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Purpose

This document is a living document with questions around the new consumption-based commercial model for SAP Cloud Platform. The new model comprises of the Cloud Platform Enterprise Agreement (CPEA) and so called Cloud Credits customers can purchase.

The following sections have been created to ease the structure of the FAQs:

  • General Commercial Model 
  • Services Scope and Handling
  • Contract and Market Scope 

 

Below is the list of questions that are included for simple navigation. 

 

Overview

This should be an executive summary of the content and argument being made in the document. Basically a summary (not repeat) of the information you are explaining.

General Commercial Model

 

Question:

What is the new consumption-based model in a nutshell?

Answer:

The objective of the model is to create one rich and simple customer experience for finding, trying, buying, and consuming cloud services from SAP and partners for net-new and installed base customers.It allows customers to integrate, extend and innovate own applications with business and technical functionality offered as cloud services in a flexible way.

There is no need to license a SAP CP service individually anymore. Cloud services can be used when demand arises and be retired if not needed anymore. Charges incur on actual usage and will be charged monthly against the prior purchased Cloud Credit. 

 

 

Question:

What are the benefits for customers?

Answer:

The SAP Cloud Platform is the ultimate foundation to intelligently connect people things and businesses during all phases of Build – Extend – Integrate.

This new consumption-based model offers customers:

  • Simplified cloud engagement experience with one site to explore, procure and provision SAP Cloud Platform services.
  • Flexibility in using eligible services for any SAP Cloud Platform use cases. Customers can pick and choose the services they need knowing they have investment security in the cloud credits for SAP Cloud Platform.
  • Agility – direct and rapid access to newly released business and technical services for rapid application development and innovation.
  • Innovation – focus on innovation and not administrative overheard

 

 

Question:

How does the new Cloud Credit model work?

Answer:

A customer who meets the minimal commitment threshold (for details reach out to your account executive) is eligible to sign the CPEA. This agreement entitles to an annual amount of consumption of eligible cloud services.

The contract is renewable (typically a one to three-year contract, divided in annual credits periods).

Services consumed under this contract use a dedicated global account on SAP Cloud Platform. The prepaid amount of service consumption in each credits period is the “initial cloud credits balance.”

  • Flexibility and choice
    • Customers are entitled to consume any of the eligible Cloud Services, in any of the countries and technical regions in which the program has been released.
    • Services are available per data center. Customers will have a choice on the underlying infrastructure providers (Multi-Cloud: SAP data centers, AWS, Azure and/or Google Cloud), according to availability.
    • The service detail page on cloudplatform.sap.com depicts per service in which location the service is available. The charges for the consumed services are subtracted monthly from the cloud credits balance.
  • Cloud credits balance
    • Customers receive a monthly balance statement, that shows them the consumption, and the balance of credits for the current credits period.
    • Unused cloud credits expire at the end of each credits period.
    • Overage (usage beyond available cloud credits) is invoiced according to the list price, subject to the price guarantee.
    • A detailed break-down of service consumption and sub-accounts is further provided on the SAP Cloud Cockpit in the My Account section.
  • Entitlement management
    • Administrators can use the SAP Cloud Platform Cockpit to set up SAP Cloud Platform sub-accounts for different teams and projects to assign specific service entitlements and to regulate and monitor how the eligible cloud services are used throughout their organization.

Services Scope and Handling

Question:

Which services are applicable under the Cloud Platform Enterprise Agreement (CPEA)?

Answer:

The list of services is always available in the SAP CP Services Catalog. A summary of all services with their respective metric is available in the service description guide.

The Services Catalog provide for each cloud service a detailed description of its functional scope, but also the available rate plans in the respective data centers. For each service it is clearly marked whether the service is available through subscription only or also as through the consumption-based model.

 

 

Question:

How is service consumption managed?

Answer:

Once the Cloud Platform Enterprise Agreement (CPEA) is signed, customer administrators get access to the SAP Cloud Platform Cockpit to view all currently available services in a global account.

Here they can manage their service consumption across sub-accounts and see the actual consumption. Furhtermore monthly balance statements are sent to the commercial contact mentioned in the CPEA to provide transparency on the charges incurred.

 

 

Question:

What happens with my existing subscription contracts?

Answer:There is no change. Existing contracts remain unchanged for the time of their duration. SAP ensures business continuity for the contracts. The subscription model and CPEA will co-exist for the time being to give customers a broader choice.

 

 

Question:

How can I consume services under the new Cloud Platform Enterprise Agreement (CPEA)?

Answer:New CPEA contracts will trigger the creation of a new global account that provides access to all elibigle services in the respective data centers. Subsequently customers need to structure this global account into sub-accounts and other related artifacts (e.g. Spaces). Customers are free to choose the services they require for their implementation, scale them up or even retire them, if there is no need anymore. The CPEA provides the full flexibility for adoptiong SAP Cloud Platform.

 

 

Question:

Can I combine our existing subscription contracts with a Cloud Platform Enterprise Agreement (CPEA)?

Answer:

The CPEA and the subscription model represent two commercial models. Each of the models require a specific contract and therefore it is not possible to combine these models under one agreement. Also from a technical perspective it is required to seperate the subscription and the consumption-based services in segregated global accounts. Technically integration is possible but subject to technical restrictions and limitations.

 

 

Question:

Can I transform my existing subscription contract into CPEA?

Answer:Yes, a subscription trade-in program is available. This program is the path to CPEA for existing SAP CP customers to gain flexibility for adopting additional services. The trade-in can happen at any point in time of the subscription contract.

