Why DAAP Exists and What It Means for SAP Indirect Access
SAP’s Digital Access Adoption Program (DAAP) was born out of a pressing challenge: the need for indirect access licensing.
Indirect access occurs when third-party systems or external users interact with SAP software (for example, an e-commerce website that creates orders in SAP).
Traditionally, SAP’s licensing model struggled with these scenarios; companies faced confusion and surprise bills when named-user licenses didn’t cover integrations.
Several high-profile cases resulted in companies being hit with hefty fees for such indirect use, eroding trust in SAP’s licensing approach.
To address this, SAP introduced digital access licensing, a model that charges by the number of documents (business transactions) created in SAP by external systems.
It promised more transparency than the old “every indirect user needs a license” rule.
However, switching to document-based licensing could increase costs for some customers if their integrations generated large volumes of transactions. Understandably, many SAP customers were hesitant to embrace it.
This is why SAP launched DAAP in 2019 to incentivize customers to adopt the new document-based model and preempt nasty audit disputes. DAAP is essentially SAP’s “carrot” to accompany the “stick” of compliance audits.
For customers, it offers a chance to legitimize all indirect usage at a steep discount and avoid future penalties. For SAP, it accelerates migration to a model they prefer (and ensures they get revenue for all those third-party interactions).
In short, DAAP exists to turn a licensing headache into a more predictable framework.
It means that indirect access, once a murky area, can be managed proactively if you play your cards right, but it also means SAP has a structured way to charge for what used to be a gray area. Understanding this context sets the stage for evaluating DAAP with a critical, informed eye.
How DAAP (Document-Based Licensing) Works
Under SAP’s document-based licensing approach, users are not counted; instead, digital documents are counted.
SAP has defined nine categories of documents (such as Sales Orders, Invoices, and Purchase Orders) that require digital access.
Whenever an external system triggers the creation of one of these documents in SAP, it counts toward your usage.
This model aligns licensing cost with actual business activity.
For example, if your customer portal creates 5,000 sales orders in SAP, you’d license those 5,000 documents (instead of needing a license for every portal user).
It’s a fairer approach in principle, but it requires careful tracking of document counts.
The Digital Access Adoption Program (DAAP) is SAP’s limited-time offering to ease customers into this model.
Here’s how it works:
- Huge Discounts Upfront: DAAP offers two main options for a one-time purchase of digital access licenses:
- Option A – “Growth”: You agree to license 115% of your current indirect document volume, but pay only for 15% of that volume. In effect, you get a built-in 15% extra capacity and about an 85% discount. This is ideal if you expect your transaction volumes to grow soon – it provides a buffer so you don’t immediately outgrow your licenses.
- Option B – “Upfront Discount”: You license 100% of your current measured usage, but at a 90% discount. In other words, you pay just 10% of the list price for the required digital access licenses. This yields the absolute lowest initial cost, assuming your usage stays relatively stable.
- “One Bite at the Apple”: DAAP is typically a one-time deal. You can make this heavily discounted purchase once. Any future needs (additional documents beyond those licensed) would be subject to regular pricing unless you negotiate otherwise. This means you should maximize the opportunity – accurately measure current usage and forecast growth so you buy enough in the DAAP window.
- License Conversion Credits: To avoid “double paying” for indirect use, SAP allows you to trade in certain existing licenses for credit toward your DAAP purchase. For example, if you previously purchased extra SAP named-user licenses or third-party interface licenses as a workaround for indirect access, you can return them. The value (investment) of those licenses becomes a credit reducing the cost of your new document licenses. This is SAP’s way of acknowledging past spend – you’re not punished for having tried to comply under the old model. A caution, though: SAP will usually insist that your overall maintenance fees don’t decrease. They’ll let you repurpose the money you’ve spent (and continue to spend on support) toward the new licenses, but they won’t give up that support revenue. Therefore, your unused licenses become useful in offsetting DAAP costs, but your annual support bill likely remains unchanged.
- Amnesty for Past Indirect Use: Perhaps one of the biggest draws – SAP promises that if you adopt digital access via DAAP, it will forgive all past unlicensed indirect usage. This means no compliance penalties for any documents you may have unknowingly been creating without a license in prior years. By signing on to DAAP and buying the licenses in the future, you “wipe the slate clean” for the past. This amnesty is crucial: it removes the fear that coming forward and changing models will result in a retrospective audit bill. If you don’t take DAAP and later get audited, SAP could charge back-maintenance and full price for those past usages – a frightening prospect.
In practice, DAAP is SAP, making the first round of digital access licensing extremely affordable and low-risk.
Think of it as a heavily discounted bulk buy coupled with a get-out-of-jail-free card for past behavior. Document-based licensing itself is a straightforward concept, but DAAP wraps it in a special package of incentives.
The key is to use those incentives wisely. The program has been extended multiple times (as of 2025, there’s no official end date, although SAP could sunset it with notice); however, you shouldn’t assume it will be around forever.
Make the most of it while it’s on the table.
In the next sections, we’ll discuss how to crunch the numbers, negotiate the terms, and steer clear of pitfalls when considering DAAP.
