PUBLIC
Michael Deller, Bernd Hartmann, SAP SE
October, 07, 2020
SAP S/4HANA on-premise
Licensing Overview
PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ
The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP.
Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or any other service
or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or any related
document, or to develop or release any functionality mentioned therein.
This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions and
functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this
presentation is not a commitment, promise or legal obligation to deliver any material, code or functionality. This presentation is provided
without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a
particular purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAP
assumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or gross
negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from
expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates,
and they should not be relied upon in making purchasing decisions.
Disclaimer
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SAP S/4HANA on-premise Licensing Model
▪ Licensing model for existing customers
▪ Core versus extended scope – Licensing of Industry & LoB solutions
▪ Licensing model for new customers
▪ Compatibility Packs
Safeguarding our customers’ investments
▪ SAP S/4HANA Product Conversion
▪ SAP S/4HANA Contract Conversion
Optional: BoM Examples
Q&A
Licensing Overview: SAP S/4HANA on-premise
Topics
SAP S/4HANA on-premise licensing model
Licensing model for existing customers
Core versus extended scope – licensing of Industry & LoB solutions
Licensing model for new customers
Compatibility Packs
5
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HANA Enterprise
Edition (Full Use)
Based on GB of
Memory
HANA REAB
(run-time)
Based on 15% HSAV
(HANA SAP Application
Value)
Direct User Access to Digital Core
Digital Access (aka Indirect Use, via APIs)
LOB and Industry Solutions
HANA
90+ Addon Solutions (EWM, EHS, Treasury & Risk, Cash Mgt, etc),
SAP S/4HANA
Cash
Management
SAP S/4HANA
Production Planning and
Detailed Scheduling
Monetized
across all APIs
Monetize partner apps
via revenue share
The 4 Dimensions of S/4HANA On-Premise Licensing (perpetual)
Enterprise Management for
Professional Use
Enterprise Management for
Functional Use
Enterprise Management for
Productivity Use
S/4HANA developer access
SAP S/4HANA
Central Procurement
SAP S/4HANA
Product
Compliance
6
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SAP S/4HANA OnPrem Licensing – For Existing ERP Customers
Direct User Access to Digital Core and LoB & Industry Solutions
HANA
Run-time or Enterprise Edition
S/4HANA Enterprise Management
for ERP customers [7018538] - flat fee
S4 Cash
Mgmt.
S4 Central
Finance
Revenue
Revenue
S4 Digital
Access
Metric
Global Trade
MII
Extended Solution Scope
Commercially Neutral
Core Solution Scope
Database
S/4HANA LoB &
Industry Solutions are
priced based on a
single, value aligned
metric.
SAP ERP Named
Users
NO SAP Named
Users required for
S/4HANA LoB &
Industry Solutions
S4 Adv
Variant Config
Users
ERP package
Flat fee (includes 5 Prof. named users)
Already have this
S4H Flat-fee: SAP
Named Users are
required when
accessing S/4H
Enterprise
Management
Already have this
7
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Enterprise Management
SAP S/4HANA 1909 – Direct User Access to the Digital Core – Level 1
Overview Business Areas, Solution Capabilities of S/4HANA Enterprise Management
Sales & Marketing Finance Manufacturing Supply Chain
Sourcing & Procurement Human ResourcesR&D / EngineeringService Asset Management
Core HR and time recording
• Organizational Management
• Time Sheet
Operational procurement
• Purchase Order Collaboration
• Purchase Order Processing
• Purchasing Rebate Management
• Requirements Processing
• Service Purchasing and Recording
• Self-Service Requisitioning
Sourcing and contract
management
• Source Assignment
• Purchase Contract Management
Supplier management
• Classification and Segmentation
• Supplier Evaluation
Procurement analytics
• Spend Visibility
• Real-Time Reporting and Monitoring
Invoice management
• Invoice Processing
• Invoice Collaboration
Service master data and
agreement management
• Warranty Management
• Business Solution Contract Mgmt
Service operations and processes
• Service Request Management
• Service Order Management
• Service Fulfilment
• Service Billing
• Customer Engagement
• Packaged Service Offerings
Maintenance management
• Maintenance Planning and
Scheduling
• Maintenance Execution
Enterprise Portfolio and Project
Management
• Project Financial Control
• Project Logistics Control
Product engineering
• Variant Configuration
• Product Development Foundation
Order and contract management
• Sales Billing
• Sales Contract Management
• Sales Master Data Management
• Sales Monitoring and Analytics
• Sales Quotation Management
• Sales Order Management and Processing
• Sales Rebates Management
• Claims, Returns and Refund Management
• Solution Billing
• Price Management
• Sales Quotation Management
• Incentive and Commission Management
Sales force support
• Account and Contact Management
• Activity Management
• Opportunity Management
• Sales Lead Management
Accounting and financial close
• Financial Accounting
• Entity Close
• Financial Reporting
• Revenue and Cost Accounting
Financial operations
• Accounts Payable
• Accounts Receivable
• Cash Management
• Electronic Billing and Payment
• Settlement Management
Cost management & profitability analysis
• Overhead Cost Management
• Product Costing
• Profitability Analysis
Enterprise Risk and Compliance
• International Trade Management
Public Sector: Funds Management;
Grants Management for Grantee
Inventory
• Goods Movement
• Inventory Analytics and Control
• Returnable Packaging Logistics
• Physical Inventory
Warehousing
• Warehouse Management
Delivery and transportation
• Delivery Management
• Transportation Management
Order promising
• Available to Promise
Production engineering
• Production BOM Management
• Recipe/Routing Management
Production planning
• Material Requirements Planning
• Production Scheduling
Production operations
• External Processing
• Production Execution
• Subcontracting
• Just-in-time Processing
• Kanban
• Production Control
• Repetitive Manufacturing
Quality management
• Quality Engineering; Quality
Improvement; Quality Inspection
Manufacturing insights
• Manufacturing Analytics
8
PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Purposes:
1. support in defining required amounts of S/4HANA
Enterprise Management use type licenses (productivity /
functional / professional use)
2. document the scope of Enterprise Management based on
structure
LoB – Business Area – Solution Capability
3. provide detailed information of solution capabilites; online
on solutionportfolio.net
also extended capabilities, not only core (Ent.Mgmt)
→ license material number lookup!