 

 

Question:

What if the services I need are not on the list of eligible cloud services yet?

Answer:

The list of eligible services is extended continuously. Available services for the consumption-based license model are explicitly marked in the SAP CP Services Catalog.

If a service is not marked it is either in development to become ready for the consumption-based model or it does not qualify to be metered and therefore will not get transformed. See this blog for details on our services roadmap.

 

 

Question:

What happens if consumption exceeds my prepaid cloud credits?

Answer:

Any usage beyond the available cloud credits for the respective period results in overages and will be invoiced according to the list price. SAP will send these invoices monthly.

In order to avoid this, customers have the option to purchase at any point of time top-up Cloud Credits at the same conditions as for the initial purchase of the Cloud Credit. SAP Cloud Platform cockpit provides insights on the consumption to detect overage early enough.

Question:

Can customers freely choose and translocate services between data centers with CPEA?

Answer:

Yes, this is one of the major advantages of this model. Customers can freely chose and switch between DCs through self-service activation and de-activation.

Certain conditions apply though, in particular for cloud services in the Neo domain. For Cloud Foundry-based services, the activation and de-activations is available and can be done in a flexible manner at customer's choice.


 

Question:

How do customers integrate between subscription-based and CPEA based environments, especially, as the integration services are not yet fully available?

Answer:If customers sign a CPEA contract they will receive a new global account in which the activation, metering and billing of services usage happens. This new global account can be integrated with existing global account.

 

 

Question:

How fast and how often can a customer switch from one service to another?

Answer:

There is no switch per se. Customers can chose to activate and de-activate applicable cloud services at their own discretion. For elastic services, there is no need to disable as charges only incur on actual usage. For instance based services (i.e. HANA database), that are charged by a time period, there is a de-activation provided. 

 

 

Question:

What happens with the consumption if two contract phases overlap in a calendar month billing cycle?

Answer:

Following consumption logic is utilized when a calendar month / billing cycle overlaps two contract phases :

  • Usage is assigned to the first contract phase.
  • Customer could pay for overage.

Example: 3 year contract starting October 15,  2019 until October 14, 2022. fiIn this example the whole consumption of October will be assigned to the first contract phase (month: October 1, 2020 – October 14, 2020). November 2020 consumption will then be again assigned to the calendar month / billing cycle (November 1, 2020 – November 30, 2020).

 

Contract and Market Scope

 

Question:

What countries are eligible for CPEA contracts?

Answer:

We continuously extend the list of countries where CPEA contracts are available.

 

Countries
ArgentinaEgyptNetherlandsSlovenia
AustraliaGreeceNew ZealandSingapore 
Austria GermanyNorwaySouth Africa
Belgium Hong KongPakistanSouth Korea
BrazilHungaryPanamaSpain
Bulgaria India Peru Sweden 
CanadaIndonesia Philippines Switzerland
Chile IrelandPoland Taiwan
Colombia IsraelPortugal Thailand 
Costa RicaItalyQatarTurkey 
CroatiaJapanRomania Ukraine
Czech RepublicKuwait Russian FederationUnited Arab
Denmark LuxembourgSaudi Arabia United Kingdom
Finland  MalaysiaSerbiaUSA
FranceMexicoSlovakia 

Additional countries will be rolled-out. We will update this FAQ once more information is available.

 

 

Question:

Can all customers participate?

Answer:Customers in countries where the model has been rolled out (please refer to the country availability) can participate. Those that sign the Cloud Platform Enterprise Agreement are entitled to purchase a committed amount of eligible cloud-based services. Customers in other countries are encouraged to contact their Account Executives to discuss available options.

 

 

Question:

How can customers determine the required Cloud Credit size?

Answer:

There is an estimator available which allows customers to add their required services in the required sized and anticipated usage to a bill of services.

The estimator calculates the expected charge per month. From there customers can determine the required annual cloud credit volume and take this into the discussion with the SAP sales team.

If customers want to start from a use-case perspective, we offer various use cases that allow to add relevant services in one go to the estimator as a starting point.

 

 

Question:

What about packages that SAP offered for the subscription contracts?

Answer:

The packages (i.e.SAP Cloud Platform, app services package, premium edition or others) help customers to get started with their licenses for certain use case in the subscription contracts. Since the service contained in these packages can be activated individually on a demand basis under the Cloud Platform Enterprise Agreement (CPEA) the packages are not needed anymore. They will remain as an offering for subscription. 

 

 

Miscellaneous Aspects

 

Question:

What support model is available under Cloud Enterprise Agreement model?

Answer:

SAP Enterprise Support, cloud editions is embedded in the scope of the SAP cloud services available under the Cloud Platform Enterprise Agreement model. As it is for the existing subscription model.

Find further details about the SAP support plans here:

Question:

What information do I receive on the monthly balance statement

Answer:

The monthly balance statements reports the consumption per service and provides informations on the consumed quantity, the list price, the discounts and the discounted price. Also corrections are reported on the balance statement in a transparent way.

The balance statement is sent monthly, also if no consumption in the respective period.

If the consumption charges are exceeding the available cloud credit value, the balance statement functions as an invoice for the overage amount.

More information on the format of the balance statement is available on the blog "SAP Cloud Platform - Improving transparency on the monthly consumption".

 

Related Content

Related Documents

SAP Cloud Platform Services Catalog: https://cloudplatform.sap.com/dmp/capabilities

 

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