DAAP Cost Modeling and Risk Assessment
Adopting DAAP is not just a licensing decision – it’s a financial decision that warrants thorough analysis and consideration.
To determine if and how you should proceed, perform a DAAP financial modeling and risk assessment exercise.
Here’s how to approach it:
1. Measure Your Indirect Usage Baseline:
Start by quantifying how many digital access documents you’re generating. Use SAP’s Digital Access Estimation tool (or scripts, or an SAM tool) to get a count of documents by type per year.
Be thorough: include all production SAP systems and all integration points.
Double-check that “quiet” interfaces (like an old B2B gateway or a supplier portal) aren’t overlooked. This is your current usage baseline.
Treat the results with some skepticism. SAP’s measurement methodology might overcount in some cases (e.g., counting some documents that should be excluded). Clean the data as needed and validate it against known transactions.
2. Project Future Demand (Risk Modeling):
Indirect usage tends to grow as businesses digitize more processes. Engage with your IT and business units to forecast upcoming changes:
- Are you launching new sales channels (web stores, mobile apps) that will feed orders into SAP?
- Adding IoT sensors or automation that create maintenance or production records?
- Expecting a spike in transactions due to business growth or acquisitions?
Model a few scenarios (e.g., steady state, moderate growth, aggressive growth) to see how document volumes might increase over 3-5 years.
This DAAP risk modeling step is crucial; it highlights the risk of not having enough licenses if things take off, and conversely, the risk of over-investing if your business contracts or shifts.
3. Compare Costs: DAAP vs. Status Quo vs. Alternatives:
Now compare your options financially:
- DAAP Adoption Cost: Calculate what you’d pay under DAAP for the needed licenses. For Options A or B, it’s essentially 10-15% of the list license price for the number of documents you currently need (with Option A being slightly higher in cost but providing extra capacity). Also factor in the annual support cost for those licenses (SAP typically charges 22% of the net license fee per year for support). While that support percentage is standard, because your net license fee is so deeply discounted, the actual support dollars are relatively low. Don’t forget to subtract any conversion credits if you plan to trade in existing licenses – that can significantly reduce the upfront cost. Summing up the license cost minus credits, plus N years of support, gives you the total cost of ownership for adopting DAAP.
- Status Quo Cost (Do Nothing for Now): If you decide not to adopt DAAP, what’s the financial risk? This is trickier to estimate, but it is important. Consider the scenario of an SAP audit or compliance engagement in one to two years. If you’re found out of compliance for indirect use at that time, SAP will charge the full list price for all those documents (no 90% discount anymore) and potentially backdate maintenance fees for the years you were using them unlicensed. For example, if you currently need 5,000 documents licensed and you wait, an audit could price those at 100% of the list price plus perhaps 2-3 years of maintenance on top – the bill could be an order of magnitude higher than the DAAP cost. Essentially, not adopting is “free” in the short term (you pay nothing now) but carries a contingent liability that could be massive. Estimate this liability in a few scenarios: maybe SAP doesn’t audit for 2 years and you’ve grown 20% by then – what would the penalty be? This is the risk cost of the status quo.
- Alternative Approaches: In some cases, alternatives exist. For example, perhaps you can technically restrict or monitor integrations to ensure minimal usage (reducing risk). Or perhaps you are one year away from moving to SAP’s RISE (cloud subscription), which may include digital access as part of the subscription. An alternative might be to negotiate a short-term interim solution or even a limited license now, just to cover that year. These alternatives will be highly specific to your situation, but brainstorm them and cost them out if relevant (though often, DAAP will outperform them if you truly have ongoing indirect usage).
4. Weigh the Intangibles:
Cost modeling isn’t only about direct dollars. Consider intangible factors:
- Audit Uncertainty: Running “dark” (without proper licensing) means living under the sword of Damocles. The stress and distraction of a software audit, as well as the potential reputational risk within your company (no one likes telling the board about an unbudgeted compliance expense) – those have a cost too. DAAP provides certainty and peace of mind.
- Relationship with SAP: Proactively addressing indirect use via DAAP might improve your standing with SAP (they see you as a compliant, forward-thinking customer), possibly yielding better treatment in other negotiations. Conversely, being at odds over licensing can strain the partnership.
- Internal Compliance and Governance: Some organizations have policies regarding license compliance; intentionally choosing not to license known usage could conflict with their internal compliance culture.
5. Make an Informed Decision:
Once you have the numbers and risks, it often becomes clear that DAAP is financially attractive if you have any significant indirect usage.
For instance, if your analysis shows “DAAP would cost $200k over 3 years, whereas an audit later could cost $2 million,” the choice tilts toward DAAP.
On the other hand, if your indirect use is truly negligible or tightly controlled (say, a few hundred documents a year, and you plan to turn off that integration soon), you might decide to hold off and just monitor the situation.
The key is that this decision should be grounded in data and a clear understanding of risk appetite, rather than guesswork.
In summary, optimize your SAP DAAP cost analysis by modeling different scenarios and factoring in risk. Many companies find that, when quantified, the insurance value of DAAP far outweighs its heavily discounted cost.
However, run the numbers for your specific environment and ensure leadership understands both the costs and the risks associated with each path.
