Only 50 days left to optimize 2015 SAP maintenance fees

Peter Wesche August 3, 2014

While announced with a big bang in 2013, not many SAP customers are taking advantage of the limited license retirement program that has got the disguising title ‘Other requests’. The demand to get relief from shelfware maintenance fees that represent no value whatsoever is clearly visible, however the individual negotiation is still done on an ad-hoc basis with uncertain outcome. However, when carried out carefully and according to a master plan, several large user organizations have successfully leveraged the program. Late-comers still have an opportunity to execute, but time is running short:

Typical sequence of phases to retire licenses without new purchase
Typical sequence of phases to retire licenses without new purchase

Before sending a request letter to SAP stating the amount of licenses to retire, a careful analysis is advised to avoid loss on your investment. Because revoking the use of license foreever should be justified by a significant reduction of the related maintenance fee. SAP’s way of re-valuating the procurement contracts over the whole licensing history may not provide enough value!

To get an idea of the project structure, see also Steps to SAP License Retirement:SAP_OtherRequests_DrL

 

Why pay 16% more for software every year?

Peter Wesche November 5, 2013

After a new verdict in a case between SAP and susensoft in Hamburg, Germany, the applicability of selling or buying ‘used software’, as allowed earlier by a court ruling of the European High Court in 2012, have been re-confirmed. As the software efficiency reports 2011 for the US and the UK suggest, this will have an impact to user organizations that suffer from 16% shelfware every year. The remaining question is how to identify the right licenses and how to execute the adjustment with the vendors.

Now, Doctor-License is offering a tiered consulting approach to facilitate the execution of software re-use or retirement which is expressed in the following promotional offer:

ShelfwarePromo_DE

The English version will follow shortly.

 

Nach einem neuen Richterspruch zu einer Klage zwischen SAP und susensoft in Hamburg, Deutschland, ist die Anwendbarkeit von Gebrauchtsoftware für den An- und Verkauf erneut bestätigt worden, nachdem bereits die Entscheidung des Europäischen Gerichtshof in 2012 diese Möglichkeiten für dauerhafte Lizenzen gezeigt hatte. Nach den Software Efficiency Reports 2011 für die USA und UK wird dies alle Anwenderfirmen betreffen, die laut Report jährlich 16% ungenutze SOftware verzeichnen. Die offene Frage ist die richtigen Lizenzen für die Stilllegung auszuwählen und die notwendige vertragliche Anpassung mit dem Vendor zu erreichen.

Doctor-License bietet hierfür jetzt einen gestaffelten Beratungsansatz, um die  Wiederverwendung oder Stilllegung zu erleichtern. Details finden sich in folgender Angebotsbeschreibung:

ShelfwarePromo_DE

Die englische Version folgt in Kürze.

Interessante Vorträge liefert aktuell susensoftware im Rahmen seiner Roadshow im November in Hamburg, Köln, Mannheim und München: Roadshow

New SAP allowances create exciting options

Peter Wesche September 23, 2013

There has been a lot of discussions among user groups and SAP’s license model. The most pressing issue lately was SAP’s reluctance to let user organizations only pay for what they use.

Calculate the Savings with Clipping Path

The full story: Over years, SAP has been selling its software agressively, using high discount options to create shelfware, and to establish recurring cost by charging maintenance also for unused licenses. User organizations have called this practice questionable. Now, SAP starts to respond to their demands and has launched two important announcements:

  • Allowance to exchange licenses towards a hybrid model of SAP on-premise and SAP cloud solutions. See press-release.
  • Allowance for companies to de-commission licenses they do not use and re-calculate the associated maintenance fee. See press-release by dsag.

Both options are significant, as they allow all user organisations to exchange their unused software against more useful ones during a new purchase. The second announcement allows even to reduce maintenance cost when not buying new software, however applying a re-calculation of the old transaction which in many cases does not yield any refund or reduction at all! For more information, see CCC_Tag2_Ofner_Braendli

If you want to find out about your specific ability to reduce cost, call +49 6205 922885 for Doctor-License! We offer a 20-min quick assessment on the phone for free!

 

Seit Jahren gibt es eine Menge von Diskussionen unter Benutzergruppen über das SAP-Lizenz-Modell. Das dringendste Problem in letzter Zeit war SAP’s Weigerung, ihre Kunden nur für die Lizenzen zahlen zu lassen, die auch verwendet werden.

Die ganze Geschichte: Über Jahre hat SAP den Markt überverkauft, indem mit hohen Rabatten Shelfware erzeugt wurde und die laufenden Kosten durch die Wartungsentgelte auch für ungenutzte Lizenzen erhöht wurden. Anwenderorganisationen fanden diese Praxis fragwürdig. Jetzt beginnt SAP auf ihre Forderungen reagieren, mit folgenden wichtigen Ankündigungen:

Beide Optionen sind signifikant, da nun alle Anwenderorganisationen ihre ungenutzte Software gegen nützlichere während einer Neuanschaffung austauschen können. Die zweite Ankündigung ermöglicht sogar die Wartungskosten zu reduzieren, wenn nicht den Kauf neuer Software damit einhergeht. Allerdings erfolgt dies mit einer Neuberechnung der alten Transaktion, die in vielen Fällen überhaupt keine Gebührenverringerung erzeugt! Weitere Informationen auf CCC_Tag2_Ofner_Braendli

Über Ihre Möglichkeiten, Kosten zu senken, informiert Sie unter +49 6205 922885 gern Doctor-License! Wir bieten eine 20-min telefonische Schnelleinschätzung kostenlos!

How to save most from your software compliance problem?

Peter Wesche September 13, 2012

When talking about cost risk in software, many deplore the compliance problem being escalated by ever more complex licensing rules invented by the big vendors. In early days, you only had to count your users and look at the total you had licensed.

Experienced CIOs ask the question how to best circumvent the issue and to define a strategy that goes right to the point: the vendor’s hunger for revenue. They know that multi-billion software giants need to feed a huge crowd of sales staff and come up with creative ideas how to ask for more money. While there is not much new problems solved by software, auditing has become particularly popular after the 2008 economic melt-down and is effecting all companies who do not define a strong methodoly to resist to such ideas.

We have found three components to get to the highest savings:

  1. Put new emphasis on the procurement effectiveness for better pricing to shield the baseline
    Get away from price-holds to price-dropping, from maintenance cap to maintenance freeze or decrease, from transfer injunctions to free resale of unused software. Besides such paradigms when looking at the terms, also optimize the real price by context-oriented benchmarking. Some providers, like License12, are even offering such capabilities via the web.
  2. Track your entitlements over time and be rigorous about license migrations for perpetual licenses
    Re-naming and re-bundling has become a standard vendor practice. What happens with the entitlements that were associated with the old products, are we sure we do not loose them? Looking closely, you often find no better functionality in the re-named items but it breaks your monitoring capabilities. Who in all honesty wants to keep track with such details? But it is not only for marketing, it is for printing money, because by re-naming you are more likely to buy more and re-license entitlements you already hold, e.g. by changing the metrics. When the vendor offers you to migrate existing licenses, be very careful about the return!
  3. Tackle the vendor compliance verification methodology
    Noone will question the vendor’s legitimate right to protect their intellectual property. But do vendors explain their intent when selling licenses at 10 different metrics in one transaction? What is the cost of ownership to keep tracking such licenses and is it fair to prescribe the monitoring vendor-based audit programs? And how about the confidentiality that may be at risk when running un-documented audit scripts? Who is auditing the auditors?

Cost-conscious CIOs should prepare their organizations to address these three tasks and to educate themselves in order to perform effectively with respect to the intense climate generated by software audits and their resolutions.