Subscribe / Unsubscribe Enewsletters | Login | Register

Pencil Banner

SAP takes steps to simplify pricing and licensing

Chris Kanaracus | Aug. 25, 2014
It took some time and considerable internal effort, but SAP says it has made good on a pledge to simplify its software pricing and licensing model.

A number of other licensing changes were already publicized by SAP earlier this year, such as subscription pricing for its Hana Enterprise Cloud service, and the inclusion of Fiori mobile applications and the Screen Personas user-interface technology with base application software licenses.

"Net-new" SAP customers are being offered the new pricing, LaRosa said. Existing customers can potentially move to the new system, getting credit for pieces of bundles they've already spent money on, he added.

Some SAP customers aren't happy about the elimination of one user type, Limited Professional, as it provided significant savings over a Professional license, said analyst Ray Wang, founder and chairman of Constellation Research.

"That was one of the thing people liked," said Wang, who has conducted many license negotiations on behalf of clients.

However, the new bundling "makes sense because you're cutting across business processes," Wang said. "That's how customers really want to buy."

It's crucial that SAP customers who buy bundles get a proper breakdown of what they're paying for each element of the software, rather than a single price and stated discount off list, Wang said. "You cannot negotiate a contract without that."

 

Previous Page  1  2 

Sign up for CIO Asia eNewsletters.