Frequently Asked Questions

SAP® BUSINESS ONE

Version 25/06/2010 License Validation Service
SAP Business One Partners

What is the License The License Validation Service (LVS) helps ensure that SAP Business One customers adhere to
Validation Service all their agreed licensing and usage terms.
about? It supports SAP Business One Channel Partners in identifying and proactively resolving unexpected
license issues for any SAP Business One customer. At the same time, it helps partners prepare to upgrade
customers to SAP Business One 8.8.

Why is SAP With the mass shipment of SAP Business One 8.8, SAP wants to make sure that customers are properly
introducing the License prepared for the upgrade to SAP Business One 8.8 (find more details on the new release here).
Validation Service This includes a license validation to avoid situations where customers upgrading from SAP Business One
now? 2007 (or before) to 8.8 cannot use the functionality previously available to them, as the Limited User
concept is technically implemented with SAP Business One 8.8. Therefore, the license validation is
particularly relevant for users who have unintentionally overused the functionality of a Limited User.
At the same time, the license validation identifies if Named Users are actually collective users (i.e., “dual
log ins”/concurrent usage); i.e., one user ID (=Named User) is used by different persons. This is relevant
for any SAP Business One customer.
Note: Per partner request, a user can log on twice with the same user ID assuming it is only used by the
same user. Two different users on the same ID is not covered by the SAP Business One licensing and
usage terms.

Is SAP launching the No. SAP has extensive experience running license validations (including for SAP ERP and SAP Business
License Validation All-in-One customers). We therefore know that the vast majority of our customers are adhering to our
Service because of licensing and usage terms. In most cases where customers and partners don’t comply, it happens
customers or partners unintentionally. As mentioned above, we are launching the License Validation Service now because of the
cheating? mass shipment of SAP Business One 8.8.

What is in it for me as a Partners benefit in several key ways:

partner? 1. Use the License Validation Service to get in touch with your customers on a regular basis, to run
a system health check, to position new features like the SAP Business One remote support
platform, or to position new versions such as SAP Business One 8.8.
2. In the discussion with your customer on their user licenses, you will quickly identify any upsell
potential (either upgrade Limited Users to Professional Users, or sell additional users). Selling
into your installed base allows you to increase your revenue with minimal costs. Successful
partners make 30% or more of their annual revenue by selling into their installed base!
3. Performing a license validation on a regular basis allows you to prevent unnecessary escalations
when customers upgrading to SAP Business One 8.8 suddenly can no longer use their expected
functionality.
4. With collective user IDs (“dual log ins”/concurrent usage), customers risk losing control of their
systems as they cannot track who actually accesses and uses them. This issue can be identified
during a license validation.
5. The License Validation Service ensures that your customers remain compliant with SAP Business
One license and usage terms.

Confidential Page 1 28/06/2010For Internal Use Only 6

6/28/2010For Internal Use OnlyConfidential Page 1 28/06/2010For Internal Use Only Page: 1

or Internal Use Only - Confidential616/28/20106

License Validation Service

Why should my customer Despite the possible legal obligation (see section “Contractual Questions” below), there are also good
run a license validation? business reasons for a customer to run a license validation:
1. Running the License Validation Service on a regular basis avoids unnecessary escalations during
the upgrade to SAP Business One 8.8 due to license issues.
2. The customer gets a detailed understanding of who actually is using SAP Business One. It helps to
prevent customers running into business issues because they have lost control of who is accessing
their system.
3. The License Validation Service ensures that your customers remain compliant with SAP Business
One license and usage terms.

How does SAP support First, SAP is providing you with an easy-to-install and implement License Validation Service tool, allowing
me in the license you to quickly identify if your SAP Business One customers are adhering to their agreed licensing and
validation? usage terms.

Second, contact your SAP Channel Manager to see if a promotion is available for such installed-base sales.

Third, please note that we recently reduced the price to upgrade a Limited Logistic or Limited Financial User
to a Professional User; the cost has never been lower to upgrade a Limited User to a Professional User!

