Infrastrukt Group, a major player in the construction industry, was facing significant challenges in managing their SAP software licensing. With a substantial workforce and impressive revenue, the company needed a comprehensive solution to understand and optimize their software licensing to mitigate financial risks and ensure compliance.

Challenges

Infrastrukt Group’s primary issues revolved around their lack of effective management of SAP software licenses. Specific challenges included:

  • Inadequate License Management: Infrastrukt Group had minimal oversight of their SAP software licensing. There was a lack of clarity regarding which licenses they owned and which ones they were using.
  • Resourcing Changes: The procurement lead responsible for this area was new and unfamiliar with past contracts, and the records of previous agreements were incomplete.
  • Audit Concerns: There was significant worry about the potential of an audit, as the company did not have a clear starting point for addressing potential licensing issues.

These challenges necessitated expert advice to clarify their licensing situation and resolve risks associated with their software estate.

The Solution

JNC’s approach to solving Infrastrukt Group’s licensing issues was methodical and thorough, encompassing several key steps:

  1. Contract Review: JNC consultants began by examining existing contracts, comparing SAP’s annual maintenance invoice to the value of the contracts on hand, noting discrepancies that indicated gaps.
  2. Gap Identification and Resolution: Knowing that Infrastrukt Group did not have full contractual records and were unable to locate all necessary information JNC deployed a more labour-intensive, manual strategy. By consolidating information from diverse sources, the team compiled a comprehensive list of licenses, meticulously aligning their values with invoices to ensure all licenses were fully accounted for.
  3. Compliance Assessment: Our experts ran the necessary multitude of reports to identify areas of non-compliance, uncovering that Infrastrukt Group was using $10.5 million worth of software while only owning $5 million worth of licenses , a significant discrepancy as they were essentially using double the amount of licenses that they owned.
  4. Remediation Discussions: JNC worked with various teams within Infrastrukt Group to understand software management and deployment, identifying options to align actual usage with licensed amounts. In many instances, JNC was able to identify remediation options through process management of the software. This involved making sure that only the appropriate employees had access to the software, ensuring that the number of users matched the number of licenses the company had purchased.
  5. Deployment and Hardware Review: The project team reviewed software deployment and hardware details to identify any licensing impact.
  6. Unused Software Identification: JNC also found instances of deployed but unused software, further refining their strategy.
  7. License Purchase Strategy: Where necessary, JNC identified software that required license purchases and developed a strategy with Infrastrukt Group to address these needs efficiently.
  8. Client Support and Training: JNC adapted their support based on Infrastrukt Group’s requirements, providing a complete package of workshops, SAP call preparation, debriefs, drafting of communication, and benchmarking deals.

This structured approach led to a significant reduction in identified risks and optimized Infrastrukt Group’s SAP software licensing.

Conclusion

JNC’s expertise and strategic approach resulted in substantial cost savings and improved licensing management for Infrastrukt Group. The project outcomes were impressive:

  • Cost Reduction: The initial $5.5 million risk was reduced to a final purchase of just over $300,000, equating to a 95% cost reduction.
  • Enhanced Contract Understanding: Infrastrukt Group gained a deeper understanding of their contracts, which improved their standing with SAP and colored future interactions positively.

Through JNC’s support, Infrastrukt Group not only mitigated immediate risks but also established a robust framework for future software license management, positioning them as knowledgeable and proactive in their dealings with SAP.

*Protecting our clients’ confidence is of utmost importance at JNC. While our case studies are based on true projects, we have used fictitious names and removed or changed other identifiable details

Author: Katie Sweny
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