This will build a strong case (whichever way you go) and prepare you for the next step: negotiating with SAP if you decide to proceed.
Critical DAAP Contract Terms to Negotiate
Assuming you’ve decided to pursue DAAP, remember that what you’re buying is not just licenses, but peace of mind, and that only holds if the contract is ironclad.
Here are the critical DAAP contract terms you should negotiate and double-check before signing:
- Clearly Defined Scope of Coverage: The agreement must explicitly state what is being licensed. For example: “X number of Digital Access documents, covering the following document types…” List the document categories or use SAP’s terminology, and tie it to your measured usage. This clarifies what’s covered. Include wording that these licenses cover all indirect usage of those document types up to the quantity purchased. The goal is to prevent SAP from later claiming that some integration wasn’t covered or a specific type of document was excluded. Clarity here is your friend.
- Amnesty Clause (No Back-charges): It should be explicitly written that by entering this agreement, SAP waives any rights to claim past fees for indirect usage up to the date of signing. You want a written guarantee of no retrospective penalties. This is the “amnesty” we discussed, and it’s non-negotiable in the sense that if it’s not in writing, it effectively doesn’t exist. Ensure the contract language makes it bulletproof that past indirect use is forgiven.
- Conversion Credits and License Retirement: If you are trading in existing licenses for credit, detail this in the contract. List the specific licenses (e.g., 100 SAP Limited Professional User licenses, or an engine license like “SAP Open Hub”) that will be relinquished and the credit value applied to your DAAP purchase. Additionally, ensure that the contract notes your maintenance on those retired licenses is being transferred to the new licenses (or otherwise handled according to the terms of the deal). This avoids any confusion where SAP’s system might try to bill you maintenance on the old licenses next year. Essentially, document the license conversion to ensure there’s no double maintenance and no dispute over what was given up and gained.
- DAAP Pricing Protection for Future Growth: One of the most important but often overlooked terms is what happens after you exhaust the licenses you’re buying now. Negotiate some form of pricing protection or a predetermined rate for additional documents in the future. For instance, you could include a clause that you may purchase additional digital access document packs at the same discount rate as DAAP (or at a fixed price per block). If you can get 90% off now, try to secure the ability to buy more at 90% off (or at least something far from the list price). If SAP resists an indefinite promise, consider negotiating a right of first purchase for a defined period (e.g., you can buy up to 20% more at the same discounted rate within the next 2 years if needed). The idea is to cap your exposure – you don’t want to face a situation where you grow a bit more and then have to pay full price because DAAP is over. Even a clause that “additional documents shall be made available at a 50% discount” is better than nothing (though aim higher, of course).
- Overage Allowance or True-Up Terms: Hand-in-hand with pricing protection is defining how overages are handled. If you slightly exceed your licensed document count, what happens? It’s wise to build in a cushion or a process. For example, negotiate that up to 10% overage in a year will be covered at no additional charge (effectively giving you some leeway), and beyond that, any overage will trigger a true-up purchase at the pre-agreed-upon discounted price. Alternatively, set an annual true-up mechanism: at the end of each year, if you exceed the limit, you’ll purchase additional licenses at the negotiated rate. The key is to avoid punitive measures or surprises; it should shift to a normal procurement conversation at known rates, not an audit drama.
- Locking Maintenance Rates and Increases: Ensure the standard support fee percentage is applied to the discounted license price, and that SAP can’t suddenly jack up that percentage. SAP typically charges 22% of the net license value per year for support – confirm this in the contract. Also, consider adding that maintenance will only increase in line with inflation or standard policies, without any excessive increases. (SAP has occasionally raised support fees globally, but you can’t control that easily; you can control that your maintenance base is the discounted price, which you already have if you buy at 10% of list – just verify it’s calculated correctly.)
- Alignment with Cloud Transition (if relevant): If you anticipate moving to SAP S/4HANA Cloud or RISE in a few years, negotiate how these licenses will be treated. Ideally, language should be included stating that if you migrate to an SAP cloud subscription, you can either terminate the unused portion of the on-premises Digital Access licenses or receive a credit for their value toward the cloud subscription. You don’t want to pay twice – once for DAAP and then again for cloud, which includes digital access. Even if SAP won’t give an outright credit commitment, at least have something in writing about discussing a good-faith conversion of this investment. The more you clarify now, the more leverage you will have later to avoid leaving money on the table.
- No Surprises in Definitions: Watch out for any references to documents or indirect use being defined by separate policy documents (like SAP notes or SAP’s “definition of indirect use”). If the contract states something like “as per SAP’s policy on indirect access,” request that the policy be attached or its language be frozen. You don’t want SAP to change its policy for counting documents later and apply it to you. Ideally, the contract should be self-contained in defining what counts and how it’s measured (including the version of the measurement tools or notes you used).
- Audit & Compliance Language: While you can’t delete SAP’s audit rights, you can clarify them. For example, if you’re on DAAP, ensure the contract states that compliance will be assessed against the document counts you licensed. Additionally, you may want to note that any audit will follow specific notice procedures, findings will be discussed, and an opportunity to purchase additional licenses will be provided before any penalties are imposed. Essentially, once you’ve done DAAP, the audit clause should become a formality as long as you stay within bounds – make sure the contract reinforces that narrative.
