An Overview of Licensing Options and Approaches
SAP Identity Access Governance (IAG) is an essential cloud-based solution designed to simplify and enhance access governance across heterogeneous IT landscapes. As organizations increasingly prioritize compliance and security, understanding the SAP IAG licensing model is critical for efficient resource management and cost optimization.
Introduction to SAP IAG
SAP IAG provides businesses with robust tools to manage user access, monitor compliance, and streamline identity governance processes. It is particularly beneficial for enterprises leveraging SAP systems and requiring integration with both cloud-based and on-premises solutions.
The Licensing Model
SAP adopts a subscription-based licensing model for IAG, reflecting the solution’s cloud-native architecture and its alignment with modern business needs. The licensing approach for SAP IAG is typically based on the following components:
User-Based Licensing / Enterprise Edition Model
The primary basis for licensing SAP IAG revolves around the number of users utilizing the solution. SAP categorizes users he Usage Metric is Monitored Users. The Usage is calculated on the basis of the number of unique Users that customers synchronize from their on-premises and/or cloud systems. The term unique refers would be if the user exists in 2 different systems, and the user ID is the same in each system the license is only counted as one.
Example –
- Users in Test – 1000
- Users in Prod – 1100
- As per License reports – customer has 1100 users (the highest number is considered for license determination.
Integration Licensing
Since SAP IAG integrates seamlessly with SAP Access Control and other governance platforms, organizations may need additional licenses for integration capabilities. These licenses facilitate the connection between the IAG module and broader identity and access management systems.
In summary, For the integration edition, the Usage Metric is Unique Type of Connection. Based on how many types of applications the customer connects to the software; the number of connections is calculated.
Example –
Customers have both test and production tenants.
SAP check both test and production tenants and take the total number of unique application types from both the tenants.
- Test – Ariba test, SF test
- Prod – Ariba prod, Concur prod, SF Prod
- License reports customer has 3 applications connected (Ariba, SF, Concur)
Factors Influencing Licensing Costs
Several factors can impact the total cost of implementing SAP IAG, including:
- Number of Users: As discussed, the number of active or named users directly influences licensing fees.
- Scope of Integration: The complexity of integrations with other systems, such as SAP Access Control or third-party applications, may affect pricing.
- Customizations: Customized configurations or additional features specific to an organization’s needs may incur extra charges.
Benefits of SAP IAG Licensing Model
The SAP IAG licensing model offers several advantages, making it a preferred choice for organizations worldwide:
- Flexibility: The subscription-based approach allows businesses to scale licenses up or down based on evolving needs.
- Cost Predictability: User-based pricing provides clear projections of costs, enabling better budget management.
- Modern Architecture: As a cloud-native solution, SAP IAG aligns with SaaS principles, reducing infrastructure expenses.
- Compliance Assurance: Licensing incorporates tools necessary for maintaining regulatory compliance across global landscapes.
Challenges and Considerations
While SAP IAG’s licensing model is designed to be flexible and scalable, organizations should consider potential challenges:
- Complexity: Understanding the nuances of user-based and consumption-based licensing can be overwhelming for companies new to SAP IAG.
- Cost Management: Organizations must monitor user activity and integration needs carefully to avoid unanticipated costs.
- Training Requirements: Adequate training is essential to ensure that teams can optimize their use of the platform under the chosen licensing model.
DataNub – Strategic Recommendations
To maximize the benefits of SAP IAG while minimizing costs, consider the following strategies:
- Conduct Thorough Assessment: Evaluate organizational needs and access governance requirements before selecting a licensing model.
- opt for Scalable Licensing: Choose a licensing tier that allows for growth, ensuring smooth adaptation as the organization expands.
- Leverage SAP Expertise: Consult SAP-certified experts or partners to navigate the complexities of licensing and integration.
- Utilize Usage Analytics: Monitor user engagement and transaction volumes regularly to make informed licensing adjustments.
Conclusion:
SAP IAG’s licensing model provides organizations with the flexibility, scalability, and security needed to manage identity access effectively in a dynamic IT landscape. By understanding the nuances of user-based and consumption-based pricing, businesses can align their licensing strategy with their operational goals, ensuring cost efficiency and compliance.
Whether you are an enterprise looking to strengthen your access governance framework or an organization exploring SAP solutions for the first time, the SAP IAG licensing model offers a robust way to optimize identity management without compromising on scalability or functionality.
Key Reference –
- SAP Note – https://me.sap.com/notes/3262845