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SAP Third Party – Indirect Usage Licensing Part 2
SAP Third Party – Indirect Usage Licensing Part 2

SAP Third Party – Indirect Usage Licensing Part 2

By Bill Wood|December 3rd, 2012|

For those who may not be aware, SAP is not the first company to require user licenses for third party or “indirect usage.” This requirement is becoming more commonplace, and some companies are quite aggressive with it. This follow-up to my previous post on SAP Third Party – Indirect Usage Licensing Part 1 will address real opportunities here. Over the years, SAP has set itself apart by aggressively pursuing sales while generally maintaining good customer relations. SAP's strategy is a balancing [...]

SAP Third Party – Indirect Usage Licensing Part 1
SAP Third Party – Indirect Usage Licensing Part 1

SAP Third Party – Indirect Usage Licensing Part 1

By Bill Wood|November 26th, 2012|

Many SAP customer license contracts contain either a direct or an indirect reference to SAP’s third party usage licensing requirements. That requirement is referred to as “indirect usage” and carries a hefty potential financial penalty. The basic idea is that if you use any non-SAP system to access SAP data, the user of that external system must acquire an SAP Named User License. I understand SAP's argument that if you use portions of the SAP software (BAPIs, RFCs, Function Modules, etc.), you [...]

Untangle SAP Software Licensing
Untangle SAP Software Licensing

Untangle SAP Software Licensing

By Bill Wood|July 9th, 2012|

A while back, I read a self-serving post on LinkedIn from a company that promoted how “wonderful” Oracle is for having a public price list, and how terrible it is that SAP and others do not. The main complaint was that SAP lacks transparency. However, while SAP does not publicly publish a price list, the company does have a pricing structure that is regularly updated and quite thorough. Additionally, the post failed to mention Oracle sales tactics. The company virtually gives their software awa [...]

SAP Contract Requirements for a Center of Expertise
SAP Contract Requirements for a Center of Expertise

SAP Contract Requirements for a Center of Expertise

By Bill Wood|July 2nd, 2012|

Most, if not all, of new SAP contracts and agreements contain provisions that require customers to create a “Center of Expertise” (or CoE). This is a customer’s, and SAP’s, first line of maintenance support. The CoE terms and conditions define a great aspiration that your organization will support “efficient implementation, innovation, operation and quality of business processes and systems” based on the Phase 6 RUN SAP ASAP Methodology. Good luck with all that! Returning to realistic [...]

SAP Customer Responsibility for SAP Project Success
SAP Customer Responsibility for SAP Project Success

SAP Customer Responsibility for SAP Project Success

By Bill Wood|April 23rd, 2012|

Some time ago, I put together a synthesis of SAP success criteria based on academic literature and my own personal experience. The table below is part of the list of SAP Success Factors for Vender Selection – Responsibility Matrix. For a more detailed explanation of each of the vendor-related items, see the posts listed in the Series on SAP ERP Project Success Factors. In the prior series, we went through SAP success factors with shared responsibilities between the company adopting the SAP appl [...]

SAP Reimplementation Method Key Considerations
SAP Reimplementation Method Key Considerations

SAP Reimplementation Method Key Considerations

By Bill Wood|January 30th, 2012|

Among the three variations for SAP software reimplementations are two key approaches. You either make the changes to your existing production system (or a cloned copy of it), or you make the changes in a pristine, newly designed environment. SAP Cloned Production System “Re”-Implementations Making changes in your existing production system (more likely in a cloned instance of it) ensures data consistency and ease of adjustment. However, several difficulties are involved. If you have a significa [...]