In summary, don’t accept SAP’s DAAP offer on a handshake and a smile. Every special term, discount, and assurance that’s part of the deal must be clearly stated in the four corners of the contract.
Involve your legal team and, if possible, a licensing expert to vet the language.
This is where being “vendor-skeptical” is healthy: assume that if a term can be interpreted two ways in the future, it will be interpreted in SAP’s favor unless you make it unambiguous now.
By negotiating solid contract terms, you turn DAAP into a long-term win instead of a potential trap.
DAAP Negotiation Playbook
Negotiating a DAAP deal is a strategic endeavor. You’re aiming to secure the best financial terms and protections for years to come.
Here’s a DAAP negotiation strategy playbook, step by step:
- Step 1: Internal Homework Before Talking to SAP – Preparation is everything. Before you even let SAP know you’re interested, do an internal deep dive. Inventory all systems and users indirectly accessing SAP (portals, middleware, third-party apps, even that Excel macro someone wrote that interfaces with SAP). Quantify the documents and understand their origin. This was covered in our cost modeling section, but it’s worth reiterating: go into negotiations armed with facts. It’s much harder for SAP to inflate numbers or push you around if you know your actual usage. Also, identify any existing license assets that could be leveraged (shelfware or licenses bought to cover indirect use). Essentially, get your baseline and ideal outcome crystal clear internally.
- Step 2: Build a Multi-Disciplinary Team – A successful DAAP negotiation needs input from IT, procurement, finance, and legal. Form your internal “SWAT team” for this negotiation. IT (or enterprise architecture) can articulate technical needs and confirm usage data. Procurement and sourcing can drive the commercial negotiation tactics. Finance can set budget guardrails and model ROI (e.g., what discount makes this worthwhile). Legal will ensure the contract language is sound. Having all parties aligned prevents last-minute derailments and demonstrates to SAP that your organization is serious and well-coordinated. It also helps you consider the trade-offs from all angles (cost, risk, and future flexibility).
- Step 3: Timing and Leverage – Choose the optimal moment to engage with SAP. When you negotiate, it can be as important as how. Vendors like SAP have sales cycles and targets. If you have an upcoming SAP purchase or renewal (like additional modules or an S/4HANA project), bundle your DAAP discussion into that – it increases your leverage because SAP sees more revenue on the table. Also, be aware of SAP’s quarter- and year-end deadlines; they may be more flexible and generous when trying to close deals to meet quotas. Conversely, don’t let an SAP-set DAAP deadline (e.g., “the program might end this quarter!”) panic you without verification. SAP has extended DAAP repeatedly. Use the potential end of DAAP as leverage for you: “We’re ready to sign, but only if we get these terms; otherwise, we might take our chances.” Make SAP worry that you’ll walk away – that often softens their stance.
- Step 4: Anchor the Negotiation – When you first formally express interest, frame the negotiation to your advantage. For example, you might say: “We’re aware of SAP’s Digital Access Adoption Program and the kind of deep discounts (85-90%) it has provided to others. We’ve analyzed our needs and are willing to make this commitment, provided it truly de-risks us and is financially compelling.” By doing this, you’ve set an anchor that you expect the maximum incentives. You’ve also signaled that you know what you’re talking about (reducing the chance they try to lowball you with a 50% discount offer or something far from DAAP’s typical range). Mentioning that you know of other customers or market norms can be powerful – SAP sales teams are aware that customers talk or get independent advice, and they’ll more likely cut to the chase.
- Step 5: Negotiate Beyond Price – Focus on Terms and Protections – As the discussion progresses, don’t get fixated solely on the discount percentage (though it’s important). Bring up the contract terms we covered during negotiations, not after you think you have a deal. For instance, when SAP says “we can offer you Option B at 90% off list,” you might respond: “That sounds workable on price. However, we will need to ensure that certain terms are in place – such as a clause for no back maintenance on past use, price protection on future growth, and conversion of our existing licenses. Let’s outline those.” By doing so, you set the expectation early that a truly acceptable deal isn’t just cheap, it’s also safe. SAP reps might need to involve their contract approval teams, which is fine. It’s better to surface these needs now rather than in the final hour, as they may require internal approvals on SAP’s side. You might even provide your term sheet or list of key terms you want, almost like an agenda, to steer the negotiation.
- Step 6: Use Benchmarking and “What-Ifs” – If you have access to any benchmark data (from advisors or user groups) about what other companies achieved with DAAP, judiciously use it. For example, “We’ve heard of organizations our size getting 1 million documents licensed for around $250k – we have budget approval in that vicinity.” It helps SAP understand your point of no return. Also, use what-if questions to probe SAP’s flexibility: “What if our usage grows 50% – can we lock in the same price for additional licenses now?” or “What if we move to the cloud in 2 years – can these licenses be transitioned?” Make them discuss these scenarios. It not only gets you information, but it also softly commits them to solutions for those concerns, which you can later firm up in writing.
