Advanced SAP SSO Licensing and Pricing Strategies
Subject: SAP Single Sign-On (SSO) – Licensing and Pricing Insights
Introduction
SAP Single Sign-On (SSO) is a critical component of secure and user-friendly enterprise identity management. It allows seamless access to SAP and non-SAP systems using secure authentication mechanisms. While its technical value is widely acknowledged, navigating SAP SSO licensing and pricing is complex and requires a strategic approach. This article provides a comprehensive overview of advanced SAP SSO licensing models and pricing strategies to help organizations make informed decisions.
SAP SSO is not a standalone product but part of the SAP Identity Authentication and SAP Identity Management ecosystem. Licensing is typically handled in one of the following ways:
SAP SSO is bundled with the SAP NetWeaver Foundation for Third Party Applications license. This means that users licensed for SAP NetWeaver usage can utilize basic SSO features such as Secure Network Communications (SNC) and SAP GUI SSO using Kerberos.
For organizations needing advanced features—like X.509 certificates, SAML 2.0 support, 2FA integration, or authentication via smart cards—an additional SAP Single Sign-On license is required. This is an add-on to existing SAP licenses and is priced per user.
SAP’s cloud-centric approach includes SSO via IAS, which may be licensed separately or included as part of SAP Business Technology Platform (BTP) or other SaaS solutions. Licensing here is usage-based, often priced per unique user per month.
Understanding what impacts SAP SSO costs is crucial for planning:
SAP often offers tiered pricing based on user volume. Organizations can negotiate better rates by consolidating user licenses or pre-purchasing blocks.
Enterprises can reduce costs by bundling SAP SSO with broader SAP security or NetWeaver contracts. Negotiating SSO as part of a larger enterprise agreement often yields more favorable terms.
When considering IAS vs on-premise SAP SSO, assess TCO over 3–5 years. While cloud may have lower initial costs, on-premise options may be more cost-effective for large enterprises with existing infrastructure.
In some cases, third-party SSO tools (e.g., Microsoft ADFS, Okta) might offer better integration or licensing flexibility. However, this may forgo native SAP support and could lead to additional integration costs.
SAP audits often include SSO usage. To remain compliant and optimize costs:
Conclusion
SAP SSO licensing is not a one-size-fits-all solution. It requires a strategic, well-informed approach aligned with technical needs and business goals. By understanding the licensing models, evaluating total costs, and leveraging advanced pricing strategies, organizations can secure their SAP environments efficiently while optimizing expenditures.
Keywords: SAP SSO, SAP Single Sign-On, Licensing Strategy, SAP IAM, Identity Authentication, SAP Pricing Model, Enterprise Security, SAP NetWeaver, SAP IAS