SAP HANA Promotion für viele Anwender unklar

Peter Wesche October 7, 2015

Die jüngst ausgelaufene HANA-Promotion der SAP zielte auf die frühzeitige Entscheidung der Anwender-Unternehmen, die Runtime für die zukünftigen S4/HANA Applikationen zu lizenzieren. Doch war auch auf der jüngsten DSAG-Jahreskonferenz der Wert dieser Option nur wenigen Unternehmen zu vermitteln.

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Es handelt sich um einen Test einerseits und natürlich um Umsatzgenerierung andererseits, welche SAP mit der Promotion verbunden hat. Die Anwender haben sich dabei zwei Kernfragen gestellt:

  • Wann sind die S4/HANA Applikationen reif für eine Ablösung der Business Suite?
  • Welchen Preis werden die Applikationen bzw. die Runtime später haben?

Während über die erste Frage nur spekuliert werden kann, gibt es für die zweite Frage ein Vorbild: Die Migration von R/3 auf SAP ERP. Hier wurden die bisherigen Investitionen in SAP Software für zukünftige neue SAP-Software weitgehend verrechnet. Die Erwartung auf den Fluren der Konferenz war, dass dies auch jetzt wieder gelten sollte. Insoweit braucht sich niemand Sorgen machen, der die Promotion nicht wahrgenommen hat.

Innovative Price Benchmark attracts savvy software customers and consultants

Peter Wesche October 23, 2014

While extending their offering to more vendor coverage, License12® sheds new light to the year-end vendor talks or actual software procurement negotiations. The price-benchmark data base has been enriched with 40% more data and is now capable to deliver crucial comparisons for the leading software vendors. Based on customer context data, the analysis can be derived ad-hoc. To attract even more customers, License12 has disclosed a special offer: Until Christmas, the access and use of ‘QuickBenchmark®’, the ‘light’ version of the License12® price benchmark without a full contract scan, will be free of charge for new customers and prospects. What does this mean for you?

Part of QuickBenchmark: Intuitive graphics

Part of QuickBenchmark: Intuitive graphics

  • Customers can experience QuickBenchmark® in production without cost  and gain an understanding of License12 Benchmarks.
  • They may perform peer comparisons with current proposal data and check if there is room for further negotiations.
  • They can register for a personalized sand box, filled with demo data, to test the extended functionalities associated with contract data, in particular the analytics of ContractCompass®.

Gaining acces to the benchmark is quite easy: A button on the homepage License12 leads to short peer selection and generates a PDF that is sent to the requester’s eMail with all relevant contextual information! There is further information on the Q&A of QuickBenchmark®.

Neuartiger Preisbenchmark attraktiv für aufmerksame Kunden und Berater

Peter Wesche

Mit der Ausweitung Ihres Angebots auf weitere Vendoren setzt License12® neue Zeichen für die Jahresendgespräche oder aktuelle Softwareeinkäufe. Die Preisbenchmark-Datenbank wurde jüngst um 40% erweitert und liefert jetzt zu den wichtigsten Softwarelieferanten add-hoc Analysen für den Kontext des Kunden. Zur Neukundengewinnung setzt License12 allerdings noch einen drauf: Bis Weihnachten soll der Zugriff auf den ‘QuickBenchmark®’, der Kurzfassung des License12®-Preisbenchmarks ohne volle Vertragsanalyse, für Interessenten kostenlos zugänglich sein. Was bedeutet dies?

Part of QuickBenchmark: Intuitive graphics

Part of QuickBenchmark: Intuitive graphics

  • Kunden können den QuickBenchmark® produktiv gebührenfrei ausloten und die Arbeitsweise der License12 Benchmarks kennen lernen.
  • Sie können konkrete Angebotsdaten auf der Summenebene verproben und sich so vergewissern, ob noch Spielraum für weitergehende Verhandlungen besteht.
  • Sie können sich ein kostenloses Demokonto einrichten lassen, um anhand von ‘Spieldaten’ die erweiterte Funktionalität, insbesondere die Analysen des ContractCompass®, zu testen.

