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Licensing Overview SAP S/4HANA on-premiseMichael Deller, Dirk KaestnerLicensing OverviewGlobal S/4HANA Solution ManagementSAP S/4HANA on-premiseSession ID #82650May 2019PUBLIC

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Presentation MaterialsAccess the slides from 2019 ASUG Annual Conference here:http://info.asug.com/2019-ac-slides 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC3

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Q&AFor questions after this session, contact us:at our SAPPHIRE booth in the Digital Core / S/4HANA areaor here:Michael DellerDirk g.com/profile/Michael Dellerhttps://www.xing.com/profile/Dirk aestner@sap.com 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC5

Topics: SAP S/4HANA On-premise Licensing OverviewIntroductionSAP S/4HANA On-premise Licensing Licensing model for new customers Licensing model for existing customers Core versus extended scope – Licensing of Industry & LoB solutions Compatibility PacksSafeguarding our customers’ investments S/4HANA Product and S/4HANA Contract Conversion Cloud extension policyIndirect Use / Digital Access 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC6

SAP S/4HANA – Our Goals&disruptively newbusiness application suite 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICnon-disruptive transitionfrom Business Suite/ECC7

SAP S/4HANA – Implementing The GoalsTechnologyCommercialsToolsdisruptively newbusiness application suite 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICNew architectureIntelligent ERPSystem conversion pathCloud, new technologies„Like-for-like“ principleCompatibility PacksConversion PoliciesCloud Extension PolicyTransformation NavigatorBusiness Scenario RecommendationsReadiness CheckFIORI Apps Librarynon-disruptive transitionfrom Business Suite/ECC8

SAP S/4HANA: Where We Are Now10.500 customers7.900 customersLaunch ofSAP S/4HANA inNew YorkFEB 20152.700customers1.300customersOCT 20155.400customersDEC 2015DEC 2016S/4HANA 1610S/4HANA CloudFiori 2.0SAP ActivateMigration Cockpit 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC240 referencecustomersDEC 2017Readiness Check(on-premise)TransformationNavigator2.600 productivecustomers5.000 ongoingprojectsDEC 2018memory size upto 49 TBorganizations upto 200,000 users9

SAP S/4HANA – Suite 1809Sales & MarketingGovernance, risk, and complianceSAP Multi-Bank ConnectivitySAP digital payments add-onSAP Cash ApplicationFinancial planning & analysis Sales performance management Advanced accounting & financial closeAdvanced financial operationsTreasury managementCommodity managementSubscription billing and revenue management Extended production planning and Advanced warehousingschedulingAdvanced transportationDemand-driven MRP Complex manufacturing Advanced order promising Order and contract management Sales force support Accounting and financial closeFinancial operationsCost management & profitability analysisEnterprise risk and compliance SAP C/4HANA SAP Sales Cloud SAP Commerce Cloud SAP Marketing CloudS/4HANALoB Solutions*Enterprise Management Service master data and agreementmanagement Service operations and processes Service parts managementS/4HANALoB Solutions* Responsive manufacturing (ME, MII, QIM, VE)Production operations (MII, QIM)Digital operations for manufacturingProduction EngineeringProduction planningProduction operationsQuality managementManufacturing insights Maintenance management Project control Product engineering Asset operations and maintenance Environment, health, and safety Enterprise portfolio and projectmanagement Product lifecycle management Product compliance Central procurement SAP Geographical EnablementFramework SAP Intelligent Asset Management Digital operations for R&D Requirement management (IPD) Asset ManagementR&D / EngineeringVariant configuration New MRP Integrated business planningGlobal batch traceabilityExtended warehouse managementTransportation managementInventoryWarehousingShipping and transportationOrder promising Core HR and time recordingOperational procurementSourcing and contract managementSupplier managementProcurement analyticsInvoice managementProduct complianceService and SFA SAP CRMSuite LoBSolutions**Supply Chain SAP digital payments add-on SAP CRMSuite LoBSolutions**ManufacturingFinanceSAP C/4HANAAsset Central integrationSupplier collaborationBusiness networkGuided end-user buyingExternal workforce management Core human resources and payrollTalent managementTime and attendance managementHuman capital analytics SAP Service CloudService 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSourcing & ProcurementHuman Resources10

SAP S/4HANA On-premise Licensing Model Licensing model for new customers Licensing model for existing customers Core versus extended scope – Licensing of Industry & LoB solutions Compatibility Packs

The 4 Dimensions of S/4HANA On-Premise Licensing (perpetual)Direct User Access to Digital CoreDigital Access (aka Indirect Use, via APIs)Enterprise Management for Professional UseMonetizedacross all APIsEnterprise Management for Functional UseEnterprise Management for Productivity UseS/4HANAMonetize partner appsvia revenue shareS/4HANA developer accessS/4HANA* Product subscription gives customer access to S/4HANA Cloud API Enablement Package** SAP to SAP integration included as part of core pricing(on-premise)LOB and Industry SolutionsHANA90 Addon Solutions (EWM, EHS, Treasury & Risk, Cash Mgt, etc),S4 PPDSS4 CashMgmtEnterprise Management 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICEtc.HANA EnterpriseEdition (Full Use)HANA REAB(run-time)Based on GB ofMemoryBased on 15% HSAV(HANA SAP ApplicationValue)12

