Indirect usage: SAP presented "unique" pricing model


According to SAP's own praise, the licensing approach developed together with user groups offers greater transparency than the old "indirect use" usage scheme (SAP NetWeaver for Third Party Applications).
While Andreas Oczko, DSAG board member for operations, service and support, welcomes the approach in principle, his colleague Frank Bayer, CEO of the International Association for SAP Partners (IA4SP), is still skeptical as to whether the new regulation will also be to the advantage of SAP partners. The majority of initial evaluations point to a deterioration for add-ons and third-party products.
The rumor on the scene is that ultimately SAP wants to hit CRM rival Salesforce with the new scheme and that the SAP partner add-ons are merely collateral damage.
However, the path of digital transformation and the implementation of SAP Leonardo will not happen without a solution for a technically feasible and licensing fair agreement.
"Digital transformation means that every company must clarify for itself how it creates new added value for its customers"
Analyst Ray Wang of Constellation Research also says.
"As soon as companies evolve their business models from products to services, from services to customer experience, from experience to measurable outcomes, it also affects pricing models.
Software providers are not only moving in the direction of outcome-oriented prices. They also need to find models that on the one hand protect previous IT investments, but on the other hand also enable customers to switch to new business models in a fair and equitable way."
SAP thus introduced a new sales, audit and pricing model for "indirect use" in April of this year. The new approach is intended to ensure that existing customers can use their SAP licenses more easily and transparently.

The model distinguishes between direct/human (human access) and indirect/digital user access (digital access) and creates rules around licensing, usage and compliance.
Direct access occurs when a user accesses the SAP digital core through an interface provided with or as part of the SAP software. Indirect access occurs when devices, bots, or automated systems access the digital core.
Or when people, devices, or systems use the digital core indirectly via intermediary software from another provider (see graphic) - as would be the case with Salesforce.
SAP has been rolling out the new sales, audit and pricing model since April 2018 and will provide additional training materials and tools in the coming months.
This will make it easier for customers to understand the new license terms and to select the model that suits them best. Especially an adaptation and extension of the LAW (License Administration Workbench) seems to become necessary.