Der Zugang zum Benchmark ist denkbar einfach: Ein Button auf der Startseite von License12 erlaubt die Benchmark-Peerselektion und generiert nach Angabe der Adresse ein PDF mit allen wichtigen Information zum Kontext! Wertvolle Informationen liefert auch die Q&A-Seite zum QuickBenchmark®.

Oracle pool-of-funds Lizenzierung erfordert eine genaue Planung

Peter Wesche September 20, 2014

Seit Ende 2013 taucht es in Lizenzverhandlungen mit Oracle als neue Option auf: Das ‘Pool-of-funds’-Lizenzmodell. Es ergänzt bzw. modifiziert einige Eigenschaften des bisherigen ULA-Lizenzmodells, welches weiterhin ungeändert fortbesteht.

Geld sofort weg - Nutzung in 6-Monatsschritten

Geld sofort weg – Nutzung in 6-Monatsschritten

Was ist anders beim ‘pool-of-funds’?

Wie das Oracle ULA (unlimited licensing agreement), wird ein ‘pool-of-funds’-Lizenzvertrag für einen bestimmten Warenkorb von Lizenzprodukten auf Zeit geschlossen. Aber anstatt einer Wette auf den möglichen Preis pro Einheit wie beim ULA, liegt beim ‘pool-of-funds’-Modell dieser Lizenzpreis von vornherein fest. Ziel des Modells ist es vielmehr, dem Anwenderunternehmen während der Vertragslaufzeit flexible Abrufe auf den Warenkorb des Vertrags zu ermöglichen; so, wie es das Geschäft und der Projektverlauf erfordert. Wie beim ULA, wird der Vertragspreis für das gesamte Volumen zu Vertragsbeginn fällig; 22% Wartungsgebühren werden zu Anfang jeden Vertragsjahres erhoben.

Eine weiterer Unterschied besteht in der Vermessung: Während beim ULA kurz vor Ablauf die tatsächliche Inanspruchnahme der ‘unlimited’-Produkte nachgewiesen wird, erfolgt beim ‘pool-of-funds’ die Vermessung nach jeweils 6 Monaten. Als Statusmeldung werden dann nur die zusätzlich genutzten Lizenzprodukte für alle zu vermessenden Systeme an Oracle zur Fortschreibung der Inanspruchnahme des Budgets (=’pool balance’) zurückgemeldet. Die Folge ist eine zeitnahe Wandlung des aktuellen Poolwertes in dauerhafte Lizenzrechte. Ist das Budget erschöpft, muss das Anwenderunternehmen wieder regulär Lizenzen zukaufen. Spätestens 30 Tage nach Auslauf des Vertrags muss das Anwenderunternehmen die Rückmeldung aller zusätzlichen Lizenzierung der letzten 6 Monate erfolgt sein.

Was ändert ‘pool-of-funds’ in der Risikobewertung?

Das Modell ist eignet sich eher für unsichere Verwendungsprognosen und kleinere Volumina. Während der Oracle-Vertriebg das ULA erst ab einem Commitment von mehreren Millionen Euro Vertragsvolumen anbietet, ist ein ‘pool-of- funds’-Vertrag für kürzere und kleinere Verträge verhandelbar. Es ist auch denkbar, diejenigen Lizenzen aus dem ULA in einen ‘pool-of-funds’-Vertrag zu verlagern, deren Einsatzanteile eher ungewiss ist und die ULA-Auslastung nicht wahrscheinlich ist.
Typisch ist eine Laufzeit von 2 Jahren und ein Volumen von 1-3 Mio Euro. Er eignet sich für ein Forward-Buy, der überschaubar ist. Mit dem etwas geringeren Risiko einher geht allerdings auch ein geringerer Rabatt als im ULA-Fall. Letztlich ist auch hier jeder Vertrag mit dem spezifischen Hebel des Anwenderunternehmens zu optimieren.
Schwierig ist die Ermittlung eines fairen Preises pro Einheit: Muss dieser deutlich geringer ausfallen als beim sukzessiven Zukauf, stellt sich die Frage, wieweit der Rabatt unterhalb eines ULA liegen darf. Hierzu sind individuelle Kalkulationen erforderlich, wie sie von Doctor-License auf Basis von aktuellen Preisbenchmarks aufgestellt werden können.