Also available on PartnerEdge (link)
SAP S/4HANA 1909 – Direct User Access to the Digital Core – Level 2
Capability Description for SAP S/4HANA
9
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SAP S/4HANA 1909 – Direct User Access to the Digital Core – Level 3
Feature Scope Description
Publicly available on help.sap.com Chapter 2: scope of S/4HANA
Enterprise Management
Chapter 3, 4: scope of S/4HANA
LoB- and Industry Solutions
10
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* Additional License -** Additional Installation and license –
c
(Partially) Compatibility Scope
Enterprise Management
SAP S/4HANA 1909 - Digital Core and LoB Solutions
Overview Business Areas, Solution Capabilities beyond Digital Core
Suite LoB
Solutions**
S/4HANA
LoB Solutions*
S/4HANA
LoB Solutions*
Suite LoB
Solutions**
Sales & Marketing Finance
Manufacturing Supply Chain
Sourcing & Procurement Human ResourcesR&D / EngineeringService Asset Management
• Core HR and time recording• Operational procurement
• Sourcing and contract management
• Supplier management
• Procurement analytics
• Invoice management
• Service master data and agreement
management
• Service operations and processes
• Service parts management
• Maintenance management • Enterprise portfolio and project
management
• Product engineering
• Central procurement• Asset operations and maintenance
• Environment, health, and safety
• Extended Enterprise portfolio and
project management
• Product lifecycle management
• Product compliance
• Core human resources and payroll
• Talent management
• Time and attendance management
• Human capital analytics
• Supplier collaboration
• Business network
• Guided end-user buying
• External workforce management
• Digital operations for R&D
• Requirement management (IPD)
• SAP Geographical Enablement
Framework
• SAP Intelligent Asset Management
SAP C/4HANA
• SAP CRM
• SAP Service Cloud
• Order and contract management
• Sales force support
• Accounting and financial close
• Financial operations
• Cost management & profitability analysis
• Enterprise risk and compliance
• Inventory
• Warehousing
• Shipping and transportation
• Order promising
• Production planning
• Production operations
• Quality management
• Manufacturing insights
• Sales performance management • Advanced accounting & financial close
• Advanced financial operations
• Treasury management
• Commodity management
• Subscription billing and revenue management
• Advanced warehousing
• Advanced transportation
• Advanced order promising
• Extended production planning and
scheduling
• Production Engineering and
Operations
• Governance, risk, and compliance
• SAP Multi-Bank Connectivity
• SAP digital payments add-on
• SAP Cash Application
• Financial planning & analysis
• Integrated business planning
• Global batch traceability
• Extended warehouse management
• Transportation management
• Responsive manufacturing (ME, MII,
QIM, VE)
• Production operations (MII, QIM)
• Digital operations for manufacturing
• SAP digital payments add-on
• SAP CRM
SAP C/4HANA
• SAP Sales Cloud
• SAP Commerce Cloud
• SAP Marketing Cloud
11
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SAP S/4HANA OnPrem Licensing – For New Customers
Direct User Access to Digital Core and LoB & Industry Solutions
S/4HANA Enterprise Management
SAP S/4HANA Enterprise Management for Professional use [7018652]
SAP S/4HANA Enterprise Management for Productivity use [7018653]
SAP S/4HANA Enterprise Management for Functional use [7018654]
S/4HANA
Enterprise
Management
priced with a User
metric
S/4HANA LoB &
Industry Solutions are
priced based on a
single, value aligned
metric.
Standalone solutions
sold using the classic
product numbers and
metrics
Core Solution Scope
S4 Cash
Mgmt.
