SAP Licensing Optimization
A leading consumer electronics company of India uses Optimus to evaluate & optimize its SAP licenses.
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.
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.
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.