What exactly is my task SAP Business One partners need to complete the following five steps:
as Channel Partner? 1. Introduce the license validation as a new annual service to all your customers. You may use the
provided mail templates for your customer communication.
2. Arrange a meeting with your customers and install the License Validation Service tool. Once the
tool has been installed and activated, arrange a license validation meeting with your customer
(e.g., in 4-6 weeks as it is vital to get a real-life picture on SAP Business One usage). Preferably
the meeting should be onsite, as it allows you to position additional services (see question “What is
in it for me as a partner?”)
3. A few days before the license validation meeting takes place, launch the Report Viewer and
analyze the results. Compare them with the licensed users according to the contract. Do the
following checks:
a. License Requirement Report: Are the numbers in synch with the actually licensed
numbers, or is the customer apparently overusing Limited Users?
b. Concurrent Access Report: Does the report indicate that any Named Users are used as
collective users?
4. In the customer meeting:
a. If any of the questions above are answered with “yes”, then please use the customer
meeting to discuss the following:
i. Use the License Requirement Report results to initiate a discussion about the
functionality coverage of a Limited User. Use the License Comparison Chart on
the SAP Channel Partner Portal to explain the user types in detail.
ii. Use the Concurrent Access Report to discuss if the customer is using Named
Users as collective users.

For SAP Business One Partners Only Page: 2 Last Updated: 28/06/2010
License Validation Service

iii. In the end, come to an agreement with the customer either by buying the
respective users and/or user upgrades, or by complying with the SAP Business
One licensing and usage terms (i.e., “one time good behavior agreement”). You
may want to check with your SAP Business One contact upfront if any special
discounts are available for such installed-base sales.
b. If the answer is no to both questions above, then please use the meeting to inform the
customer that he is in line with the SAP Business One license and usage terms.
c. Remind your customer that you run such a license validation at least once per year.
5. Finalize the process by sharing the Summary License Requirement Report and the agreed
customer solutions / agreements, if applicable, with your SAP Business One contact.

Is the License No. The License Validation Service is relevant for any customer to make sure they comply with the SAP
Validation Service only Business One licensing and usage terms. Therefore, the License Validation Service is a permanent service
relevant for customers that should be run at least once per year, with every customer.
upgrading to SAP
Business One 8.8?

Will SAP run license In accordance with the SAP Business One partner agreement (see question “What is the contractual basis
validations on their for the license validation for me as partner?”), SAP reserves the right to run the license validation.
own?

How can I inform SAP Simply share the Summary License Requirement Report created by the License Validation Service tool with
once a license your local SAP Channel Manager.
validation has taken
place?

Contractual
Questions

What is the contractual The License Validation Service is covered in Exhibit 1 of the SAP PartnerEdge VAR Specific Terms, Article
basis for the license 10, “The PARTNER’s specific duties”: “3. The PARTNER undertakes to carry out system measurements of
validation for me as its End Users’ systems at SAP’s request in order to measure the utilization of the Software by the End-
partner? User and to make the logs available to SAP. SAP must make the necessary tools available. The parties
will negotiate in good faith the commercial terms for such services. In addition, SAP or any third party
authorized by SAP shall be entitled to carry out such system measurements at the systems of the
PARTNER´s customers, directly. For this purpose PARTNER shall obtain the approval of the End User.”

For SAP Business One Partners Only Page: 3 Last Updated: 28/06/2010
License Validation Service

What is the contractual Please check the end-user license agreement (EULA), section 2.1 “Grant of License”: Any individuals
basis for the license directly or indirectly accessing the Software on behalf of Licensee, its Affiliates or Business Third Parties
validation for a must be licensed as Named Users. The maximum number of Named Users licensed to directly or
customer? indirectly access the Software, and/or Third Party Database, shall be as specified in the authorized order
form submitted by Licensee to Licensor for marketing and distribution of the Software.”

In cases where a customer has a EULA with SAP (North America, Asia Pacific including Japan but
excluding India), the license validation is part of the EULA:
Section 2.2: “….SAP shall be permitted, (at least once annually and in accordance with SAP standard
procedures) to audit and verify the usage of the SAP Proprietary Information. In the event an audit reveals
that Licensee underpaid License and/or Maintenance Fees to SAP or the SAP Reseller, Licensee shall pay
such underpaid fees based on SAP’s list of prices and conditions in effect at the time of the audit.”