Welche Risiken bestehen fort?

Prinzipiell ist auch für den pool-of-funds Vertrag eine genaue Planung erforderlich. Wichtig ist ein System zur zeitnahen Fortschreibung aller im pool befindlicher Lizenzprodukte. Die Interims-Nutzungskontrollen haben letztlich zur Folge, dass jede zusätzliche (Peak-) Nutzung zur Festschreibung der Lizenzen führt.
Alle Projekte sollten mit einer realistischen Einsatzwahrscheinlichkeit über den Vertragszeitraum versehen werden, um den Pool auch sicher voll nutzen zu können. Es ist in der Regel günstiger, schon vor dem Ende der Laufzeit zum Pool zukaufen zu müssen, anstatt das Budget nicht voll auszunutzen.

 

Optimieren Sie Ihre Softwarelizenzen im jährlichen Rhythmus

Peter Wesche September 3, 2014

Zur Verbesserung Ihres Lizenzmanagements sollten Sie ein jährlich wiederkehrendes Schema für Ihre Planung verwenden. Die folgende Grafik beschreibt die grundsätzlichen Beziehungen zwischen den zyklischen Aktivitäten und den Optimierungsthemen Ihrer Softwareinvestitionen:

Optimierungsmatrix

Optimierungsmatrix

In der Wirklichkeit werden nicht alle zugeordneten Themen relevant, weil Sie sich immer auf eine spezifisches Problem Ihres Lizenzmanagements fokussieren werden. Jedoch ist es hilfreich, folgende drei Fragen zu stellen:

1) Kenn ich meine Lizenzen; weiß ich, wozu ich Anrechte habe?

2) Wie kaufe ich nach; habe ich dazu die beste Taktik und belastbare Benchmarks?

3) Wie werde ich die Software Compliance sicherstellen, kenne ich die zugrunde liegenden Regeln?

Used software license market gains traction

Peter Wesche May 23, 2014

This week, li-x was released in Beta to add one more source for acquisition and disposal of software licenses that have been ‘used’ before. The move was encouraged by recent verdicts of the European and German courts. Although a start-up, li-x has got a history by its parent company Preo Software AG and its founders Boris and Christoph Voege.

Currently, all experienced companies involved in used software license resale, namely Usedsoft, Susensoftware and 2ndSoft, are increasing their web presence and look for means to accomodate an easier transfer of licenses to ensure compliance with the existing legislation. For those who need to have solid transaction support now, the use of the existing sites is recommended.

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Axel Susen, Owner of Susensoftware, is not only experienced reseller for used licenses, he is willing to fight at court for strict compliance with IP law!

Buyers are encouraged to review the maturity of processes offered along with the licenses themselves. Doctor-License has built a special competency around supporting the deals with respect to proper legal diligence. Read more in my recent blog.

What to wish for Christmas?

Peter Wesche December 23, 2013

In software licensing you rarely think of a free wish or what would make you feel like Christmas. The environment of IT and, in particular, of license models and rules is far from wonders, for the most part.

But think of a few drastic changes that are no wonders in other subject areas, like the car business:

  • Only pay maintenance for the software you use
  • Only start paying maintenance when you use the software productively
  • Let the vendor send a fresh vendor price list when a new license product is launched
  • Get advance notice from the vendor about policy/model changes, including hints what that means for you
  • Sell off unused licenses in a second-hand market
  • Shift the burden of proof for software compliance to the vendor
  • Let the vendor execute your product update to remove faults and return a tested live system as part of maintenance

It might take years to get there, but Christmas is a time when such wishes can be pronounced, for the least! Until this becomes factual, some of you might drop by License12 to get a first sight of what transparent licensing can look like.

