Gartner Research

Customers Must Resolve SAP Indirect Access Risk When Investing in SAP Functionality

Published: 05 April 2017

ID: G00321827

Analyst(s): Bill Ryan , Derek Prior , Lori Samolsky , Roberto Sacco

Summary

A February 2017 U.K. court decision has strengthened SAP's position regarding indirect access. Sourcing and vendor management leaders must identify indirect access risk now, and leverage future SAP investments to achieve immediate and long-term cost certainty.

Table Of Contents
  • Key Challenges

Introduction

  • SAP v. Diageo U.K. Court Judgment Increases Indirect Access Risk
  • Common Triggers for Indirect Use Discussions

Analysis

  • Identify the Prevailing Use Definition in Your SAP Contract, and Recognize That Negotiation Will Be Required to Limit Financial Exposure
    • SAP Indirect Access Language Now Exists in Many (but Not All) SAP Contracts
    • Protect Older Contracts and Negotiated Use Terms to Limit Exposure
    • Incorporate Gartner's Principles of Licensing Fairness in Your SAP Contract to Limit Financial Exposure and Gain Cost Certainty
  • Use SAP's Desire to Sell New Licenses for Strategic Products Like S/4HANA as the Incentive to Resolve Indirect Use Cost Uncertainty
  • Negotiate a Strategic Resolution to Indirect Access Exposure

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