SAP S/4HANA Strategy Cloud Customer Advisory Council 2020 · 2020-04-22 · −SAP S/4HANA Enterprise Management users [ 7018652, 7018653, 7018654 ] −SAP EHS Management, Product

PUBLIC

SAP SE

April 2020

SAP S/4HANALicensing Overview

PUBLIC© 2020 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP S/4HANA on-premise Licensing Model

▪ Licensing model for existing customers

▪ Core versus extended scope – Licensing of Industry & LoB solutions

▪ Compatibility Packs

SAP S/4HANA Cloud Licensing Model

▪ Direct User Access

Q&A

Licensing Overview: SAP S/4HANA Topics

SAP S/4HANA on-premise licensing model

Licensing model for existing customers

Core versus extended scope – licensing of Industry & LoB solutions

Compatibility Packs


HANA Enterprise Edition (Full Use)

Based on GB of Memory

HANA REAB (run-time)

Based on 15% HSAV (HANA SAP Application

Value)

Direct User Access to Digital Core Digital Access (aka Indirect Use, via APIs)

Direct User Access to LOB and Industry Solutions

HANA

90+ Addon Solutions (EWM, EHS, Treasury & Risk, Cash Mgt, etc),

SAP S/4HANA Cash

Management

SAP S/4HANA Production Planning and

Detailed Scheduling

Monetizedacross all APIs

Monetize partner appsvia revenue share

The 4 Dimensions of S/4HANA On-Premise Licensing (perpetual)

Enterprise Management for Professional Use

Enterprise Management for Functional Use

Enterprise Management for Productivity Use

S/4HANA developer access

SAP S/4HANA Central Procurement

SAP S/4HANA Product

Compliance


SAP S/4HANA OnPrem Licensing – For Existing ERP CustomersDirect User Access to Digital Core and LoB & Industry Solutions

HANARun-time or Enterprise Edition

S/4HANA Enterprise Management

for ERP customers [7018538] - flat fee

S4 Cash

Mgmt.

S4 Central

Finance

Revenue Revenue

S4 Digital

Access

Metric

Global Trade MII

Extended Solution Scope

Commercially Neutral

Core Solution Scope

Database

S/4HANA LoB &

Industry Add-ons are

priced based on a

single, value aligned

metric.

SAP ERP

Named Users

NO SAP Named

Users required for

S/4HANA engines

S4 Adv

Variant Config

Users

ERP package

Flat fee (includes 5 Prof. named users)Already have this

S4H Flat-fee: SAP

Named Users are

required when

accessing S/4H

Enterprise

Management

Already have this


Guiding Principle: No surcharge on like for like functionality

ERP Licensing S/4HANA Licensing

ERP Core

ERP LoB &

Industry solutions

SAP S/4HANA

Enterprise

Management

S/4HANA LoB &

Industry solutions

Warehouse

Mgmt

Basic Credit

Mgmnt

Enh. Credit

Mgmnt

Extended

WM

ER

P

Core

Lic

ense

Engin

e

Lic

ense

S/4

HA

NA

Ente

rprise

Managem

ent

Lic

ense

Engin

e

Lic

ense

• Principle of ONE drives us to deliver only ONE solution for ONE business problem

• Even if an ERP core capability is realized technically via a solution that comes with its own license, we do not charge in

case solely the core functional scope is used → described as part of S/4HANA Enterprise Management

Basic Credit

Mgmnt

Enh. Credit

Mgmnt

Warehouse

Mgmt

Extended

WM


Enterprise Management

SAP S/4HANA 1909 – Direct User Access to the Digital Core – Level 1Overview Business Areas, Solution Capabilities of S/4HANA Enterprise Management