SAP S/4HANA On-premise Licensing – For New CustomersDirect User Access to Digital Core and LoB & Industry SolutionsCommercially NeutralExtended Solution ScopeGlobal TradeServicesS4 Cash Mgmt.RevenueStandalone solutionssold using the classicproduct numbers andmetricsManufacturingExecutionS4 CentralFinanceS4 Adv VariantConfigRevenueS4 DigitalAccessUsersS/4HANA Enterprise ManagementCore Solution ScopeDatabase 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSAP S/4HANA Enterprise Management for Professional use [7018652]SAP S/4HANA Enterprise Management for Productivity use [7018653]SAP S/4HANA Enterprise Management for Functional use [7018654]Doc.countS/4HANA LoB &Industry Add-ons arepriced based on asingle, value alignedmetric.S/4HANAEnterpriseManagement:software engine,priced with a UsermetricHANARun-time or Enterprise Edition13

SAP S/4HANA Licensing – For New CustomersUPDATEDetails on Direct User Access to Digital Core7018652 SAP S/4HANA Enterprise Management for Professional use7018654 SAP S/4HANA Enterprise Management for Functional use Inventory AnalyticsReturnable Packaging LogisticsTransportation ManagementExternal ProcessingSubcontractingJust-in-time Inbound ProcessingKanbanRepetitive ManufacturingQuality EngineeringQuality ImprovementQuality InspectionManufacturing AnalyticsMaintenance Planning & Sched.Master Data MaintenanceProject Financial ControlProject Logistics Control 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC Production BOM ManagementRecipe/Routing ManagementVariant ConfigurationInspection PlanningProduct Development FoundationWarranty ManagementService Request ManagementService Order ManagementService FulfilmentService Billing & SettlementMulti-Channel CustomerEngagementSales Order Management andProcessingOpportunity ManagementSales Lead ManagementActivity Management7018653 SAP S/4HANA EnterpriseManagement for Productivity Use Goods MovementWarehouse ManagementShippingAvailable to PromiseMaterial Requirements PlanningProduction ControlProduction ExecutionMaintenance ExecutionSelf-Service RequisitioningOrganizational ManagementTime Sheet7018682 SAP S/4HANA, developer accessThis license allows performing all role required operations, including management and system administration tasks.14

SAP S/4HANA On-premise Licensing – For Existing ERP CustomersDirect User Access to Digital Core and LoB & Industry SolutionsGlobal TradeServicesCommercially NeutralS4 CashMgmt.Extended Solution ScopeRevenueManufacturingExecutionS4 CentralFinanceS4 AdvVariant ConfigRevenueUsersS4 DigitalAccessMetricNO SAP NamedUsers required forS/4HANA enginesS/4HANA LoB &Industry Add-ons arepriced based on asingle, value alignedmetric.SAP ERPNamed UsersS4H Flat-fee: SAPNamed Users arerequired whenaccessing S/4HEnterpriseManagementS/4HANA Enterprise Managementfor ERP customers [7018538] - flat feeCore Solution ScopeERP packageFlat fee (includes 5 Prof. named users)Already have thisDatabase 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICHANAAlready have thisRun-time or Enterprise Edition15

Guiding Principle: No surcharge on like for like functionalityEnh.CreditMgmntEWMGTSEnh.Credit edit MgtWMIntrastatERP CoreERP Licensing 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSAP S/4HANAEnterpriseManagementLicenseS/4HANA LoB &Industry solutionsS/4HANAEnterpriseManagementLicenseERPERP LoB &Industry solutionsLicenseEven if ERP capabilities are realized in a solution that comes with its own license, we do not charge in case solely thefunctional scope is used, that is described as part of S/4HANA Enterprise ManagementEngine LicensePrinciple of ONE drives us to deliver only ONE solution for ONE business problemEngine S/4HANA Licensing16

SAP S/4HANA 1809 – Direct User Access to the Digital CoreFeature Scope DescriptionPublicly available on help.sap.com 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICChapter 2: scope of S/4HANAEnterprise ManagementChapter 3, 4: scope of S/4HANALoB- and Industry Solutions17

Compatibility Packs in SAP S/4HANAMotivationWhy allow the use of Compatibility Packs on SAP S/4HANA?– Make transition easier for customers usingSAP ERP/Business Suite– Allow sufficient time for redesign of business processes underS/4HANA ERP LoB &IndustrysolutionsS/4HANA LoB &IndustrysolutionsERP CoreSAP S/4HANAEnterpriseManagementERP LicensingS/4HANA LicensingOnly SAP S/4HANA solutions are allowed to run on an SAPS/4HANA installation– SAP S/4HANA is a new product, not the legal successor of SAPERP/SAP Business Suite products– Separation of the commercial worlds is essential [via SoftwareUse Rights (SUR)]ERP LoB &IndustrysolutionsXSAP S/4HANAEnterpriseManagementERP CorefunctionalitySAP S/4HANAEnterpriseManagementS/4HANA LicensingXunless explicitly permittedvia „Compatibility Packs“ 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC18

Compatibility Packs in SAP S/4HANAOverviewSAP grants a timely restricted(1) use right for specific classic SAP solution functionality(2)to S/4HANA customers, at no extra cost(3)(1) restricted until the end of 2025(2) whitelist: compatibility packs as documented in note 2269324 and in the Software Use Rights (SUR)(3) condition: customer has licensed SAP S/4HANA and the classic solutionCompatibility Packs are only required for solutions which are installed on the SAP S/4HANAinstance – not for side-by-side installations.SAP aims to replace these classic solutions by the end of 2025with a genuine S/4HANA solution. 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC19