This how to guide is designed for you to gain greater insight to your SAP contract and provides you with a simpler explanation on some keys sections. When companies purchase software from SAP, they are required to sign a contract as they would with any other software vendor. This contract defines a lot of issues like what the exact software is that they’re buying and what exactly is included in the purchase. For our purposes, the contract is also what defines the licensing structure. As this is a practical document about SAP license optimization and not a legal-oriented document, we will only highlight the most important topics for our perspective, which is to understand the relevant contract parts for future negotiations.