Fifty shades of compliance by Mark Bartrick, Forrester Research

Premier Sponsor ITAM Review IBM & SAP Seminar, London 28th April 2015

Of Compliance

By I O Ewe

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Mark Bartrick

Principle Consultant Software Contract Negotiation

[email protected]

ITAM Review IBM & SAP Seminar, London 28th April 2015

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Why non-compliance occurs


Bad Buying Bad Behaviours

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Minimising Bad Behaviours


•  Education •  Making sure your users know the rules/regulations

•  Using good SAM tools •  Using technology to identify non-compliance

•  Regular self-policing •  Audit yourself – find the pain before your vendors do

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Minimising Bad Buying


•  Know your vendor •  Know your licensing options better than they do

•  Negotiate away vague or inappropriate licensing definitions/terminology

•  Avoid ‘grey’ licensing

•  Negotiate in exceptions and exemptions •  If they won’t change their standard contractual

wording, then negotiate in some Addendums

•  Demand better pricing mechanisms •  Don’t assume that your software vendor’s price book

is written in stone

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Click to edit


Know Your vendor

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How many ways are there to license SAP products?


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Negotiate Away Vague or inappropriate Licensing Definitions/

Terminology


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What is a named user?


Three main user types (but there can be many more) •  Professional User •  Limited Professional User •  Employee User

•  e.g, Limited Professional User is a named user who is authorised to perform limited operational roles supported by the licensed software

•  Just to confuse matters, a User can be all three types at once: •  Reads reports from BI system •  Updates ERP stock system •  Approves invoices

•  Do you classify by amount of activity or number of different activities or the type of activity?

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Negotiate in Exceptions and Exemptions


Addendums is the place to exclude certain user types or include new user types, as well as a place to better define indirect access

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Indirect access (SAP’s #1 audit focus)


‘Named users are also upstream and intermediary technical systems that exchange information with the SAP software system, as well as the users of those systems, if users exchange information with the SAP software in dialog or prompt mode. It makes no difference whether the software is accessed directly or indirectly’. Source: SAP System Measurement Guide, Version 7

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Great apps can get you in trouble with SAP’s indirect access compliance

Make sure you understand your exposure here & ensure your SAM tools include ways of measuring indirect access


Great technology can get you in trouble with SAP’s indirect access compliance

Make sure you understand your exposure here & make sure your SAM tools include ways to measure indirect access


SAP Audit defence

›  Best defence is offence • Educate users • Run best SAM tools • Audit yourself regularly

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Why Software Vendors Audit Users Forrester Report August 2013 “Software Audits: The Pain, The Shame, And The Gain”


SAP Audit defence

›  SAP’s audit clause – watch out for gotchas and negotiate your get-out-of-jail-frees:

• Annually, or more/less often • Metrics, as per their Price Book or your Appendices • Underpaid fees, as agreed or at current list price • Underpaid maintenance fees, backdated for how

long •  If non-compliance is over 5% of estate, you may

have to pay for auditors time too

Premier Sponsor ITAM Review IBM & SAP Seminar, London 28th April 2015

Of Compliance

By Ewe O Me

Using SAP Audits to your advantage

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The upside of a SAP Audit


You may find unused SAP (shelfware) software that can be either: •  traded out (credited) against actual non-

compliance •  negotiated out during your next renewal as a

credit against new stuff •  Sold to brokers as used licenses (within Europe

only)

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One final reminder…..


Mark Bartrick

Principle Consultant Software Contract Negotiation

Forrester Research

[email protected]

Be compliant but don’t be submissive

In a grey world, everything is negotiable