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SAP announces “transparent approach to indirect licensing” | TechCentral.ie

Now, the vendor has announced a new “transparent approach to indirect licensing” which encompasses a new sales, audit and pricing model.

SAP has started out by giving its own, definitive definition of the two types of data access: “Direct/Human Access occurs when people log on to use the SAP Digital Core by way of an interface delivered with or as a part of the SAP software,” the vendor clarified.

“Indirect/Digital Access occurs when devices, bots, automated systems, etc. directly access the Digital Core. It also occurs when humans, or any device or systems indirectly use the Digital Core via a non-SAP intermediary software, such as a non-SAP front-end, a custom-solution, or a third-party application,” such as a SaaS solution like Salesforce.

The new pricing model itself has been described as “a first of its kind for the enterprise software industry” by SAP.

A SAP press statement reads: “Historically, for most use cases, customers primarily had the option to pay for the SAP ERP application based on the number of users. As more systems began to access SAP software systems, this created a challenge for customers, who asked for an alternative pricing approach.”

The new model therefore combines both what the vendor calls the ‘digital core’ – which is data stored in its in-memory S/4HANA system, either on premise or in the cloud – as well as the SAP ERP application.

Adaire Fox-Martin, member of the executive board of SAP SE, global customer operations said in a statement: “SAP has been built on a legacy of trust, empathy and transparency with our customers. As the industry and customer requirements change, our legacy does not.

“Therefore, after thoroughly reviewing our processes and practices around Indirect Access – and based on extensive feedback from all stakeholders – we are rolling out a new and modern engagement model with our sales personnel that delivers industry-leading clarity.”

New pricing model
Existing customers can now choose to remain on the current model or move to a new document-based pricing model.

This document-based model is an evolution of what Hala Zeine, SVP and chief business development officer at SAP, announced at Sapphire last year.

Here the company announced a new ‘outcome-based approach’ instead of charging for individual users or other parties accessing SAP ERP via a third party system or interface for the two most common indirect access scenarios: order-to-cash and procure-to-pay. In addition it announced that indirect static read would be free of charge.

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SAP announces “transparent approach to indirect licensing” – TechCentral.ie.