Gartner Research

SAP Offers More Options for On-Premises License and Maintenance Replacements

Published: 09 October 2013

ID: G00257734

Analyst(s): Derek Prior, Bob Igou, Alexa Bona

Summary

SAP introduces a new licensing policy change that allows for the reallocation or termination of licenses and maintenance for on-premises software. This is an opportunity for customers to reallocate underutilized licenses. It may result in cost savings for some licenses that are terminated outright.

Table Of Contents
  • Impacts

Analysis

  • SAP Continues Policy Changes
  • On-Premises Software Extension Policy Change
    • Option 1 — Reallocate Existing Licenses and Maintenance for Other SAP Products
    • Option 2 — Terminate Licenses and Maintenance
    • Additional Considerations

Impacts and Recommendations

  • With SAP's new licensing policy change, SAP customers can reallocate existing unutilized on-premises licenses for the purchase of new on-premises licenses
  • SAP customers may be able to reduce annual costs by partially terminating licenses and maintenance fees without the corresponding purchase of new applications

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