S4 Central
Finance
Revenue
Revenue
S4 Digital
Access
Metric
Extended Solution Scope
S4 Adv
Variant Config
Users
HANA
Run-time or Enterprise Edition
Database
Global Trade
MII
Commercially Neutral
12
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SAP S/4HANA Licensing – For New Customers
Details on Direct User Access to Digital Core
7018652 SAP S/4HANA Enterprise Management for Professional use
This license allows performing all role required operations, including management and system administration tasks.
7018654 SAP S/4HANA Enterprise Management for Functional use
• Inventory Analytics & Control
• Returnable Packaging Logistics
• External Processing
• Subcontracting
• Just-in-time Inbound Processing
• Kanban
• Repetitive Manufacturing
• Quality Improvement
• Quality Inspection
• Production BOM Management
• Recipe/Routing Management
• Manufacturing Analytics
• Maintenance Planning & Sched.
• Master Data Maintenance
• Project Financial Control
• Project Logistics Control
• Product Development Foundation
7018653 SAP S/4HANA Enterprise
Management for Productivity Use
• Goods Movement
• Warehouse Management
• Delivery Management
• Available to Promise
• Transportation Management
• Physical Inventory
• Batch Management
• Serial Number Management
• Handling Unit Management
• Material Requirements Planning
• Production Execution
• Production Control
• Maintenance Execution
• Self-Service Requisitioning
• Organizational Management
• Time Sheet
• Display use rights*
7018682 SAP S/4HANA, developer access
• Warranty Management
• Service Request Management
• Service Order Management
• Service Fulfilment
• Service Billing & Settlement
• Customer Engagement
• Packaged Service Offerings
• Business Solution Contract Management
• Service Contract Management
• Service Parts Fulfillment
• Sales Quotation Management
• Sales Contract Management
• Sales Order Management and Processing
• Price Management
• Incentives and Commissions Management
• Opportunity Management
• Sales Lead Management
• Activity Management
• Account and Contract Management
• Sales Master Data Management
• Sales Billing
• Solution Billing
• Sales Rebates Management
• Claims Return and Refund Management
• Sales monitoring and Analytics
+ capabilities of SAP S/4HANA Enterprise Management for
Productivity Use
* Display Use Rights are the right to display/view all transactional data and all master data in the S/4HANA system
Building a bridge
into the new world
Compatibility Packs in SAP S/4HANA
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SAP Maintenance Commitment as of Feb 4, 2020 – Simplified Timeline
31.12.
2025
31.12.
2027
31.12.
2030
31.12.
2040
Mainstream Maintenance
Business Suite 7 / ECC EHP6-8
Optional: Extended
Maintenance
Business Suite 7
Customer-specific Maintenance
Business Suite 7
Maintenance SAP S/4HANA*
SAP S/4HANA
Compatibility Packs
Use right
Classic licenses in product or contract conversions
Use right
Maintenance Topics
Use Right Topics
* according to SAP‘s Release&Maintenance Strategy and the Product Availability Matrix
PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP grants a timely restricted
(1)
use right for specific classic SAP solution functionality
(2)
to S/4HANA customers, at no extra cost
(3)
(1) restricted until the end of 2025
(2) whitelist: compatibility packs as documented in note 2269324
and referenced in the Software Use Rights (SUR)
(3) condition: customer has licensed SAP S/4HANA and the classic solution
Compatibility Packs are only required for solutions which are installed on the SAP S/4HANA
instance – not for side-by-side installations.
SAP aims to replace these classic solutions by the end of 2023
with a genuine S/4HANA solution.
Compatibility Packs in SAP S/4HANA
Overview
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Compatibility Packs in SAP S/4HANA
CP Matrix and Licensing
A CP is an S/4HANA compatible copy of a
“classic” = Business Suite software product.
All CPs are listed on the Compatibility Scope
Matrix. It contains:
– complete or partial solutions
– LoB/Industry- and ERP Core solutions
– Additional information to better identify the scope
and cross-link information (as applicable –
application component, link to Simplification Item, ID)
The CP Matrix is release-independent and static. CPs only exist in the on-premise world.
Licensing example: Net new customer from the Chemicals Industry:
– Customer licenses:
− SAP S/4HANA Enterprise Management users [ 7018652, 7018653, 7018654 ]
− SAP EHS Management, Product Safety [ 7010170 ] -> on CP matrix
– Customer may install EHS-Product Safety (a) on-stack on his S/4HANA system or (b) side-by-side
PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP grants a timely restricted
(1)
use right for specific classic SAP solution functionality
(2)
to S/4HANA customers, at no extra cost
(3)
(1) restricted until the end of 2025
(2) whitelist: compatibility packs as documented in note 2269324
and referenced in the Software Use Rights (SUR)
(3) condition: customer has licensed SAP S/4HANA and the classic solution
Compatibility Packs are only required for solutions which are installed on the SAP S/4HANA
instance – not for side-by-side installations.