Sales & Marketing Finance Manufacturing Supply Chain

Sourcing & Procurement Human ResourcesR&D / EngineeringService Asset Management

Core HR and time recording• Organizational Management

• Time Sheet

Operational procurement• Purchase Order Collaboration

• Purchase Order Processing

• Purchasing Rebate Management

• Requirements Processing

• Service Purchasing and Recording

• Self-Service Requisitioning

Sourcing and contract

management• Source Assignment

• Purchase Contract Management

Supplier management• Classification and Segmentation

• Supplier Evaluation

Procurement analytics• Spend Visibility

• Real-Time Reporting and Monitoring

Invoice management• Invoice Processing

• Invoice Collaboration

Service master data and

agreement management• Warranty Management

• Business Solution Contract Mgmt

Service operations and processes• Service Request Management

• Service Order Management

• Service Fulfilment

• Service Billing

• Customer Engagement

• Packaged Service Offerings

Maintenance management• Maintenance Planning and

Scheduling

• Maintenance Execution

Enterprise Portfolio and Project

Management• Project Financial Control

• Project Logistics Control

Product engineering• Variant Configuration

• Product Development Foundation

Order and contract management• Sales Billing

• Sales Contract Management

• Sales Master Data Management

• Sales Monitoring and Analytics

• Sales Quotation Management

• Sales Order Management and Processing

• Sales Rebates Management

• Claims, Returns and Refund Management

• Solution Billing

• Price Management

• Sales Quotation Management

• Incentive and Commission Management

Sales force support• Account and Contact Management• Activity Management• Opportunity Management

• Sales Lead Management

Accounting and financial close• Financial Accounting

• Entity Close

• Financial Reporting

• Revenue and Cost Accounting

Financial operations• Accounts Payable

• Accounts Receivable

• Cash Management

• Electronic Billing and Payment

• Settlement Management

Cost management & profitability analysis• Overhead Cost Management

• Product Costing

• Profitability Analysis

Enterprise Risk and Compliance• International Trade Management

Public Sector: Funds Management;

Grants Management for Grantee

Inventory• Goods Movement

• Inventory Analytics and Control

• Returnable Packaging Logistics

• Physical Inventory

Warehousing• Warehouse Management

Delivery and transportation• Delivery Management

• Transportation Management

Order promising• Available to Promise

Production engineering• Production BOM Management

• Recipe/Routing Management

Production planning• Material Requirements Planning

• Production Scheduling

Production operations• External Processing

• Production Execution

• Subcontracting

• Just-in-time Processing

• Kanban

• Production Control

• Repetitive Manufacturing

Quality management• Quality Engineering; Quality

Improvement; Quality Inspection

Manufacturing insights• Manufacturing Analytics


Purposes:

1. support in defining required amounts of S/4HANA

Enterprise Management use type licenses (productivity / functional / professional use)

2. document the scope of Enterprise Management

based on structure

LoB – Business Area – Solution Capability

3. provide detailed information of solution capabilites;

online on solutionportfolio.net

also extended capabilities, not only core (Ent.Mgmt)

→ license material number lookup!

Also available on PartnerEdge (link)

SAP S/4HANA 1909 – Direct User Access to the Digital Core – Level 2New document: Enterprise Management Capability Description

https://partneredge.sap.com/en/library/assets/products/ent_mng/dgl/03/35/SAP750335.html


SAP S/4HANA 1909 – Direct User Access to the Digital Core – Level 3Feature Scope Description

Publicly available on help.sap.com Chapter 2: scope of S/4HANA

Enterprise Management

Chapter 3, 4: scope of S/4HANA

LoB- and Industry Solutions

https://help.sap.com/doc/e2048712f0ab45e791e6d15ba5e20c68/latest/

Building a bridge

into the new worldCompatibility Packs in SAP S/4HANA


SAP Maintenance Commitment as of Feb 4, 2020 – Simplified Timeline

31.12.

2025

31.12.

2027

31.12.

2030

31.12.

2040

Mainstream Maintenance

Business Suite 7 / ECC EHP6-8

Optional: Extended

Maintenance

Business Suite 7

Customer-specific Maintenance

Business Suite 7

Mainstream Maintenance SAP S/4HANA

SAP S/4HANA

Compatibility Packs

Use right

Classic licenses in product or contract conversions

Use right

Ma

inte

na

nc

e T

op

ics

Use

Rig

ht

To

pic

s

Announcement on

news.sap.com

https://news.sap.com/?p=167772


SAP grants a timely restricted(1) use right for specific classic SAP solution functionality(2)

to S/4HANA customers, at no extra cost(3)

(1) restricted until the end of 2025

(2) whitelist: compatibility packs as documented in note 2269324

and referenced in the Software Use Rights (SUR)

(3) condition: customer has licensed SAP S/4HANA and the classic solution

Compatibility Packs are only required for solutions which are installed on the SAP S/4HANA

instance – not for side-by-side installations.