Merry Christmas and a Happy New Licensing Year!

Lizzy's Christmas Dreams

Increase your discount at year end in your SAP negotiations

Peter Wesche November 18, 2013

Recent customer cases show that vendors are granting high discounts during the year-end rallye, but they also tweak terms that are to their own advantage. For customers, it is essential to carefully check proposals to avoid unpleasant surprises. It may not be intentional, but the complexity of rules make it easy for mistakes: Customer reported that in a recent offer the vendor more than doubled the list price to grant a 90% discount. The effective discount was only 77% which could be corrected after a simple call.

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What does it mean for you?

End-of-year are hectic and workload becomes overwhelming especially when it gets close to the seasons break.

Use external advice to check what requires your attention. If you cannot engage directly, use web-based advice like License12. There, you only upload the proposal and get a complete validation and an optional benchmark that tells you exactly if you have achieved well. It saves time and money and shows your vendor that you understand licensing. Even when it gets complicated!

Software business will only change if you change!

Peter Wesche October 4, 2013

With the advent of cloud computing, customers were expecting that new competition will change the attitude of vendors. This is largely not the case. Even the recent announcement of SAP to allow customers exchange shelfware against something more useful, shows not much change of attitude:

  • Allowances are treated like mercy by the vendor
  • Top discounts are taken away if customers try to execute on vendor promises
  • The lock-in dilemma is now spreading to cloud solutions as well
  • More cases of dispute are taken to court or threatened to do so

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Therefore, the principle judgement of Peter Wesche during the 2009 German user group meeting remains unchanged and still represents an excellent summary of how you can prepare for better software investment management. See three parts of that speech: Guidance

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!

New approaches to software licensing savings: Whitepaper

Peter Wesche January 8, 2013

You might be looking for a comprehensive collection of best practice related to licensing optimization. After searching the market myself, I have decided to add a Whitepaper called

What you should know about software licenses … but didn’t realize until today.

Yes, it is about discovering the bumps in the road to optimal licensing. And for the first time, we start right at the beginning, at the license procurement negotiation. Because it is the origin of all troubles later …

Available both in German and English:

WhitePaper_DE

WhitePaper_EN

How far can you go with reselling used software licenses?

Peter Wesche December 22, 2012

The ongoing debate with respect to used software disposal has received some more clarifications at court shortly before the 2012 Christmas break.

To make it clear, the whole issue only concerns licenses bought within the European Union legality, and if the license comprise perpetual rights!

Here are the Dos and Don’ts:

  • If the use of single licenses can be removed from your system/device/frontend so that you cannot use it any longer under the same licensed access, you are free to resell the license regardless of prior restriction imposed on you by the license contract. This right is irrespective of the delivery, if boxed or downloaded.
  • Licenses bought at a metric of multipacks, like in 3-user pack, package of 10 CALs or similar, you may only resell such packs in the same metric and cannot split into smaller units.
  • After buying multiple licenses under a volume license agreement, these can also be resold as single licenses even if operated under one authorization number, once you de-install the same and want to dispose off. However, you may not act as a regular reseller and exploit the volume license agreement under false intentions.
  • Licenses hosted via a client/server installation but not used in full license level, are currently not sanctioned for resale by the current court rulings. If you try to resell such license to remove shelf ware, you might have to go to court if the vendor induces an injunction. As an alternative, it is recommended to reach a compensation agreement with the vendor for such shelf ware.

If you need to know more about the details and sentences, do not hesitate to contact us! We can review your individual set-up and provide you with guidance, including the legal services by experienced lawyers.

 

Software price benchmark now on the web

Peter Wesche November 2, 2012

For the first time, a web-based service allows procurement professionals to rate the competitiveness of a proposal. After providing a few parameters, License12 builds a benchmark study within seconds and provides it online or as a PDF download. The service is called QuickBenchmark™ and a nominal flat fee is charged in a typical e-transaction via credit card. No other registration or software installation is needed.

