Licensing Overview SAP S/4HANA Cloud

1 PUBLICMay 2019 Licensing Overview SAP S/4 HANAon-premiseLicensing Overview SAP S/4 HANAC loudMichael Deller, Dirk KaestnerGlobal S/4 HANA Solution ManagementSession ID #826512 PUBLIC 2018 SAP SE or an SAP affiliate company. All rights reserved. Take the Session want to hear from you! Be sure to complete the session evaluation on the SAPPHIRE NOW and ASUG Annual Conference mobile 2018 SAP SE or an SAP affiliate company. All rights reserved. Access the slides from 2019 ASUG Annual Conference here: Materials4 PUBLIC 2018 SAP SE or an SAP affiliate company. All rights reserved. Let s Be connected. Share your SAP experiences anytime, anywhere. Join the ASUG conversation on social media: @ASUG365 #ASUG5 PUBLIC 2018 SAP SE or an SAP affiliate company. All rights reserved. Q&AFor questions after this session, contact us:at our SAPPHIRE booth in the Digital Core / S/4 HANA areaor here:Michael 2018 SAP SE or an SAP affiliate company.

2 All rights reserved. IntroductionSAP S/4 HANA Cloud Licensing Direct User Access Industry & LoB Solutions Infrastructure ServicesIndirect Use / Digital AccessTopics: SAP S/4 HANA Cloud Licensing Overview7 PUBLIC 2019 SAP SE or an SAP affiliate company. All rights reserved. SAP sKey SAPPHIRE Messages 2016/20172016 OnePlatform2017 Intelligent ERPC/4 HANASAP HANA Data management Suite2018 SAP S/4 HANA Cloud Licensing Direct User Access Industry & LoB Solutions Digital Access Infrastructure Services10 PUBLIC 2018 SAP SE or an SAP affiliate company. All rights reserved. Direct User Access to the Digital CoreDigital Access (aka Indirect Use, via APIs)Solution Add-OnsInfrastructure ServicesSelf-Serve UseFeaturesCore Use FeaturesAdvanced UseFeatures Premium capabilities Specialized processCashMgmtReal Spend* Product subscription gives customer access to S/4 HANA Cloud API Enablement Package** SAP to SAP integration included as part of core pricingIncludedOptional100 GB2 tenants Incremental memory extension Disaster Recovery Differentiated tenants Preferred CareProductionTenantQuality TenantSpecialized TenantMonetizedacross all APIsMonetize partner appsvia revenue shareThe 4 Dimensions of S/4 HANA Cloud Licensing (subscription)S/4 HANA Cloud11 PUBLIC 2018 SAP SE or an SAP affiliate company.

3 All rights reserved. SAP S/4 HANA Cloud , single tenant editionSAP S/4 HANA(On-premise managed by Cloud providers or customers)SAP S/4 HANA(Private Cloud managed by SAP) Cloud ERP*ERP in the CloudERP OPSAP S/4 HANA CloudOne SAP S/4 HANA: the right solution for each customer Cloud journeyHighly standardized, multi-tenant Cloud services covering selected LoB-and industry scenarios and a comprehensive ERP scope Rapid innovation at the lowest TCO Standardization, TCO and scalability of the Cloud combined with the full functional scope, extensibility and reach of the S/4 HANA solutionCloud standardization at attractive TCOI ndividually sized infrastructure and application management services moving your system to the next generationYour SAP guided elevation to the public cloudStandardized next generation ERP solution that can be run and extended according to customer preferencesNext generation ERP system for on premise use*according to Gartner Cloud (SaaS) Definition12 PUBLIC 2018 SAP SE or an SAP affiliate company.

4 All rights reserved. SAP S/4 HANA Cloud , single tenant editionSAP S/4 HANAC loud ERP*ERP in the CloudSAP S/4 HANA CloudOne SAP S/4 HANA: the right solution for each customer Cloud journeyImplementationGreenfield with data migrationGreenfield with data and configurationmigrationGreenfield or conversion ofexisting implementationsFunctional ScopeBusiness configuration of standardized core ERP and select LOB processesFull functional S/4 HANA scopeof core ERP and extended LOB and industry processesFull functional S/4 HANA scopeof core ERP and extended LOB and industry processesIndustriesSupportedIn-depth support for professional services and component manufacturing; more industries on roadmapAll industries supportedAll industries supportedExtensibilityS/4 HANA Extensibility Framework and extensions via SCP, using whitelisted APIsS/4 HANA Extensibility Framework and extensions via SCP, with full extensibility optionCustomization, modification, and extensibilitypossibleInnovation CycleQuarterlyUp to 2 upgrades a yearAnnual.