SAP aims to replace these classic solutions by the end of 2023

with a genuine S/4HANA solution.

Compatibility Packs in SAP S/4HANA

Overview

http://launchpad.support.sap.com/#/notes/2269324



CP Matrix and Licensing

A CP is an S/4HANA compatible copy of a “classic” = Business Suite software product.

All CPs are listed on the Compatibility Scope Matrix. It contains:

– complete or partial solutions

– LoB/Industry- and ERP Core solutions

– Additional information to better identify the scopeand cross-link information (as applicable –application component, link to Simplification Item, ID)

The CP Matrix is release-independent and static. CPs only exist in the on-premise world.

Licensing example: Net new customer from the Chemicals Industry:– Customer licenses:

− SAP S/4HANA Enterprise Management users [ 7018652, 7018653, 7018654 ]

− SAP EHS Management, Product Safety [ 7010170 ] -> on CP matrix

– Customer may install EHS-Product Safety (a) on-stack on his S/4HANA system or (b) side-by-side













Overview



Running a classic SAP ERP solution side-by-side with SAP S/4HANA does not require

a Compatibility Pack.


Side-by-side versus On-stack Installation

System 1/S4System 1

ERP Core

LoB & Industry

Solutions

conversion

SAP S/4HANA

Enterprise

Management

S/4HANA

LoB & Industry

Solutions

System 2

HCM

System 2

✓HCM


Example: HCM as on-stack installation


Side-by-side versus On-stack Installation

System 1/S4

conversion

System 1

ERP Core

LoB & Industry Solutions

SAP S/4HANA Enterprise

Management

S/4HANA

LoB & Industry

Solutions

HCM HCM

LoB &

Industry

Solutions

Usage allowed via

CP rules only













Overview



SAP S/4HANA Compatibility Packs – Way Forward

Jan

2020

Apr

2020Jul

2020

Oct

2020

Jan

2021

Initial Publicationof Status & Alternatives

QuarterlyUpdate

QuarterlyUpdate

Objectives

Accelerate the development schedule for outstanding alternatives for SAP S/4HANA compatibility packs and provide timely communication to customers.

Approach

Assess strategic alternatives considering common and sophisticated customer requirements

Clarify status for all items and prioritize, taking into account time to adopt before the usage rights expire

Accelerate product strategy clarifications and roadmaps

Publish status and plans in one place, with links to further information

Schedule

Planned quarterly updates regarding strategic alternatives

• Status (see next slide)

• Roadmap (planned scope in time)

• Delta Info (comparison of alternative solutions with Compatibility Pack)

• Transition Info (How to get there)

Annual SAP S/4HANA Roadmap update

QuarterlyUpdate

https://blogs.sap.com/2020/04/15/the-future-of-compatibility-packs-in-sap-s-4hana/


SAP S/4HANA Compatibility Packs – Way Forward

Status information

The status indicates whether SAP is providing or plans to provide a strategic alternative for a Compatibility Package.

Status Explanation

Alternative Exists Alternative exists

Alternative Exists With Roadmap Alternative exists providing core functionality; comprehensive coverage is on roadmap

Alternative Planned Planning of development scope and timeline is work in progress

No Alternative Planned No intention or plan to provide an alternative beyond 2025

Clarification Clarification of strategy in progress

Disclaimer:

SAP S/4HANA is a different product than SAP ERP. Therefore, status ‘Alternative Exists’, ‘Alternative Exists With Roadmap’, and

‘Alternative Planned’ do not mean that feature parity is achieved nor that it is planned.

