What is SAP Indirect Access?
- SAP Indirect Access refers to situations where non-SAP applications access SAP data.
- Requires licenses for users or systems indirectly interacting with SAP.
- Important for compliance, as unlicensed access may incur additional fees.
- Applies to third-party apps, custom applications, and IoT devices.
What is SAP Indirect Access?
SAP licensing is often a complex topic, and one of the most misunderstood aspects is SAP Indirect Access.
In this article, we’ll provide an in-depth explanation of SAP Indirect Access, what it entails, how it impacts businesses, and how organizations can navigate it effectively. We’ll also examine the different licensing challenges and strategies to mitigate risks.
SAP Indirect Access, or Indirect Usage, refers to any interaction with SAP software by third-party systems or non-SAP software that indirectly connects to SAP systems.
In simpler terms, it’s when data flows to or from an SAP system without a direct human user logging into the SAP interface. The complexity here lies in determining which scenarios require additional licensing.
Indirect Access became a hot topic following several high-profile legal cases, such as Diageo v. SAP and Anheuser-Busch v. SAP, emphasizing businesses’ need to carefully manage and understand their licensing obligations.
To make things clearer, let’s consider an example:
- Suppose your company uses an e-commerce platform that takes orders from customers. This platform then passes the order data to your SAP ERP system for processing and fulfillment. Since the e-commerce system, which is a non-SAP system, interacts with SAP data without a direct SAP user, this is considered Indirect Access.
Why is SAP Indirect Access Important?
Indirect Access is important because it directly impacts the cost of SAP licensing. Many organizations have been caught off-guard by unexpected licensing fees, which can be substantial if Indirect Access is not properly managed or accounted for.
Key reasons why understanding Indirect Access is crucial include:
- Compliance: Ensuring your company complies with SAP’s licensing policies can prevent legal disputes and costly penalties.
- Cost Management: Proper understanding helps budget potential licensing costs rather than facing surprise charges after an audit.
- Audit Preparedness: SAP often conducts licensing audits, and Indirect Access is a frequent area of scrutiny. Properly understanding and managing this can ensure your company is well-prepared for such audits.
Types of Indirect Access
Indirect Access can take multiple forms, depending on how third-party systems interact with SAP. Let’s break down the most common types:
- Read-Only Access: Third-party applications that only retrieve data from the SAP system without making any changes. For example, a BI tool that pulls financial data from SAP to generate reports.
- Write Access: Non-SAP systems that input data into SAP. For example, a CRM system that sends customer updates to the SAP ERP system.
- Transactional Access: Systems that read from and write to SAP, including triggering transactions. An example is a logistics platform that updates delivery statuses in SAP after each shipment.
- Digital Core Extension: When external systems interact with SAP’s core functionalities (e.g., sales orders, inventory management) via APIs or other integrations, this often falls under Indirect Access, depending on SAP’s licensing terms.
Real-World Examples of SAP Indirect Access
To make the concept more relatable, let’s look at some real-world scenarios:
- Scenario 1: E-Commerce Integration
- An e-commerce website receives an order and sends the data to SAP for fulfillment. Even though no SAP user is involved directly in entering the data, the interaction between the e-commerce system and SAP is classified as Indirect Access.
- Scenario 2: Internet of Things (IoT)
- Sensors on machinery collect data, such as maintenance needs, and send this data to SAP. This is a typical example of Indirect Access, where the data flow occurs without human intervention.
- Scenario 3: Employee Portal
- An HR system allows employees to request leave or check their payroll information. If this HR system exchanges information with SAP, it constitutes Indirect Access.
The Licensing Challenge
SAP’s traditional licensing model is user-based, meaning you pay based on the number of named users accessing the system. With Indirect Access, the challenge arises because it’s not a human directly accessing SAP but rather a third-party system. This raises questions such as:
- How should licenses be calculated for automated systems?
- What is the cost of non-human access to SAP data?
For many companies, it’s not always clear how to calculate the appropriate licensing fees, which can lead to compliance issues and unexpected costs during audits.
To complicate matters, SAP’s approach to Indirect Access has evolved. In the past, SAP had been quite rigid, often resulting in costly penalties for customers.
However, in 2018, SAP introduced the Digital Access Adoption Program (DAAP), which aims to simplify Indirect Access licensing by focusing on document-based rather than user-based licensing.
SAP’s Digital Access Model
SAP introduced the Digital Access Model to address the growing concerns over Indirect Access. This model is designed to provide greater transparency and simplicity by charging based on the number of documents processed by SAP rather than on the number of users or systems accessing SAP indirectly.
Key Aspects of the Digital Access Model
- Document-Based Licensing: Under this model, the cost is determined by the number of specific document types created in the system (e.g., sales orders, invoices).
