Often, companies deciding to migrate to the SAP S/4HANA system, have a problem with the selection of appropriate licenses. Answer a few questions and select the license that will work for your company.
Start by identifying the system architecture and resolving business analytics issues
To select the appropriate license for the SAP S/4HANA system, start by determining the target system architecture. The new SAP platform is not only an ERP solution but also several other solutions supporting customer service processes (customer experience), supply chain service, and supplier management (e.g. Ariba, Fieldglass) or handling logistic processes (SAP Transportation Management, SAP Extended Warehouse). It is also important to resolve the issue of business analytics - S/4HANA provides, for example, in this area new reporting possibilities based directly on the S/4 system, without the need to use a separate data warehouse installation.
Product conversion, contract conversion, or a completely new license?
Once you've defined the system architecture and dealt with business analytics, it's time to choose the right system license. Knowing your product requirements for the necessary products will certainly help you choose the right licensing approach. For the on-premise version:
- Product conversion, i.e. the purchase of appropriate additional license packages that allow you to use the existing license package, but already in the S/4HANA version and the HANA database, if the customer has not yet had one.
- Contract conversion, i.e. replacement of the entire previously used SAP license package with new S/4 HANA licenses. In this situation, the customer also has the option to purchase a HANA database license.
The situation is slightly different for the SAP S/4HANA Cloud version. Here we do not convert the product, let alone convert the contract. Companies opting for the cloud version of the system must purchase a new license in the subscription model. Still not 100% sure which system license to choose? Contact us (HERE) - SI-Consulting experts will help you make the right decision!