SAP aims to replace these classic solutions by the end of 2023
with a genuine S/4HANA solution.
Compatibility Packs in SAP S/4HANA
Overview
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Running a classic SAP ERP solution side-by-side with SAP S/4HANA does not require
a Compatibility Pack.
Compatibility Packs in SAP S/4HANA
Side-by-side versus On-stack Installation
System 1/S4System 1
ERP Core
LoB & Industry
Solutions
conversion
SAP S/4HANA
Enterprise
Management
S/4HANA
LoB & Industry
Solutions
System 2
HCM
System 2
✓
HCM
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Example: HCM as on-stack installation
Compatibility Packs in SAP S/4HANA
Side-by-side versus On-stack Installation
System 1/S4
conversion
System 1
ERP Core
LoB & Industry Solutions
SAP S/4HANA Enterprise
Management
S/4HANA
LoB & Industry
Solutions
HCM
HCM
LoB &
Industry
Solutions
Usage allowed via
CP rules only
PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP grants a timely restricted
(1)
use right for specific classic SAP solution functionality
(2)
to S/4HANA customers, at no extra cost
(3)
(1) restricted until the end of 2025
(2) whitelist: compatibility packs as documented in note 2269324
and referenced in the Software Use Rights (SUR)
(3) condition: customer has licensed SAP S/4HANA and the classic solution
Compatibility Packs are only required for solutions which are installed on the SAP S/4HANA
instance – not for side-by-side installations.
SAP aims to replace these classic solutions by the end of 2023
with a genuine S/4HANA solution.
Compatibility Packs in SAP S/4HANA
Overview
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SAP S/4HANA Compatibility Packs – Way Forward
Jan
2020
Apr
2020
Jul
2020
Oct
2020
Jan
2021
Initial Publication
of Status & Alternatives
Quarterly
Update
Quarterly
Update
Objectives
Accelerate the development schedule for outstanding alternatives for SAP S/4HANA compatibility packs
and provide timely communication to customers.
Approach
Assess strategic alternatives considering common and sophisticated customer requirements
Clarify status for all items and prioritize, taking into account time to adopt before the usage rights expire
Accelerate product strategy clarifications and roadmaps
Publish status and plans in one place, with links to further information
Schedule
Planned quarterly updates regarding strategic alternatives
• Status (see next slide)
• Roadmap (planned scope in time)
• Delta Info (comparison of alternative solutions with Compatibility Pack)
• Transition Info (How to get there)
Annual SAP S/4HANA
Roadmap update
Quarterly
Update
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SAP S/4HANA Compatibility Packs – Way Forward
Status information
The status indicates whether SAP is providing or plans to provide a strategic alternative for a Compatibility Package.
Status
Explanation
Alternative Exists
Alternative exists
Alternative Exists With Roadmap
Alternative exists providing core functionality; comprehensive coverage is on roadmap
Alternative Planned
Planning of development scope and timeline is work in progress
No Alternative Planned
No intention or plan to provide an alternative beyond 2025
Clarification
Clarification of strategy in progress
Disclaimer:
SAP S/4HANA is a different product than SAP ERP. Therefore, status ‘Alternative Exists’, ‘Alternative Exists With Roadmap’, and
‘Alternative Planned’ do not mean that feature parity is achieved nor that it is planned.
The forward-looking statements provided in the attachments to SAP Note 2269324 are for informational purposes only for your
convenience. Please consult SAP Product Road Maps and SAP Innovation Discovery as official information sources for SAP’s
product strategy. They will hold the truth going forward as they are being regularly updated.
PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Compatibility Scope Matrix: Description of Attachment to SAP Note 2269324
A
Item ID
B
Part
C
Item Title
D
Status
E
Status Comments
F
Alternative
- Info
H
Alternative
-
FSD Entry
I
Alternative
-
(prime) Product
Version
J
Simplification
Item
K
Business
Impact Note
L
CompPack
-
FSD Entry
M
Alternative -
Roadmap
Info
N
Delta Info
O
Transition
Info
...
...
...
...
...
...
...
...
...
...
...
...
...
...
441
4
- ERP-
Package
PLM Web UI
Engineering Record -
Product
Development
Foundation
alternative
exists with
roadmap
"Change Record“ (CR) is available
in SAP S/4HANA. SAP plans to
integrate CR with further business
objects and enhance object
-
locking and workflow capabilities.
"Change Record" (part
of SAP S/4HANA
"Extended Production
Engineering and
Operations")
Engineering
Change
Management
SAP S/4HANA 1909
S4TWL
-
Engineering
Change
Management
ECR/ECO
2267918
Engineering
Record
...
...
...
...
...
...
...
...
...
...
...
...
...
...