What does it mean for closing a software transaction?

Buyers of software are no longer exposed to the lack of transparency that complicated models of the big vendors have caused over years. By region and industry, user organizations can make sure they are getting a competitive offer. Even amidst of negotiation, in a break, the buyer can use his internet connectivity to see where he stands and what additional effort might maximize his benefit.

Currently, QuickBenchmark supports Oracle and SAP, further vendors will be added shortly according to the provider.

New Oracle Pricing for BI and core products, technology and eBusiness-Suite!

Peter Wesche October 14, 2012

By irregular pattern, Oracle tends to make price adjustments that you cannot easily disguise. We recommend to our clients to subscribe to the Oracle pricing website to keep track and get early warnings when a new version of a price list is released.

If you have particular questions, donot hesitate to contact us, as we are seeing similar issues across several customers. In case you like to validate your contracts, do as we do and check with License12 for current benchmark results.

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.

Courts extend their watch on used software deals

Peter Wesche August 29, 2012

After the verdict of the European court in July against Oracle, now Microsoft is taking a hit from a court decision in Germany. The mandatory injunction orders Microsoft to discontinue statements on their website about excluding OEM operating systems for software transfer to new PCs. The verdict makes direct reference to the European decision.

The matter reveals two important points:

  1. It is getting easier to execute on reselling used software
  2. It requires more court decisions to pave the way for regular business in the used software space

With proper legal guidance, user organizations should take advantage of the trend and reinstate balance for the buyers’ market by triggering more court decisions if they feel mistreated.

Require contract benchmark for lower license cost?

Peter Wesche August 13, 2012

Most software vendors have a confidentiality clause in their boilerplate agreements that do not allow the buyers to share the commercial terms of the agreement. This practice reduces the ability to benchmark a contract to the few in your community that might verbally share their recent deals, or to calling on an expensive professional service that might not provide you with the details you are searching.

Now, there is an out to this dilemma: Internet-based self-service benchmarks for software procurement, as provided by License12 since early summer 2012:

Buyers or software asset managers are making use of a contract repository that can serve as a common base for everyone in the organization, to have all transactions at hand and to plot it to more than 2500 procurement datapoints. The benchmarks can be adjusted with respect to size, industry and region, to create a market insight on transaction or even on product levels.

European jurisdiction leaves room for interpretation on used software verdict

Peter Wesche

While there was some press noise around the July 3rd decision of the European High Court, ruling a dispute between Oracle and usedsoft about reselling licenses, many questions remain open. But the verdict contains a number of new ideas that can help user organizations escape the dilemma of unused licenses. If the licenses considered have been bought under a perpetual licensing agreement, the following principles apply:

  1. Downloaded programs (‘immaterial’) are no longer discriminated from programs delivered on physical data carrier. Even more, download versions retain the access to the latest version by the legitimate buyer of the used license.
  2. If program copies are removed at the time of re-selling, the buyer has full fresh rights to the software in the same scope as the original transaction. This includes warranty and rights to enter into a software maintenance agreement.
  3. If the original license was a multi-pack, like a 25-user or 4 processor-pack, such licenses can only be resold in total and cannot be split into smaller parts for resale.

As a consequence, all software that follows the formal definitions of the verdict can be freely re-distributed without asking permission from the vendor, even if the licensing agreement contains clauses that reserve the rights for re-distribution to the vendor. Such clauses are not compliant with European free trade principles. As a further consequence, the vendor cannot continue to ask the first licencee to continue to pay maintenance for licenses re-sold, or ‘on shelf’ for resale, if the related copies have been removed.

What the verdict does not clarify, needs to be applied with common sense, at the risk of subsequent court-ruling if the vendor objects. Among these unresolved items are:

  • How can surplus licenses by re-sold from a license agreement that has no item-level pricing. Is this an indication for a multi-pack?
  • If the nature of the software is client-server/server-installed for all licenses depending on such server programs, is it possible to consider re-selling partial licenses when they are not part of a multi-pack licensing transaction?