The forward-looking statements provided in the attachments to SAP Note 2269324 are for informational purposes only for your

convenience. Please consult SAP Product Road Maps and SAP Innovation Discovery as official information sources for SAP’s

product strategy. They will hold the truth going forward as they are being regularly updated.

https://launchpad.support.sap.com/#/notes/2269324

https://www.sap.com/products/roadmaps.html


Compatibility Scope Matrix: Description of Attachment to SAP Note 2269324

A

Item ID

B

Part

C

Item Title

D

Status

E

Status Comments

F

Alternative

G

Alternative - Info

H

Alternative -FSD Entry

I

Alternative -(prime) Product Version

J

Simplification Item

K

Business Impact Note

L

CompPack- FSD Entry

MAlternative -Roadmap Info

NDelta Info

OTransition Info

... ... ... ... ... ... ... ... ... ... ... ... ... ... ...

441 4 - ERP-Package

PLM Web UI Engineering Record -Product Development Foundation

alternative exists with roadmap

"Change Record“ (CR) is available in SAP S/4HANA. SAP plans to integrate CR with further business objects and enhance object-locking and workflow capabilities.

"Change Record" (part of SAP S/4HANA "Extended Production Engineering and Operations")

Manage Engineering Changes (Extended Production Engineering and Operations)

Engineering Change Management

SAP S/4HANA 1909 S4TWL -Engineering Change Management ECR/ECO

2267918 Engineering Record

... ... ... ... ... ... ... ... ... ... ... ... ... ... ...

A Item ID ID for stable and simple cross-referencingB Part Sections of the compatibility scope matrix; there exist 4 partsC Item Title Name of the compatibility scope matrix entry; for part 1-3 item title refers to 'classical solutions name', for part 4 to 'subcomponent'D Status Indicates availability of strategic alternative for a compatibility package; see previous slide for status definition and explanationE Status Comments Additional information about availability of strategic alternativeF Alternative Name of the alternative, can be own product or business object / functionality in larger productG Alternative - Info Further information regarding the alternative, preference SAP Help (link)H Alternative - FSD entry Section in Feature Scope Description (FSD) referring to alternative (link)I Alternative - (prime) product version Product version (in Product Availability Matrix) which delivers the alternative; if multiple product versions are required, only the leading

one is shown (prime) (link)J Simplification Item Related SAP S/4HANA simplification item in Simplification Item Catalogue (link)K Business Impact Note Business impact note related to simplification item (link)L CompPack- FSD Entry Section in Feature Scope Description referring to compatibility package (link)M Alternative - Roadmap Info Link to SAP product roadmap for alternative solution (to be filled over time)N Functional Delta Info Description of differences between compatibility scope functionality and alternative in SAP S/4HANA (to be filled over time)O Transition Info Best practices from implementation projects of alternative solutions (how to get there) (to be filled over time)

Explanation of columns

In case of questions, please open a customer message

on component XX-SER-REL with prefix ‘CompScope’


https://help.sap.com/viewer/9c4986bda35f4840ae438960ffbef64d/latest/en-US/d1c63dbe742b45ad98efa0e726da74a5.html

https://help.sap.com/viewer/029944e4a3b74446a9099e8971c752b9/latest/en-US/6f01df5049a245d280ca5613151e01b4.html

SAP S/4HANA Cloud Licensing Model

Direct User Access


Direct User Access to the Digital Core Digital Access (aka Indirect Use, via APIs)

Industry and LoB Solutions Infrastructure Add-ons

Self-Serve Use

Features

Core Use

Features

Advanced Use

Features

• Premium capabilities

• Specialized process

CashMgmt

Real Spend

Included Optional

100 GB2 tenants

• Incremental memory extension

• Disaster Recovery

• Differentiated tenants

• Preferred Care

ProductionTenant

Quality Tenant

Specialized Tenant

Monetizedacross all APIs

Monetize partner appsvia revenue share

The 4 Dimensions of S/4HANA Cloud Licensing (subscription)

S/4HANA

Cloud


SAP S/4HANA Cloud LicensingDirect User Access to Digital Core

Color Code

Minimum use type for capability in this LoB

SAP S/4HANA Cloud for self-service use SAP S/4HANA Cloud for core use SAP S/4HANA Cloud for advanced use

