Billing Document

Status Info

Conditions

Document Flow

KONV

VBFA

Header Item

CKMLPP

CKMLCR

MLCD

CKLMMV004

CKMLMV004

BKPF

ANEK

BSEG

FAGLF

LEXA*

COEP

ANEP

MLIT…

ANEA

GLT0

LFC1

FAGLF

LEXT*

COSS

ANLC

MLCD…

KNC1

LFC3

COSP

ANLP

MCLR…

KNC3 BSIS

BSID

FAGL

BSIS

BSIM*

BSAS

BSAD

FAGL

BSAS

CKMI1*

BSIK

BSAK

COBK

MLHD…

VBAK

LIKP

VBAP

LIPS

VBRP

VBUP

VAKPA

VLKPA

VRKPA

VBOX

VAPMA

LKPMA

VRPMAVBRK

VBUK

Simplifying database & table structures to prepare for scale

Page 5: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

5FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

▪ 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

Agenda

Page 6: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

6FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA 1709 – S/4HANA Suite

Industries

Enterprise Management

Suite**

Products*

Suite**

Products*

▪ Basic inventory, warehousing, and

transportation

▪ Production planning

Supply Chain

▪ Integrated business planning

▪ Global batch traceability

▪ Extended warehouse management

▪ Transportation management

▪ Advanced inventory, warehousing,

and transportation

▪ Order and contract management

Sales

▪ Sales performance management

(ICM)

▪ SAP Hybris Sales Cloud

▪ SAP digital payments add-on

▪ SAP CRM

▪ Core accounting

▪ Cost management and profitability

analysis

▪ Basic financial operations

Finance

▪ Financial planning and analysis

▪ Accounting and financial close

▪ Treasury management

▪ Advanced financial operations

▪ Commodity management

▪ Governance, risk, and compliance

▪ Governance, risk, and compliance

Financial services network

▪ SAP digital payments add-on

▪ SAP Cash Application

▪ Service master data and agreement

managementc

▪ Service operations and processesc

▪ Service parts managementc

Service

▪ SAP Hybris Service Cloud

▪ SAP Hybris Service Engagement

Center

▪ SAP CRM

Human Resources

▪ Core human resources and payroll

▪ Talent management

▪ Time and attendance management

▪ Human capital analytics

▪ Time recording

Marketing and Commerce

▪ Subscription billing and revenue

management (“BRIM”)

▪ SAP Hybris Commerce

▪ SAP Hybris Marketing Cloud

▪ SAP CRM

▪ Operational purchasing

▪ Collaborative sourcing and contract

management

▪ Supplier management

▪ Procurement analytics

Sourcing and Procurement

▪ Supplier collaboration

▪ Business network

▪ Guided end-user buying

▪ External workforce management

▪Maintenance management

Asset Management

▪ Asset operations and maintenancec

▪ Environment, health, and safety

▪ Production operations

▪ Quality management

▪Manufacturing insights

Manufacturing

▪ Responsive manufacturing (ME, MII,

QIM, VE)

▪ Production operations (MII, QIM)

▪ Digital operations for manufacturing

▪ Extended production scheduling and delivery planning

R&D / Engineering

▪ Enterprise portfolio and project

managementc

▪ Product lifecycle management

▪ Product safety and stewardship

▪ Digital operations for R&D

▪ Project control

▪ Product development

▪ Product engineering

▪ Complex manufacturing

▪ Extended Procurement

▪ Asset performance and intelligence

Page 7: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

7FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA: Complete, Consistent Choice

On PremiseCloud

SAP S/4HANA

One Code Line

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.

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

Page 8: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

8FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

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 onSAP 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 capabilitiesmanaged 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

Page 9: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

SAP S/4HANA Pricing On-Premise

Page 10: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

10FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

S/4HANA on prem License Model for Existing and Net New Customers

S/4HANA Enterprise Management

[7018652, 7018653, 7018654]

Named Users

Per user fee

Existing ERP customers

HANA

Run-time or Full Use

ERP package

Flat fee (includes 5 Prof. named users)

S/4HANA Enterprise Management

for ERP customers

[7018538]Named Users

Per user fee

S/4HANA Industry & LoB Solutions

Already have and can keep

using

S/4HANA 2016 onward

Already have this

Net New ERP customers

HANA

Run-time or Full Use

User

S/4HANA Industry & LoB Solutions

Flat-Fee

Cash Mgmt. Central Finance …

Revenue

Revenue Metric Metric

Cash Mgmt. Central Finance

Revenue Revenue

… …

Metric Metric

Page 11: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

11FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA On-Premise Enterprise ManagementLicense and Metric

Metric

User

Metric

depending

on solution

7018652 SAP S/4HANA Enterprise Management for Professional useThis license allows performing all role required operations, including management and system

administration tasks.

