Purchasing SAP Cloud ERP access for your business is relatively simple and straightforward.
It isn’t as simple as paying per user, because different businesses need different software applications, and not every user requires the same amount of access.
But given the scope of SAP Cloud ERP, a full suite of applications that encompass all aspects of a business, no matter the specific needs and industry, the SAP licensing model actually isn’t that complicated. It certainly is easier than previous ERP licensing schemes, including the full-use equivalent licensing scheme SAP employed for its cloud offerings until recently.
At its core, SAP Cloud ERP is a subscription-based solution. Your business pays for monthly access on a per-user basis, and there are different levels of access depending on what the user needs. This ensures that you only pay for what you need now, but you still have a solution that can grow and meet the needs of your specific business in the future.
A CFO, for instance, needs more tools and access than a line employee in a manufacturing facility. So this CFO has more robust access. Similarly, the CIO entrusted with configuration and management of the overall solution requires extra access and tools beyond what even a CFO needs.
To keep licensing as simple as possible, given all the possible variations, SAP defines several different types of users. It then offers a basic and premium version for most user types, and businesses can supplement a user’s access further with add-on packages, data analytics packages, and AI functionality.
The applications access and pricing for a given user depend on the user’s role within your company. For simplicity, SAP groups roles into one of eight types:
At the most basic level, a self-service user is an employee who predominantly needs view-only access to company data and basic functionality for performing work.
Self-service users get read-only access, can approve workflows and perform self-service requisitioning, time sheet confirmations, inventory postings, and confirmation of executed tasks and hours worked. They can also handle system administrative tasks generally, and request and approve workflows, automations, and tasks within the system.
An Operational User is similar to a Self-Serve User, but with slightly more ability to perform basic operational tasks within the ERP system. This additional functionality includes sales and order processing, purchase order and supplier invoice processing, basic project management access, and inventory management.
Finance Users get access to a full suite of enterprise accounting tools, and also financial functions such as cash management, contract accounting and invoicing, advanced payment management, document reporting compliance, multi-bank connectivity, and market rate management, among other applications and functions critical for finance and accounting job roles.
A basic Finance User can be upgraded to a Premium Finance User to get access to additional tools and platforms useful for finance, including project and resource management, subscription billing, SAP Ariba Catalogs and Invoice Management, SAP Fiberglass Supplier Portal, SAP Enterprise Service Management, and Concur Expense management, among others.
Add-on packages can be added to a Finance User for additional functionality, including a consolidation and close add-on, a treasury and risk management add-on, and added compliance and control functions.
There is also a Finance Intelligence data analytics package that can be added, and an SAP Joule Premium for Finance package that supports this user with an AI copilot that can access and engage with your company’s financial data and applications on the user’s behalf.
A Supply Chain User gets access to all the tools needed for manufacturing and supply chain management. These include manufacturing engineering, production planning and scheduling, operations management, and performance management. This user also gets application tools for quality management that includes warehousing, logistics, product/service lifecycle management, and asset management, among others.
A basic Supply Chain User can be upgraded to a Premium Supply Chain user to get additional access to applications and tools for product compliance, environmental, health & safety, sustainability, and PLM integration.
Available add-ons for a Supply Chain User include supply chain planning, manufacturing execution, and asset and service management tools.
There is a Supply Chain Intelligence data analytics package that can be added for a supply chain user as well, and an SAP Joule Premium for Supply Chain Management AI copilot that can be added to assist with manufacturing and supply chain decision-making and tasks within the ERP solution.
A Procurement User gets access to SAP’s suite of strategic procurement applications for managing all aspects of procurement.
There is no premium version for this type of user, but there are add-ons that your business can grant to this type of user. These include a supplier risk add-on, a spend control tower, and category management functionality.
There is a Spend Intelligence package for helping with advanced procurement analytics that can be added as well to this type of user, and also an SAP Joule Premium for Spend AI copilot that can be added to assist with procurement analysis and execution.
A Human Resources User type covers employees who engage with human resource management and need access to SAP’s suite of core human resource tools. These robust HR applications support all common HR functions, both for smaller organizations and large enterprises with thousands of employees.
There’s no premium version for this user type, but there are add-ons that can be purchased for additional functionality around employee learning and development programs, pay for performance management, and talent acquisition.
Your company can add HR analytics with the SAP People Intelligence data package, and also enable an AI copilot for human resource operations with the SAP Joule Premium for Human Capital Management package.
A Sales and Service User gets access to the SAP Sales and Service Cloud, a complete backend solution for sales and support teams.
A basic Sales and Service User can be upgraded to also get access to the SAP Omni Channel B2B & B2C platform, which brings together all sales and service channels for unified communications and customer visibility.
There are add-ons that a Sales and Service User can also select for additional functionality. These include an enterprise service management add-on, a commerce add-on, and a marketing and loyalty add-on.
A Customer Intelligence data package can be added to this user type for advanced sales and support analytics, and the SAP Joule Premium for Customer Experience AI package can also empower a user with a sales-ready AI copilot that has access to customer data and sales/service tools.
The type of user who needs the most access to your SAP Cloud ERP system is your developer. Developers must not only have access to all parts of your applications backend, they also need developer tools for configuring, modifying and extending your SAP system.
A Developer User has full access to the applications and platforms within your SAP Cloud ERP, as well as developer tools such as the SAP Build low-code development environment, the SAP Integration Suite, and SAP Business Transformation Management, among other systems-focused tools.
Although there are some exceptions, SAP Cloud ERP licensing basically is the sum of all the user packages purchased, with a minimum of 25 line-of-business licenses required (these are the user types other than basic Self-Service Users and Operational Users).
The exceptions to this basic licensing strategy is additional costs when a business needs particularly high quotas for transaction volume, document and record storage, or AI use.
This licensing model, while not as simple as a flat fee or a basic per-user model, is remarkably easy given that it encompasses most applications your business needs despite company size and industry. You just define job role for a given employee, essentially, and choose basic or premium application access.
For more on SAP Cloud ERP licensing, a ballpark estimate of monthly spend to run the solution, or the specific functionality that comes with SAP Cloud ERP, contact one of our experienced consultants by calling us at (801) 642-0123 or by writing info@nbs-us.com. Let’s talk shop!