The indirect fog of horror

Since the beginning of 2015, SAP's sales department has often suggested during license measurements that the existing customer was underlicensed with regard to "NetWeaver Foundation for Third Party Applications".

This approach by the sales department is all the more surprising because "indirect use" cannot really be evaluated with classic license measurement. Accordingly, SAP sales often acted on hearsay and sent out what were in some cases extremely high additional demands on the off chance. The sums demanded were sometimes only estimated or based on the number of licensed users (professional or limited professional users).

NetWeaver Foundation for Third Party Applications has two entries in SAP's PKL (Price and Conditions List). The existing customer must decide between a core-based or user-based license model.

In the first case, you pay a one-time fee of 30,000 euros per CPU core of the NetWeaver server - a very expensive proposition for modern servers with 50 or more cores. In the second case, the license fee is 450 euros per user. A minimum purchase quantity of 120 licenses applies.

As is common in other cases, SAP requires licensing of all users stored in the system, even if they demonstrably do not apply "indirect use". Even with medium-sized ERP installations with 1000 users, lucrative additional revenues result for SAP.

The sometimes quite indiscriminate approach of SAP sales staff is unsettling for many existing SAP customers. Consequently, there has been various feedback from DSAG members on this issue since the beginning of 2015.

Most of SAP's existing customers were doubly surprised by the additional demands: The existence of a "NetWeaver Foundation for Third Party Applications" license was only known to a limited extent, and SAP has repeatedly changed the terms for this license in recent years.

This means that if an existing customer has an add-on in use, makes a modification or an in-house development (Z-function) that is based on NetWeaver technology, SAP may demand additional license fees.

Thus, the user association immediately sought talks with SAP and tried to start a constructive dialog in order to shed light on the issue together. A redefinition of the license for the "NetWeaver Foundation for Third Party Applications" is the first result.

Due to the cooperation of various departments on the part of SAP with the DSAG NetWeaver topic group and the support of SAP management and the DSAG board, SAP sensitized its own sales employees and initiated a change in the process. As a result, calm has returned in the meantime.

In addition, DSAG was able to make it clear where the shoe pinches. After a lengthy review of the facts, the parties agreed on the following: Redefinition of the rights of use of the "NetWeaver Foundation for Third Party Applications" license for new contracts - a Pyrrhic victory, because most subsequent claims are not based on new contracts, but on add-ons and modifications that date back several years and were developed in "good faith" as "license-free".

Accordingly, SAP has promised to carefully examine retroactive accounting for existing customers, especially those before 2009, and to act in a spirit of partnership - whatever that may mean in a specific case.

The uncertainty remains current for the existing customers, despite intervention of the DSAG! Thus, the user association feels obliged to point out the following circumstances: The general obligation to check regarding the licensing of the "NetWeaver Foundation for Third Party Applications" is with the customer and not with the third party providers of add-ons or Z-modifications.

This circumstance repeatedly leads to engaged discussions, so that DSAG recommends paying special attention to this fact and having a clarifying conversation with SAP's sales representative.

According to DSAG, there is a willingness among SAP managers to examine "cases" before 2009 with a "sense of proportion". If "discussions" arise between DSAG members and SAP sales representatives, the user association continues to offer to "escalate" these cases via the DSAG office.

Opinion and
Definitions of the SAP

NetWeaver Foundation Runtime License:

An application-specific runtime usage right of SAP NetWeaver Foundation is included in all package usage rights, provided that SAP NetWeaver is part of the scope of delivery of the purchased software. This runtime usage right entitles Customer to use the functions of SAP NetWeaver Foundation exclusively in connection with (1) the purchased SAP application (customizing included), (2) modifications, (3) SAP application add-ons that do not directly access the SAP application database or the information contained therein, and (4) third-party software that does not directly access the SAP application database or the information contained therein. Customer's Developer Users may use the tools included in the SAP NetWeaver Foundation Runtime Usage Right only for the development of such Modifications and Add-ons as described above.

NetWeaver Foundation for Third Party Applications:

The right to use SAP NetWeaver Foundation for Third Party Applications entitles Customer, in addition to the runtime right to use SAP NetWeaver Foundation, to use SAP NetWeaver Foundation for Third Party Applications software in conjunction with (1) SAP application add-ons that directly access the SAP applications database or the information contained therein(*) and (2) third-party software that directly accesses the SAP applications database or the information contained therein.

(*) Direct access to a database (in particular, but not exclusively, Oracle and/or Microsoft databases) or the information contained therein may require the acquisition of full-use license rights to such databases. The Client shall be responsible for ensuring that it has acquired the necessary rights of use from the relevant licensors.

Furthermore, mixing of core-based (30,000 Euro/Core) and user-based (450 Euro/User, min. 120 User) usage rights for SAP NetWeaver Foundation for Third Party Applications is not allowed. Customers must decide which license metric (user-based or core-based) they want to apply when they first purchase SAP NetWeaver Foundation for Third Party Applications.

SAP Platform User

(License Price: 1300 Euro) is a Defined User who is entitled to use Purchased Software via a separate SAP, Partner or Customer-owned application that is connected to the SAP Software via published SAP Application Programming Interfaces or communicates with the SAP Software via published SAP Application Programming Interfaces. The requirement to acquire rights of use for NetWeaver products and/or third-party software remains unaffected.

SAP Platform User for Productivity Apps

(license price: 250 Euro) is a Defined User that must be purchased for scenarios in which the purchased software is accessed via one or more Productivity App(s). The requirement to acquire usage rights for NetWeaver products and/or third-party software remains unaffected.

Add-on

denotes developments that are not Modifications (as defined below), use APIs, and add new and independent functionality.

API

means Application Programming Interfaces or other code that allows other software products to communicate with or call SAP software (e.g., SAP Enterprise Services, BAPIs, IDocs, RFCs, and ABAP calls or other user exits).

Modification

means developments that (1) modify the delivered source code or metadata or (2) use APIs, but do not add any new and independent functionality, but only express, improve or change the existing functionality of the SAP software. For clarification: Customizing and parameterization of the SAP software do not constitute a modification, but are permitted within the scope of the contractual agreements.