User group says SAP's licensing models make migration harder

"Earlier this year, SAP introduced a Cloud ERP Private package to replace a package under RISE with SAP, its lift-shift-and-transform migration plan. At the time, Gartner said the move was more than just a rebranding. The analyst argued the new package significantly impacts negotiations for existing licensing deals because it introduces a new Full Use Equivalent (FUE) license measure, which differs from on-prem and public cloud metrics."

"Speaking to The Register this week during the conference of German-speaking user group DSAG, Michael Bloch, board member for licenses, contracts and support, said, "It's a problem that we have two different licensing models, both for public and private cloud, at the moment... because if SAP customers have to decide which way to go, they need to identify by all licensing options in all models, which obviously is quite complicated." He pointed out that the Business Suite cloud model announced in February (and not to be confused with the old on-prem Business Suite 7) does not use the FUE model and instead adopts a more user-centric model of vertical integration."

SAP introduced a Cloud ERP Private package to replace a RISE with SAP package, introducing a Full Use Equivalent (FUE) license measure that differs from on-premises and public cloud metrics. The new package significantly affects negotiations for existing licensing deals. The Cloud ERP Private transition option is suitable only for a minority of customers and functions as an emergency exit rather than a broad support extension. Having two concurrent cloud licensing models forces customers to evaluate multiple licensing options across models, increasing complexity. The Business Suite cloud model avoids FUE, adopting a user-centric, vertically integrated licensing approach that bundles additional portfolio materials.

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