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 away at first, but after a company gains stability, they hammer them with massively increasing maintenance fees and costs. Once you become dependent, they more than make up for the software license with the forced maintenance march. Ultimately, the hidden costs make their price list completely worthless.
Returning to the poster’s main point, my response about SAP’s supposed lack of transparency was the following:
On this point I completely disagree. It is not that SAP does not have transparency, it is that their solution and license portfolio, as well as dependencies reflect their size. Unfortunately it does make it complex.
So, I will absolutely guarantee you that if you do NOT have deep SAP application experience you will be completely baffled. Not because anyone is trying to trick anyone, but because the solution portfolio and its capabilities are huge.
SAP is like an “erector set” both in how you set up the various applications to meet business needs AND how you deal with multiple application integration issues to address a particular need.
Just concluded an SAP software licensing negotiation. Significant solution portfolio, significant application landscape, typical fragmented multi-national who grew by M&A. If you do not know the SAP landscape you will become completely LOST in their price list and in understanding the solutions. You almost need to be a solution architect to really be able to help customers navigate the solution footprint.
I can absolutely guarantee you that if you do not have deep SAP solution exposure you WILL be lost. However that is NOT a function of some nefarious scheme to hide pricing.
One Reason Why SAP Doesn’t Publicly Publish Their Price List
I have heard from some SAP insiders that one reason the company doesn’t publish their price list is the sheer amount of confusion it would create. Solution architecture can be difficult enough. Even as an SAP veteran since 1994, with a deep and diverse SAP background, the substantial size of the SAP solution portfolio can be overwhelming. Combine that with the dependencies or requirements for each solution, and you have a recipe for more confusion rather than clarity by publishing a large price list. Add to this the natural tendency of competitors to seize on any single item and deliberately take it out of context to “land a deal,” and SAP’s decision to not publicly publish their price lists is understandable.
Where to Get SAP Licensing and Pricing Information
Probably as a result of the licensing confusion, SAP publishes a public license guide and a price list of those licenses. Both of them are designed to help clarify licensing with SAP products and solutions. Keep in mind that between the “introduction” guide and the actual price list document, we are approaching 200 pages (Into Guide about 40 pages, full price list around 140+).
Today, SAP provides a licensing guide on their website. Additionally, SAP provides a Digital Access Evaluation Service in regards to licensing free of charge.
While this license guide provides you the key principles, you need to understand that SAP has an actual, detailed price list as well. That price list includes over a hundred pages of explanations and examples for licensing the various specific SAP products, and then additional pages dedicated to the hundreds of price list items. That guide should be obtained through your SAP sales rep. I can assure you that they will generally provide this if you ask.
Out of respect for SAP’s decision not to openly publish their price list to the public, I will not place any versions of their price list online. However, if you are a customer and are confused with the price list, I will be happy to walk you through it if you contact me.
Good luck on your SAP journey!
