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Best practices for IT service management

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Business change projects versus SAP licenses and subscriptions

Legal conditions for using the system

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An important issue that needs to be analysed during business reorganization are the legal conditions for using the SAP system, i.e. license rights granted by the software manufacturer. It is advisable to be particularly cautious and careful when checking the legal status of licenses, the scope of software use and the terms of their acquisition, so that you do not find yourself in a situation where you become the owner of a developed and well-managed SAP installation, but cannot use it due to lack of license rights. The same applies to subscriptions for SAP software available in the SaaS model.
 

The licensing issue is relatively simple in case of two entities using SAP merge. The entity established after the merger becomes the “heir" to the license rights of both merging companies to the extent provided by the agreement for each entity. When we carve out a new entity, in which, however, the parent company retains more than 50% of the shares, we can transfer the required part of the license to it. However, if we don’t retain a controlling stake in the new company, and we want to transfer the licenses on to it, we must ask in advance the software vendor for its consent.

The license conditions do not limit the possibility of extending the system to a new entity in the capital group. In this case, the scope of using the software is most often extended, requiring the purchase of additional licenses or subscriptions, if the software is a cloud-based solution. It remains the responsibility of the licensee to inform the software manufacturer of the change in legal status and to indicate the entity with which the license rights remain.

The situation is not obvious when the enterprise that doesn’t have the system acquires a controlling stake of the company which already has SAP and wants to use its system in the future. SAP is usually a vital company asset – including infrastructure, configuration, master data, the administrator and user competence and, of course, license rights. The use of the system by the new owner is subject to the approval of the software manufacturer, SAP company. Make sure that the manufacturer gives such consent. It is not obvious when the entity we acquire uses specific license terms applicable to its previous owner. In this case, the system manufacturer may refuse to grant consent, and therefore, if we want to use SAP software, we will be obliged to acquire software license rights.

The above remarks apply to standard contractual terms and conditions that may differ in individual contracts with SAP, therefore getting familiar with the license agreement in detail should be an element of each audit before the acquisition of any company. SNP as a Channel Partner under the SAP Partner Edge program authorizing the sale of SAP licenses and SAP subscriptions provides you with knowledge of the legal conditions for using the SAP system.

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    1. Personal data is processed pursuant to Article 6 (1) (a) of the Regulation of the European Parliament and of the Council (EU) 2016/679 of April 27, 2016 – the General Data Protection Regulation
    2. The data controller is SNP Poland Sp. z o.o. with its registered office in Złotniki, ul. Krzemowa 1 62-002 Suchy Las. Contact data of the Data Protection Supervisor: dpo.pl@snpgroup.com.
    3. Consent to data processing is voluntary, but necessary for contact. Consent may be withdrawn at any time without prejudice to the lawfulness of the processing carried out on the basis of consent prior to its withdrawal.
    4. The data will be processed for the purposes stated above and until this consent is withdrawn, and access to the data will be granted only to selected persons who are duly authorised to process it.
    5. Any person providing personal data shall have the right of access to and rectification, erasure, restriction of processing, the right to object to the processing and to the transfer of data, the right to restriction of processing and the right to object to the processing, the right to data transfer.
    6. Every person whose data is processed has the right to lodge a complaint with the supervisory authority, which is the President of the Personal Data Protection Office (ul. Stawki 2, 00-193 Warsaw).
    7. Personal data may be made available to other entities from the group that SNP Poland Sp. z o.o. is part of – also located outside the European Economic Area, for marketing purposes. SNP Poland ensures that the data provided to these entities is properly secured, and the person whose data is processed has the right to obtain a copy of the data provided and information on the location of the data provision.

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    62-002 Suchy Las near Poznań, Poland

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      1. Personal data is processed pursuant to Article 6 (1) (a) of the Regulation of the European Parliament and of the Council (EU) 2016/679 of April 27, 2016 – the General Data Protection Regulation
      2. The data controller is SNP Poland Sp. z o.o. with its registered office in Złotniki, ul. Krzemowa 1 62-002 Suchy Las. Contact data of the Data Protection Supervisor: dpo.pl@snpgroup.com.
      3. Consent to data processing is voluntary, but necessary for contact. Consent may be withdrawn at any time without prejudice to the lawfulness of the processing carried out on the basis of consent prior to its withdrawal.
      4. The data will be processed for the purposes stated above and until this consent is withdrawn, and access to the data will be granted only to selected persons who are duly authorised to process it.
      5. Any person providing personal data shall have the right of access to and rectification, erasure, restriction of processing, the right to object to the processing and to the transfer of data, the right to restriction of processing and the right to object to the processing, the right to data transfer.
      6. Every person whose data is processed has the right to lodge a complaint with the supervisory authority, which is the President of the Personal Data Protection Office (ul. Stawki 2, 00-193 Warsaw).
      7. Personal data may be made available to other entities from the group that SNP Poland Sp. z o.o. is part of – also located outside the European Economic Area, for marketing purposes. SNP Poland ensures that the data provided to these entities is properly secured, and the person whose data is processed has the right to obtain a copy of the data provided and information on the location of the data provision.

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