Introduction
SAP has announced significant changes to its licensing structure, shifting from the RISE with SAP products to the new SAP Cloud ERP Private package. This transition, highlighted by the German-speaking user group DSAG, raises concerns about pricing adjustments that could impact enterprise budgets and software procurement.
Key Details Section
- Who: SAP, the global software giant.
- What: Introduction of the SAP Cloud ERP Private package, retiring RISE with SAP.
- When: April 2023, with further changes expected in 2026.
- Where: Primarily for users in Germany, Switzerland, and Austria.
- Why: The shift aims to better align SAP’s offerings with market demands but brings uncertainty regarding costs.
- How: The new pricing model is based on the Full-Use-Equivalent (FUE) metric, impacting package contents and potentially leading to higher costs.
Why It Matters
This change is crucial for IT professionals as it impacts:
- Budgeting: Users may see increased overall costs due to modified volume-based pricing.
- Software Licensing: Organizations must examine their bill of materials against the new commercial terms.
- Cloud Migration: Enterprises migrating to S/4HANA must consider additional licenses, such as Master Data Governance.
With Gartner noting that the new structure necessitates a careful review of existing contracts, it’s essential for businesses to assess how these updates could affect operational budgets and determine future software requirements.
Takeaway
IT professionals should prepare for a meticulous review of their SAP agreements and budgets, as the transition to SAP Cloud ERP could introduce unexpected costs. Staying informed about these changes will be vital for strategic planning and ensuring that organizations leverage the best offerings from SAP.
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