As enterprises move from ECC or other legacy systems to S/4HANA, the greatest challenges often stem not from technology, but from the evolving dynamics of SAP licensing.
Open iT’s Optimizer for SAP® Licensing enables organizations to navigate this SAP migration with greater accuracy, visibility, and control, ensuring that licensing becomes a foundation for success rather than a barrier to migration.
DEMO: Gain Clarity and Control Over Your SAP Migration.
Why SAP Licensing Creates Migration Confusion
SAP’s licensing landscape has evolved rapidly, introducing new delivery and pricing models that have left many customers uncertain about their true entitlements. The transition to subscription-based and consumption-driven SAP licensing has redefined cost structures and blurred historical baselines. Common sources of confusion include:
- Rebranding and repackaging: The move from RISE with SAP Premium to Cloud ERP Private eliminated earlier bundles such as Premium Plus. Features including AI assistants, Datasphere, and supplier portals, once integrated, are now offered as add-ons.
- User reclassification: Under the Full User Equivalent (FUE) model, Productivity and Functional users have been reclassified into the more costly Professional category, resulting in unanticipated expenditure.
- Multiple pricing structures: Enterprises must compare FUE, per-user-per-month (PUPM), and consumption-based options for AI and capacity units, each carrying distinct budgeting implications.
Licensing models are moving targets. If you need a clear, concise primer on managing hybrid and subscription licensing shifts, watch our webinar, “Preparing for Cloud-Based and SaaS Licensing Models”. Use the link below to access the full recording.
Open iT | Webinar On-Demand
Preparing for Cloud Based and SaaS Licensing Models
- Opaque cost structures: Bills of material often obscure what is bundled and what is excluded, hindering cost transparency.
Such complexity makes the SAP migration process inherently risky. Without a clear understanding of SAP licensing implications, organizations may face overspending, under-licensing, or compliance violations during or after migration.
4 Risks of SAP Migration Without Proper License Management
Approaching S/4HANA Migration without clear license governance can expose organizations to serious risks:
1. Unexpected costs
Features that were part of previous bundles may now require add-on licenses, driving up total cost of ownership.
2. Compliance Exposure
Reclassification of users and shifting authorization models increase the risk of under-licensing, which can trigger costly audits.
3. Budgeting Uncertainty
Without transparency in software licensing, financial planning for migration and long-term cloud operations remains unreliable.
4. Strategic Misalignment
SAP’s incentive structure favors cloud adoption, but organizations may not be ready to transition, leading to suboptimal licensing strategies.
Effective Software License Management: The Path to Control
Enterprises can address these SAP migration risks through disciplined software license management practices:
- Comprehensive inventory: Establish a baseline of existing SAP licenses, roles, and user authorizations.
- Granular usage analysis: Identify who is using what, how often, and whether licenses align with actual business needs.
- Scenario modeling: Simulate the impact of migrating to different models—FUE, PUPM, or consumption-based—and compare total cost of ownership.
- Contract transparency: Negotiate terms that clearly define included features, license categories, and unit pricing.
- Continuous monitoring: Track role drift, unused licenses, and emerging compliance risks during and after SAP migration.
How Optimizer for SAP® Licensing Solves the Problem
Open iT’s Optimizer for SAP® Licensing is designed to help enterprises take control of SAP migration challenges. By combining deep data collection with advanced analytics, it enables organizations to optimize their license landscape and ensure a smooth transition.
Key capabilities include:
- Detailed usage data: Tracks real license utilization across users, roles, and modules, giving a precise picture of the current state.
- Rightsizing recommendations: Identifies underutilized or misclassified users, preventing over-licensing and uncovering potential savings.
- Scenario simulation: Models the cost and compliance implications of various SAP migration paths, helping organizations choose the best-fit licensing model.
- Negotiation support: Provides transparent reporting that strengthens contract discussions with SAP, ensuring organizations pay only for what they need.
- Ongoing governance: Delivers continuous monitoring post-migration, helping enterprises adapt to evolving software licensing structures and prevent cost creep.
Building Confidence in SAP S/4HANA Migration
A successful SAP S/4HANA Migration requires more than technical execution—it requires disciplined license management. Optimizer for SAP® Licensing enables organizations to:
- Understand the true cost of SAP migration before committing.
- Align user roles and licenses with actual business requirements.
- Negotiate contracts from a position of data-driven strength.
- Maintain compliance and cost control in the cloud era.
By transforming licensing from a source of confusion into a foundation of clarity, enterprises can accelerate their S/4HANA Migration while avoiding financial and operational setbacks.
With Open iT’s Optimizer for SAP® Licensing, organizations gain the transparency and governance necessary to move confidently toward S/4HANA, ensuring that each licensing decision contributes to sustainable business value.
Book a free demo with Open iT to uncover new savings and maximize your SAP ROI.
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