KPMG and Flexera SoftwareSoftware asset management and license optimization: A holistic approach for SAP
Many organizations have significant investments in SAP solutions and pay millions of dollars each year on licensing and maintenance. While resources have been spent measuring, monitoring, and managing other software assets, software asset management (SAM) for SAP has not been a focus area. Until now.
With the correct tools, processes, and insight, organizations can apply similar SAM disciplines to SAP to help reduce compliance risk better manage licensing/maintenance spend while providing clarity into actual usage, including indirect usage.
In some cases, a company might have a general sense of “just getting by” in terms of SAP SAM and SAP indirect usage (see sidebar). And in today’s economy, that is just not good enough.
KPMG LLP (KPMG) has developed a methodology to help organizations better understand and manage their SAP asset and license position. Our methodology leverages Flexera’s distinct software technology developed specifically for measuring and reporting on SAP licensing.
Backed by training on the SAP License Administration Workbench (LAW) tool, our contract compliance professionals analyze USMM reports, LAW reports, and SAP contracts to provide clarity and insight into SAP environments and license positions. In addition, our professionals are fully trained on Flexera’s FlexNet Manager Suite’s SAP module. Using these tools, they compare the results of this analysis with existing contracts to identify any potential optimization opportunities based on discrepancies between the contractually agreed-upon use, existing installations, and the actual use that is measured.
KPMG and Flexera Software — A unified approachKPMG and Flexera Software are recognized leaders in SAP software management. Our global team of specialized software management professionals understand a wide range of licensing metrics, system integrations, and processes specific to SAP licensing. As a result, they can provide the technical knowledge and functional skills required to identify those areas where enhanced SAM can drive significant cost savings in SAP environments.
Because we approach each project with a common goal, clients have the advantage of working with a unified team executing on a single, integrated project plan. Based on this approach, KPMG and Flexera Software can point to a growing portfolio of successful client engagements, strong references, and case studies.
Indirect usage is a result of integrating non-SAP systems directly with SAP applications without the use of SAP’s integration solutions. These integrations can result in the inclusion of potentially thousands of additional SAP users that do not connect directly to SAP. Exploring these integrations and evaluating each potential financial exposure requires a significant time commitment and resources with sufficient know-how in SAP licensing.
SAP analysis Our SAM SAP approach focuses on eight component’s that address SAP licensing.
Core packages licensing Named users’ licenses
Metric and transactional volume licensing
Applications
Analytics and reporting Cloud, mobile, and subscription services
Database and technology
\Direct and indirect
usage
License optimization designed for SAPSoftware license optimization reconciles software installations with license entitlements while taking into account the license agreements that determine how the software can be installed and used. A software license optimization solution aims to improve the efficiency of software spend while reducing the risk of noncompliance with software license agreements.
KPMG and Flexera Software have taken tested software license optimization strategies and developed a four-point approach designed specifically for SAP environments.
Helping our client find success
Our media and entertainment client needed help implementing the FlexNet Manager Platform (FNMP) SAP module to manage and optimize SAP licensing for users and engines. Working together, KPMG and Flexera helped them identify potential risks and opportunities around SAP licensing and provided them with licensing guidance and mitigation strategies.
During the engagement, we worked with the various SAP stakeholders and the software governance team to implement the FNMP SAP module in test, staging, and production environments. Once the FNMP module was implemented in production, we worked to analyze the SAP user population. We found more than 30,000 users had the incorrect license type assigned. With KPMG’s methodologies and Flexera’s tool set for SAP, our client was able to address this potential license exposure by assigning the correct license type in their SAP system.
This successful implementation resulted in an optimized SAP licensing estate, mitigation of significant potential licensing risk and exposure, the establishment of SAP rule sets, and, ultimately, a framework to manage SAP licensing effectively and proactively on an ongoing basis.
Potential benefits with KPMG and Flexera SoftwareOur SAM offerings designed for SAP environments can help organizations:
— Gain control of their SAP software estate with repeatable, automated SAM processes
— Negotiate contracts based on an understanding of actual corporate software usage and needs—including what is needed and how it is used
— Optimize license consumption and ongoing spend for software licenses and maintenance
— Lower the risk of software license noncompliance
— Provide greater visibility for IT strategy and operations groups into software licensing and usage data to help understand how their applications are being consumed.
Talk with KPMGIf your organization needs to develop, refine, or revamp its existing SAP software management process and governance, KPMG and Flexera Software can help.
Mike AdamsManaging Director, KPMG LLPT: 614-249-2323 E: [email protected]
Some or all of the services described herein may not be permissible for KPMG audit clients and their affiliates.
March 2017
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