SAP users want clarity and flexibility on software licensing

That's chief among the findings of a study released by the UK & Ireland SAP User Group, which questioned 336 SAP users spanning 150 SAP user organisations in the UK & Ireland. Additionally, its research suggests that users want to see greater transparency when it comes to licensing costs – with 88% of respondents believing that SAP should make its price list public. On the issue of complexity, many users appear to find it difficult to establish which licences they need through the lifecycle of their SAP software. The user group believes this is due to some SAP software packages coming with multiple licences and different limits on usage rights. Indeed, 89% of users stated they would like SAP to reduce complexity by offering software that is only limited by one licence or usage metric. In addition, more than two-thirds (67%) stated that, as SAP's software catalogue, has expanded they have found it increasingly difficult to keep track of licence usage, especially as certain SAP modules can be installed automatically. As a result, some have found themselves paying for modules they aren't using. "In the current business climate, many organisations are looking to ensure they are getting maximum value from their software licenses," states Philip Adams, vice chairman of the UK & Ireland SAP User Group. "This is an issue currently facing a lot of software vendors and their customers, as many licence terms were agreed at a time when workforces were larger and the vast majority of deployments were on premise," he continues. "SAP users are no different and these findings illustrate that they would like to see licence costs and conditions that are transparent and flexible." Adams is however encouraged that SAP appears to be acknowledging the user group's concerns. "[SAP] is starting to work with SUGEN [the SAP User Group Executive Network] to engage on a topic that is clearly challenging for both parties," he comments. Meanwhile, the UK & Ireland SAP User Group study also finds that greater flexibility is high on the wish list. As staff numbers reduce and usage patterns change, organisations want to be able to reflect these changes in support costs so they are only paying for what they are using, explains Adams. This has led to 97% stating they should have the ability to 'park' unused licenses for support periods. Also, over three-quarters (77%) of respondents said that they find the entry point too high when they are looking to deploy extra modules or functionality to their core SAP systems. Adams cites the example of IT managers only wanting specific functionality for a small group of employees, but being required to buy more licences than they need. And the changing IT landscape is also having an impact on the complexity of software licensing. With more organisations working with outsourcers and external services providers, and more end users being exposed to systems, the majority believe that SAP needs to change its current 'named use' licensing model. Over three quarters (78%) of respondents believe that SAP needs a concurrent use pricing model for external SAP users to solve that problem. Meanwhile, 97% of users also don't believe that SAP has effectively explained the migration path of moving from on-premise to its mobile or cloud offerings, and how this impacts on their existing licensing agreements. "It is clear that there needs to be greater clarity from SAP regarding licensing, much of which stems from a need for improved customer communication," asserts Adams. "For instance, more than half of users don't understand the difference between what SAP defines as a Professional and a Limited Professional User. We will be looking to work quite closely with SAP in the UK to ensure this happens, and, of course, licensing will no doubt be a big theme at this year's user group conference." In response, Tim Noble, managing director SAP UK and Ireland, says: "We acknowledge the results of this survey and are continuing to address some of the perceived complexities around SAP's software licensing through a number of measures." And he adds: "These include standardising our terms and conditions globally so that the same licensing terms apply, no matter which country our customers reside in, as well as publishing our software rights online for all SAP products and services – including the full Sybase suite." Nobel also reckons SAP has already spent "a significant amount of time" on simplifying buying processes so that they're easier to understand. "Our ultimate goal is to make our user's experiences of software licensing as efficient as possible and we will continue to focus on this," he comments.