7018654 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;

7018653 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

7018682 S

AP

S/4

HA

NA

, d

evelo

per

access

Cash

Management

Portfolio &

Project

Management

Revenue User …

Further Details:

Solution Explorer

Feature Scope Description

Page 12: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

12FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

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 [7018538] can continue to use or license

the classic material code 7003013 - SAP Developer User

Page 13: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

Example Net New Customer

Page 14: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

14FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The S/4HANA On-Premise Licensing ModelExample / 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

Page 15: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

15FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

7018654 SAP S/4HANA Enterprise Management for

Professional Use

The S/4HANA On-Premise Licensing ModelExample / 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…

7018654 SAP S/4HANA Enterprise

Management for Functional Use

7018653 SAP S/4HANA

Enterprise Management for

Productivity Use

Page 16: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

16FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

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

Page 17: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

17FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The S/4HANA On-Premise Licensing ModelExample / 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 ?

8 S/4HANA Enterprise Management

Professional Use required. OK!

Page 18: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

18FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The S/4HANA On-Premise Licensing ModelExample / 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€ = 30.000€

30 x 1.200€ = 36.000€

30 x 3.500€ = 105.000€

Customer Revenue: 500.000.000€

Units: Blocks of 100.000.000€ 5 Units required

Material: 7018639 SAP S/4HANA Finance for Cash

Management , up to 10 units

Price: 15.000€ per unit 5 x 15.000€ = 75.000€

Page 19: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

19FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Customer Request

1000 Employees MSS, ESS

The S/4HANA On-Premise Licensing ModelExample / HCM – Manager Self Service

Until End of Q2 2017

MSS, ESS Professional Use

Since Q3 2017

MSS, ESS Professional UseProfessional Use

SAP ERP HCM

(7019298)

3.500 € x 1000 = 3.500.000 € 150 € x 1000 = 150.000 €

7018652 SAP

S/4HANA

Enterprise

Management

for

Professional

use

7018654 SAP

S/4HANA

Enterprise

Management for

Functional use

7018653 SAP

S/4HANA

Enterprise

Management for

Productivity Use

7018652 SAP

S/4HANA

Enterprise

Management

for

Professional

use

7018654 SAP

S/4HANA

Enterprise

Management for

Functional use

7018653 SAP

S/4HANA

Enterprise

Management for

Productivity Use

7018652 SAP

S/4HANA

Enterprise

Management

for

Professional

use

7018654 SAP

S/4HANA

Enterprise

Management

for

Functional

use

7018653 SAP

S/4HANA

Enterprise

Management for

Productivity Use

HCM

DISCLAIMER

SAP ERP HCM

(7019298) is only

available on

exceptional cases!

SAP strategy is the

cloud solution

SuccessFactors

Page 20: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

20FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The S/4HANA On-Premise Licensing ModelExample / BOM

7018653 SAP

S/4HANA Enterprise

Management for

Productivity Use

Solution Capabilities License Metric Units Price p.u. List Price

Shopping Cart / Time Sheet S4H EM Productivity Use User 100 300€ 30.000€

Inspection Planning & QE S4H EM Functional Use User 15 1.200€ 18.000€

Product Development S4H EM Functional Use User 15 1.200€ 18.000€

Cross Logistic S4H EM Professional Use User 15 3.500€ 52.500€

Finance, Accounting S4H EM Professional Use User 15 3.500€ 52.500€

Cash Management S4H Finance for Cash Management Revenue 5 15.000€ 75.000€

Manager Self Service SAP ERP HCM (7019298) User 1000 150€ 150.000€

SUM 396.000€

HANA Database HANA Runtime 15% 59.400€

SUM 455.400€

Page 21: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

21FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

The S/4HANA On-Premise Licensing ModelExample / Use Rights

Empl. Solution Capabilities License

100 Shopping Cart / Time Sheet S4H EM Productivity Use

15 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

5 Cash ManagementS4H Finance for Cash

Management

1000 Manager Self Service SAP ERP HCM (7019298)

7018654 SAP S/4HANA Enterprise Management for

Professional Use

Cash

Mgmt

Central

Finance…

7018654 SAP S/4HANA Enterprise

Management for Functional Use

7018653 SAP S/4HANA

Enterprise Management for

Productivity UseSAP ERP

HCM

Page 22: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

SAP S/4HANA Prerequisites

Page 23: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

23FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

• All Details are described in the

feature scope description of

S/4HANA

• Measurement will be done via

Authorization objects

SAP S/4HANA: No surcharge on like for like functionality

ERP Licensing S/4HANA Licensing

ERP Core

ERP LoB &

Industry solutions

SAP S/4HANA

Enterprise

Management

S/4HANA LoB &

Industry solutions

SD-FT

(intrastat)WM

Basic

Credit

Mgmnt

Enh.

Credit

Mgmnt

EWM GTS Enh.

