One of the biggest mistakes we see clients make when they are negotiating a software license agreement with SAP is that they focus solely on pricing and discounts to the exclusion of other important issues contained in the SAP software license agreement.

Focusing solely on pricing while ignoring the other terms and conditions contained in the SAP software license agreement will result in unnecessary restrictions on your ability to use the software, increase the chances of breaching the agreement and actually increase the fees you will pay to SAP.

For example, securing a 40% discount off list but agreeing to an overly restrictive license grant that prevents you from allowing any third parties (including your affiliates, independent contractors and subsidiaries) to access the software unnecessarily increases the likelihood of an inadvertent breach which may result in the imposition of additional software license fees once you are audited by SAP.

Further, discounts aren’t always a good deal.  If you purchase additional software that won’t be used for some time simply becuase of a volume discount, you are paying maintenance on software that is sitting on a shelf. This increased maintenance spend may even cancel out any discount you have recived.

By negotiating an SAP software license agreement that accurately represents the way you will use and access the software and anticipates your future growth and needs, you decrease the likelihood of breaching the SAP software license agreement, increase your ability to comply with the software license agreement and reduce costs over the life of the license agreement.