Unleash the Power of SAP Licensing: Top 5 Strategies for Substantial Savings

Brace yourselves because SAP has recently dropped a game-changer! SAP has officially announced a 3.3% support cost increase, catching many by surprise. With fluctuating economic scenarios, are you seeking intelligent ways to enhance your SAP investment efficiency? If so, the secret lies in effective SAP license management.

In this blog post, we'll unpack five powerful strategies to help you unlock the full potential of your SAP licenses while reducing superfluous costs. By adopting a strategic licensing approach, you can trim expenses by paying only for what you genuinely need.

Dive Deep into Demand/Consumption Analysis
The first significant stride toward SAP license optimization is a meticulous demand/consumption analysis, which we lovingly call ELP (Enterprise License Position). By mapping license allocation with actual usage, you can streamline your licensing strategy and magnify the return on your SAP investments. This in-depth evaluation involves an exhaustive review of your current license inventory, a robust understanding of the various license types, and a careful assessment of your license utilization. Notably, LDS found that, on average, 30% of the SAP software licenses purchased by customers are unused, which presents a goldmine of potential savings that can be right-sized or exchanged for the funding of new initiatives.
Conduct a Compliance Check and Grasp Your Indirect Access Risk
Indirect access risk, the potential licensing violations resulting from users accessing SAP systems via interfaces or third-party applications, looms in all software spaces. Regular compliance checks are indispensable in managing your SAP licenses effectively. These checks offer visibility into your indirect access risk, enabling you to proactively nip unnecessary licensing expenses in the bud and ensure compliance with licensing agreements. You should tackle this risk proactively and purchase digital access documents on your terms instead of SAP’s, avoiding unpleasant surprises and back penalties in a SAP audit.
Sweep Out Inactive and Unrequired User Licenses
Rooting out inactive and unneeded user licenses is vital in boosting the efficiency of your SAP investments. Routine license audits can help pinpoint licenses that have become redundant due to changes in user roles or business procedures. Establishing a clear understanding of license usage across your organization is critical during this cleanup process. Upon initiating reviews, we've noticed a fascinating pattern. Many of our clients are initially confident, as assured by their SAP admins, in the robustness of their processes and the absence of inactive users. However, once the review concludes, it's a regular occurrence to discover that over 20% of users are, in fact, inactive.
Spot and Eliminate Shelfware Software Licenses and Support
'Shelfware' denotes unused or inadequately used software licenses and support agreements, leading to unnecessary expenses. SAP operates differently from other providers such as Microsoft, among others, where your Enterprise Agreement (EA) maintenance is typically renegotiated every three years. With SAP, upon purchase, you are instantly signed up for lifetime maintenance until you decide to terminate it. Over time, even if a product is no longer in use, clients frequently continue paying for support due to lack of awareness caused by numerous name changes or fear of discontinuing if the product is still in use. Here, a thorough in-house or third-party assessment of your SAP software suite can aid in discovering these inactive licenses and understanding the evolution of various product name changes. Collaborating with licensing professionals can expedite the process of spotting and terminating shelfware licenses, yielding substantial cost savings.
Explore the Potential of Third-Party Support Providers
When contemplating third-party support, examine your existing support agreements and compare them with different providers. Consider factors like service quality, response time, and cost savings. Transitioning to reputable third-party support like Remini Street or Spinnaker can substantially reduce costs while efficiently maintaining your SAP systems. Benefits may include proactive system monitoring, performance optimization, and access to an expansive knowledge base, often with a significant cost reduction on the support bill.

Final Thoughts

At Licensing Data Solutions (LDS), we adopt the same tools like SLAW, LMBI, USMM, etc., as well as the methodology that SAP uses during an enhanced audit to assess demand and consumption needs. Remember, SAP investment optimization goes beyond the software—it demands a strategic approach to licensing. You can maximize the value derived from your SAP investments by evaluating your licenses, cleaning up unnecessary ones, understanding indirect access risk, and exploring third-party support. Reach out to Licensing Data Solutions (This email address is being protected from spambots. You need JavaScript enabled to view it.) to navigate the complexities of SAP licensing and drive substantial cost efficiencies. Command your SAP investments today and uncover the full potential of your software while cutting down on unnecessary expenses.