What is SAP Digital Access Licensing?
- Document-Based Licensing: Tracks and charges for specific document types.
- Indirect Access Coverage: Licenses data accessed by third-party systems.
- Compliance-Focused: Simplifies compliance for SAP system use.
- Transparent Costing: Provides clarity in licensing costs.
- Improved Monitoring: Helps track document usage effectively.
What is SAP Digital Access Licensing?
SAP Digital Access Licensing represents a transformative shift in how SAP manages indirect system access. Instead of relying on traditional user-based licensing, SAP has moved to a document-based consumption model.
This evolution addresses the modern reality of enterprise systems where various external applications, devices, and automated systems must interact with SAP’s digital core.
In this article, we’ll dive deep into what SAP Digital Access Licensing is, its core concepts, benefits, challenges, and what organizations need to know to navigate this model effectively.
Understanding the Basics
Core Concept
SAP Digital Access occurs when humans, devices, or systems interact indirectly with SAP’s digital core through non-SAP intermediary software. This could be through custom applications, third-party solutions, or automated systems like Robotic Process Automation (RPA) bots. These indirect interactions mean that the end user is accessing the SAP system without a direct login.
Examples include a sales order created in a third-party e-commerce platform and sent to SAP or an automated bot that reads customer information and generates an invoice in SAP. Such indirect access scenarios are increasingly common, making it essential for organizations to understand the licensing implications.
Historical Context
The introduction of SAP Digital Access in 2018 was prompted by the growing complexity of organizations’ use of SAP systems. The traditional user-based licensing model, where companies paid based on the number of users accessing SAP, became inadequate.
The 2017 court case SAP v. Diageo was a turning point. The case highlighted the need for clearer licensing structures for indirect access, as SAP found that indirect use was not adequately covered under existing agreements.
This led to confusion, unplanned expenses, and disputes, pushing SAP to introduce a new, more transparent model.
Document-Based Pricing Model
Nine Document Types
Instead of counting users, the Digital Access model focuses on nine specific document types that trigger licensing requirements:
- Sales Documents
- Invoice Documents
- Purchase Documents
- Service & Maintenance Documents
- Manufacturing Documents
- Material Documents
- Quality Management Documents
- Financial Documents
- Human Resource Documents
Each document type represents an instance of system interaction that requires a license under the Digital Access model.
Pricing Methodology
The pricing model calculates costs based on the number of documents created or processed within the SAP system.
This approach means that costs are outcome-based; organizations only pay for what is used rather than for potential access. This distinction can make budgeting more predictable, as fees relate directly to the volume of documents created.
For example, a sales order generated by a third-party system that is transferred into SAP will be considered a document that requires a license.
This ensures that businesses are charged based on real activity, not simply on the number of users who might access the system.
Digital Access Adoption Program (DAAP)
SAP offers the Digital Access Adoption Program (DAAP) to help customers transition to this new licensing model. Under DAAP, two primary options are available:
- 15% Growth Option (Option A)
- License 115% of the current estimated document usage.
- Pay only for the 15% growth.
- Benefit from volume discounts on total document volume.
- 90% Discount Option (Option B)
- License 100% of the current estimated document usage.
- Receive a 90% discount on the total license fee.
These options allow organizations to find a cost-effective way to make the transition, depending on their document usage and growth projections.
Considerations for Choosing DAAP Options
Organizations should carefully evaluate which DAAP option best suits their needs. The 15% Growth Option is ideal for companies that anticipate modest growth and want to limit upfront costs. This option allows them to license a reasonable growth margin without committing to a full overhaul.
On the other hand, the 90% Discount Option is more suited for businesses that want to gain full transparency into their current usage without having to license for potential future growth immediately. The significant discount on current document usage makes this a financially attractive option, especially for enterprises with relatively stable document creation patterns.
Benefits and Advantages
Transparency
One key benefit of digital access is its transparency. Focusing on document creation offers clearer visibility into system usage and associated costs. Rather than trying to estimate how many users indirectly accessed the system, organizations can directly count documents, simplifying cost prediction and management.