In cases where a customer has an end-user license agreement (EULA) with the partner (South and Latin
America, Europe, and India) it is the partner’s obligation to obtain the customer’s consent for running a
license validation.

What is the contractual See SAP Business One price list, chapter “III. Terms and Conditions:”
basis for preventing “A Named User is an employee of a customer, its subsidiaries or an employee of business third parties
“dual log-ins”? authorized to access, directly or indirectly, the licensed SAP Business One Software. Concurrent usage is
not permitted.

What will happen if I The license validation is a contractual obligation of each partner.
don’t comply with the
License Validation
Service?

What will happen if one Customers not complying with the SAP Business One licensing and usage terms face legal consequences.
of my customers does This may result in all use of the software by the customer being deemed illegal (even for users and licenses
not comply with the not in direct violation).
licensing and usage
terms?

Who is the target group The License Validation Service is applicable to any customer running SAP Business One, regardless of
of the License whether the customer has an active maintenance contract. It is also applicable to any SAP Business One
Validation Service? customer regardless of the release.

For SAP Business One Partners Only Page: 4 Last Updated: 28/06/2010
License Validation Service

Questions on the
License Validation
Service tool

What is the License The free License Validation Service tool is an easy to install and implement add-on allowing you to check if
Validation Service your customer is adhering to the licensing and usage terms. As part of the SAP Business One 8.8 roll-out,
tool? the tool assists you in the upgrade of SAP Business One 2007 to 8.8 by identifying and supporting
resolution of license issues prior to implementation.

The tool consists of a runtime application which needs to be installed on the customer database, and a
report viewer allowing you and the customer to review the actual use of SAP Business One. The report
viewer can be launched remotely.

The tool is available on SAP’s Community Network at: http://www.sdn.sap.com/irj/sdn/businessone.

What does the tool Basically, the tool delivers three kinds of reports:
address? 1. License Requirement Report: Displays the access dates and required license type for each user
accessing the specified database. This report allows you to identify how many SAP Business One
Limited Users and how many Professional Users would be required. This report is relevant for any
SAP Business One customer on release 2007 or before.
2. Concurrent Access Report: Displays peak concurrent database access, based on SQL logins. Up
to 10 peak usage days are listed in the report, along with the time and number of users at peak
usage. This report allows you to identify if Named Users are actually collective users (“dual log in”).
This report is relevant for any SAP Business One customer.
3. Summary License Requirement Report: Displays the number and type of licenses required for all
users across all databases, based on prior usage. This report is to be shared with SAP upon
completion of the License Validation Service for each account.
For more details, please refer to the Installation Guide available as part of the tool download.

What exactly does the The tool provides an overview of the required number of Limited and Professional Users, plus an indication
tool deliver? of user IDs being used by multiple individuals. The reporting helps partners initiate a discussion with
customers about their SAP Business One usage.

How long does it take The tool is very easy to install and should require limited effort on your side. Basically, it should amount to
to implement? 30 to 60 minutes per customer.

Will the tool disrupt the Not at all. You install the tool like any other SAP Business One add-on. Once started, it runs in the
customer’s business? background. Customers don’t experience any negative implication on functionality or performance of SAP
Business One.

For SAP Business One Partners Only Page: 5 Last Updated: 28/06/2010
License Validation Service

Can I install the tool You must notify your customer before installing.
without asking the
customer?

Which SAP Business The tool can be installed with SAP Business One 2007 and 8.8.
One versions are
supported by the tool?

Is there any issue with The tool operates within the agreed SAP Business One licensing and usage terms. For more information on
data protection the content of the reports, see the Report Viewer guide available as part of the tool download.
regulations?

What are the future While the tool is currently delivered as an add-on, SAP’s intent is to integrate it into the core of SAP
plans of the tool? Business One, reflecting that license validation is part of the partner’s contractual obligation.

For SAP Business One Partners Only Page: 6 Last Updated: 28/06/2010