Credit Mgt

Basic

Credit Mgt

EWM

WM

GTS

Intrastat

ER

P

Lic

en

se

Engin

e

Lic

en

se

S/4

HA

NA

En

terp

rise

Ma

na

ge

me

nt

Lic

en

se

Engin

e

Lic

en

se

• 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

Page 24: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

24FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

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, …)

3rd party runtime DB

S/4

SAP HANA Runtime

Application-level APIs

✗Data replication is not permitted

Page 25: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

25FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

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:

SAP S/4HANA: Commercial Separation from the ERP World

ERP Licensing S/4HANA Licensing

ERP Core

ERP LoB &

Industry

solutions

SAP S/4HANA

Enterprise

Management

S/4HANA LoB &

Industry

solutions

SAP S/4HANA

Enterprise

Management

ERP LoB &

Industry

solutions

✓ ✓

SAP S/4HANA

Enterprise

Management

ERP Core

functionalityX

X

unless explicitly permitted

via „Compatibility Packs“

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

Page 26: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

26FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

S/4HANA Compatibility Packs

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 2269324 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.

Compatibility Scope

S/4HANA On-

Premise

Scope Classical ERP Scope

+ LoB and Industry

solutions

Page 27: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

27FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

S/4HANA On Premise License Model for Existing and Net New Customers

S/4HANA Enterprise Management

[7018652, 7018653, 7018654]

Named Users

Per user fee

Existing ERP customers

HANA

Run-time or Full Use

ERP package

Flat fee (includes 5 Prof. named users)

S/4HANA Enterprise Management

for ERP customers

[7018538]Named Users

Per user fee

S/4HANA Industry & LoB Solutions

Already have and can keep

using

S/4HANA 2016 onward

Already have this

Net New ERP customers

HANA

Run-time or Full Use

User

S/4HANA Industry & LoB Solutions

Flat-Fee

Cash Mgmt. Central Finance …

Revenue

Revenue Metric Metric

Cash Mgmt. Central Finance

Revenue Revenue

… …

Metric Metric

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S4/HANA Product Conversion

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29FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA Enterprise Management for existing ERP Customers

Named

Users

Per user fee

Existing ERP customers

HANA

Run-time or Full Use

ERP package

Flat fee (includes 5 Prof. named users)

S/4HANA Enterprise Management for ERP customers

[7018538]Named

Users

Per user fee

SAP S/4HANA Industry & LoB Solutions

Already have

and keep using

classic License

Model

Already have this

€€ Flat-Fee

Cash Mgmt. Central Finance Real

Estate

Rental

UnitsRevenue Revenue

Metric

New S/4 HANA

License Model

Keep the Contract!

Starting Point: Existing classic engines

1:1 Path forward (convert what you have!)

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30FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

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, 2025.

• 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

SAP Named Users

S4 engine

• 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.

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31FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

Conversion Grid

1. Classic Engine – Corresponding S/4 Engine

2. Native HANA Applications

3. Compatibility Packs

4. Commercially Neutral

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S4/HANA Contract Conversion

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33FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

S/4HANA On Premise License Model for Existing and Net New Customers

S/4HANA Enterprise Management

[7018652, 7018653, 7018654]

How do existing ERP customers move to this model?

HANA

Run-time or Full Use

User

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

100% credit for prior purchases to be applied to the

new BOM, but total credit limited to 90% of new BOM

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34FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

S/4HANA Credit Application Summary

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35FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

What can be deployed on an S/4HANA installation?

Challenges

Commercially Neutral

▪ Required Named User Licenses Not required on S/4 anymore

Third Party Database

▪ Business as usual (maintenance payments during transition phase)

HANA Database

S/4HANA Enterprise Management

S/4 Engine Native HANACompatibility

Pack

Commercially

Neutral

ERP

Commercially

Neutral

Third Party Database

ERP

Commercially Neutral

Software Solutions

Database, S/4HANA, S/4 Engines

Native HANA, Compatibility Pack (CP)

Commercially Neutral: SW which is not S4H, Native HANA, CP

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36FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA Conversion Program: product or contract 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

▪ 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

Product Conversion Contract Conversion

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.

Question:

*Some exceptions may apply such as 3rd party DB or HANA Enterprise

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SAP S/4HANA Cloud

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38FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

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.

The capabilities of each of these use packages are described in the S/4HANA Cloud feature specification document found at

https://www.sap.com/about/agreements/policies/service-specifications.html

Cloud Supplemental terms https://www.sap.com/about/agreements.sap-cloud-services-customers.html

Pricing and Software Use Rights definitions are for illustrative purposes – please refer to the local pricing documents

Material Pricelist item Metric Currency 1-100 101 -250 251 – 500 501 – infinite

8005355 SAP S/4HANA Cloud for advanced use User EUR 220 200 180 170

8005356 SAP S/4HANA Cloud for core use User EUR 175 165 155 150

8005357 SAP S/4HANA Cloud for self-serve use User EUR 20 17 15 13

8005358 SAP S/4HANA Cloud in-memory extension GB EUR 100

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39FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

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

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40FOR INTERNAL SAP AND PARTNER AND SUGEN USE ONLY © 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA is a new product!

1500+ 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

Key Takeaways

Page 41: SAP S/4HANA Licensing Model - sap-sbn.no · SAP S/4HANA’s code line, ... • Basic Production Execution; ... 15 Employees Cross Logistic 15 Employees Finance, Accounting

Thank you.

Dirk Kästner

SAP S/4HANA Business Development

SAP SE

+49 160 90822848

[email protected]

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