A
Item ID
ID for stable and simple cross
-referencing
B
Part
Sections of the compatibility scope matrix; there exist 4 parts
C
Item Title
Name of the compatibility scope matrix entry; for part 1
-3 item title refers to 'classical solutions name', for part 4 to 'subcomponent'
D
Status
Indicates availability of strategic alternative for a compatibility package; see previous slide for status definition and exp
lanation
E
Status Comments
Additional information about availability of strategic alternative
F
Alternative
Name of the alternative, can be own product or business object / functionality in larger product
G
Alternative
- Info
Further information regarding the alternative, preference SAP Help (link)
H
Alternative
- FSD entry
Section in Feature Scope Description (FSD) referring to alternative (link)
I
Alternative
- (prime) product version
Product version (in Product Availability Matrix) which delivers the alternative; if multiple product versions are required, o
nly the leading
one is shown (prime) (link)
J
Simplification Item
Related SAP S/4HANA simplification item in Simplification Item Catalogue (link)
K
Business Impact Note
Business impact note related to simplification item (link)
L
CompPack
- FSD Entry
Section in Feature Scope Description referring to compatibility package (link)
M
Alternative
- Roadmap Info
Link to SAP product roadmap for alternative solution (to be filled over time)
N
Functional Delta Info
Description of differences between compatibility scope functionality and alternative in SAP S/4HANA (to be filled over time)
O
Transition Info
Best practices from implementation projects of alternative solutions (how to get there) (to be filled over time)
Explanation of columns
In case of questions, please open a customer message
on component XX-SER-REL with prefix ‘CompScope’
Safeguarding our
customers’ investments
SAP S/4HANA Product Conversion
SAP S/4HANA Contract Conversion
PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ
The SAP S/4HANA family and transition paths
Commercial View
SAP Business Suite
SAP S/4HANA family
New implementation
only
System Conversion
New Implementation
Landscape Transformation
SAP ERP System
(on AnyDB)
SAP ERP System
(on SAP HANA)
SAP S/4HANA On-premise
SAP S/4HANA Cloud
Contract Conversion
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SAP S/4HANA Product Conversion
1:1 Conversion of classic Industry & LoB Solutions into S/4HANA
Named Users
Per user fee
Before Conversion
ANYDB
ERP package
Flat fee (includes 5 Prof. named users)
Named Users
Per user fee
Industry & LoB Solutions
After Conversion
S/4HANA Industry & LoB Solutions
S/4 Mfg Plan &
Sched
S/4 Treasury & Risk …
MetricMetric Revenue
Extended Mfg Treasury and Risk
Metric
Metric
Revenue
…
S/4HANA Enterprise Management
for ERP customers [7018538] - flat fee
SAP ERP
Named Users
ERP package
Flat fee (includes 5 Prof. named users)
HANA
Run-time or Enterprise Edition
PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ
S/4HANA Product Conversion
For customers moving to S/4HANA in a phased approach
Customer Benefits
o Permits step-by step conversion
o Focusses on engines with S/4 equivalent products
only. No need to re-license entire landscape
o 100% line-item credits
o Customers can leverage their existing “Classic”
applications until the customer completes their
transition to SAP S/4HANA.
Boundary Conditions
o Customer keeps same contractual agreements / SUR
o Cannot convert into products they do NOT already own
o Requires line-item mapping
o Customer is entitled to 100% credit in 2020, tbd in 2021
o Maintenance Base carries forward at 100%, it may never
be reduce
o There are no partial conversions, conversions are always
100%
o Can be combined with Cloud Extension AND On
Premise Extension Policy
o No conversion for SAP Named User – exception: Retail,
Banking, Healthcare/Clinical and Industry Named Users
convert when the engines convert.
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SAP S/4HANA Contract Conversion
Convert many classic licenses into many S/4HANA licenses
Named Users
Per user fee
ANYDB
ERP package
Flat fee (includes 5 Prof. named users)
Named Users
Per user fee
HANA
Run-time or Full Use
S/4 Mfg Plan & Sched S/4HANA Receivables Mgmt
Revenue
Metric
…
Metric
GTS
Metric
Extended Mfg Shelfware GTS
Metric
Metric
Revenue
S/4HANA Enterprise Management
SAP S/4HANA Enterprise Management for Professional use [7018652 ]
SAP S/4HANA Enterprise Management for Functional use [7018654]
SAP S/4HANA Enterprise Management for Productivity use [7018653]
S/4HANA
Contract
Conver-
sion
Before Conversion
Industry & LoB Solutions
After Conversion
S/4HANA Industry
& LoB Solutions
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S/4HANA Contract Conversion
Typically for customers fully committed to S/4HANA
Boundary Conditions
o Intended for full contract “wholesale” conversions
o One-time Event
o Customer migrates to new S/4HANA Software Use
Rights
o Does NOT require line-item-mapping
o Maximum credit is lesser of 100% current
maintenance base or 90% of net NEW license fee
eligible software*
o Can be combined with Cloud Extension Policy
Customer Benefits
o Move to next gen ERP and in-memory DB
technology
o Represents a potential to reconfigure their
landscape & eliminate shelfware: “Milkshake
concept”
o Simplify their SAP contract, potentially re-
negotiate commercial terms, adopt simple S4
pricing and SUR
o Customers can leverage their existing “Classic”
applications until the customer completes their
transition to SAP S/4HANA.
