Case Study

Switching on license management for an electronic manufacturing services provider

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Zollner case study

At a glance

Zollner, a global leader in electronic manufacturing services, wanted to reduce the risk of expensive, unexpected true-up bills for their complex SAP license needs. They needed a system that could gather and analyze the data required for internal chargeback and contract compliance. Flexera’s FlexNet Manager for SAP Applications provided Zollner with regular license evaluation and optimization. The company now stays in compliance with its SAP license agreements. They also reduced audit costs and eliminated wasted spend on unneeded licenses.

The Challenge

A lack of visibility into license management was putting the company at risk

Zollner develops and manufactures products on behalf of customers across many sectors, including automotive, industrial electronics, aerospace and defense, measurement technology and telecommunications. Production orders range from individual components to complete systems. Zollner’s approximately 9,000 employees support their customers throughout the entire value-added chain.

As a contract manufacturer, Zollner must be able to react swiftly and reliably to changing demands. This challenge is met using sophisticated technology, innovation and robust IT support. Business and IT strategies are well-coordinated, intricately linked and put into practice with precision. Since 2006, Zollner has been using SAP Business Suite, the modules of which are among the most valuable and most often used applications in the organization. But using software such as SAP can also lead to high licensing costs, due to the complex nature of SAP licensing and the difficulty in selecting the optimal named user license type for each user.

When Zollner implemented SAP Business Suite, the company found that license and contract management had become complex during contract negotiations, because Zollner operates with both permanent employees and temporary staff. Organizations risk expensive and unexpected true- up bills that increase the cost of their investment in SAP software if they don’t know which SAP licenses are used, who is working with each system and what license type corresponds to each person’s job profile.

Zollner risked license audits and unplanned costs

The Solution

Add a software license optimization solution that saves resources and manages true-ups

IT management at Zollner implemented FlexNet Manager for SAP Applications, a license optimization solution that helped the company manage licenses, supported the creation of an internal chargeback model and addressed SAP true-ups. This helped the company meet contract challenges and develop a license management system simultaneously tailored to internal conditions and economics.

SAP license and contract management with FlexNet Manager for SAP Applications is worth it.

Günther Hacker IT director, Zollner

The Results

Optimization of SAP licenses with monthly reporting

Zollner now stays in compliance with its SAP license agreements, reducing audit cost and risk. They also avoid spending money on unneeded licenses. The company can better plan for how many licenses they will need in the future.

“SAP license and contract management with FlexNet Manager for SAP Applications is worth it,” said Günther Hacker, IT director at Zollner. The company saves money by not having to purchase and maintain 20 to 30 unused licenses each year. “In addition,” continued Hacker, “we can save costs due to our internal chargeback process that is based on FlexNet Manager for SAP Applications data.”

FlexNet Manager for SAP Applications supplies the benefits of monthly reporting, as well as the annual evaluation and optimization of SAP licenses. Flexera’s solution streamlines the process of SAP true-ups and creates the necessary transparency for greater accuracy.

“The same monthly reports on usage also form the basis for forecasts of license requirements,” Hacker said. “As a result, we always know whether we have to purchase additional licenses, and how many are needed of each user type.” These forecasting figures now form the basis of future budget planning.

85% reduction in annual unbudgeted true-up expenses for FlexNet Manager Customers* *According to a 2019 study of Flexera customers

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