This presentation gives an overview of how the SAP Licensing model of SAP is being analysed by KPMG.

1. SAPSoftware
Licensing
Talkbook
KPMG Technology Advisory – IT GRC
—
January, 2017

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Document Classification: KPMG Public
©2017 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Content
• Section 1: Drivers, challenges, and how we can help
• Section 2: Our SAP Licensing Optimization approach
• Section 3: Basic SAP Licensing Rules
• Section 4: Why KPMG

3. Section1
Drivers,Challenges
&howwecanhelp

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Document Classification: KPMG Public
©2017 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Drivers,challenges,andhowwecanhelp
SAP licensing challenges
Enterprises often struggle with their SAP licensing fee. In general, there is often no
clarity on the logic behind the applied fees for licenses and yearly maintenance fees.
Consequently, a priori analysis for license cost optimization become hard or even
impossible.
Main drivers
Drivers for optimizing the SAP license costs can vary. Upcoming law, internal IT Audit or
ERP projects and SAP license agreement renewal are amongst the most common
drivers we see at our clients.
How can we help?
KPMG services are aimed at helping clients with determining if they have the right
license types applied. We also advise our clients on changes in deployment or SAP
license agreement that can have a positive influence on the overall cost.
Furthermore, we provide insight on the possibilities to reduce costs through the
identification of unused licenses. Finally, we assist our clients with the leveraging of
good practice Segregation of Duties (SoD) principles to optimize their license
management.

5. Section2
Ourapproach

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Document Classification: KPMG Public
©2017 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
OurSAPlicensingoptimizationapproach
Our approach:
KPMG’s SAP licensing optimization approach consists of three main phases. During the Initiation phase, we discuss the scope of the
analysis and the related deliverables with the required stakeholders. Furthermore, we perform the download of the required SAP
security tables per instance. For the analysis phase, both manual and automated queries are used to identify potential optimization of
the SAP accounts. Furthermore, during this phase we use specific tooling to perform transactional user analysis based on statistical
information (STAD) to determine the optimal license type per user.
Initiation Account Analysis Reporting
Initiation:
• Discuss scope with
stakeholders
• Determine
deliverables
• Perform Security
Download
Account Analysis:
The output of this analysis
consists of listing and
assisting in the deactivation
and cleanup of:
• Obsolete accounts
• Duplicate accounts
• Generic accounts
• Users without license
type
Reporting:
Our reporting provides clear instructions
on the identified quick wins and other
opportunities for optimization. Our
reporting is aimed at helping clients with
(i) avoiding unnecessary increases in
license fees, (ii) preparing strong
negotiation levers for the contract
renewal, (iii) leveraging controls in place
over user access management and SoD
to streamline related licenses.
License Type
Analysis (optional)
License Type Analysis:
Analysis of licenses needed as
per SAP standard license rules
based on transactional usage.
The output of the analysis
consists of listing the users for
which the license type is not
aligned with the transactional
use. (note that this part of the
analysis is an optional add-on,
dependent on your requirements)

7. Section3
BasicSAPLicensing
rules

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Document Classification: KPMG Public
©2017 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
Package Licenses
SAPBusinessSuitelicensingrules(1/4)
Both User and Package licenses are mandatory
User Licenses
There are four main categories for different levels of
use. Prices listed here are SAP standard and can
be negotiated down to - 80%.
Annual Maintenance & Support fees always
amount to 22% of the standard prices, regardless
of the discount obtained on the initial licenses.
Package licenses
Package licenses allow to install SAP
functionalities. The License metrics are based on
instances or business metrics (goods sold, number
of records, etc.)
MySAPERP
MySAPSCM
MySAPSRM
MySAPFIN
MySAPPLM
MySAPHR
MySAPCRM
User Licenses *
Limited Prof.
1.600€
(mobile 800€)
Professional
3.800€
Developer
>= 5.700€
Functions/Price
Employee
400€
(read only)
(*) Note that prices listed are ‘estimates’ based on our experience in SAP Licensing projects.

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Document Classification: KPMG Public
©2017 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
SAPBusinessSuitelicensingrules(2/4)
The four types of user licenses:
• Developer: Developer users have access to a variety of
basis transactions defined in the contract signed with SAP.
• Professional: Professional licenses are considered as the
standard user licenses. Unless defined otherwise in the
contract signed with SAP.
• Limited Professional: Limited Professional users are
restricted to a specific range of transactions which is
defined in the contract signed with SAP.
• Employee: Employee licenses are for users with limited
use, by definition read only.
User licenses based installed packages:
User licenses vary depending on the SAP Business Suite
components installed on the NetWeaver Web Application
Server (Web AS)
SAP ECC or separate solution: For the SAP Enterprise Core
Component or a separate solution, standard prices for user
licenses will start as of €2.550 (for e.g. ECC) up to €6.000 (for
e.g. SAP CRM).
mySAP ERP: For my SAP ERP, standard prices for a
professional user range from 3.000€ up to 3.500€.
My SAP ERP consists of the full NetWeaver stack (EP, XI,
BW, KM, etc.), HCM Financials.
mySAP Business Suite: For the full my SAP Business Suite,
the standard price for a professional user consists of 3.800€
(*) Note that prices listed are ‘estimates’ based on our experience in SAP Licensing projects.