- Step 7: Keep Options Open (and Appear Willing to Say No) – In any negotiation, the side that feels the least pressure usually has the upper hand. Make sure SAP understands that while you’re interested in solving this, you’re not desperate. Maybe you imply that not doing DAAP is an option if the terms aren’t good enough (“We’ve survived this long on named-user licenses; we could continue another year and see.”). If SAP thinks you have no choice, they’ll give you a worse deal. If they think you could walk, they’ll deal more earnestly. Another tactic is to have a Plan B, as you mention, such as, “We are also evaluating third-party solutions to minimize document creation if we can’t reach a fair DAAP agreement.” Even if that’s just theoretical, it signals you won’t be blackmailed by fear. Naturally, be polite but firm – a cooperative yet cautious tone works well.
- Step 8: Document the Negotiated Deal – Once you and SAP reach a verbal understanding on price and terms, ensure it is documented to prevent confusion. Write back a summary email: “As discussed, we will proceed with DAAP Option A for X documents at Y price (Z% discount). This includes ABC terms (1-year price protection for additional purchases at the same discount, conversion of licenses D valued at $N, waiver of indirect usage claims for past periods, etc.). We will look for these in the contract draft.” This step is critical. It not only ensures both parties truly agree on the details, but it also makes the subsequent contract drafting smoother and faster. SAP’s contracts people will see your summary and know you’re meticulous. They’re less likely to slip in unfavorable standard terms because they know you’re watching.
- Step 9: Review the Final Contract Thoroughly – When SAP presents the DAAP contract or order form, do not rush to sign. Cross-reference every promise against the document. It’s common to find omissions or slightly altered wording. For example, perhaps the contract states that you’re buying the licenses but doesn’t explicitly mention amnesty – that needs to be addressed. Or the price protection might be missing. Treat it like a legal negotiation (because it is). If something isn’t right, mark it up and return it. It’s much harder to fix after the signature. Utilize your legal team for assistance with phrasing, if needed. Remember, a poorly written contract can undermine a well-negotiated deal. Insist on getting it right, even if it takes a few extra days.
Following this playbook, you’ll approach the DAAP negotiation not just as a tech transaction, but as a strategic deal.
The result should be an agreement that is highly favorable to you – minimizing cost and eliminating future risk. Many enterprises have saved millions by negotiating hard on DAAP; it’s possible if you come prepared and engage SAP with a savvy plan.
Common DAAP Pitfalls to Avoid
Even after securing a DAAP deal, things can go wrong if you’re not careful. Let’s highlight some common DAAP pitfalls and how to avoid them:
- Underestimating Document Volume: A common mistake is underestimating the actual number of documents required. Indirect use can be like an iceberg – you see the obvious part (say, e-commerce orders), but miss other sources (such as integrations from a data warehouse or third-party logistics systems creating delivery notes). If you negotiate DAAP based on incomplete data, you may purchase a license pool that is too small. This becomes a problem when an audit or follow-up measurement reveals higher usage – you could quickly exceed your entitlements. Avoid this by thoroughly auditing your systems before locking in numbers, and err on the side of a little extra capacity if unsure. It’s easier to explain a slight surplus than to face an immediate shortfall.
- Overestimating and Overspending: The flip side is just as dangerous to your budget. Some organizations, in their zeal to avoid risk, over-buy DAAP licenses far beyond current usage. Remember, every license you buy comes with annual maintenance. If you license millions of documents “just in case” and don’t use them, you’ve essentially given SAP a substantial amount of money and continue paying support on shelfware. One anonymized enterprise example: A large retail company, frightened by the hype of indirect access, purchased double its estimated requirement under DAAP. Two years later, they found they were only using 50% of those licenses – meaning 50% of their spend was wasted, including ongoing maintenance fees. They could have saved that capital or negotiated a smaller deal and then expanded if needed. Avoid overshooting by basing your purchase on realistic scenarios, rather than extreme worst-case fears (especially if those worst-case scenarios have a low probability). Build in some growth room (that’s why Option A exists), but don’t let panic drive the decision.
- Failure to Negotiate Future Flexibility: A pitfall we touched on is not securing any terms for future expansion. Companies that take DAAP without a thought for “what if we need more?” find themselves in a bind if their business grows rapidly. Suddenly, the great deal they had doesn’t cover them, and SAP might say, “Oh, DAAP is over, just buy more at standard terms.” That can be a budget buster. Avoid this by including those pricing protections and true-up clauses we discussed. It’s much easier to negotiate flexibility before signing when SAP is motivated to close the deal than after when they have the upper hand.
- Ignoring Ongoing Monitoring (Out of Sight, Out of Mind): Perhaps the biggest post-deal pitfall is treating the DAAP resolution as a one-time event. It’s not. We’ve emphasized governance for a reason. If you shelve the issue after buying licenses, you might drift back into non-compliance over time. For example, one global manufacturing firm negotiated a DAAP to cover its current needs and felt secure. They did not implement any monitoring process. Over the next 18 months, various new integrations (some introduced by regional IT teams without central oversight) resulted in a significant increase in their document count. By the time they ran the report again – right before an SAP true-up – they discovered they were 30% over their licensed amount. This hard lesson taught them that complacency can nullify the benefits of DAAP. To avoid it, make monitoring and managing digital access part of your IT operations (more on that in the next section).
