How we can help

S/4HANA is SAP’s next-generation application suite, representing an enhanced version of the classic ERP (Enterprise Resource Planning) Business Suite. JNC experts have guided numerous customers through their S/4HANA journey and possess extensive expertise in SAP licensing.

We can help you understand your options, cost implications, and migration pathways for your licenses to S/4HANA. Beyond technical reconfiguration, significant changes in licensing accompany S/4HANA. SAP regards it as a distinct product, not merely a legal successor to ECC (ERP Central Component). This presents an opportunity for your organization. Our consultants can assist in migrating your licenses in a commercially advantageous manner, enabling you to redirect previous investments into new ventures.

There are a myriad of questions we can help you answer:

  • What are the implications of migrating to S/4HANA cloud?
  • How can you transition your contract to S/4HANA?
  • How do you identify historical Terms and Conditions that need to be migrated to S/4HANA?
  • What are the implications of the new S/4HANA contractual T&Cs?
  • What will be the cost of implementing S/4HANA for your organization?
  • When is the optimal time to execute the contractual migration to S/4HANA?
Talk to our S/4HANA specialists
SAP S/4HANA Migration

When do you need SAP S/4HANA licensing support?

There are a variety of reasons why organizations choose to speak to a SAP licensing consultant when migrating to S/4HANA.

It is the perfect opportunity to reevaluate your SAP usage and to ensure you have the correct processes and procedures in place. 

We can ensure your new contract structure better benefits your organization.

Our consultants:

  • Provide peace of mind that your S/4HANA migration is cost-effective and aligned with your business goals
  • Benchmark your licenses against others to ensure you are paying the right price
  • Draw on extensive knowledge and experience, we help you navigate the complexities of this change.
  • Are 100% independent, ensuring our advice is in your best interests
  • Develop licensing strategies tailored to your organization’s individual needs for migrating to S/4HANA.
S/4HANA is coming. Are you prepared?

S/4HANA Preparation

A successful migration to S/4HANA demands thorough preparation.

Initially, we will assess your Effective License Position (ELP) by scrutinizing your existing licenses and contracts.

Next, we will delve into your planned roadmap, considering options such as S/4HANA, S/4HANA Cloud, or exploring alternative software solutions. We will also evaluate the commercial offerings provided by SAP, drawing on our experience with them. By forecasting your usage for the next 3-5 years, we can identify the most commercially advantageous time for your migration.

Finally, we’ll prepare your license model, transitioning it from ERP to S/4HANA. This will provide insights into contract costs, migration timing, and all other relevant details you need to know.

Third-party support

Some customers choose to move to third-party support as either a stopgap in their migration or as they plan to move away from SAP.

If you are contemplating terminating your support agreement with SAP and transitioning to a third-party provider, it is important to carefully assess your options.

Many providers claim to offer 50% cost savings compared to SAP’s support. We recommend thoroughly evaluating the pros and cons before making a decision. Our experts will assist in determining whether third-party support is a suitable solution and outline the potential implications of switching.

It is crucial to consider how SAP may respond if you choose to terminate your support contract. We will aid you in effectively communicating this message to SAP and guide on negotiating support terms.

Prior to making the switch, we can also assist in organizing your SAP landscape to avoid any unforeseen consequences.

Third-party support can be an excellent way to save costs. JNC understand the implications of this decision meaning we can help make the transition as smooth as possible with no hidden consequences.

RISE with SAP

Transitioning to the cloud is becoming increasingly important for businesses to stay current in today’s digital world. We appreciate that this can be both daunting and challenging.

Are you looking to transition to SAP S/4HANA Private Cloud? RISE with SAP is an enablement package from SAP tailored to help large enterprises migrate their existing ERP data, processes and capabilities to the cloud.

Experts in assessing the suitability of RISE for the individual needs of our clients, our consultants understand that customers opting for the Private Cloud prioritize security and need a comprehensive evaluation of available options. We assist customers in estimating the solution’s cost, supporting them throughout negotiations to identify optimal contractual clauses and manage deployment costs effectively.

Purchase your S/4HANA Private Cloud contract with confidence, securing the optimal number of cloud licenses at a competitive price for both present and future needs.

GROW with SAP

Transitioning to the cloud is becoming increasingly important for businesses to stay current in today’s digital world. We appreciate that this can be both daunting and challenging.

Are you looking to transition to SAP S/4HANA Public Cloud? GROW with SAP is an enablement package from SAP designed to support mid-sized enterprises on their digital transformation journeys.

SAP has revised its Public Cloud offering numerous times over the past few years. JNC is well-positioned to explain the current licensing model and its impact on your contracts. We meticulously review your current contract, aligning it with actual software usage to provide tailored advice on renegotiation or updates.

Purchase your S/4HANA Public Cloud contract with confidence, securing the optimal number of cloud licenses at a competitive price for both present and future needs.

S/4HANA is coming. Make sure you are prepared.

Working with JNC licensing experts is the best way to ensure your migration to S/4HANA is as cost-efficient and uncomplicated as possible.