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SAP offers existing customers (who have a current support agreement) two primary ways to take advantage
of their past investments to convert their SAP Business Suite 7 licenses to SAP S/4HANA Enterprise
Management:
SAP S/4HANA contract conversions – conversion types
▪ Intended for piece-meal 1:1 conversions to SAP
S/4HANA over time
▪ Customer is entitled to credit equal to 100% of
prior maintenance base, limited to net payable of
new SAP S/4HANA licenses
▪ Intended for full contract wholesale conversions
▪ Customer can reconfigure their landscape (‘milkshake
concept’: re-allocate shelf ware and apply credit to
new, unrelated software licenses)
▪ Conversion credit equal to the lesser of 100% of prior
maintenance base or 90% of net payable of the
new transaction
Product conversion Contract conversion
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Clarifying SAP S/4HANA licensing path, options for existing customers
How can an existing SAP ERP Central Component customer license SAP S/4HANA?
Option A: license SAP S/4HANA Enterprise Management for ERP customers via flat fee
▪ Fast access to SAP S/4HANA Enterprise Management – rights to use it are via their
classic SAP Named Users
Option A+: license additional SAP S/4HANA LOB and industry add-on engines
▪ After utilizing option A, license SAP S/4HANA LOB and industry add-on software engines
▪ Leverage the product conversion program if applicable
▪ SAP Named Users are not required to access the SAP S/4HANA LOB and industry add-on software engines
▪ SAP Named Users are required to access any remaining classic software engines, and SAP S/4HANA Enterprise
Management
Option B: license SAP S/4HANA Enterprise Management for professional use, via a full SAP S/4HANA contract
conversion
▪ Jump to SAP S/4HANA via the SAP S/4HANA contract conversion program
▪ Allows customer to reconfigure and simplify existing license landscape
▪ SAP Named Users are not required to access licensed SAP S/4HANA Enterprise Management, SAP S/4HANA
LOB / industry add-on engines, or any licensed classic engines
Important Note: Option B can be utilized with or without utilizing options A or A+. These are not mutually exclusive scenarios.
Existing
Customer
BoM Examples (optional)
S/4HANA on premise BoM after an S/4HANA product conversion
S/4HANA on premise BoM after an S/4HANA contract conversion
S/4HANA enterprise management licenses after an S/4HANA contract conversion
33
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SmartManu is a manufacturing company - highly specialized with customers in multiple countries with 8
b€ revenue and 9500 employees. Although the majority of the employees work in production
SmartManu has a strong R&D unit. Their employees in finance ensure proper accounting and
management of financial risks.
As a happy SAP customer they now want to prepare for the digital age by converting their classic ECC
on any database system to S/4HANA.
They plan to move to a hybrid landscape where their main S/4HANA system still runs on premise, but
they plan to move several of their subsidiaries to the cloud.
Please see their current existing BoM on the left side of this slide.
In the subsequent slides we will show how a corresponding S/4HANA BoM will look in different
scenarios:
1. S/4HANA on premise BoM after an S/4HANA product conversion
2. S/4HANA on premise BoM after an S/4HANA contract conversion
3. S/4HANA enterprise management licenses after an S/4HANA contract conversion
Example: Existing ERP Customer
Customer Scenario – with 3
rd
party DB
Material Price List Item
7003012
SAP Professional User
7017377
SAP Project User
7017378
SAP Worker User
7003016
SAP Employee Self
-Service User
ERP_PACKAGE
SAP ERP Foundation Starter
7016968
SAP Treasury and Risk Management
7018508
SAP Receivables Management
7019231
SAP Sales and Service Order Execution for B2B &
B2C
XXX
3 party DB runtime (purchased from SAP)
34
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SAP S/4HANA Product Conversion
Example of an SAP S/4HANA on premise Bill of Materials
In a product conversion customers can keep classic named
user licenses for core scope (until contract conversion).
In this case customers need to license the flat fee license
material 7018538 “S/4HANA enterprise management for
ERP customers” to get use rights for core scope.
In order to get use rights for S/4HANA Industry and LoB
solutions the corresponding classic licenses for Industry and
LoB solutions need to be converted (i.e., there is no flat fee
license material like the one that is used for the core).
Conversion only into corresponding S/4HANA license material
possible.
Piece-meal conversions possible, i.e. not all Industry and LoB
solutions need to be converted at the same time. In this example
SAP Receivables Management will be converted later.
Material Price List Item
7003012
SAP Professional User
7017377
SAP Project User
7017378
SAP Worker User
7003015
SAP Employee User
ERP_PACKAGE
SAP ERP Foundation Starter
7018538
SAP S/4HANA Enterprise Management
for ERP customers
7020306
SAP S/4HANA Treasury and Risk
Management
7018508
SAP Receivables Management
7020280
SAP S/4HANA Digital Access
The new license model for Digital Access is highly recommended
but not mandatory in a product conversion scenario.