- Poor Communication and Awareness Internally: Many pitfalls occur simply because people within the organization are unaware of the implications of indirect access. Suppose your development team or a line-of-business decides to connect a new tool to SAP, and they don’t know or care about licensing. In that case, they might inadvertently create a compliance issue despite your DAAP efforts. Avoid this by educating stakeholders. After DAAP, send out guidelines: e.g., “Before integrating anything with SAP, involve the architecture or license management team.” It’s much like how companies learned to govern cloud usage or software deployment – you need a lightweight process that catches potential indirect access impacts before they happen. Culture plays a role too: foster a culture where license implications are considered in tech decisions (without stifling innovation, of course – it’s about awareness).
- Not Verifying SAP’s Audit Tools: If and when SAP comes to measure your indirect use (either via the digital access tool or an audit script), don’t assume it’s flawless. Pitfall: A company blindly accepts SAP’s audit result, which may overcount documents (such as internal documents or duplicates). They ended up paying extra because they didn’t challenge the data. Avoid this by keeping your records and understanding how the measurement works. When SAP runs its measurement programs (or if you run them), review the outputs carefully. If something looks off (e.g., a certain interface suddenly showing way more documents than it should), investigate. You may need to work with SAP to adjust or correct how the tool counts in your system (there have been known bugs and notes around the Digital Access estimation). Bottom line: trust but verify when it comes to counting.
- Forgetting the Big Picture (Overall License Estate): Sometimes, in focusing on DAAP, companies neglect other parts of their SAP licensing. Pitfall: You convert a bunch of licenses to digital access, but later find that you still need some of those old licenses for other reasons. Alternatively, you negotiate DAAP but forget to align it with your named-user license counts, resulting in an excessive number of users of a certain type. Avoid this by taking a holistic view. DAAP is one piece of your SAP licensing puzzle. Ensure that in solving it, you’re not creating a gap elsewhere. Typically, conversion credits are from surplus licenses, but double-check that you truly don’t need those licenses anymore. And if you drop some engine license because you think digital access covers it, make sure that the engine’s functionality isn’t still in use. A comprehensive view of your SAP entitlement versus usage will prevent ‘robbing Peter to pay Paul’.
By being mindful of these common pitfalls, you can avoid DAAP traps that others have fallen into.
Ultimately, it boils down to good planning, internal coordination, and continuous oversight. The companies that derive value from DAAP are those that manage it actively, rather than setting it on a shelf.
Governance: Monitoring Document Counts and Embedding DAAP into License Governance
Adopting DAAP is the beginning of a new phase of license management.
To truly benefit and avoid future headaches, organizations need to embed digital access into their ongoing license governance.
Here’s how to build a robust governance framework for DAAP:
- Establish Ongoing Monitoring: Treat your digital document count like a key performance indicator. Set a regular schedule (monthly, quarterly, etc.) to run SAP’s digital access reports or your monitoring scripts. Many companies integrate these checks into their IT operations dashboards. By seeing a trendline of document consumption, you can spot unusual spikes or steady growth. For example, if you notice a 5% increase quarter-over-quarter, you can predict when you’ll hit your limit and plan accordingly. This proactive monitoring serves as your early warning system to prevent accidentally exceeding your DAAP entitlement.
- Assign Ownership: Designate who is responsible for tracking and managing digital access licenses. It could be part of the Software Asset Management (SAM) team or an SAP Center of Excellence. The owner’s duties should include collecting usage data, comparing it against entitlements, and reporting any concerns. They should also be involved in the planning of new integrations. Essentially, someone needs to have a “DAAP watchdog” in their job description. When accountability is assigned, things don’t fall through the cracks.
- Integrate with Change Management and Architecture Reviews: Make it a policy that any project involving SAP integration triggers a license impact assessment. Your change management process or system architecture review board should have a checkpoint: “Will this project create SAP documents via external systems? If yes, loop in the licensing team.” For instance, if your marketing team wants to connect a new CRM to SAP, the process should flag that and get a quick estimate of how many documents that might create. With DAAP in place, you may often find that you’re fine (still under your cap), but if not, you at least know to take action (perhaps by delaying until you can obtain more licenses or throttling usage). This way, DAAP governance is baked into your project lifecycle.
- Maintain a Live Inventory of Interfaces: Keep documentation of all known third-party systems and interfaces connected to SAP. Update it whenever something changes – whether a new interface is added or an old one retired. This list is helpful not just for licensing but also for security and support. For licensing specifically, tag each interface with what document types it generates and who “owns” that integration. This inventory allows you to drill down at any point to identify what’s contributing to your digital access usage. If one integration is driving 40% of the documents, you’ll know exactly which one and can focus optimization efforts there.
- Implement Alerts and Thresholds: Many organizations set internal thresholds to manage consumption. For example, you might decide that if you hit 80% of your licensed document count, it triggers an internal alert and perhaps an executive review. Modern monitoring tools or even custom scripts can send an email or dashboard alert when thresholds are breached. This ensures that rising usage doesn’t go unnoticed until it’s too late. By the time you’re at, say, 95% of your capacity, you should already have a plan in motion (whether that’s negotiating more licenses or taking operational steps to curb the growth).
