Feb 07, 2018

SAP Authorization-Based User Licensing Changes

In 2018, SAP plans to enforce a license condition for its customers that is already included in the List of Prices and Conditions (LPC) 2017/4 on page 25. There is talk about SAP’s announcement to change the allocation basis of named user licenses from “actual usage” to usage based on “existing authorizations”.

Increased challenges for SAP license optimization

Throughout 2017, SAP began to “attune” the community for the upcoming change. For 2018, it has announced that it will not only release a new version of USMM, but it will also disclose exactly what the usage of user licenses on the basis of authorizations will look like.

With the new version of USMM, SAP is increasing licensing obstacles for the customer, making SAP license optimization even harder and more complex for SAP named user licenses.

Massive worldwide licensing need

As a rule, employees have more authorizations for their daily work than they actually need. As their tasks change, they need different authorizations, which can lead to higher or lower licensing needs.

If SAP takes its subsequent measurement seriously, any unused authorization would have to be withdrawn from the user in question. Companies that do not have an optimized SAP authorization concept and corresponding change processes will have to buy expensive licenses in the future. This will create a massive licensing need worldwide.

Software asset management is now mandatory

From a cost and compliance perspective, the end-to-end integration of software asset management into existing authorization systems is now mandatory. For effective authorization management, companies and corporations must make available all information that makes it possible to map authorizations.

There are additional criteria that limit the allocation of authorizations, such as legal and data protection-relevant requirements or company policy requirements. Anyone doing this reconciliation manually will quickly be confronted with a problem because they lack the whole aspect of the license metrics that are not usually associated with internal authorization management.

A consolidated authorization concept helps

A consolidated authorization concept adapts the authorizations provided to the actual usage required. But because the actual rights of a user arise from the combination of all that user’s authorizations, it is not enough to consider each specific SAP role. Due to a dynamic work environment, and the associated change frequency, such requirements can only be implemented with an automated IT asset management tool.

The ideal software license management software takes into account the additional layers of the license metric when assigning authorizations, and determines what the conversion from “usage-based” to “authorization-based” would cost.

It starts by identifying the actual license requirement based on the usage, and then compares that result with the license requirement from the existing authorizations. In addition, it can easily be integrated into existing authorization management systems.

IT Asset Managers: time for action

Pure advice will not bring you any further along at this point, consider the time factor! IT Asset Managers are now faced with the choice of using considerable manpower to try and close the existing gap, or take advantage of this upcoming change to introduce an automated license management software solution.

That decision might be made easier by knowing that companies have saved millions of dollars, depending on their size, by using an SAP license management tool. This was only possible because their tool could map the SAP license metrics with increased granularity thanks to its dynamic rules.

Right now is the ideal time for all the companies that are still operating manually. And anyone who does not yet have authorization management should take advantage of the opportunity to combine both.

Topics: License Optimization, SAP