Additionally, this model eliminates the ambiguity of licensing when new technologies are introduced into the enterprise architecture.
With traditional user-based models, licensing new automated systems and bots was a gray area. The document-based approach simplifies compliance because only documents created or consumed matter, not the type of entity creating them.
Scalability
The Digital Access model is scalable and aligns well with modern business needs. Organizations that use IoT devices, automated bots, or expand their digital ecosystem benefit from this approach as it grows with the business. Since the costs are tied to actual interactions, as business processes grow, the licensing scales proportionally, making it ideal for growing enterprises.
For example, companies adopting IoT (Internet of Things) and API-driven architectures benefit from Digital Access because it accounts for the scalability of adding hundreds or thousands of devices. This flexibility is crucial for maintaining licensing compliance as companies grow and change their SAP use.
Technical Implementation
Key Components
The SAP Digital Access methodology relies on three fundamental elements to track usage:
- Request Origination Identification Using Extended SAP Passport (EPP): This helps identify where the request came from, even if it was from a non-SAP system.
- Document Creation Tracking: EPP information determines when documents are created in the SAP system.
- Usage Reporting: Document volumes are reported for cost calculation and auditing purposes.
These technical elements ensure that organizations have the tools to monitor and accurately calculate their digital access licensing requirements.
Implementation Strategy
To effectively implement the SAP Digital Access model, it is crucial to have a well-defined strategy for integration and monitoring. Organizations should:
- Integrate EPP Across Systems: Ensure that Extended SAP Passport (EPP) is implemented in all systems interacting with SAP to ensure complete tracking. This is vital for capturing all document-generating activities and mitigating compliance risks.
- Centralize Usage Reporting: Set up a centralized system for usage reporting to collect and analyze all document volumes. This will help organizations identify trends and optimize licensing as needed.
- Test and Validate Measurement Tools: Before fully transitioning, businesses should test the SAP measurement tools to validate that they correctly capture all relevant document data.
Considerations and Challenges
Measurement Complexity
One of the biggest challenges with SAP Digital Access is estimating document usage accurately.
Determining document volumes can be challenging in complex environments with multiple integration points and systems interacting with SAP. SAP offers measurement tools and services to assist with this, but careful analysis and thorough monitoring are required to avoid unexpected costs.
For instance, businesses with many integrated applications may struggle to determine exactly how many documents are being created, which can lead to surprises if usage is underestimated. Organizations should use SAP’s tools and conduct internal assessments to ensure an accurate understanding.
Moreover, implementing SAP’s Digital Access Estimation Tool (DAET) can be highly beneficial. This tool allows businesses to estimate document usage by analyzing current system activities, providing a clearer picture of which documents are being generated and how frequently.
License Optimization
To optimize licensing costs under Digital Access, organizations should:
- Analyze Current Indirect Access Patterns: Understand how systems interact with SAP and identify document-generating activities.
- Evaluate Future Growth Projections: Consider how business processes might evolve and whether document creation will significantly increase.
- Consider Planned Digital Transformation Initiatives: For example, implementing IoT or RPA could lead to higher volumes of certain document types.
- Review Existing SAP Contracts and Licenses: Ensure no overlapping licenses or opportunities for cost consolidation exist.
Furthermore, regular audit reviews should assess if all generated documents are legitimate and require a license. This exercise will help identify optimization areas where licenses may be reallocated or adjusted based on usage.
Exception Scenarios
SAP Application Access
Not all indirect access triggers the need for a Digital Access license. If users access SAP through other licensed SAP applications, this is classified as SAP Application Access and does not require additional licensing. This distinction is crucial for cost optimization, as it can prevent unnecessary expenditures on digital access licenses.
For instance, a CRM application that directly integrates with SAP and already has user licenses will not incur additional digital access fees for the documents it creates. Understanding this distinction is vital for managing license costs.
System Integration
For system-to-system integrations, particularly in B2B scenarios, the licensing requirement typically falls on the document recipient. For example, if two business partners exchange data and have SAP systems, the party receiving the documents must account for the digital access licensing.
This scenario can raise questions about potential double licensing, which requires careful consideration and planning in partner ecosystems.
