Digital access changed the indirect access economics
SAP introduced the digital access model to convert indirect access from named user pricing to document based pricing. For some customers, the conversion produces material savings. For other customers, the conversion locks in a cost structure that the customer would not otherwise accept. The decision is not technical, it is commercial and contractual, and the right answer depends on the customer document volume profile.
This article walks through the conversion decision framework, the document categorization that determines pricing, the savings analysis at typical Fortune 500 scale, and the contractual considerations that shape the conversion contract. Cross reference our indirect access detection guide and the indirect access expertise page.
The conversion decision in summary
The conversion decision compares the named user cost of indirect access today with the document based cost under digital access. If the document volume is high relative to the named user count of users with indirect access, the conversion typically produces savings. If the document volume is low, the named user model typically remains less expensive.
The decision is rarely linear. SAP typically combines the conversion with a contract amendment that extends to other licensing terms. The customer evaluation must therefore include both the direct conversion math and the indirect consequences of the amended contract. The enterprise agreement guide covers the broader amendment dynamics.
Document categorization and pricing
Digital access prices documents by category. The categories cover sales documents, purchase documents, financial documents, manufacturing documents, time and material documents, and a residual category. Each category carries a unit price that varies by contract. The cumulative price depends on customer specific volume mix.
Customers who do not analyze the category mix before negotiating conversion typically accept SAP default rates and discover, post conversion, that the rates were unfavorable for the customer mix. Customers who analyze the mix typically negotiate category specific rates that materially improve the conversion outcome. Cross reference our LAW measurement guide.
Digital access conversion is a contractual decision dressed as a pricing decision. The provisions that surround the unit prices typically shape the customer cost structure more than the unit prices themselves.
Savings analysis and the scenarios
The savings analysis depends on three variables. Document volume by category. Named user count and category mix of users with indirect access. SAP discount on both the named user list and the digital access list. In typical Fortune 500 scenarios with substantial indirect access exposure, conversion produces savings of 15 to 35 percent over a five year horizon.
The savings range varies materially by industry. Retail and consumer products customers with high document volumes typically save at the upper end of the range. Heavy industry customers with lower document volumes but higher complexity typically save at the lower end of the range, and in some scenarios the conversion is cost negative. The industry licensing pillar covers the industry patterns.