Material Price List Item
7003012
SAP Professional User
7017377
SAP Project User
7017378
SAP Worker User
7003015
SAP Employee User
ERP_PACKAGE
SAP ERP Foundation Starter
7016968
SAP Treasury and Risk Management
7018508
SAP Receivables Management
7019231
SAP Sales and Service Order Execution
for B2B & B2C
Existing Bill of Materials
New Bill of Materials
Comment
xxx
3
rd
party DB runtime
3rd party DB licensed from SAP cannot be terminated
during technical transition. Usage of 3
rd
party DB must not
exceed licensed level during transition.*
HANA database runtime or full-use license needs to be
purchased to run S/4HANA.
* In case the 3
rd
party database has been purchased directly from the vendor the specific terms and conditions of this vendor apply.
xxx
3 party DB runtime (purchased from
SAP)
7020046
SAP HANA, Runtime edition for
Applications & SAP BW
- Install Base
35
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SAP S/4HANA Contract Conversion
Example of an SAP S/4HANA on premise Bill of Materials
In a contract conversion classic named user licenses must
be converted into S/4HANA Enterprise Management
licenses*.
S/4HANA Enterprise Management has a single metric, User-
based pricing model.
In order to get use rights for S/4HANA Industry and LoB
solutions the corresponding classic licenses for Industry and
LoB solutions need to be converted.
Re-allocation of shelf-ware possible. Flexible conversion into
any S/4HANA license material possible. In this example SAP
Receivables Management is terminated and SAP S/4HANA
Extended Warehouse Management is licensed .
No piece-meal conversions possible. All Industry and LoB
solution need to be converted at the same time.
Material Price List Item
7018652
SAP S/4HANA Enterprise
Management for Professional use
7018654
SAP S/4HANA Enterprise
Management for Functional use
7018653
SAP S/4HANA Enterprise
Management for Productivity use
7020306
SAP S/4HANA Treasury and Risk
Management
7020297
SAP S/4HANA Extended Warehouse
Management
7020280
SAP S/4HANA Digital Access
Material Price List Item
7003012
SAP Professional User
7017377
SAP Project User
7017378
SAP Worker User
7003015
SAP Employee User
ERP_PACKAGE
SAP ERP Foundation Starter
7016968
SAP Treasury and Risk Management
7018508
SAP Receivables Management
7019231
SAP Sales and Service Order Execution
for B2B & B2C
CommentExisting Bill of Materials
New Bill of Materials
* ECC Customers converting their contract to S/4HANA can include HCM / travel component licenses in new BoM to use HCM / travel functionality thru end of 2025
** In case the 3rd party database has been purchased directly from the vendor the specific terms and conditions of this vendor apply.
xxx
3
rd
party DB runtime
3rd party DB licensed from SAP cannot be terminated during
technical transition. Usage of 3
rd
party DB must not exceed
licensed level during transition.**
HANA database runtime or full-use license needs to be
purchased to run S/4HANA.
xxx
3 party DB runtime (purchased from
SAP)
7020046
SAP HANA, Runtime edition for
Applications & SAP BW
- Install Base
The new license model for Digital Access is highly recommended
but not mandatory in a contract conversion scenario.
36
PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP S/4HANA Contract Conversion
Example of SAP S/4HANA on premise Enterprise Management licenses
LoB Role Capabilities Classic named user license
Finance
Chief accountant
General ledger
Financial close
7003012 SAP Professional User
Finance
Receivables
accountant
Accounts receivables
7003012 SAP Professional User
Finance
Risk Manager
Liquidity management
Finance Risk Management
7003012 SAP Professional User
Manufacturing
Production
Worker
Production execution
Production control
7017378 SAP Worker User
Manufacturing
Production
Scheduler
Material Requirements Planning
Repetitive Manufacturing
Kanban
7003012 SAP Professional User
Sales
Sales
representative
Sales Quotation Management
Sales Contract Management
7003012 SAP Professional User
R&D
Designing
engineer
Product structure management
Engineering change management
7003012 SAP Professional User
R&D
R&D project
manager
Project financial control
Project logistics control
7017377 SAP Project User
Cross
Employee
Time sheet
Self
-service requisitioning
7003015 SAP Employee User
S/4HANA license Comment
7018652 SAP S/4HANA Enterprise
Management for Professional use
Users in LoB Finance typically need
Professional use
7018652 SAP S/4HANA Enterprise
Management for Professional use
Users in LoB Finance typically need
Professional use
none
Users who solely use an LoB
Solution do not need an Enterprise
Management license
7018653 SAP S/4HANA Enterprise
Management for Productivity use
Workers in Manufacturing typically
need Productivity use
7018654 SAP S/4HANA Enterprise
Management for Functional use
Planners in Manufacturing typically
need Functional use
7018654 SAP S/4HANA Enterprise
Management for Functional use
Users in LoB Sales typically need
Functional use
7018654 SAP S/4HANA Enterprise
Management for Functional use
Users in LoB R&D typically need
Functional use
7018654 SAP S/4HANA Enterprise
Management for Functional use
Users in LoB R&D typically need
Functional use
7018653 SAP S/4HANA Enterprise
Management for Productivity use
Employee role is typically covered by
Productivity use
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Your Questions?
