Navigating SAP Licensing Audit Complexities
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Key Takeaways
⇨ SAP license audits ensure compliance with licensing agreements, helping businesses demonstrate that the number of licenses purchased matches the number in use.
⇨ The complexity of SAP licensing involves multiple categories and metrics, making proper license management essential to avoid over-purchasing and optimize costs.
⇨ Outsourcing SAP audits to professionals can improve accuracy and efficiency, helping organizations minimize costs, enhance compliance, and strengthen their negotiating position.
An SAP license audit is a process where a business must demonstrate its compliance with SAP’s licensing agreement, ensuring that the number of licenses purchased matches the number in use. This helps SAP protect its intellectual property and collect revenue by enforcing proper usage. Audits can range from basic compliance checks to more thorough reviews using SAP measurement tools, depending on the audit type.
SAP licensing is highly complex, involving categories such as named users, engines, and database/digital access. Proper license management is crucial for maintaining compliance. However, with thousands of products, user types, and pricing metrics—and inflated prices often obscured by vendor tactics—many enterprises end up over-purchasing in an effort to secure adequate capability at a reasonable cost. While SAP tools track usage, they do not help with optimizing or reducing licensing costs, making continuous monitoring essential.
Outsourcing SAP audits to professionals can help businesses conduct audits with greater accuracy and efficiency. This approach helps minimize costs, improve compliance, and manage risks. By tracking results, organizations can strengthen their negotiating position, avoid overpayments, and reduce penalties for under-licensing. Key strategies for controlling SAP licensing costs include proactive compliance management, regular license optimization, and engaging experts when necessary.
Markgraf Consulting assists companies with SAP license audits. With a deep understanding of SAP licensing agreements, Markgraf helps organizations navigate complex contracts, shielding them from unexpected costs and requirements. The company provides tailored SAP audit services, from identifying vulnerabilities and ensuring compliance to developing documentation and preparing for negotiations. This comprehensive approach allows businesses to address licensing issues early and avoid costly mistakes.
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