5 Speed of adoption on customers scheduleDeploymentBenefitsMulti-tenant environment, Lowest TCO and fastest time to valueSingle-tenant environmentLow TCO and fast time to valueCustomer controlled deployment and implementation effortsLicensingSubscriptionlicensingSub scriptionlicensingBYOL + infrastructure subscriptionInfrastructureShared public cloudDedicated system landscape on Cloud infrastructureCustomer specific system landscapeRuns on SAP HANA Enterprise Cloud *according to Gartner Cloud (SaaS) Definition13 PUBLIC 2018 SAP SE or an SAP affiliate company. All rights reserved. SAP S/4 HANA Cloud Licensing MultiTenant EditionDetails on Direct User Access to Digital CoreSAP S/4 HANA Cloud for advanced useThis license allows performing all role required operations including self-service configuration S/4 HANA Cloud for core use External Processing Inspection Planning Inventory Analytics andControl Just-in-time Inbound Processing Kanban Maintenance Planning & Scheduling Product Development Foundation Production Control Production Execution Project Financial Control Quality Engineering Quality Improvement Quality Inspection Sales Order management and Processing Service Order management Subcontracting+ capabilities of S/4 HANA Cloud for self-service useSAP S/4 HANA Cloud for self-service use Available to Promise Delivery management Goods Movement Maintenance Execution Material Requirements Planning Production

6 Control Production Execution Self-Service Requisitioning Time Sheet Transportation management Warehouse management 14 PUBLIC 2018 SAP SE or an SAP affiliate company. All rights reserved. SAP S/4 HANA Cloud 1902 User Capabilities for MultiTenant EditionFeature Scope DescriptionPublicly available on 4: scope of S/4 HANA Cloud for Enterprise ManagementChapter 5: scope of S/4 HANA Cloud LoB-and Industry Solutions15 PUBLIC 2018 SAP SE or an SAP affiliate company. All rights reserved. SAP S/4 HANA Cloud Licensing SingleTenant EditionDetails on Direct User Access to Digital CoreSAP S/4 HANA Cloud for advanced useThis license allows performing all role required operations, including management and system administration S/4 HANA Cloud for core use External Processing Inspection Planning Inventory Analytics and Control Just-in-time Inbound Processing Kanban Maintenance Planning & Scheduling Multi-Channel Customer Engagement Opportunity management Product Development Foundation Production BOM management Production Control Project Financial Control Project Logistics Control Quality Engineering Quality Improvement Quality Inspection Recipe/Routing management Repetitive Manufacturing SAP S/4 HANA Cloud for self-serve use Available to Promise Delivery management Goods Movement Maintenance Execution Material Requirements Planning Organizational management Production Control Production Execution Self-Service Requisitioning Time Sheet Transportation management Warehouse management Returnable Packaging Logistics

7 Sales Lead management Sales Order management and Processing Service Billing & Settlement Service Fulfilment Service Request management Service Order management Subcontracting Variant Configuration Warranty management + capabilities of S/4 HANA Cloud for self-service use16 PUBLIC 2018 SAP SE or an SAP affiliate company. All rights reserved. SAP S/4 HANA 1809 Solution Capabilities for SingleTenant EditionFeature Scope DescriptionPublicly available on 2: scope of S/4 HANA Enterprise ManagementChapter 3, 4: scope of S/4 HANA LoB-and Industry Solutions17 PUBLIC 2018 SAP SE or an SAP affiliate company. All rights reserved. SAP S/4 HANA Cloud LicensingLicensing User Access to Digital Core via Full Usage EquivalentsSales Bag: ERP FinancialsFull Usage Equivalents0,5 SAP Developer User1S/4 HANA for advanced use3S/4 HANA forcoreuse30S/4 HANAfor self-service use= Full Usage Equivalent is a kind of flexible user and can be used for all type of users Different user types can be converted with specific ratio in FUE Concept of Full Usage Equivalents currently available for S/4 HANA Cloud , single tenant edition SAP plans to extend this concept also to S/4 HANA CloudExample how to use the FUE for different user types40 Prof Users= 40 FUE75 Functional Users = 25 FUE270 Productivity Users= 9 FUE------------------------------------- --------------------SUM= 74 FUE S/4 HANA Cloud usertypes18 PUBLIC 2018 SAP SE or an SAP affiliate company.