- Optimize Document Usage: License governance isn’t only about watching and reacting; it’s also about optimizing. Collaborate with your technical teams to identify opportunities for reducing unnecessary document creation. Sometimes small tweaks in how a process is implemented can have big effects. For example, if an external system is creating a separate SAP sales order for every tiny transaction, perhaps those could be batched into one order with multiple line items instead (depending on business logic). Or maybe you find a certain interface is creating duplicate entries that can be cleaned up. While you shouldn’t contort business processes just to save licenses, often some inefficiencies can be fixed, yielding both technical and licensing benefits. Encourage a mindset of “efficient integrations” – not everything needs to be integrated with SAP at high volume if there’s a smarter way.
- Review and Reconcile Annually: Conduct a formal license reconciliation at least once a year, which includes digital access. This is like your own mini-audit. Gather the latest usage stats, review them against what you have licensed. If you’re well under, that’s good – it might be communicated to finance as an avoided cost, or it might be an opportunity to see if any licenses can be reallocated. If you’re nearing the limit, that’s the time to decide on next steps (perhaps approach SAP for additional licenses under similar terms, or if DAAP is no longer officially available, see if they’ll extend a comparable deal). The annual review could coincide with your SAP support renewal cycle, as you’re paying maintenance on your digital access licenses. This’s a logical time to assess whether you’re getting value relative to usage.
- Stay Educated and Updated: Ensure the team overseeing this remains informed about any changes in SAP’s approach. SAP may update what constitutes a document or release new tools for measurement. Join user group sessions or SAP webinars on licensing when you can. Being in the loop ensures your governance adapts to any new developments (for example, if SAP introduced a new document type or a policy change, you’d want to know immediately).
With these governance practices, DAAP becomes part of your business-as-usual operations.
Companies that excel at SAP license management view it as an ongoing process, rather than a one-time project.
By monitoring and managing digital access licenses diligently, you safeguard the investment you made under DAAP and ensure that you continue to avoid the very cost traps that DAAP was meant to eliminate.
Future of SAP Digital Access Licensing
What does the road ahead look like for SAP’s digital access and DAAP?
While we can’t predict everything, we can make some educated observations about the future:
- Continued Cloud Migration (Impact on Indirect Access): SAP is aggressively pushing its customer base toward cloud offerings, especially RISE with SAP (its bundled subscription service for S/4HANA in the cloud). In cloud subscriptions, SAP handles indirect access differently – often bundling a certain amount of digital access usage into the subscription metrics, such as the FUE (Full User Equivalent) model. For customers that fully move to RISE, the traditional DAAP model might become irrelevant because you won’t be buying perpetual document licenses; instead, you’re paying a subscription that typically covers “normal” integration usage. However, not everyone will move to RISE immediately, and even RISE contracts need scrutiny to ensure they cover high-volume scenarios. In the interim (2025–2027), we’ll see a mixed landscape: on-premise customers managing indirect access via DAAP or similar licenses, and cloud customers with more baked-in allowances. SAP’s endgame is likely to have most customers in a cloud model where indirect usage is less of a standalone topic. But until that happens, DAAP remains highly relevant.
- DAAP Program Extensions or Endgame: As of now, SAP has extended DAAP indefinitely (after a couple of announced end dates came and went). They’ve essentially kept it as a standing offer, presumably because it’s effective at getting customers to regularize their licensing. Will SAP ever discontinue DAAP? Possibly, if they feel everyone who was going to adopt has done so, or if they want to squeeze the holdouts. It’s also possible they keep it as a carrot as long as the on-premise exists. One scenario to watch: if SAP were to announce an end date for DAAP (again), that’s usually a signal they want to push a last wave of customers through. If you hear such news, it might be crunch time to act or risk losing the preferential terms. Conversely, if adoption remains slow, SAP might even sweeten the pot further or devise a new incentive program. They’ve demonstrated flexibility – the key is to stay alert to communications from SAP and user groups regarding the program’s status. In short, enjoy the DAAP safety net while it’s there; it may not be around forever, but it’s here today.
- Evolution of Licensing Models: The concept of document-based licensing was a big shift. Looking forward, SAP and other enterprise software vendors are exploring even more usage-based models. We may eventually see SAP adopt a consumption-based pricing model (pay-as-you-use, similar to cloud credits) across all its offerings. Indirect access could be measured by metrics such as API call volumes or data volumes, rather than discrete document counts. Additionally, SAP could integrate some level of free digital access into base licenses to reduce friction (for example, a “digital access up to X documents is included with every deployment” approach), especially if pressured by customer feedback. It’s speculative, but the point is that SAP licensing isn’t static – it responds to technology trends (such as IoT and AI integration) and customer pressure.