When Company A sends a purchase order to Company B, Company B will license the documents created in its SAP system. Both companies have their own SAP systems. Understanding these nuances is essential for preventing compliance issues and avoiding unnecessary double payments.
Future Implications
SAP Digital Access represents SAP’s strategic direction for enterprise software licensing in the digital age.
As more organizations continue to automate and expand their operations, the focus on document-based consumption makes sense. It accommodates new technologies like:
- Internet of Things (IoT): Where countless devices interact with SAP, each generating data.
- Robotic Process Automation (RPA): Bots performing tasks that create documents within SAP.
- Machine-to-Machine Communication and API-Driven Architectures: Where automated systems communicate and process data in SAP without direct human involvement.
The Digital Access model aims to provide a fair licensing mechanism for these scenarios, focusing on transparency and scalability.
Additionally, edge computing and 5G networks enable faster and more frequent data transfers, leading to increased document creation within systems like SAP. As these technologies become more widespread, Digital Access provides a structure for licensing that aligns with the rapid pace of technological evolution.
Making the Transition
For organizations considering the transition to SAP Digital Access, several key steps are necessary:
- Conduct a Thorough Analysis of Current Indirect Access Usage: Identify all potential indirect access points and understand the volumes involved.
- Evaluate DAAP Options: Compare the benefits of the 15% growth option versus the 90% discount option to determine which is more cost-effective based on current and projected usage.
- Consider Future Growth and Digital Transformation Plans: Assess how likely document usage will grow, particularly in light of digital initiatives.
- Assess Financial Implications: Work with SAP licensing experts or consultants to understand the total cost implications of transitioning.
- Review Technical Requirements: Ensure that all integration points are properly tracked and that SAP’s Extended Passport feature is implemented for accurate monitoring.
- Engage Stakeholders Across Departments: Since document creation involves many business units (like sales, finance, manufacturing, etc.), engaging relevant stakeholders ensures that all indirect usage scenarios are accounted for. This collaboration will also aid in ongoing compliance monitoring.
FAQ: What is SAP Digital Access Licensing?
What is the core idea of SAP Digital Access Licensing?
It is a document-based licensing model that charges for digital documents created through SAP system access, whether directly or via third-party applications.
Why is SAP Digital Access Licensing important?
It clarifies and controls how external systems interact with SAP software, helping avoid compliance risks and unexpected costs.
What types of documents are included in SAP Digital Access Licensing?
Documents like invoices, orders, and notifications are typically covered. The exact document types depend on the specific SAP setup.
How does it address indirect access issues?
Licensing access based on document creation rather than user roles ensures businesses comply with SAP’s indirect-use licensing policies.
Does it replace traditional SAP licensing models?
No, it complements existing models by addressing specific scenarios like third-party system interactions with SAP data.
How is usage measured in SAP Digital Access Licensing?
It tracks the number and type of documents created using an audit log, offering a transparent approach to measuring use.
Can businesses customize their licensing under this model?
Businesses can choose specific document types and volume thresholds based on their needs.
What happens if document limits are exceeded?
SAP usually allows additional licensing purchases to cover increased usage, helping businesses stay compliant.
Is it possible to switch from traditional licensing to digital access?
Businesses can migrate to this model, but they should consult SAP for smooth transition guidance.
How can I calculate costs for SAP Digital Access Licensing?
SAP provides tools and guidelines to estimate licensing costs based on document usage patterns.
Does it apply to all SAP systems?
It primarily applies to S/4HANA systems but can also be relevant to other SAP environments with indirect access.
What tools help in managing SAP Digital Access Licensing?
SAP offers tools, such as the Digital Access Estimation Tool (DAET), to help businesses monitor and manage usage effectively.
How does this model benefit audits?
It simplifies audits by focusing on document creation rather than complex user roles, making compliance reviews more straightforward.
Is it suitable for small businesses?
Yes, it’s scalable and can be tailored to the specific document needs of businesses of all sizes.
Where can I find more resources on this model?
SAP’s official website and consulting partners provide detailed guides and support for understanding and implementing digital access licensing.