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SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
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In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or
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and SAP SE’s or its affiliated companies’ strategy and possible future developments, products, and/or platforms, directions, and
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More detailed, as stated always in the Product Availability Matrix
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Customers executing an SAP S/4HANA conversion will now have dual use rights for both SAP
Business Suite 7 and SAP S/4HANA until completion of their transition to SAP S/4HANA.
Previously: until end of 2025. Applies to product and contract conversions.
More information: external SAP.com announcement – English | German
Example: Customer uses ECC with APO, has multiple productive ECC systems. He can now
convert APO to the respective S/4HANA license, either as product or contract conversion, and use
his classic APO instance without a limitation.
Extended use rights for installed-base customers
converting to SAP S/4HANA
PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ
External Links for Customers
Press release from February 4th, 2020 on extended maintenance commitments
[Link
]
SAP executive interview “[…] Story Behind Extending […] Maintenance [….]”
[Link
]
SAP Support Portal (public update on release & maintenance strategy)
[Link
]
SAP Release & Maintenance Strategy (brochure)
[Link
]
Product Availability Matrix
[Link
]
SAP Note 2881788
“End of SAP Business Suite 7 mainstream maintenance”
[Link
]
SAP Note 1648480 “Maintenance for SAP
Business Suite 7 Software […]”
[Link
]
SAP Note 52505 “Support after end of mainstream maintenance or extended […]”
[Link
]
SAP road maps
[Link
]
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SAP Human Capital Management for SAP S/4HANA on-premise edition
A new on-premise option for customers leveraging SAP ERP HCM
Continuity and investment protection for HCM on-premise customers
Solution will be based on SAP ERP HCM with optimizations and
selected innovations to leverage SAP HANA
We see this option as a bridge to give additional time to those customers who are not yet ready
to fully move to SAP SuccessFactors.
PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Transition
Customers can run HCM
embedded or on a separate SAP
S/4HANA instance
▪ Customers will need to migrate
to SAP HANA.
▪ Migration tools and services will
be provided to help facilitate a
non-disruptive migration from
SAP HCM or SAP S/4HANA
compatibility pack
▪ A license conversion will be
offered
SAP Human Capital Management for SAP S/4HANA on-premise edition
Key capabilities
Product
▪ Scope comparable to S/4HANA
Compatibility Pack and key
functionality of SAP ERP HCM
▪ Based on ERP HCM (EhP 8), to
be supplemented with some HANA-
based capabilities.
▪ No major additional functional
additions or re-architectures are
planned
▪ Only available for on-premise
deployment
▪ Available in 2022
SAP HCM for SAP S/4HANA
on-premise edition
PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Personnel Management
• Personnel Management (PA-PA)
• Organization Management (PA-OS, BC-BMT-OM)
• Personnel Development (PA-PD-xx)
• Benefits (PA-BN)
• Compensation (PA-CM)
• Personnel Cost Planning ( PA-CM-CP)
• Pension scheme (PA-PF-DE)
• MSS / ESS (CA-ESS/MSS)
Talent Management
• SAP Learning Solution (PE-LSO-xx*)
Payroll
• Payroll (PY-xx)
Time Management
• Time (PT-xx)
• Shift Planning (PT-SP)
Public Sector
• Public Sector (PY-DE-PS, PY-DE-PS-VA)
• Position Budgeting and Control (PA-PM-PB)
• HR Funds & Position Management (PA-PM)
• Shift Planning for Public Sector (PT-SP-PS)
*Without JAVA components
SAP Human Capital Management for SAP S/4HANA on-premise edition
Planned Solution Scope
This blog will be continuously updated to
reflect the planned solution scope and details
on commercial aspects.
PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ
▪ We encourage all our 15,000 ERP HCM customers to move to SAP
SuccessFactors to accelerate their digital HR transformations
▪ We also recognize that a subset of our SAP ERP HCM customers will desire to
run their on-premise environment for the foreseeable future
▪ In order to continue to support these customers’ needs, we have taken the
decision to offer a new HCM on-premise option, SAP Human Capital
Management for SAP S/4HANA on-premise edition
▪ This new solution is planned to be available in 2022
▪ We see this new solution as a bridge to give additional time to those
customers who are not ready to fully move to SAP SuccessFactors
▪ Customers’ investments will be protected: We will provide migration tools and
services to enable an “upgrade-like” migration
Summary
SAP Human Capital Management for SAP S/4HANA on-premise edition