Gartner Research

SAP Simplifies Pricing and Licensing, but Some Customers Will See Higher Costs

Published: 15 December 2014

ID: G00264962

Analyst(s): Lori Samolsky, Dawn Hubbard, Alexa Bona, Jane B. Disbrow, Roberto Sacco, Rob Wilkes

Summary

SAP made significant changes to its licensing and pricing in July 2014. Its simplified offering means that some customers who do not document their ability to purchase more of what they have already licensed may see cost increases when they purchase licenses with a different metric or definition.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • SAP has eliminated Limited Professional Users and consolidated many packages on macro metrics like annual revenue, which will mean additional licensing costs for some existing customers unless they document their ability to purchase more of what they already have
  • SAP has reduced the number of price list items by bundling related licenses; for many customers, the scope of these bundles will be broader than they require, therefore more expensive
  • SAP has introduced two new subscription-based license options for purchasing Hana and ERP licenses for HEC, but these will not sway many existing customers to move away from bringing their own license to HEC.

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