Our process

How we ensure your SAP S/4HANA contracts are optimized and compliant

The JNC team has perfected a unique, proven process over decades of working with SAP. With our deep expertise in S/4HANA, we deliver tangible value to international organizations. Here’s how we can help you.

Optimize your SAP environment
Our process
2. Future states

We will work to understand your 3-5 year roadmap and your organization’s future goals. This ensures our strategy aligns with your long-term objectives. We will discuss your preferences regarding on-premise solutions, cloud-based options, and contract terms to provide tailored advice.

We never just accept things at face value. If we believe you are heading in the wrong direction, we will be upfront with you, offering guidance that considers the broader implications of your decisions.

3. S/4HANA cost model

Your requirements are mapped to S/4HANA licenses. We re-evaluate licenses with changed metrics, consider your future usage projections, and compare licensing options to create your S/4HANA Bill of Materials (BoM).

We will cost model both on-premise and cloud licensing structures based on the future state, including various RISE with SAP commercial models offered by SAP.

We conduct cost modeling and benchmarking for deployment and purchase scenarios, providing the commercial information necessary to drive your negotiations with SAP and secure the best possible deal for your business.

4. Strategy

Formulating a comprehensive strategy is crucial when preparing to approach SAP.

Our consultants will guide you through a detailed step-by-step process, highlighting the implications of your current strategy. We will provide continuous expert advice, ensuring you always have professional support.

By taking this approach, we ensure that the final deliverable is tailored to what is best for your unique scenario.

5. Negotiation

In this phase, a JNC expert will be by your side to execute your strategy effectively. We will benchmark any proposals from SAP against what we know other organizations have received, allowing us to determine if the offer is favorable or if it can be improved.

Our deep understanding of SAP enables us to identify the right levers to pull to enhance an offer. With our insights, you will know exactly what to say and when to say it to maximize your advantage.

JNC consultants will assist you in crafting responses to SAP, including emails and other communications, and prepare you for calls with them. We will provide briefings before and debriefings after each call, ensuring we can strategize key next steps in the ongoing negotiation process.

1. Baseline state

Before advising on any changes, we create a “baseline state”. We typically complete a full licensing analysis which includes reviewing contracts and evaluating usage of your packages and named users to compile an Effective Licensing Position.

Frequently Asked Questions

  • What should I consider when moving to S/4HANA?
  • Can I return to on-premise after moving to S/4HANA Cloud?
  • What can I negotiate with SAP in my S/4HANA / Cloud contract?
  • When should I approach SAP to discuss my S/4HANA transition?
  • How much will it cost to move to S/4HANA?

What should I consider when moving to S/4HANA?

Moving to S/4HANA requires careful consideration of both technical and contractual aspects. As an entirely new solution, you must decide whether S/4HANA Cloud or On-Premise is the right fit for your needs and budget, as well as plan your deployment strategy. This is a complex process, and without a proper roadmap, business case, and overall strategy, you risk incurring unnecessary costs during the migration.

Can I return to on-premise after moving to S/4HANA Cloud?

Technically, yes, you can revert to on-premise after moving to S/4HANA Cloud. However, if you have terminated your old contract entirely, you will need to repurchase all perpetual on-premise software at a significant cost.

Additionally, the initial investment in deploying the cloud will be wasted, and the costs associated with reverting to on-premise will be substantial. Due to the high expense of switching back to on-premise, JNC highly recommends thoroughly assessing whether the cloud is the right fit for your organization before making the transition.

What can I negotiate with SAP in my S/4HANA / Cloud contract?

Beneficial contractual clauses can be as valuable, if not more so, than a higher discount. Given that your S/4HANA contract represents your organization’s most significant SAP expenditure for the foreseeable future, it’s crucial to negotiate clauses that will be advantageous both now and in the future.

Consider terms that provide flexibility, protect against price increases, and offer favorable conditions for potential future changes in your SAP environment.

When should I approach SAP to discuss my S/4HANA transition?

SAP may have already reached out to you regarding your S/4HANA plans. It’s crucial to ensure that your organization’s roadmap is well-defined to avoid ill-fitting contracts or technical deployments.

You should approach SAP only after you have a clear understanding of your organization’s goals and have made a well-considered and justified decision about the transition. This preparation will enable more effective and beneficial negotiations.

How much will it cost to move to S/4HANA?

The cost of moving to S/4HANA depends significantly on your current software expenses. Generally, from a licensing perspective, transitioning to S/4HANA can increase costs by 20-30% or more. This estimate does not include the additional infrastructure and technical deployment expenses. Given that S/4HANA is a substantial investment, it is crucial for organizations to ensure they are making the right decision.

Assessing the Optimal S/4HANA Migration Strategy for a leading utilities provider

Latest Insight

Case Study

Our experts conducted a thorough re-evaluation of the client’s migration strategy, focusing on the feasibility and benefits of moving to the cloud. We provided a detailed analysis of the new contractual and licensing landscape, helping the client understand their options and make informed decisions. This reassessment ensured that the client’s strategy was aligned with SAP’s updated offerings and their own long-term business goals.

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