SAP Licensing Optimization
A leading consumer electronics company of India uses Optimus to evaluate & optimize its SAP licenses.
Our Client
The company was originally established as an IT software firm operating in the domain of the embedded devices. However, later, it entered the mobile handset business. By 2010, this organization became one of the largest domestic companies making handsets in the low-cost feature phone segment in India. As of Q3 2014, it emerged as the tenth largest smartphone vendor in the world.
- ClientA Leading Consumer Electronics Company
- IndustryConsumer Essentials
- ServicesSAP Licensing Optimization
What made our client think about Licensing Optimization?
Right from the day one of SAP software installation, licensing evaluation was never carried out in the system. Hence, the LAW report was submitted to SAP with a manual comparison of the existing Bill of Materials and the licensing assignment in the SAP system.
Further, the users were categorized by their authorizations, which served as a basis for determining and assigning the named user licenses. Unfortunately, this assignment method neglects the fact that authorizations don’t always correspond to actual usage behavior. This lead to uncertainties in the licensing strategy.
SAP then recommended the purchase of more named user licenses along with initiating an audit, which was unavoidable despite our greatest efforts.
how we helped our client
with auditing the SAP Licensing assets and aligning to SAP contracts
Using our Optimus solution, we evaluated the existing SAP contracts and managed BoMs centrally. The next step was to prioritize the processes that heavily focused on users with expensive license types, such as the Developers and SAP Business Suite Professional users.
We analyzed the system according to the usage behavior. This helped us in assigning these licenses to the users who actually require them. An analysis was also carried out on the other license types and indirect usage.
We further helped our client to regularize the licenses based on the evaluation. Our end report provided all the data points to discuss on the exact license requirement with SAP and further trade-in the licenses during tthe SAP S/4 HANA upgrade.
The Advantage
Our client now has complete knowledge about the exact level of usage of all the license types. That means a lot of savings on future additional purchases and maintenance costs. Along with ensuring that they are 100 percent compliant with the licensing agreements.
We also helped them in evaluating the indirect usage and recommended the steps to make the system compliant.
