S/4 Hana Migrations


Cost Optimisation

JNC’s range of SAP licensing services allows you to cut costs, improve efficiency and minimise risk.

SAP Licensing costs account for a large proportion of a company’s IT budget and SAP licensing models are not always straightforward which lead to many questions within organisations on how to best manage their users and packages.

Unearth the actual usage of all SAP environments from both a named user and package measurement perspective.

  • Identify Under Licensing (non-compliance detection).
  • Identify Over Licensing (surplus asset discovery).
  • Optimise SAP License Utilisation.
  • Contract Review.
  • Contract Negotiation.
  • Contractual Risk Evaluation.

After the planned budget for a license agreement, many companies could find that they are not as compliant as they had initially thought.


How Do We Do It?

By measuring your usage of the SAP system, and analyzing your vendor contract to establish your entitlement, we are in a position to advise you on compliance issues detected including current and future risk and how to avoid these potential shortfalls.

We are able to offer advice on how to optimise your license agreement whilst promoting compliance.

Budgeting and controlling license costs can be a complex endeavour with many hazards and pitfalls. Common challenges within an organisation include:

  • Staff changing roles within the organisation.
  • Contractors accessing the SAP landscape through 3rd party applications.
  • Multiple staff performing the same job function sharing a single User ID.
  • The use of generic accounts.
  • Indirect system usage.

License Management

Technically speaking making the changes to user license assignments in the SAP system resulting from JNC’s project outcomes is relatively straightforward.

Typically these changes can be executed by a system administrator with on-hand support and guidance provided by JNC. Similarly, JNC can also execute defined change orders and work packages where client-side resources are not available to do so.

Due to our extensive knowledge and experience in licensing SAP landscapes, we offer our recommendations on staying compliant with your SAP contract whilst having the ability to control future license provisions.

This will consist of implementing sustainable processes helping you make the necessary license management decisions moving forward.

Contractual risk compliance involves looking at the broader spectrum of the licensing of the SAP environment. Whilst initially focusing primarily on Named-users and Packages, we seek other areas of potential non-compliance. Non-compliance can occur in a multitude of ways depending upon the individual landscape. Our aim is to bring awareness of potential risks and in particular unforeseen risks that can result in significant and unexpected costs.

Using our experience in measurementing SAP landscapes we can highlight areas of concern to ultimately bring awareness allowing your business to take decisive action to avoid costly non-compliance tariffs.

Obtain an extract of the customer SAP contract(s) to fully comprehend contractual boundaries for licensing named users thereafter used to perform an as-is measurement.

A contract review will also consist of benchmarking contractual restrictions to educate the client on how other industry leaders are licensing their environment and identify any contractual optimisation opportunities.

The purpose of this measurement is to logically determine the required licenses for all named users within the organisation based on the contractual entitlement. This exercise is purely a fact-finding exercise leading us to identify potential optimisation opportunities.

Key business metrics are used to measure the usage of SAP for example procurement – how many revenue-generating purchase orders have been created annually? Standard measurement tools will only perform an inventory of all purchase orders. We will perform a forensic analysis to determine the actual usage of packages to ensure all figures are reported accurately.

Dive deeper into your landscape to discover your actual licensing position versus your potential optimal licensing position. This step heavily involves analyzing statistical data, system administration data and user provisioning data to discover what licensing you need based on your actual usage of the SAP system.

This step has high success rates not only from a cost savings perspective but also steers the client for future procurements, and license management processes.