- Clarity: It eliminates the ambiguity of how third-party interactions are counted by shifting focus from users to documented transactions.
This model can benefit companies with heavy integration requirements since it provides a more predictable and manageable way to license Indirect Access.
How to Identify Indirect Access
Identifying Indirect Access in your SAP landscape can be challenging. Here are some steps to help:
- Map System Interactions: Document all systems that interface with your SAP system, including third-party software, customer portals, e-commerce platforms, and IoT devices.
- Data Flow Analysis: Understand the type of data being exchanged and whether it involves reading, writing, or both.
- Audit Your Integrations: Conduct an internal audit of all integrations to identify any potential instances of Indirect Access. Look for systems that interact with SAP but don’t require a human user.
- Consult with SAP: Engage with SAP or a trusted SAP licensing consultant to determine whether specific interactions fall under Indirect Access and what licensing is required.
Mitigating Risks and Managing Costs
Managing the risks and costs associated with SAP Indirect Access requires a proactive approach.
Here are some strategies to consider:
1. Understand Your Contracts
- Review your SAP contracts thoroughly. Understand the clauses related to Indirect Access to see what scenarios may require additional licenses.
- Negotiate Terms: If you are in the process of negotiating a new contract with SAP, try to get clarity and favorable terms for Indirect Access or request coverage under the Digital Access Model.
2. Conduct Regular Audits
- Conduct regular internal audits of all systems interacting with SAP. Identify any new integrations and assess whether they trigger Indirect Access.
- SAP can conduct compliance audits, and staying ahead through regular internal checks can help avoid surprises.
3. Evaluate the Digital Access Model
- The Digital Access Model can often simplify the licensing process. However, it’s not always the most cost-effective for every organization. Evaluate whether your company would benefit from a document-based licensing approach.
- Work with SAP or an independent consultant to run simulations to understand the cost implications of switching to Digital Access.
4. Optimize System Usage
- Minimize Overlaps: Evaluate whether certain data exchanges between third-party systems and SAP are necessary. Reducing redundant interactions can help limit licensing requirements.
- Use Middleware: Implementing middleware to aggregate data before passing it to SAP can sometimes help reduce the licensing footprint, depending on how data is transmitted.
SAP Indirect Access FAQs
What is SAP Indirect Access?
SAP Indirect Access occurs when third-party or non-SAP applications interact with SAP data. Licensing is required even for indirect users accessing SAP resources, ensuring compliance with SAP’s licensing policy.
Why is Indirect Access relevant for businesses?
When external applications or systems access SAP data, it affects compliance and licensing costs, and improper licensing can lead to financial penalties during audits.
How does SAP determine Indirect Access?
SAP considers any external software that accesses SAP data, regardless of user origin, as Indirect Access. This applies even if SAP isn’t the software directly accessed.
What types of applications may cause Indirect Access?
Third-party CRM, e-commerce, and IoT systems are common examples. Any external application interacting with SAP data could require an Indirect Access license.
Is there a specific license for Indirect Access?
Yes, SAP offers specific license types, such as “Digital Access” or “Document-Based Licensing,” that cater to indirect usage scenarios.
What is Digital Access licensing?
Digital Access licenses cover specific types of documents generated or used by external applications rather than individual users, creating a scalable licensing approach.
How can a company know if they need Indirect Access licenses?
Audit your SAP system interactions to identify external applications or systems accessing SAP data. Consulting SAP licensing experts can also clarify specific requirements.
What are the consequences of non-compliance?
If discovered during SAP audits, non-compliance can lead to fines, additional licensing costs, and potential legal repercussions.
Does Indirect Access Affect SAP S/4HANA?
SAP S/4HANA enforces Indirect Access compliance, particularly for Digital Access licensing. Companies must evaluate third-party interactions with SAP systems.
How does Indirect Access impact cloud-based SAP applications?
Indirect Access requirements apply to cloud-based SAP products. External applications accessing data stored in SAP’s cloud environment may require licenses.
Can SAP usage audits detect Indirect Access?
Yes, SAP conducts usage audits that can identify both direct and indirect access to ensure licensing compliance and verify adherence to usage agreements.
Are there ways to optimize costs with Indirect Access?
Companies can control costs by identifying necessary interactions and acquiring appropriate licenses, such as Digital Access, rather than over-licensing with traditional user licenses.
What is Document-Based Licensing in SAP?
Document-based licensing charges are based on the number of specific document types created by indirect access, offering an alternative to user-based licensing for some scenarios.
Do indirect licenses apply to internal-only SAP usage?
Indirect Access typically applies when external applications or users access SAP data, not when all users access SAP internally via direct access.
How can a business monitor SAP Indirect Access?
Using SAP’s analysis tools or third-party monitoring, businesses can track data flow between SAP and external applications to manage and adjust licensing as needed.