- Impact of Customer Advocacy: Many large SAP customers collectively voice their concerns through user groups (like ASUG in North America, DSAG in Germany, etc.). The indirect access issue garnered so much attention that it compelled SAP to take action (hence digital access licensing and DAAP). If, down the line, those groups push for further changes (such as more transparent pricing or the inclusion of indirect use by default), SAP could adjust its policies again. Keep an eye on those discussions. For example, if a significant portion of customers say “we want digital access to be subscription-based or more flexible,” SAP might introduce new licensing constructs rather than the one-time DAAP sale. Staying connected with industry peers can provide insights into what SAP might do next and what you should negotiate in advance.
- Rise of Third-Party Tools and Auditors: We anticipate an ecosystem growing around monitoring and managing SAP digital access. Already, some SAM tool vendors and third-party advisors (like us at Redress Compliance) offer services to analyze indirect usage. In the future, as more companies adopt digital access, there will likely be better tools to continuously audit and optimize those licenses – possibly even tools that suggest the optimal number of document licenses per user, etc. This could shift the balance a bit more in favor of customers having independent metrics to counter SAP’s audits. Essentially, information asymmetry will tend to decrease over time. If SAP knows you have your reliable count of digital documents, they are less likely to challenge it or inflate their claims. Embrace these tools and services as they mature, because they’ll help you keep control.
- Long-Term Cost Implications: Consider a timeframe of 5-10 years. If you remain on an on-premise model, you will be paying maintenance on your digital access licenses that whole time. Budget-wise, it’s fairly predictable (just ensure you account for SAP’s annual support uplift, if any). If you plan to transition to the cloud, you’ll negotiate that as a new deal and ideally fold in the value of what you’ve invested in digital access. Over a long horizon, try to future-proof your agreements. For example, if you sign a large 3-year deal now for DAAP, consider adding a clause that allows for a review of the situation if SAP’s licensing model undergoes a fundamental change. It might be as simple as: “If SAP introduces an alternative licensing model that is more favorable, the customer retains the right to migrate to that model.” SAP may not agree willingly, but raising the issue puts them on notice that you won’t be stuck in an outdated approach if the market shifts.
- Increased Emphasis on Value: As indirect access drama fades (hopefully), the conversation with SAP might return to product value rather than license compliance. This is an opportunity. You want to get to a place where you’re negotiating with SAP on the value of their software to your business, not on avoiding a penalty. DAAP can be that bridge: it resolves the compliance issue and allows you to move forward. In the future, you’ll likely negotiate cloud subscriptions, new modules, etc., and you can do so without the indirect use of cloud hanging over you. Keep that in mind – the end goal is to have an SAP environment where costs are predictable and tied to business value. Digital access licensing, in whatever form it takes, should ideally become just another line item you manage, not the boogeyman it once was.
In summary, the future of SAP digital access is heading toward greater integration with cloud models and possibly new metrics. Still, the principle remains: if third parties use SAP, SAP will want a licensing mechanism in place. DAAP is today’s solution; tomorrow’s might look different.
By staying strategic – taking advantage of current programs and building flexibility for what’s next – you can ensure you’re not caught off guard.
Keep one eye on SAP’s roadmap and the other on your business roadmap, and align your licensing strategy accordingly.
Conclusion & Call to Action
The SAP Digital Access Adoption Program is a unique opportunity wrapped in a complex challenge. It exists because SAP and its customers needed a compromise on indirect access – and when leveraged wisely, it can indeed turn a potential compliance time-bomb into a manageable (even minor) expense.
We’ve explored why DAAP exists, how it works, how to model costs and risks, key contract terms to nail down, a step-by-step negotiation playbook, pitfalls to avoid, and how to incorporate DAAP into your ongoing governance, all while casting an eye to the future of SAP licensing.
The common thread through all of this advice is simple: be proactive and strategic. Don’t wait for an audit to force your hand. Evaluate your indirect access position, and if you decide to engage in DAAP, do so on your terms – with full knowledge of your usage and a clear plan of what you need from SAP beyond just a discount.
Negotiate firmly, and don’t hesitate to ask for help or benchmark information. Many have gone before you on this journey; learn from their wins and mistakes (hence our inclusion of anonymized examples and common pitfalls).
Finally, remember that signing a DAAP deal is not the finish line – it’s the start of a new phase where you have eliminated a lurking risk and now must keep it in check as your business evolves.
With proper governance, you can ensure that SAP digital access licensing remains under control and optimized, rather than becoming a new source of surprises.
Call to Action:
If you’re feeling overwhelmed or just want to ensure you’ve left no stone unturned, consider engaging experts to support you.
Redress Compliance specializes in exactly this kind of scenario – helping organizations evaluate indirect access, optimize SAP DAAP cost proposals, model out “what-if” scenarios, and execute winning DAAP negotiation strategies.
Our team comprises former SAP insiders who know how to counter the vendor’s tactics, as well as seasoned licensing advisors who have helped clients save millions in avoided fees.
We can help review your DAAP contract terms, model the financial impact, and even coach your negotiation team or lead discussions on your behalf. Don’t hesitate to reach out for a no-obligation discussion about your situation.
In the high-stakes world of SAP licensing, a bit of expert guidance can be the difference between a cost trap and a cost-saving triumph. Take control of your SAP indirect access destiny – contact Redress Compliance to ensure your DAAP journey leads to a win for your organization.
Read more about our SAP Digital Access Advisory Service.