8 All rights reserved. By adding up all user types customers can reach a higher tier and a better priceExample:Customers benefit from the FUE modelFUE can be seen as flexible usersCustomer can re-allocate their users to avoid shelf-ware during their lifecycleExample:License Material# usersFUE ratio# FUEsTier S/4 HANA Cloud Advanced Use701:1701S/4 HANA Cloud Core Use2101:3702S/4 HANA Cloud Self-Serve Use6001:30202 License Material# FUEsTier S/4 HANA Cloud for Enterprise Management1602 User type# usersFUE ratio# FUEsSwap FUEsSwap UsersAdvanced Use701:170-10-10 Core Use2101:370+10+30 Self-Serve Use6001:3020 User type# usersFUE ratio# FUEsAdvanced Use601:160 Core Use2401:380 Self-Serve Use6001:30202018 Licensing Model2019 Licensing ModelBefore re-allocationAfter re-allocationIndirect Use / Digital Access20 PUBLIC 2018 SAP SE or an SAP affiliate company. All rights reserved.

9 Use of ERP and types of accessOne definition of use and three types of accessDigital CoreSAP ERP3rdParty CRM3rdParty Platform3rdParty ApplicationNon-SAP Custom FrontendSAP Customer Experience21 PUBLIC 2018 SAP SE or an SAP affiliate company. All rights reserved. Technology landscape is evolving and so is the way customers access ERPI ndirect/Digital Access is growing due to proliferation of devices, machine learning, AI, Use in 20thCentury DigitalCoreSAP APPSAP APPSAP APPSAP APPSAP APPERP Use in 21stCentury SAP ERP3rdParty CRM3rdParty PlatformNon-SAP Custom FrontendDigital CoreSAP APPSAP APPSAP APPSAP ERP3rdParty ApplicationNon-SAP Custom Frontend3rdParty Application3rdParty Application22 PUBLIC 2018 SAP SE or an SAP affiliate company. All rights reserved. SAP is modernizing ERP pricingDirect and SAP Application Access remains unchanged, new pricing model for Indirect/Digital Access No additional ERP licenseneeded1 User-BasedLegacy Model New ModelAvailable April 2018 OnwardsOutcome-Based Document LicenseDigital CoreDigital CoreUser-Based (Primarily)User-Based User License User License Order License Sales and Service Orders Purchase Orders User License Noadditional ERP licenseneeded1 SAP ERPSAP ERP1 SAP applications refer to line of business and industry applications ( Cloud and on premise), as well as SAP Solution Extensions containing the required measurement does not apply to technology solutions, such as platform, database, middleware integration and Enterprise Information management .

10 Provided ERP is otherwise licensed, no additional ERP User licenseis needed for use resulting from access byproperly licensed SAP applications. 23 PUBLIC 2018 SAP SE or an SAP affiliate company. All rights reserved. NEW Indirect | Digital Access LicensedUsingDocumentsNine document types that represent system generated records and cover most valued outcomes from SAP ERP. Document TypesMultiplier(Document (#) * Multiplier) + .. + (Document (#) * Multiplier)Where (#) is the Document Type from 1-9 License CalculationLicense calculation based on initial Document createdRead, Update, or Delete Documents are not counted Sales Document (counted at line item level) Invoice Document (counted at line item level) Purchase Document (counted at line item level) Service & Maintenance Document Manufacturing Document Quality management Document Time management Document Financial Document (counted at line item level) Material Document (counted at line item level)3rdParty CRM3rdParty Platform3rdParty ApplicationNon-SAP Custom Frontend24 PUBLIC 2018 SAP SE or an SAP affiliate company.