SAP Users Demand Clarity on Cloud Licenses to Facilitate Migration

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DSAG wants more transparency in cloud licenses to upgrade on-prem systems to the cloud.

The German SAP user group DSAG calls for more transparency in SAP’s cloud license models to make it easier for companies to migrate their on-prem systems to the cloud. According to chairman Jens Hungershausen, most SAP users see the cloud as the next step in their modernization, but complex licenses make this transition unnecessarily difficult.

From ECC to S/4hana Cloud

For many companies, the migration to the cloud starts with older systems such as SAP ECC or the classic Business Suite, and the on-premise version of S/4HANA. DSAG asks SAP to view cloud ERP as both public and private. “A successful cloud transformation requires a consistent architecture, with uniform business models, clear migration paths, and transparent license and discount models that are scalable,” says Hungershausen.

Demand for a Single Model

According to DSAG, the use of different license models for the Public and Private Edition of SAP Cloud ERP creates additional complexity, especially in hybrid or two-tier setups. The group wants a clear business model that encompasses both cloud forms. This would limit risks and make hybrid scenarios more efficient. SAP promises lower transformation costs and more agility, but according to DSAG, it’s not yet entirely clear why the switch to the new cloud world is worth that investment.