Asset Management Maintenance Execution All All

Finance None None All

HR Organizational Management*

Time Sheet

Organizational Management

Time Sheet

All

Manufacturing Material Requirements Planning

Production Control

Production Execution

All All

R&D / Engineering None All All

Sales None All All

Service None All All

Sourcing & Procurement Self-Service Requisitioning Self-Service Requisitioning All

Supply Chain Available to Promise

Delivery Management

Goods Movements

Physical Inventory*

Transportation Management

Warehouse Management

All All

The more expensive use type always includes the capabilities of the cheaper use type: the use type SAP S/4HANA Cloud for advanced use includes the capabilities SAP S/4HANA Cloud for

core use; the use type license SAP S/4HANA Cloud for core use includes the capabilities of SAP S/4HANA Cloud for self-service use.

Each license includes Display Rights i.e. the right to display/view all transactional data and all master data in the S/4HANA system.

Master Data Maintenance for all areas is covered by SAP S/4HANA Cloud for core use and by SAP S/4HANA Cloud for advanced use.

Legally binding use type definition in: SAP S/4HANA Cloud Service Description

* Only available for S/4HANA Cloud, extended edition

https://help.sap.com/doc/2afc434378cd44de8e10a5451c08786e/latest


How can I find details on the capabilities of one use type?

Solution Capabilities of Use Types Solution Capabilities in Feature Scope Description

https://help.sap.com/doc/7c9e0bbbd1664c2581b2038a1c7ae4b3/latest


SAP S/4HANA Cloud LicensingLicensing User Access to Digital Core via Full Usage Equivalents

Sales Bag: ERP Financials

Full Usage Equivalents Weighting

factor

Use Type

0,5 SAP S/4HANA Cloud, Developer Access

1 SAP S/4HANA Cloud for advanced use

5 SAP S/4HANA Cloud for core use

30 SAP S/4HANA Cloud for self-service use

=

• Full Usage Equivalent is a flexible user and can

be used for all 3 use types

• Different use types can be translated into FUEs

with a specific weighting factor

Example – how to use the FUE for different user types

40 SAP S/4HANA Cloud for advanced use = 40 FUE

75 SAP S/4HANA Cloud for core use = 15 FUE

270 SAP S/4HANA Cloud for self-service use = 9 FUE

SUM = 64 FUE

S/4HANA Cloud use types

(only available for

extended edition)

Minimum Purchase

• Customers must license a minimum of 35 FUEs


Customers benefit from the FUE modelFlexibility of the Full Usage Equivalents (FUEs)

Customer can re-allocate their users to avoid shelf-ware during their life-cycle

Example:

User type#

users

FUE

ratio# FUEs

Swap

FUEs

Swap

Users

S/4HANA Cloud for advanced use 70 1:1 70 -10 -10

S/4HANA Cloud for core use 350 1:5 70 +10 +50

S/4HANA Cloud self-service use 600 1:30 20

User type # usersFUE

ratio# FUEs

S/4HANA Cloud for advanced use 60 1:1 60

S/4HANA Cloud for core use 400 1:5 80

S/4HANA Cloud self-service use 600 1:30 20

Before re-allocation After re-allocation


Your Questions?

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These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or

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Backhand


More detailed, as stated always in the Product Availability Matrix


Customers executing an SAP S/4HANA conversion will now have dual use rights for both SAP

Business Suite 7 and SAP S/4HANA until completion of their transition to SAP S/4HANA.

Previously: until end of 2025. Applies to product and contract conversions.

More information: external SAP.com announcement – English | German

Example: Customer uses ECC with APO, has multiple productive ECC systems. He can now

convert APO to the respective S/4HANA license, either as product or contract conversion, and use

his classic APO instance without a limitation.

