By Chris Hughes
From a Software License Optimization perspective, the way in which software is licensed has an impact on how its license consumption is optimized. The primary SAP license models, for example, are User based and Package (aka Engine) licensing. Other common business applications from vendors such as Microsoft and Adobe frequently use a device or installation based license model. Although, Microsoft has a user based model too—its Microsoft Developer Network (MSDN) licenses. (We’ve discussed ways to better manage MSDN licenses in previous blogs). An understanding of software license models and related license entitlements is required to optimize licensing and control costs.
While the metrics are different, there are still similarities between these different license models. Let’s look at some examples:
SAP Named User Licensing | Device or Install-based Licensing |
SAP users with active SAP user accounts consume a license regardless of whether their accounts are being used | Installations consume a license regardless of whether they are being used. (That's why its important to know about computers in storage that have installed software) |
Each user consumes one license regardless of how many SAP user accounts they have | When granted, right of multiple use enables each license to cover multiple installations on a single computer |
Each user consumes one license regardless of how many SAP systems they are using | When granted, right of second use enables each license to cover installations on both a user’s desktop and laptop computers |
Optimization Strategies:
| Optimization Strategies:
|
Regardless of whether a license model is user-based or device-based (or one of the many other metrics-- processor/core, PVU, Server + CAL, etc.), organizations should strive to pay only for software that is actively being used and fully leverage their license entitlements (e.g. Product Use Rights). For SAP Named User licensing, this requires the measurement of real usage patterns to select the optimal license type for each user (e.g. Professional, Limited Professional, Employee, etc.) For other vendors, such as Microsoft and Adobe, optimization must take into account Product Use Rights.
An enterprise Software License Optimization solution must also incorporate other capabilities such as discovery and inventory of non-SAP business systems (which, even in the SAP case, is important for SAP indirect access license management), contract management, business intelligence (for trend analysis, etc.), and advanced reporting.
FlexNet Manager for SAP Applications, part of the FlexNet Manager Suite for Enterprises, is an excellent example of this approach. In addition to providing the most comprehensive SAP license optimization solution on the market, its tight integration with FlexNet Manager Platform provides a broad range of additional capabilities mostly lacking in niche solutions.
Every major software vendor has nuances in their license models, volume purchase agreements, etc. that make them unique. Thankfully, there is a license management solution that provides broad vendor and application support while also offering the detailed vendor specific licensing knowledge required to achieve true Software License Optimization.
***
Learn more about optimizing SAP licenses by viewing our on-demand webinar: Lifting the Lid on SAP Licensing.