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1. Optimizing SAP Licenses to Minimize Spend
Eric Lukas
Regional Director Latin America
elukas@flexerasoftware.com

2. Statistics
Flexera Software
• Top 200 Software Company
• Solidly Profitable
• 500+ Employees
• 80,000 Customers
• 20,000 FlexEnabled
Applications
• 200,000,000 PC’s
Receiving Software
Downloads and Updates
• Market Leader
- Entitlement and
Compliance Management
(FlexNet Producer Suites)
- Enterprise License
Optimization (FlexNet Manager
Suite)
- Application Readiness
(AdminStudio, App Portal)
- Installation (InstallShield)
• Seasoned Management Team
• Acquisitions To Date
- ManageSoft
- Intraware LLC
- LinkRight Tracker
- Honico GmbH
- SCCM Expert
Performance
Highlights
• Global Company
• Over 20 Years Experience
• Industry De facto Standard
• Highly Skilled Consultants
• Award Winning
• FlexNet Manager Suite:
CODiE Award
• FlexNet Producer Suite:
Winner, IT Europa
European IT Excellence
Awards
2 © 2012 Flexera Software, LLC | Company Confidential

3. © 2012 Flexera Software, LLC | Company Confidential
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Business Goals
• Maximize Utilization of Licenses
• Optimize License Allocation
• Continuous License Compliance
• Smart Purchase Control—Buy Only What You Need
• Contract Negotiation Power—Maintenance, Agreements
• Improve IT Operational Efficiency
• Eliminate Unbudgeted Expenditures
• Reallocate / Remix Application Licenses
• Enable Chargeback
Flexera
Optimized

4. Software License Management Challenges
Lack of Controls = $$ Large Recurring Expenses
Optimal
$ $
Over-Licensed
Out of
Compliance
• License Complexity
• Virtualization
• M&A / Divestitures
• No barriers to use
Poor license allocation •
Redundant applications •
No usage tracking •
Open-loop procurement •
4 © 2012 Flexera Software, LLC | Company Confidential

5. Flexera Software Strategic Vision
For Software License Optimization
Continuous License
Compliance
Reduced Risk
Accurate/Optimized
License Position
Visibility / Savings
Workflow
Management
Operational
Efficiency
Business Intelligence
Improved
Forecasting
5 © 2012 Flexera Software, LLC | Company Confidential

6. 6 © 2012 Flexera Software, LLC | Company Confidential
SAP Licensing and Reporting Today
License Administration Workbench (LAW) Report

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SAP system
measurements don’t
provide information
on underutilized
licenses
SAP Doesn’t Provide Insight Into License Utilization
Unnecessary license
purchases when 1000s
of licenses may be idle!

8. © 2012 Flexera Software, LLC | Company Confidential
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SAP LAW — Poor Duplicate User Detection
• LAW provides a “Combine Users” option to identify multiple user
accounts for the same user
– Automatically combines users using one of:
• User Name
• Last, First Name
• Accounting Number
• E-mail Address
• Telephone No.
• Inevitably some users will not be automatically combined
• LAW allows manual corrections to be made, but this is impractical
for large enterprises
Each duplicate user consumes an additional named
user license and expense!

9. SAP Named User Licensing—Un-optimized by
Design
Named users are categorized based on their working roles and features that they
are permitted to use. This is typically a manual process, not based on actual
usage of the system. SAP charges vastly different amounts for these roles.
Professional ?
Employee User ?
Limited Pro ?
Engine User ?
Developer ?
Test ?

10. © 2012 Flexera Software, LLC | Company Confidential
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License types are assigned
based on vague
descriptions and manually
maintained master data.
SAP Reports on Deployed Licenses, Not which
License Types should be Deployed based on Usage
Unbudgeted Expenditures
at True-up
User License Type
SAP Price per
License ($)
Developer $$$$$$
Professional $$$
Limited
Professional
$$
Employee $
Employee Self
Service
$
Under
licensed
Paying for High Priced
Licenses that aren’t
Required
Over
licensed

11. © 2012 Flexera Software, LLC | Company Confidential
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• Professional
• Limited Professional
• Developer
• Engine User
• Web as User
• Employee
• Substitute
• Multi-Client/System
• Test
• …
# Users per Type
Counted &
Consolidated
Obligation to SAP—
Maintenance on licenses + new user licenses
Manually
Classify Users
Named User Licensing & Maintenance—
SAP LAW System Measurement
Price List
Contractual User Types

12. © 2012 Flexera Software, LLC | Company Confidential
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• Professional
• Limited Professional
• Developer
• Engine User
• Web as User
• Employee
• Substitute
• Multi-Client/System
• Test
• …
# Users per Type
Counted &
Consolidated
Misclassified Users = Over Payments
Price List
Contractual User Types
Classify Users
Over Payment
‣ Unclassified users automatically set
to Professional
‣ Usage Not Measured
‣ Users provided unused rights
‣ Downgrade Rights Not Applied

13. Introducing FlexNet Manager®
for SAP®
Applications

14. Built on FlexNet Manager Platform
Level 4
Optimized
Level 3
Continuously
Compliant
FlexNet Manager Platform
HAM, SAM & License Management
Continuous Compliance for:
• 14,000+ Vendors
• 110,000+ Applications
• 350,000+ Software SKUs
• Inventory & App Recognition
• PO vs Installed License Reconciliation
• Verified Oracle Solution
FlexNet Manager for SAP Applications, Microsoft,
Adobe, Symantec, IBM, Oracle & 20,000 Engr. Apps
Level 2
Managed
Level 1
Installed
Software
License
Optimization
Traditional
SAM
Return
on
Investment
14 © 2012 Flexera Software, LLC | Company Confidential

15. Optimization Cycle
15
© 2012 Flexera Software LLC. All rights reserved. | Company
Confidential
Web Dashboard
Reports
Rules
Before/After Optimization
Remix
Compliance Position
Contracts
FlexNet Manager for SAP
Applications Admin Module
Administration
Remediation
Remediation
Usage Data
Recommendations
FlexNet Manager Platform
FlexNet Manager for SAP
Applications
No satellite
transports
required for usage
data

16. © 2012 Flexera Software, LLC | Company Confidential
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FlexNet Manager for SAP Applications
Tracks and Analyzes Detailed Usage Data
What’s
the Optimal
License Type
for each User?
What transactions and modules do I use?
Have I been assigned more than one license?
What are my authorization roles?
How long do I use the system?

17. © 2012 Flexera Software, LLC | Company Confidential
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FlexNet Manager for SAP Applications
Detects Idle Licenses
FlexNet Manager
for SAP tracks and
analyzes usage
data to detect idle
licenses
Defer new license purchases by fully utilizing
the licenses you already have!

18. © 2012 Flexera Software, LLC | Company Confidential
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FlexNet Manager for SAP Applications
Optimizes Duplicate User Detection
• Optimized license position factors in duplicate users
• Duplicate rule editor supports both simple and advanced rules
• High performance – takes minutes, not hours or days!

19. © 2012 Flexera Software, LLC | Company Confidential
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License types are assigned
based on detailed usage
analysis and in accordance
with the contract
FlexNet Manager for SAP Applications
User License Type
SAP Price per
License ($)
Developer $$$$$$
Professional $$$
Limited
Professional
$$
Employee $
Employee Self
Service
$
Recommends the Optimal Named User License Type for Each User
Flexera
Optimized
Reduce Software Costs &
License Compliance Risk

20. © 2012 Flexera Software, LLC | Company Confidential
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FlexNet Manager for SAP Applications
Example License State Before & After Optimization
Original State Optimized State
Total Licenses: 18,030
Over-licensed for expensive types
Professional,
9730
Limited
Professional,
940
Employee,
7360
Available, 0
Professional,
7650
Limited
Professional,
1350
Employee,
5500
Available,
3530
Cost Avoidance for New Licenses
Negotiation Power
Licenses Available: 3,530
Flexera
Optimized
Problem

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User Reclassification Recommendations
Usage Measured
Contractual User Types
Impact Understood
System State Updated
FlexNet Manager for SAP Applications
Named User Reclassification Process
SAP System Measurement & LAW Report

22. FlexNet Manager for SAP Applications
Simulations
• Generate license position for one or more license rule sets
• Run inactive rule sets without impacting “production” rules
• Explore what-if scenarios
– Validate results of a rule set before making it active/production
– Run best-case and worst-case scenarios
22 © 2012 Flexera Software, LLC | Company Confidential
Collect
Usage Data
Simulation:
• Based on License
Rules
• What-if Scenarios
• Best Case / Worst
Case
Reclassification
Recommendations
& Optimized
License Position

23. © 2012 Flexera Software, LLC | Company Confidential
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FlexNet Manager for SAP Applications
User Defined Rule Examples
Users to Assign License Type Custom Rule
Users with an irregular email
address suffix
NOT Email.EndsWith(“@mycompany.com”)
Users spending a large
proportion of their time within
specific transactions and little in
others
GetTransactionProfilePercentage(“Profile1”) > 0.7
AND
GetTransactionProfilePercentage(“Profile2”) < 0.1
Users belonging to some roles
but not others
HasRoleMatch(“Role1”) AND HasRoleMatch(“Role2”)
AND
NOT (HasRoleMatch(“Role3”) AND
HasRoleMatch(“Role4”))
User Defined Rules Made Easy

24. © 2012 Flexera Software, LLC | Company Confidential
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FlexNet Manager Platform Web Portal

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FlexNet Manager for SAP Applications
Minimize New Purchases by Optimizing SAP Licenses

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FlexNet Manager for SAP Applications
Case Study: Metro Group
METRO GROUP planned to introduce SAP to all of its affiliated
companies increasing their usage to over 25,000 users in 31
countries.
Their goal was to optimize their license purchases required to
complete the expansion, but felt that their existing processes were
not scalable and delivered incomplete and inaccurate information.
METRO GROUP introduced FlexNet Manager for SAP
Applications which enabled them to complete the rollout with
30% fewer licenses then originally expected and allowed
them to allocate SAP license costs to subsidiaries
Flexera
Optimized
Problem

27. FlexNet Manager for SAP Applications Summary
• Network Usage Inventory Collection
– No Satellite transports are installed for usage data collection
• Optimization
– Optimal License Types Based on Usage
– Duplicate User Detection
– Idle License Detection
• Simulation & ‘What If’ Analysis
– Generate license positions with user defined rule sets
– Simulate Best Case and Worst Case Scenarios
• Performance
– User data cached, user consolidations and reporting are very fast.
27 © 2012 Flexera Software, LLC | Company Confidential

28. FlexNet Manager for SAP Applications Summary
• Accessibility
– FlexNet Manager Platform web portal
– Business reports may be viewed from any web browser
• Security
– Changes to user master data records performed within SAP via the
Admin Module
– Configurable User Access within FlexNet Manager Platform
28 © 2012 Flexera Software, LLC. All rights reserved. | Company Confidential
• Access to FlexNet Manager
Platform capabilities:
– Contract Management,
– Business Intelligence & Trend
Analysis
– Financials
– Reporting
– Regularly scheduled
optimizations – set and forget

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Additional Case Studies

30. © 2012 Flexera Software, LLC | Company Confidential
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Customer Success Story – Kone
Faced with an SAP audit, Kone realized they had underutilized and misclassified
licenses. SAP wanted to charge them for an additional 3,209 licenses. Kone
questioned the accuracy of SAP's data.
With FlexNet Manager for SAP Applications, Kone was able to control costs.
The total number of users that were not required to be licensed was 2,872;
translating to $4.3 million in avoided software spend.

31. © 2012 Flexera Software, LLC | Company Confidential
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Customer Success Story – P&G
P&G is a global organization with over 100,000 employees. With such a large
estate, they lacked insight into how their employees were truly using their SAP
software.
Using FlexNet Manager for SAP Applications, they were able to determine that
they had 30% more software than they needed. This information enabled them
to negotiate a maintenance reduction with SAP and provided the leverage they
needed to move to an enterprise agreement.

32. © 2012 Flexera Software, LLC | Company Confidential
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Customer Success Story – Best Buy
Best Buy was required to deliver an audit measurement of their SAP production
ERP system user license assignment landscape. Flexera Software performed
an analysis with FlexNet Manager for SAP Applications to determine a baseline.
The baseline reveled 2,600 total users, with well over 630 users designated at
the more expensive Professional User Type and 1700 with no designation--all
considered Professional by SAP.
Using FlexNet Manager for SAP, Flexera Software optimized the user landscape
down to 1700 users. Only 540 required Professional licenses. Best Buy was
able to save over $1.2 million in up-front expected software acquisition
expenses, as well as the associated maintenance costs.