Extended use rights for installed-base customers

converting to SAP S/4HANA


https://news.sap.com/germany/?p=147819


External Links for Customers

Press release from February 4th, 2020 on extended maintenance commitments [Link]

SAP executive interview “[…] Story Behind Extending […] Maintenance [….]” [Link]

SAP Support Portal (public update on release & maintenance strategy) [Link]

SAP Release & Maintenance Strategy (brochure) [Link]

Product Availability Matrix [Link]

SAP Note 2881788 “End of SAP Business Suite 7 mainstream maintenance” [Link]

SAP Note 1648480 “Maintenance for SAP Business Suite 7 Software […]” [Link]

SAP Note 52505 “Support after end of mainstream maintenance or extended […]” [Link]

SAP road maps [Link]



https://support.sap.com/en/release-upgrade-maintenance/maintenance-information/maintenance-strategy/s4hana-business-suite7.html

https://support.sap.com/content/dam/support/en_us/library/ssp/release-upgrade-maintenance/maintenance-strategy/sap-release-and-maintenance-strategy-new.pdf

https://support.sap.com/en/release-upgrade-maintenance.html#section_1969201630




https://www.sap.com/roadmaps


SAP Human Capital Management for SAP S/4HANA on-premise editionA new on-premise option for customers leveraging SAP ERP HCM

Continuity and investment protection for HCM on-premise customers

Solution will be based on SAP ERP HCM with optimizations and

selected innovations to leverage SAP HANA

We see this option as a bridge to give additional time to those customers who are not yet ready

to fully move to SAP SuccessFactors.


TransitionCustomers can run HCM

embedded or on a separate SAP

S/4HANA instance

▪ Customers will need to migrate

to SAP HANA.

▪ Migration tools and services will

be provided to help facilitate a

non-disruptive migration from

SAP HCM or SAP S/4HANA

compatibility pack

▪ A license conversion will be

offered

SAP Human Capital Management for SAP S/4HANA on-premise editionKey capabilities

Product

▪ Scope comparable to S/4HANA

Compatibility Pack and key

functionality of SAP ERP HCM

▪ Based on ERP HCM (EhP 8), to

be supplemented with some HANA-

based capabilities.

▪ No major additional functional

additions or re-architectures are

planned

▪ Only available for on-premise

deployment

▪ Available in 2022

SAP HCM for SAP S/4HANA

on-premise edition


Personnel Management

• Personnel Management (PA-PA)

• Organization Management (PA-OS, BC-BMT-OM)

• Personnel Development (PA-PD-xx)

• Benefits (PA-BN)

• Compensation (PA-CM)

• Personnel Cost Planning ( PA-CM-CP)

• Pension scheme (PA-PF-DE)

• MSS / ESS (CA-ESS/MSS)

Talent Management

• SAP Learning Solution (PE-LSO-xx*)

Payroll

• Payroll (PY-xx)

Time Management

• Time (PT-xx)

• Shift Planning (PT-SP)

Public Sector

• Public Sector (PY-DE-PS, PY-DE-PS-VA)

• Position Budgeting and Control (PA-PM-PB)

• HR Funds & Position Management (PA-PM)

• Shift Planning for Public Sector (PT-SP-PS)

*Without JAVA components

SAP Human Capital Management for SAP S/4HANA on-premise edition

Planned Solution Scope

This blog will be continuously updated to

reflect the planned solution scope and details

on commercial aspects.

https://blogs.sap.com/2019/09/25/sap-human-capital-management-for-sap-s4hana-on-premise-edition-updates-available-in-2022-with-a-technical-co-deployment-in-sap-s4hana/


▪ We encourage all our 15,000 ERP HCM customers to move to SAP

SuccessFactors to accelerate their digital HR transformations

▪ We also recognize that a subset of our SAP ERP HCM customers will desire to

run their on-premise environment for the foreseeable future

▪ In order to continue to support these customers’ needs, we have taken the

decision to offer a new HCM on-premise option, SAP Human Capital

Management for SAP S/4HANA on-premise edition

▪ This new solution is planned to be available in 2022

▪ We see this new solution as a bridge to give additional time to those

customers who are not ready to fully move to SAP SuccessFactors

▪ Customers’ investments will be protected: We will provide migration tools and

services to enable an “upgrade-like” migration

SummarySAP Human Capital Management for SAP S/4HANA on-premise edition

Documents

SAP S/4HANA Strategy Cloud Customer Advisory Council 2020 · 2020-04-22 · −SAP S/4HANA Enterprise Management users [ 7018652, 7018653, 7018654 ] −SAP EHS Management, Product