Sunday, July 10, 2016

SAP Application Value (SAV)

Recently there is a lot of noise between SAP customers running their SAP systems on Oracle. In case they obtain their Oracle license through SAP they will pay more for the Oracle license. The thing is that SAP renegotiated their agreement with the Oracle and as per new deal a cost of buying Oracle runtime licenses will be increased from 15 percent of SAV to 19 percent.

In regards to this usually there a term called “SAP application value (SAV)” mentioned. Reason is that the SAP is the basis for calculating database license fees for databases licensed through SAP. What is the SAP then? The SAV is defined as a sum of all named user licenses and all package licenses, excluding certain items defined in the SAP price list

In case of Oracle SAP sells Oracle license is an Application Specific Full Use (ASFU) or also called as Oracle runtime or OEM license. The license only license allows connect SAP software only to the Oracle DB with exception are 3rd party database admin tools. Oracle Enterprise Edition of the DB is needed for most of SAP apps.

The SAP price list is only known to their customers and partners however closer look to documents available like “SAP List of Prices and Conditions SAP Software and Support” shed at least some light into the issue. There are many types of licenses of SAP software itself. There are options like Package Licenses, Names Users Licenses, etc.

Now back to database cost issue. The price of the database license is calculated as a percentage of the SAP Application Value (SAV). So whatever amount is customer paying for SAP software (the SAV) then percentage of is payed to database vendor.

As Oracle DB is now 19% of the SAV and SAP HANA DB is 15% perhaps for some customers this can be a reason for migration to HANA DB. Perhaps ORACLE will do something about this…

More information:
581312 - Oracle database: Licensing restrictions
740897 - Info about the scope of the Oracle license; Required Oracle options
592393 - FAQ: Oracle
Oracle licensing via SAP

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