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Document Classification: KPMG Public
©2017 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
SAP ECC or
separate solution
CRM,
SRM
PLM
SCM
mySAP ERP
mySAP
Business Suite
Standard Price for
Professional User: >= 2.550€
for ECC and up to 6.000 for
CRM
Standard Price for Professional
User: 3.000€ - 3.500€
Standard Price for
Professional User: 3.800€
Full NetWeaver: EP, XI, BW, KM, …
NetWeaver: Web Application Server (Web AS)
Just ECC Enterprise or CRM ...
HCM, Financials
(*) Note that prices listed are ‘estimates’ based on our experience in SAP Licensing projects.
SAPBusinessSuitelicensingrules(3/4)

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Document Classification: KPMG Public
©2017 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
SAPBusinessSuitelicensingrules(4/4)
Underlying Database Licensing
Three options are available to license the database underlying the SAP
system:
• SAP third-party database: Customers can license a third-party
database directly from SAP. The drawback is that its use is limited to
SAP software. In this case, a “runtime” license will be applied.
• Third-party DB provider: Alternatively, customers can contract with
a third-party database provider such as Microsoft, Oracle
Corporation, or IBM. In this case, an “interface” contract with SAP is
applicable.
• License a SAP database: SAP databases consist of SAP HANA,
SAP Sybase Adaptive Server Enterprise (SAP Sybase ASE), or SAP
MaxDB. For each database, a specific database license is applied.
Indirect Access
Named User licenses are due for all individuals who have access to SAP,
be it through a user account or through any intermediary technology
layer.
Indirect accesses can be licensed under SAP Netweaver Gateway user
licenses. Standard price per user: 900 EUR. Netweaver Admin &
Developer licenses may also be necessary.
License Fee vs Maintenance Fee
For SAP licenses, discounts up to 80% can be negotiated with
SAP. However, annual Maintenance & Support fees, always
amount to 22% of the standard price, regardless of the
discount obtained on the initial licenses.
Maintenance fees can only increase over the years. Therefore,
it is important to secure in the contract the possibility to
reallocate maintenance fees from one user license type to
another.
Annual License verification
SAP requests their customers to run a report on all SAP
instances on a yearly basis (LAW – License Analysis
Workbench).
The LAW report is used by SAP to determine what the
amounts of users accessing the system are, and to calculate a
true-up license fee which will be taken into account for
subsequent maintenance fees.

12. Section4
WhyKPMG?

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Document Classification: KPMG Public
©2017 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
WhyKPMG?
A flexible team with the right experience
A well-organized team with the right knowledge, expertise and
experience is critical for the achievement of your objectives. We will bring
our most qualified people with in-depth knowledge and experience in
SAP user analysis, (re-) designing business rule sets, SAP
authorizations, related governance models, as well as business process
risk & controls management.
A structured approach with the right vision
We have a clear vision and approach when it comes to SAP Licensing
optimization. Our proven approach focuses on your needs and goes
beyond the achievement of pure a technical analysis. We have extended
national and international experience in assisting clients in SAP projects.
In the Benelux region we have supported multiple organizations in the
optimization of SAP licensing, the implementation of SAP security in
general and Business Rule Sets and SAP authorizations in specific. The
experience gained and lessons learned during these projects have
continuously been integrated in our approach and will be applied during
your project.
A proven toolkit to accelerate your redesign
Our approach not only includes a method to SAP Licensing
optimization, it is amended with a toolkit containing tangible
tools & templates that are ready to use throughout the project,
that significantly accelerate the redesign and ensure quality
documentation is readily available. We are continuously
innovating and improving our SAP Security accelerator toolkit
to ensure that we are always able to support the
implementation of the latest version of SAP to our clients.
An offer which shows our eagerness to investment in
a long-term relationship
We are eager to start a mutually valued professional
relationship with you. It is our ambition to assist you in a
successful SAP licensing optimization which can lead to a
long-term business partner relationship.

14. Document Classification: KPMG Public
©2017 KPMG Belgium, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular
individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such
information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on
such information without appropriate professional advice after a thorough examination of the particular situation.
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