What are the license implications of migrating Natural to COBOL?

The headline implication is the elimination of Software AG license fees. Natural runs on a Software AG license, typically priced on MSU capacity, and usually pairs with the Adabas database on its own license. Converting the Natural code to COBOL or Java, and moving the data off Adabas to a relational database, removes the need for those Software AG licenses entirely. That is the primary financial driver of the migration. The offset is the conversion program itself: tooling, testing, and the risk of behavioral differences between the source and target, which is real cost and effort that the license saving has to clear.

Does keeping Natural have any advantage?

Yes. Keeping Natural avoids a large, risky conversion program and preserves applications that work, are well understood by your staff, and carry deep business logic that is expensive to revalidate. The cost is the continued Software AG license stream, which carries renewal and audit exposure, especially on legacy contracts, and the talent risk of a shrinking Natural skills pool. For many estates the right near term move is not to migrate but to negotiate the Natural and Adabas renewal hard, right size the licensed capacity, and use a credible modernization plan as leverage rather than executing it immediately.

Is the modernization saving guaranteed?

No. The license saving is real and recurring once the migration completes and the Software AG products are decommissioned, but it is only banked when the last application is off Natural and Adabas, because partial migrations leave the license in place. Vendors report substantial cost reductions from Natural and Adabas modernization, but the saving has to be weighed against multi year program cost, conversion risk, and the possibility that the project stalls with both the old license and the new platform running in parallel. Model it as a phased business case with the license only retired at the end.

How should I use this decision in a Software AG negotiation?

A credible, costed modernization plan is the strongest leverage you have against a Software AG renewal, because the vendor's worst case is losing the estate entirely. Even if you intend to keep Natural for now, a prepared migration business case gives you a real walk away that disciplines the renewal and the audit posture. The disciplined sequence is to build the modernization case, right size the current Natural and Adabas capacity, and negotiate the renewal with the migration as a documented alternative, then execute the migration only when its phased economics clearly beat the negotiated renewal.

Natural vs COBOL Modernization: Licensing

Natural vs COBOL modernization: the license you end, the risk you take.

Converting Software AG Natural to COBOL or Java, and moving data off Adabas, eliminates the Software AG license fees entirely. That is the financial driver. The offset is a multi year conversion program with real cost and risk, and a saving only banked when the last application leaves the platform. For many estates the sharper near term move is to use a credible migration plan as leverage on the renewal, not to execute it on day one.

Build the modernization business case before you decide, because it is both the path to ending Software AG fees and your strongest leverage on the renewal. Migrating Natural to COBOL or Java removes the license entirely, but only when the last application is off the platform, so a stalled or partial migration leaves you paying for both. For many estates the disciplined move is to right size and renegotiate the Natural and Adabas contract now, with a costed migration plan as the documented walk away, and execute the migration only when its phased economics clearly beat the negotiated renewal.

Keep Natural vs convert to COBOL or Java, the license levers
Dimension	Keep Natural and Adabas	Convert to COBOL or Java
Software AG license	Continues, MSU capacity priced	Eliminated once fully migrated
Database license	Adabas license continues	Moves to relational, Software AG license ends
Up front cost	Low, renewal only	High, multi year conversion program
Risk	Low technical, high audit and talent	Conversion and revalidation risk
Saving timing	None, ongoing fee	Banked only at full decommission
Skills	Shrinking Natural talent pool	Mainstream COBOL or Java talent

Keep Natural vs convert to COBOL or Java, the license levers

Dimension

Keep Natural and Adabas

Convert to COBOL or Java

Software AG license

Continues, MSU capacity priced

Eliminated once fully migrated

Database license

Adabas license continues

Moves to relational, Software AG license ends

Up front cost

Low, renewal only

High, multi year conversion program

Risk

Low technical, high audit and talent

Conversion and revalidation risk

Saving timing

None, ongoing fee

Banked only at full decommission

Skills

Shrinking Natural talent pool

Mainstream COBOL or Java talent

This is a portfolio and risk decision driven by the size and stability of the Natural estate. Use it this way:

Keep Natural and negotiate if

The applications are stable, well understood, and carry deep business logic that is costly to revalidate
You can right size the Natural and Adabas capacity and discipline the renewal with a migration plan as leverage
Your near term budget cannot absorb a multi year conversion program
The talent risk is manageable for the planning horizon you care about

Convert to COBOL or Java if

The recurring Software AG license stream is large enough that ending it clears the program cost
You can commit to a full migration rather than a partial one that leaves the license in place
The shrinking Natural skills pool is a genuine operational risk
A modernization program is already underway that the conversion can ride on

Either way, the foundational step is the same: inventory the Natural and Adabas estate, validate the licensed capacity against actual use, and cost the migration honestly, because the license only retires at the end of the program, not the start.

What is the license implication?Full migration eliminates the Software AG Natural and Adabas license entirely. That is the primary financial driver of converting.

Any advantage to keeping Natural?Yes: it avoids a risky conversion and preserves working applications. The cost is the continued license and shrinking talent pool.

Is the saving guaranteed?Only banked when the last application is off Natural and Adabas. Partial migrations leave the license in place.

How do I use it in a negotiation?A costed migration plan is your strongest walk away on a Software AG renewal, even if you keep Natural for now.

The license ends at the finish line, not the start.

Explainers: what audit clauses allow and escrow and continuity rights. Products: Natural licensing and Entire Net-Work licensing. Related comparison: keep vs exit. Hub and commercial: the Software AG buyer side guide and Software AG renewal advisory.

Natural vs COBOL modernization: the license you end, the risk you take.

The verdict

Head to head

Who should pick which

Frequently asked

The migration plan is leverage before it is a project. We build both.