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SAP Software License Guide

SAP Software Licensing

Recently I read a self-serving post on LinkedIn from a company who promotes how “wonderful” Oracle is for having a public price list and how terrible it is that SAP and others do not.  While it may be true that SAP does not publicly publish a price list there is one, it is regularly updated, and it is quite thorough. 

The main complaint was that SAP lacks “transparency,” whatever that means.  There was no mention in the post about how Oracle sales tactics include virtually giving their software away and then after a company finally gets stable they hammer them with massively increasing maintenance fees and costs.  Think about that, once you become dependent they more than make up for the software license with the forced maintenance march.  That really makes their price list completely worthless.  My response about SAP’s lack of “transparency” was:

On this point I completely disagree.  It is not that SAP does not have transparency, it is that their solution and license portfolio, as well as dependencies reflect their size.  Unfortunately it does make it complex.

So, I will absolutely guarantee you that if you do NOT have deep SAP application experience you will be completely baffled.  Not because anyone is trying to trick anyone, but because the solution portfolio and its capabilities are huge. 

SAP is like an “erector set” both in how you set up the various applications to meet business needs AND how you deal with multiple application integration issues to address a particular need.

Just concluded an SAP software licensing negotiation.  Significant solution portfolio, significant application landscape, typical fragmented multi-national who grew by M&A.  If you do not know the SAP landscape you will become completely LOST in their price list and in understanding the solutions.  You almost need to be a solution architect to really be able to help customers navigate the solution footprint.

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I can absolutely guarantee you that if you do not have deep SAP solution exposure you WILL be lost.  However that is NOT a function of some nefarious scheme to hide pricing.

I reviewed a recent copy of SAP’s price list I have from January 2012 and found there are roughly 18 spreadsheet type pages, with a little over 50 price list entries on each page, for around 900 total entries.

One Reason Why SAP Doesn’t Publicly Publish Their Price List

I have heard from some SAP insiders that one reason for not publishing their price list is the sheer amount of confusion it would create.  Solution architecture can be difficult enough –, even as an SAP veteran since 1994, with a deep and diverse SAP background, the substantial size of the SAP solution portfolio can be overwhelming.  Then combine that with the dependencies or requirements for each solution and you have a recipe for more confusion rather than clarity by publishing a large price list.  Then you have the “sales model” of “give it away” and make it up by crushing dependent customers after they finally stabilize.  Add to this the natural tendency of competitors to seize on any single item and deliberately take it out of context to “land a deal” and it is understandable why SAP doesn’t publish their price lists publicly.

Where To Get SAP Licensing and Pricing Information

Probably as a result of the licensing confusion SAP publishes a public license guide and has a price list which is also available.  Both of them are designed to help clarify licensing with SAP products and solutions.  Keep in mind that between the “introduction” guide and the actual price list document we are approaching 200 pages (Into Guide about 40 pages, full price list around 140+).

The introductory guide helps customers understand the SAP licensing approach and options.  It is freely available and I have included a recent version on my site here:

While this license guide provides you the key principles you need to understand there is also an actual, detailed price list as well.  That price list includes roughly 120 pages of explanations and examples for licensing the various specific SAP products, and then another 20 pages of the roughly 900 price list items.  THAT guide should be obtained through your SAP sales rep.  I can assure you that they will generally provide this if you ask. 

Out of respect for SAP’s decision not to openly publish their price list to the public I will not place any versions of their price list online.  However if you are a customer and are confused with the price list I will be happy to walk you through it if you contact me.

Good luck on your SAP journey!

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Contact me today through our site contact form ( http://www.r3now.com/contact ), phone, or e-mail.

Bill Wood
+1 (704) 905 – 5175
Bill Wood contact

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