Understanding SAP Licensing

Why is it important to understand SAP licensing? What are the key metrics of SAP licensing?


SAP licensing is widely accepted to be one of the most complex models of all the major vendors. Unlike other vendors SAP bases its licensing on usage, but just to add to the complexity, doesn’t always explicitly and unambiguously define usage.


What are the Key Metrics of SAP Licensing?

One of the key metrics for SAP applications is the ‘Named User’ of which there are three main types.

  • Professional user – is able to perform certain operational tasks such as system administration or system management type roles that are within the agreed license metrics. The user should also have the rights that are specified by the SAP Application Limited Professional User.
  • Limited professional user – can perform limited operational roles as defined by the software license.
  • Employee user – has the ability to perform tasks purely for the individuals own use and not on behalf of anyone else, tasks that are set out by the software license.


Packages in SAP Licensing

In addition to Named Users there are also SAP packages. Packages are additional software components that need to be purchased separately, such as the SAP Payroll Package.

Packages use different licence usage metrics to the Named User and are based on data created in the SAP system. There are many different types of measurement that can be utilized to determine license requirements. SAP has developed these metrics in close collaboration with customers to align the metrics with a business’s real-world requirements.

Additionally, the licensed level of such metrics reflects the required capacity of the licensed software Package, such as number of orders processed, number of contracts tracked, or gross written premiums. This is designed to be flexible, so as your business grows and your software requirements change, you can adjust your licenses accordingly, although be mindful that reductions can be difficult to secure unless negotiated into your SAP agreement.

Alerts need to be created for software Packages so that the organization can see when they are nearing all of their licenses being in use. Without setting up such alerts an organization could unwittingly become non-compliant. Setting up alerts also helps to manage existing licenses and also provides an indication to the potential of reaching full capacity.


Helping to Manage SAP Licensing

To help with the problems associated with SAP licensing, Certero for SAP applications works straight out-of-the-box to provide a comprehensive platform for the efficient management of SAP software, from discovery through to usage metering, user license assignment, compliance, optimization and cost effectiveness.

To find out more, or to get a demo and free 30 day-of-concept trial, please get in touch.

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